Rock Phosphate

[Bushman]

Given the strong price rise in rock phosphate as of late, I thought I would see if there are any other ASX listed companies with rights to Rock Phosphate deposits apart from Incitec and MAK.

To paraphrase the MAK qrt, the world needs to eat, high oil prices is driving biofuels, and both need phosphate. Seems compelling reasoning to me.

Any other deposits out there?

 

[roland]

You may want to check out this link http://www.chemlink.com.au/phosphat.htm

has a few references that may help

 

[Bushman]

GCR has a 20% farm-in with Legend Itl on Mt Isa phosphate prospects. Prospect has a target of 200 mt rock phosphate grading 13.4% to 18.7% P2O5. Economics iof project are enhanced by proximity to Mt Isa.

I have also posted this on the GCR thread.

 

[gtsman_05]

Reward minerals - RWD

 

[Aargh!]

Announcement yesterday from MLX...

Metals X moves into Phosphate

METALS X LIMITED advises that it has entered into a Heads of Agreement
with entities controlled by Dr Howard Carr and Scott Bishop to establish a
75% owned subsidiary company which will acquire a 90% interest in the
Agaton Phosphate Project.

Metals X will hold a 75% interest in the new subsidiary company and the
vendors, All Classic Enterprises Pty Ltd and Bishop Exploration Pty Ltd will
hold a 25% shareholding and 2.5 million options convertible at 10cps any
time before 30 June 2011 in full compensation for the transfer of a 90%
interest in the mining titles which are the subject of the Agaton Phosphate
Project. The titles are currently at the stage of exploration licence applications. In addition the vendors will retain a 10% interest in the project
free carried to the completion of a Bankable Feasibility Study.

Agaton Phosphate Project

The Agaton Phosphate Project (“Agaton”) is located between the town of
Moora and the Cooljaroo Mineral Sands areas approximately 120km north of
Perth.

Unlike other major rock phosphate projects in Australia like Phosphate Hill
(Incitec Pivot) and Wonarah (Minemakers), Agaton is a phosphate sands project, with phosphate occurring as nodules and precepitates within sandrich
sedimentation of the Dandaragan Trough. The phosphate mineralisation is considered to have formed by precipitation during the mixing of cold phosphate rich waters with warm continental shelf waters, as has occurred in
the giant phosphate deposits of Florida.

At numerous times over the past century the phosphate sands at Agaton
have been investigated with a brief history as outlined below:

1911: Western Australian Government Surveyors report outcropping
Phosphatic horizons near Poison Hill within the Agaton project area.

1948: Western Australian Government Geologist (Matheson) conducts field investigations and authors a book entitled “the Dandaragan
Phosphate Deposits”. The Phosphatic Poison Hill and Mole Cap Greensand horizons are mapped sub-outcropping in a northerly direction over several kilometers to the north-east of the township of Dandaragan, within Agaton project area.

1960s: Harvard University Palaeontologists uncover and identify Cretaceous Mossasaur and shark teeth fossil remains within the phosphatic
horizons east of Dandaragan. These fossils are abundant within the Cretaceous Florida phosphate deposits and demonstrate that the
Dandaragan Trough also experienced cold phosphate-rich waters mixing with warm continental shelf waters and direct precipitation of phosphate minerals; conditions critical for the formation of giant Phosphate deposits.

1970s: Western Australian Public Works Department complete a series of deep drilling programmes across the Perth Basin, around 100 holes of up to 3000m depth are completed. The Gnangara, Jandakot, Yarragadee, and other important aquifers are identified and evaluated as potential metropolitan water sources. Drill cuttings are provided to BHP for evaluation of potential economic hydrocarbon and mineral occurrences.

1977: BHP correlates continuous stratigraphy (the phosphatic Poison Hill and Molecap Greensands and the Gin Gin Chalk) between more than 50 PWD drillholes between Perth and North Dandaragan and produces an interpretive sub-surface map of the Cretaceous Dandaragan Trough. Phosphatic drill cuttings are assayed with intersections of up to 20.8% P2O5, > 5cm phosphatic pellets and phosphatic fossils are recovered and the NewCo area is identified as that with the greatest potential to host economic phosphate mineralisation with the Perth Basin. Company geologists conclude that “the area could contain a resource of up to 600 MT of rock phosphate ore” (BHP 1977).

1981-86: The Wesfarmers (CSBP)/Australian Fertilisers Limited JV secures tenements across the Dandaragan Trough centred on Agaton, and completes reconnaissance drilling of the Poison Hill and Mole Cap greensands for Phosphate mineralisation. Despite drilling and sample recovery problems, the Poison Hill and Molecap Greensands displayed significant phosphate mineralisation in every drill intersection (76 drill holes, 590 assays, average 2.03% P2O5 & 5m thick).

Importantly, the north south trending Dambadgee Fault is drill intersected towards the east of the Dandaragan Trough and identified as an important structural control on higher grade mineralisation. The Poison Hill Greensand within an area 6.4km along fault-strike, and 2.9km west of the fault (the Dambadgee Fault Domain “DFD”) is identified as a contiguous higher grade,
shallower zone of mineralisation. (14 drill holes, average 2.2% P2O5 & 23m thick, including a subhorizon averaging 5.99% P2O5 & 5m thick from 17m).

Petrographic descriptions and preliminary metallurgical tests were completed by Amdel on drill cuttings of the Poison Hill Greensands selected from 4 different holes. Sizing studies show that pellet fragments of greater than 2mm grade 14% P2O5 and constitute 5 weight % of the sample. Grinding of the pellets followed by flotation produced a concentrate of up to 23% P2O5 and
recoveries of around 50%. The sub-1mm fraction was not flotation tested and gravity concentration studies were not attempted.

2007: The vendors apply for 4 Exploration Licences covering some 825km² centred on the Agaton area and covering all of the available strike length of the Dambadgee Fault, all of the previous Wesfarmers/ AFL tenements and all of the historic surface occurrences of Phosphate of the
Dandaragan Trough.

Since acquisition, the vendors have completed significant studies on the historic work including the establishment of a digital database, the acquisition and integration of gravity, aeromagnetic, high resolution topography, deep seismic cross-sections, regional geology/ structure and aerial photography with previous exploration results.

It has been confirmed that:

• there is significant thickness and lateral continuity of the Poison Hill Greensands across the tenement area, including the higher grade DFD mineralisation.

• substantial tonnages of phosphatic sands exist and have significant potential to be upgraded using
conventional mineral sand concentrator technology to a high grade P2O5 feedstock.

• the mineralisation is considerably shallower within topographic lows and a sizeable proportion of DFD mineralisation is between 17 and 25m below surface.

• the structural architecture of the surrounding Perth Basin and the general structural architecture of the Dandaragan Trough, including abundant graben / trough structures in underlying sediments show positive implications for Cretaceous pellet trap sites.

Metals X believes the Agaton Phosphate Project holds excellent potential to evolve into a long-term producer of phosphate feedstock through sand mining processes and although at an early stage with title still pending, Metals X intends to put its muscle and expertise behind additional exploration, valuation and commercial assessment of the project.

Metals X Managing Director, Peter Cook said “we are excited by this venture and we have for some time been looking at establishing an industrial minerals arm as part of our diversification. This exciting project, in an industrial commodity that is facing significant demand and supply-side shortfall is a great way o start”.

 

[Bushman]

Guess who has been buying rights to all the phosphate in the Georgina Basin in Qld - Diamond Joe Gutnick through his OTC listed Legend Itl holdings - see below. 1.5b mt and counting including the GCR farm-in.


http://www.lgdi.net/pdf/Legend_Phosphate_February_2008.pdf

Anyone familiar with the OTC in the US?

 

[Bushman]

So the companies to be listed on this thread has grown somewhat. Adding potash to the list, we now have -
MAK
RWD
STB
GCR
ADY
IIC

Then there are the bigger boys, Wesfarmers, Metals X and Incitec.

Still not many poo pioneers on here. Lets see how it goes as Aussie explorers try and source some global deposits outside Wesfarmers and their West Saharan bounty and IIC and their Chinese operation.

 

[Bushman]

Whoops IIC should be CII - CI Resources. They have a 38% stake in 3 phosphate mines in China. Have a look at the ann dated 1/5/08 amongst others.

Dyslexia?

 

[Captain_Chaza]

So the companies to be listed on this thread has grown somewhat. Adding potash to the list, we now have -
MAK
RWD
STB
GCR
ADY
IIC

Then there are the bigger boys, Wesfarmers, Metals X and Incitec.



Still not many poo pioneers on here. Lets see how it goes as Aussie explorers try and source some global deposits outside Wesfarmers and their West Saharan bounty and IIC and their Chinese operation.

I have heard MNM have leases next door to MAK.
Please do your own reseach

Salute and Gods speed

 

[michael_selway]

Given the strong price rise in rock phosphate as of late, I thought I would see if there are any other ASX listed companies with rights to Rock Phosphate deposits apart from Incitec and MAK.

To paraphrase the MAK qrt, the world needs to eat, high oil prices is driving biofuels, and both need phosphate. Seems compelling reasoning to me.

Any other deposits out there?

Hi do you know any sites with current price history charts?

thx

MS

 

[kromey]

KRB worth a look.......... PHOSPHATE AT CORELLA BORE
Recent research by Krucible of work previously performed by Mines Exploration P/L (MEX) in 1966‐68, has
indicated possible ore grade phosphate on or close to Krucible's Corella Bore EPM 15572 (see Figure 1).
The Phosphate Hill Mine (located 150 km SSE of Mt Isa) is one of the world's largest producers and is
operated by Incitec Pivot Ltd. Surface sampling by MEX at the D10 prospect (located about 11.5km north of
Phospate Hill) returned 23m @ 12.5% phosphate(P2O5), including 2m @ 26% P2O5 ‐ this is within EPM
15572. Drilling at Phosphate South by MEX returned up to 7m @ 26% P2O5 ‐ this area is approximately
500m from the Krucible Corella boundary. The reserve ore grades at Phosphate Hill are quoted at around
23%. Krucible intends to carry out investigations of phosphate potential, particularly in areas where the host
Cambrian sediments (Beetle Creek Formation & Monastery Creek Group) are known to occur in Krucible
ground.
It is believed that these recent developments may significantly add to the value of the Krucible's diverse portfolio in
the coming year.

 

[d_crome]

MNM is definitely on my radar - adjacent to MAK (so I'm estimating nearology on this one) and a rather large COAL resource.

Trading mid 20's right now - any input people?

 

[exgeo]

What about Arafura ARU? One of their revenue streams will be from Phosphate (about 30% according to the presentation).

From page 20 of their 4/4/2008 presentation:

Phosphoric acid
Agricultural productivity - the World’s need for more protein

 

[blehgg]

URM should prolly be added to the list now ~
Funny that an "encounter" can raise their SP so much... 180% in a day is pretty decent

How bout Bonaparte Diamond Mines (ASX:BON) for a POOO speccy
http://www.abnnewswire.net/press/en/49054/BONAPARTE-DIAMOND-MINES-NL.html

Maybe the news a bit old ~ not much update recently

 

[exgeo]

The Nolans' REE project becomes the Nolans' REE-Phosphate deposit. But it does seem to have something for everyone:

o Phosphoric acid (PA) recovery process is operating and stabilised
o Initial results indicate a phosphoric acid recovery in excess of 80%
o Product quality is premium fertiliser grade
o Lower cost operating conditions
o Phosphoric acid prices at US$1,800* per tonne (as P2O5)
o Revenue from all Nolans Project products at current prices is US$575 million pa
• Rare earths US$300m
• Phosphoric acid US$210m
• Calcium Chloride US$40 million
• Uranium oxide US$25 million

 

[jradical]

So the companies to be listed on this thread has grown somewhat. Adding potash to the list, we now have -
MAK
RWD
STB
GCR
ADY
IIC

Then there are the bigger boys, Wesfarmers, Metals X and Incitec.

Still not many poo pioneers on here. Lets see how it goes as Aussie explorers try and source some global deposits outside Wesfarmers and their West Saharan bounty and IIC and their Chinese operation.

I see that some of these are still in exploration so would it be wise to speculate on these, or because the price of phosphate is going great guns is it a good idea to get on board?

is the phosphate price sustainable

 

[Sean K]

I see that some of these are still in exploration so would it be wise to speculate on these, or because the price of phosphate is going great guns is it a good idea to get on board?

is the phosphate price sustainable

The furthest developed should be left standing after the froth settles. I see a similar situation to the U bubble and what has happened to the spec end of that market. Roasted.

The % increases can`t be sustainable, should settle around a supply demand equilibrium at some point. God knows where that is. I hope above $200 long term to keep MAKs Wonarah viable.

 

[jradical]

The furthest developed should be left standing after the froth settles. I see a similar situation to the U bubble and what has happened to the spec end of that market. Roasted.

The % increases can`t be sustainable, should settle around a supply demand equilibrium at some point. God knows where that is. I hope above $200 long term to keep MAKs Wonarah viable.

Sorry, what was the u bubble??

$200 long term is about half of what it is at now, you wouldn't think all the phosphate companies could survive at this?

 

[nioka]

The furthest developed should be left standing after the froth settles. I see a similar situation to the U bubble and what has happened to the spec end of that market. Roasted.

You can't compare uranium with phosphate. The politics is different. There is no "four phosphate miner" policy and there are not state "no phosphate mines" policies. Phosphate miners will be judged on the quantity and quality of the phosphate first and the access and cost of production next.

 

[spooly74]

The policies may be different but when it goes pop, the slaughter of SP`s will not

I`ve had a quick look see and there doesn`t seem to be any upcoming IPO`s in the near future. Anyone know of any to put in the diary??