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Phosphate Australia extends gold mineralisation in Western Australia

Last updated: 14:00 22 Mar 2013 AEDT, First published: 13:00 22 Mar 2013 AEDT

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Phosphate Australia (ASX: POZ) could potentially increase the Resource at its Tuckanarra Project in Western Australia with drilling having further extended the gold mineralisation at the Cable and Bollard Laterite prospects.

Zones of higher grade material have been discovered in the phase four aircore drilling program, and include intersections of 3 metres at 16.5 grams per tonne (g/t) gold from 6 metres at the Cable Prospect.

Other notable results from the Cable Prospect include 6 metres at 4.9g/t gold from 9 metres, 4 metres at 2.81g/t gold from 8 metres, and 2 metres at 2.08g/t from 15 metres.

Meanwhile, infill drilling at the Lucknow Prospect has delivered intercepts of 11 metres at 2.5g/t gold from 13 metres and 7 metres at 1.27g/t gold from 17 metres.

The Tuckanarra Project has considerable potential for development given its shallow mineralisation, high metallurgical recoveries, potential amenability for heap leaching and proximity to third party gold mills in the region.

Phosphate Australia recently defined a maiden Indicated and Inferred JORC Resource of 2.02 million tonnes at 1.55g/t for 100,700 contained gold ounces for the project.

The company is now updating the Resource model to include the new phase four drilling results, which will be followed by the start of pit design.

Tuckanarra is strategically located within trucking distance of three currently operating third party owned gold plants – Burnakura, Bluebird and Tuckabianna – in the vicinity.

The gold plant at Mount Magnet, 130 kilometres by highway, could also be an option for the higher grade material.

The higher grade material could be the key to developing a truck and toll treatment option.

Using a higher cut-off grade of 2g/t, the current Tuckanarra Indicated and Inferred Resource is 399,000 tonnes at 3.6g/t for 46,100 contained gold ounces.

A heap leach option has the potential for low start-up costs and the ability to treat more of the lower grade material.

Phosphate Australia is commissioning further metallurgical studies to test the potential for a heap leach mining operation at Tuckanarra.


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