Celamin Holdings (ASX: CNL) has provided an update on progress at its phosphate and tailings projects in Tunisia, and its base metals project in Algeria.
Celamin recently received trench and drill hole sampling results for trenches and a pit at the Bir El Afou Prospect, confirming the phosphate mineralisation in Tunisia as expected.
The Bir El Afou Phosphate Project is held in partnership with local company Tunisian Mining Services SA (TMS) and Celamin is targeting first mine production by the end of 2013.
The Pre Feasibility Study (PFS) on the project commenced in October last year and is targeted for completion in September this year.
The stage one production target is 1.5 million tonnes per annum (Mtpa) of +32% phosphate (P205) (+70% BPL).
The stage one Resource target potential is 23‐27 million tonnes of 14‐16% P205 ROM.
Drilling and trenching has been completed at Salsala, Zebouzi (results being assessed) and Bir El Afou Blocks A, B and C, where results are awaited. Drilling is ongoing at Boukechrid (Block G).
Importantly, rail access has been agreed with Tunisia Rail and a shared berth, shed and rail spur has been identified and applied for with Rades Port. Rail and Port studies by an Australian specialist sub‐consultant have endorsed the plan.
Significantly, Celamin's memorandum of understanding with International Fertiliser Company (IFC) is progressing and a full agreement is expected to be reached shortly.
The Chaketma Phosphate Project covers an area of 56 square kilometres. There is target potential of 150‐200 million tonnes of 17‐22% P205 at four prospects.
The initial focus area is the Gasaa El Kebira Prospect. Resource delineation will be reached during the Bir El Afou Prospect feasibility study and stage one mapping and sampling has commenced.
The project has a minimum budget of $1.5 million to 2013 (3‐year EP term). A development decision will be based on an expanded/new offtake commitment.
At the Tunisia Tailings Project re‐treatment of old mine tailings/dumps is being undertaken. Stage one is using proven process technology and an environmental ‘clean up’ is being done.
The company is focussing on four dumps with a target potential of 2.5-3.0 million tonnes at 2.4–2.8% lead (Pb) and 2.6‐3.0% zinc (Zn). Process testwork is underway and due for completion at the end of the third quarter.
A Scoping Study is targeted for the end of 2011 and Celamin has a budget of $0.3 million. The company aims to complete the Feasibility Study in mid 2013, which has a budget US$2.0 million.
The Algeria Oued El Kebir Project has an Inferred Resource of 11.5Mt at 2.6% Pb, 2.1% Zn, 0.7% copper (Cu) and 95 grams per tonne (g/t) silver (Ag) from more than 160 diamond drill holes and U/G development sampling previously completed by Russians.
A data review has been completed indicating exploration upside.An access road upgrade has been completed by Celamin's partner.
A final agreement for the project was signed in April 2011 and planning is underway for a due diligence program.
Substantial shareholders in Celamin include Lion Selection Group (NSX: LGP) with a 14.55% stake and Commonwealth Bank holding 5.02%, reflecting the potential upside in this little known phosphate play.