Minbos Resources (ASX: MNB) is focused on the Cabinda phosphate project which covers an extensive 400,000 hectare across Angola and the DRC.
An Exploration target (confirmed by Coffey Mining Pty Ltd) of 333 million tonnes to 538 million tonnes with grades reported historically of around 10% to 20% of phosphate bearing material located within the Angolan licence area.
Minbos Resources' (ASX: MNB) discovery of near surface direct shipping ore potential at the at the Cacata and Chivovo deposits in the Cabinda province of Angola will improve the economics of the Scoping Study.
The West African project hosts a JORC Resource of 254.1 million tonnes at 12.6% phosphate, with further upgrades to the two deposits expected to lift this figure.
These results, along with a Scoping Study that is expected to be released soon, will form the basis of a Bankable Feasibility Study on Minbos’ Cabinda projects. A Resource upgrade at Cabinda is expected in the second half of 2012.
Diamond drilling at Cacata and Chivovo returned grades that were, on average, 11% higher than twinned aircore holes.
Highlights from the program included:
- 11 metres at 31.4% phosphate from 0.9 metres;
- 17.11 metres at 28.95% phosphate from 7.61 metres; and
- 16.63 metres at 28.24% phosphate from 8.15 metres.
The latest results confirm the high grade and direct shipping ore potential at Cacata, which is complemented by mineralisation at Chivovo.
Drilling was designed to upgrade a portion of the resource at each deposit into a higher confidence category.
At Cacata, part of the Indicated Resource of 33.9 million tonnes at 15.75% phosphate, including 22.5 million tonnes at 15.75% phosphate, will be upgraded to a Measured Resource.
Meanwhile, a portion of Chivovo’s 6.7 million tonnes at 20.3% phosphate Inferred Resource will be increased to Indicated category.
Minbos executive chairman Peter Richards said: “We are excited by the results from this infill diamond drilling campaign, which have confirmed the high grade DSO nature of the Cacata and Chivovo deposits.
“The upgraded resource estimate for both deposits and results from the scoping study are due in the near future.
“These will form the basis for the Bankable Feasibility Study, which we envisage will commence immediately, taking Minbos within reach of achieving its goal of becoming a low capex and low opex phosphate rock producer and exporter.”
Ongoing exploration at Cacata and Chivovo will focus on the area that lies between the two deposits, with the aim of extending the life of the Cacata Project.
The deposits lie 40 kilometres along strike from one another, both within an Earthen Linament geological structure.
A deposit, named Cambota, has already been identified almost halfway between Cacata and Chivovo, with early drilling returning positive results.
Cabinda historical exploration
Historical exploration conducted at Cabinda included exploration by Companhia de Fosfatos from 1969 to 1973, and Energo during the 1980’s, when 45,000 metres of drilling outlined phosphate resources at Mongo Tando and Cacata and additional exploration targets.
Phosphate grades of 10% to 20% have been confirmed in these prospects, over a number of mineralised beds that average 14 metres in thickness and carry grades of 10% to 34% phosphate, hosting potential to contain 333 to 538 million tonnes of phosphate material.
Historical metallurgical test work produced a concentrate of 34% to 36% phosphate, with recoveries exceeding 75%.
Minbos’ phosphate projects are located within 50 kilometres of the ocean in area that is heavily populated by oil companies. Services and accommodation are excellent due to this oil and gas presence. All roads have undergone or are undergoing upgrade to highway standard.
The minimal distance to the ocean provides a major operating cost advantage over competitor deposits.
The acquisition of potash license areas where there is an occurrence of phosphate and potash mineralisation within the same license areas has been missed by some sections of the market as it provides synergies for shared infrastructure such as ports and roads, as well as dealing Minbos into the potash sector, where M&A activity and valuations are relatively higher.
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