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Additional Information

Market:	ASX
Sector:	General Mining
EPIC:	POZ
Latest Price:	0.06 (1.67% )
52-week High:	0.20
52-week Low:	0.05
Market Cap:	6.70M

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Phosphate Australia Full Phosphate Australia profile here

Phosphate Australia (ASX: POZ) is targeting the production and sale of 500,000 to 1 million tonnes per annum of premium grade rock phosphate with low contaminants into the Asian market.

Highland Plains, the company's leading phasphate project in the Northern Territory, has an Inferred Resource of 56 million tonnes at 16% P2O5.

Phosphate Australia drilling studies indicate large water supply potential for Northern Territory project

Monday, December 07, 2009

Phosphate Australia (ASX: POZ) has advised that based on a 90% up-time for bores similar to WB02, it is expected an initial five bore field should provide enough water to support a one million tonnes per annum mining operation of beneficiated rock phosphate at the Company’s wholly owned Highland Plains phosphate project in the Northern Territory.

This follows the final report from a groundwater bore test drilling program in September at Highland Plains located within EL 25068 and 230 km from the Gulf of Carpentaria.

Four investigation bores were drilled in and around the area of the Highland Plains camp to assess the ground water resources that will be required to support any future mining and rock phosphate beneficiation operation.

Two bores were pump tested (WB02 and WB03), one bore was used as an observation bore during pump testing to measure drawdown (WB01) and two bores were suspended for future use (WB03 and WB04). Pump testing results were very positive for potential water production.

Pump testing of the best bore (WB02) at approximately 15 litres/second from shallow depths indicates potential yields of at least 25 litres/second with the maximum rate not determined due to capacity limitations of the test pumping equipment.

The results indicate the project area should have sufficient groundwater to support the production of one million tonnes per-annum of beneficiated rock phosphate.

With the encouragement from this water bore drilling, the Company is now initiating a study to assess the potential for a 3 million tonne per annum slurry pipeline option to the Gulf of Carpentaria.

This option would allow for much lower transport and operating expenses and provide further flexibility with transport options.

Managing director Andrew James said water was an essential part of the beneficiation process and another milestone has now been achieved by the Company.

"The path towards production and trucking to the Gulf of Carpentaria of one million tonnes per-annum of beneficiated rock phosphate is being actively pursued and has been assisted considerably by these latest results," Mr James said.

"The 3 million tonne per annum slurry pipeline option now being studied adds further potential and depth to the Company’s development alternatives."

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