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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 receives positive news on 3mtpa slurry pipeline initiative

Friday, January 29, 2010 by Proactive Investors

Phosphate Australia (ASX: POZ) said it had received a positive outcome from a study to transport up to 3 million tonnes per annum of phosphate product via slurry pipeline from Highland Plains to the Gulf coast - at very low transport costs.

The project is located within EL 25068 abutting the NT border with Queensland and 230 km from the Gulf of Carpentaria.

Transport costs were estimated from only A$2.06 to $3.69 per tonne (pipeline operating costs only). It said these very low transport costs completely changed the potential economics of the Highland Plains phosphate project both in terms of scale and operating costs.

Metallurgical flotation test results were also very positive from the coarse and fine fractions with continuing improvement in recoveries.

These slurry pipeline opportunities and results were as a result of the excellent water drilling results announced on 7 December 2009. And that not all phosphate projects are as well endowed with water as Highland Plains.

Scoping level capital expenditure estimates to build such a pipeline are estimated at $184 to $226 million depending on option selection. This does not include the mine-site preparation plant or dewatering plant at the barge site.

For a 3 mtpa operation these capital costs appeared to be realistic.

A barging and storage facility will also be required on the Gulf coast and the company is studying these requirements. Road transport alternatives are still possible for transporting phosphate product. However, the slurry pipeline options are now being more actively pursued due to this low OPEX opportunity presented to the company.

The company will commence resource drilling in early April at Highland Plains in support of the 3mtpa objective. This program will involve both PQ core and RC drilling and will allow the construction of a detailed resource model over the entire Highland Plains project area.

Upon completion of this program an updated resource estimate will be calculated by POZ’s independent consultants, Cube Consulting.

The Company had $6.95 million cash on hand as at the end of the December quarter.

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