Home' Australian Resources and Investment : March 2010 Contents AUSTRALIAN RESOURCES & INVESTMENT • MARCH 2010 • 165
The study is expected to be completed by late March 2010
however results to date indicate that a mining operation should
be viable, provided the Phosphate market continues to improve.
A summary of the JORC code compliant Inferred Resource at PHM
South is outlined below;
TABLE 1 -- CORELLA BORE/ PHM SOUTH INFERRED RESOURCE (SEPTEMBER 2009)
(COMPUTER GENERATED POLYGONAL METHOD BASED ON SIMPLE FLAT TO LOW
DIPPING TABULAR BODY)
The scoping study is based on a likely mining scenario of mining
500,000 to 700,000 tonnes per annum of relative high grade DSO
material ("direct shipping ore"), over a period of 6 to 8 years and railing
it to the coast at Townsville for sales both in Australasia and overseas.
This would be a "dry" mining operation with no need of "wet"
beneficiation techniques. It may also be possible to sell the lower grade
material to the nearby Incitec Pivot DAP/MAP plant which has a feed
stock of 23-24% P2O5. In addition the lower grade ore may be sold
directly to other customers or upgraded in a beneficiation plant at a
Depending on the scoping study results and forward projections of
the DSO market potential, recommendations should be made for
advancement to a Pre-Feasibility Study.
Work carried out to date as part of the Scoping Study includes;
3 Completion of a Preliminary Mining Study and Resource Assessment
by independent consulting group Mining Associates Pty Ltd. This
work has confirmed that most of the Inferred Resource would be
included in an "In Pit Resource" and is thus amenable to open pit
3 Modelling of possible mining scenarios and pit shells has been
carried out by Mining Associates. Detailed costs will be factored into
this modelling to assess the economic parameters for possible
3 Discussions have been held with Queensland Rail about likely freight
costs and availability of rolling stock to transport approximately
600,000 tonnes per annum from PHM South to Townsville.
3 Indicative costing suggests a break even range of $Au110-130 per
tonne for mining, transport and storage of a relatively pure
3 Meetings have been held with the Queensland Government about the
possibility of pegging a Mining Lease Application over the
Phosphate resource. A time frame of 1-2 years to obtain a granted
Mining Lease has been proposed.
3 Baseline Environmental Studies have commenced at PHM South,
under the supervision of C & R Consulting, to establish criteria for a
Mining Lease Application.
3 Krucible is also in the process of applying for permission to carry
out bulk sampling (under the conditions of the Exploration Permit
for Minerals) to assist in marketing of the Phosphate product.
3 Samples of drill core will be forwarded to Amdel Laboraties Ltd, as
part of the scoping study, to determine likely mining characteristics
for the high-grade Phosphate zones as well as testing lower grade
material for possible beneficiation upgrades by dry sieving and
3 Marketing of the Phosphate product will be a very important factor
in ensuring the success of an operation and test samples of material
have been prepared to forward to potential customers. Krucible
considers that it has a potential premium product because of the
high-grade, purity and very low amounts of impurities such as
Cadmium (most Phosphate rock imported from north Africa into
Australia and New Zealand is high in Cadmium).
Provided Phosphate prices improve and markets are secured for the
product, Krucible proposes to commence mining operations in 2011. The
fertiliser industry suffered a downturn in 2009, due to the Global
Financial Crisis, but already in 2010 there are positive signs that market
prices are likely to rebound (CRU News -- "Fertiliser Week" 21 January
2010 and "The Weekly Times" 25 January 2010).
Fe2O3) SiO2 CaO/P2O5
19.3 million tonnes @
4.60% 45.40% 1.32
8.3 million tonnes @
3.60% 26.20% 1.39%
5.0 million tonnes @
3.00% 16.70% 1.37
Early results indicate
Phosphate potential for
Significant progress has been made in
the Scoping Study currently being
carried out on the Company's PHM
South Phosphate deposit, located close
to the operating fertilizer mine and
plant at PHOSPHATE HILL (owned by
Location Plan Showing Krucible Tenements
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