Ardmore Phosphate Project

 

Commodity:

Phosphate

Ownership:

100%

Location:

North West, Queensland

Summary:

The Ardmore high-grade phosphate rock project is located 128 km south of the City of Mount Isa in North West Queensland. Ardmore is a smaller high-grade undeveloped satellite deposit to the Duchess Mine which is located around 70 km east and feeds the Phosphate Hill ammonium phosphate fertiliser plant. The project is one of the very few undeveloped high-grade phosphate rock projects in the world, and the acquisition provides Centrex an opportunity to fast-track development of an advanced asset into revenue generation.

Centrex plans to develop a phosphate rock export operation at Ardmore to supply the nearby Asian and Australasian markets. With the bulk of the export market coming from North Africa and the Middle East, Ardmore will have a large freight advantage to these markets. Ardmore’s already high phosphate grade means processing costs will be lower than the majority of producers that require significant beneficiation to reach export grade levels. The deposit outcrops and is very shallow with the target phosphorite unit hanging wall and footwall average contact depths being 8.3 m and 12.0 m respectively based on drilling to date, indicating favourable shallow open-cut mining operations. From historical bulk sample excavations at the site down to 10m using a D9 dozer, the mined material is expected to be “free-dig” without the need for drill and blast.  The Morocco 70% Bone Phosphate Lime (“BPL”) phosphate rock contract benchmark in October 2016 was $US 110/t free alongside (“FAS”), and is forecast to hold over the long-term (World Bank Commodities Price Forecast October 2016).

Centrex plans to truck product from Ardmore 90 km to the Mount Isa-Townsville rail line and export from Townsville through existing port facilities. Discussions are well advanced with infrastructure owners including site visits.

JORC:

An exploration target has been reached for this project.  For more information please see the following announcement:

http://www.asx.com.au/asxpdf/20170202/pdf/43fr772d32lgt0.pdf