Tuesday 28 July 2009

Union Resources enhances world class phosphate resource at Namibian project

Namibian phosphate project developer, Union Resources (ASX: UCL) has announced a maiden indicated resource estimate at the joint venture phosphate project EPL 3414 in Namibia.

Indicated Resource is 47.2 million wet tonnes (35.4 million dry tonnes) grading 21.7% P2O5. Inferred Resource is 1,232.0 million wet tonnes (924.0 million dry tonnes) grading 19.3% P2O5.

Union Resources is developing this world class size resource through a Joint Venture with Australian based and ASX

listed Bonaparte Diamond Mines NL (ASX: BON). A local third party Namibian company, Tungeni, is also part of the Joint Venture.

Union and Bonaparte each hold a 42.5 per cent stake in the project. Minemakers (ASX: MAK) now controls Bonaparte. Minemakers also purchased a 9.64 per cent interest in Union through a scrip deal with Toronto Stock Exchange-listed base metals miner Lundin Mining AB.

Hence, upside for Union appears interesting given it strategic ownership of the Project - and the appetite by Minemakers to increase its phosphate resource inventory.

The phosphate resource is a submarine phosphate deposit occurring 60 km offshore from the Namibian coast. The resource is geologically simple and well understood and consists of unconsolidated sediment with no cover, mainly peletal francolite and phosphate granules of about 1mm. The resource is readily minable with well proven dredging techniques.

Accordingly, the resource is potentially easy to beneficiate with simple screening to remove shells and cyclone to remove fines and wash with fresh water to produce feedstock for standard PA plant.

Low operating and capital costs are anticipated which will make this mine, when developed, a low cost producer.

Maiden independent JORC compliant resource estimate at the project is 593.4 million tonnes (inferred) at 18.1% P2O5 for ELPs 3414 and 3415, based on a cut off grade of 15% P2O5.

EPL 3414 forms part of the Namibian Sandpiper/Meob Phosphate Joint Venture carried on by joint venture partners Union, Bonaparte Diamond Mines NL and Namibian Company Tungeni Investments.

www.proactiveinvestors.com.au

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