Celamin Holdings moves phosphate projects forward in Tunisia with funding advance

Celamin Holdings (ASX: CNL) has advanced a further $1 million to Celamin Ltd to fast-track drilling at the highly prospective Chaketma Phosphate and tailings project in Tunisia.

Funds will also be used to complete the Pre Feasibility Study (PFS) and defining a maiden JORC Resource on the Bir El Afou Phosphate project, also in Tunisia.

This further tranche of funding is pursuant to the terms of Celamin Holdings acquisition agreement with CL, which has interests Bir El Alfou, and Chaketma, with conceptual potential to host from 230 to 320 million tonnes of P2O5 at grades of 17 to 22% P2O5.

Kevin Nichol, chairman, said "the board has provided an environment conducive to the completion of the roll up of the projects and companies into one listed entity as quickly as possible.

"This will assist in the application of the provisions of Chapter 11 and the application or otherwise of the provisions of Chapter 1 and 2 of the ASX Listing Rules. This further advance helps us take this exciting project forward as quickly as possible".

The company is targeting a PFS and JORC resource announcement for Bir El Afou for the end of September and this funding will help ensure compliance with the previously announced project timetable.

Celamin Holdings has recently contracted a senior geologist to assist CL in completion of the PFS.

The company has also contracted independent consultants to complete an independent valuation of the CL projects in order to provide Celamin Holdings shareholders with the required information to assist them when voting on resolutions to approve the full merger of the company and CL.

The company expects the shareholder meeting to be held later this year.

Chaketma Phosphate Exploration Permit

Celamin is in a joint venture with Tunisian Mining Services at Chaketma, which is contained within a 56 square kilometre area, and carries conceptual targets with potential to host 150 to 200 million tonnes of P2O5 at grades of 17 to 22%.

Celamin holds an 80% interest in the 3 year exploration permit, and has already identified multiple exploration targets with an initial focus at the Gasaa El Kebira Prospect. This project has larger target potential than Bir El Afou.

Fieldwork commenced in this permit during the last quarter with reconnaissance mapping and sampling being undertaken, at Gassaa El Kebira, Gassaa El Sghira and Kel El Louz.

With regards to tailings, the metallurgical testwork program will commence on receipt of a testwork reagent which is currently ordered.

A $300,000 Scoping Study is planned to be completed during 2011.

A positive outcome will trigger Feasibility Studies at a cost of US$2.0 million, with completion set down for mid 2013. Development costs have been estimated at US$7.5 million, with a production start planned in 2014.

Bir El Alfou Phosphate Project

The Bir El Alfou Phosphate Project, located in Western Tunisia, is a joint venture between Celamin Ltd and Tunisian Mining Services, with an 80%/20% split.

Celamin will be responsible for an earn-in that will fund and complete a Bankable Feasibility Study, at which time each partner will hold an equal 50% interest.

With Commonwealth Bank of Australia lifting its stake in Celamin further in June, and African resources investor Lion Selection Group holding 14.5%, the future looks bright for this phosphate explorer planning for phosphate production.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19098/celamin-holdings-moves-phosphate-projects-forward-in-tunisia-with-funding-advance-19098.html