Minbos Resources delivers additional resource tonnes to DSO phosphate operation at Cabinda

Emerging phosphate developer Minbos Resources (ASX: MNB) is starting to unleash the potential of the Cabinda Phosphate Project in the Republic of Angola.

The latest phosphate (P2O5) highlights from aircore exploration drilling for the project are from the Chivovo Prospect, with intersections such as:

- 15 metres at 27.4% P2O5 from 15 metres, including 6 metres at 30.5% P2O5;
- 22 metres at 19.9% P2O5 from 1 metre, including 6 metres at 30.5% P2O5;
- 13 metres at 21.4% P2O5 from 11 metres, including 5 metres at 25.9% P2O5; and
- 29 metres at 20.4% P2O5 from 24 metres, including 15 metres at 25.0% P2O5.

These results are from vertically drilled holes into flat lying phosphatic beds, and accordingly the intervals are an approximate true thickness.

Drilling at Chivovo kicked off in July this year and was based on an initial drilling program of 500 metres.

This program was subsequently expanded to complete the geological interpretation of the area and establish enough mineralized intersections to create a geological model. In total 28 holes were drilled for 1327 metres.

Peter Richards, executive chairman, commented “Minbos is very pleased with these Chivovo assay results which not only confirm the high grade potential of Chivovo but provide additional confirmation of the high grade potential of the eastern lineament within the Cabinda license area.

"In addition, these grades confirm that the Chivovo resource estimate will add resource tonnes to the proposed high grade DSO operation at Cacata which is currently being assessed."

Investors will no doubt be waiting in anticipation for the Scoping Study at Cacata, which is forecast to be completed by the March quarter of 2012.

The Cabinda project - five deposit potential

Cabinda comprises five deposits; Mongo Tando, Cacata, Chibuete, Chivovo and Ueca, with an exploration target of 333Mt to 538Mt at 10% to 20% P2O5.

A global resource estimate for all five orebodies is due before the end of 2011.

Importantly - Mongo Tando already hosts an Inferred Resource of 117 million tonnes at 13.6% P2O5, while Cacata and Chivovo have shown significant tonnage of high grade, potentially direct shipping ore at shallow depths.

Recently a resource estimate for Cacata of 22.5Mt at 21.4% P2O5 was announced, where a Scoping Study recently commenced on a DSO operation from the deposit.

Test work on Mongo Tando sample readily upgraded

A 50 kilogram ore sample from the Cabinda Mongo Tando deposit was sent to Behr Dolbear in Florida, U.S. for preliminary bench scale test work.

The sample had a head grade of 8.5% P2O5 and was readily upgraded to 34.7% P2O5 at a recovery of 62%.

Minbos said that these results essentially confirm the historical test work that was carried out by the Colorado School of Mines in 1969 and AIM Laboratories in 1970.

To follow up these results, the company will conduct further exploration, with diamond drilling targeting an increase to the Mongo Tando resource to the higher confidence category of Indicated, and will also provide samples for detailed metallurgical work from both the high grade Cacata and Mongo Tando deposits.

Regional infrastructure

Ticking another box for Minbos at Cabinda, the project is located close to major infrastructure with good access to ports.

The project is positioned 50 kilometres from the ocean, in an area heavily populated by oil companies, with excellent services and accommodation.

Another benefit is that regional roads have undergone upgrading, with a 35MW power station being built in Cabinda.

Company strategy

The Minbos strategy is to specifically target the development of low cost phosphate projects, in order to tap into the growing global demand for fertilisers.

Based on initial assays, the company intends to commence a Scoping Study to determine project economics for a standalone DSO phosphate rock export operation.

Minbos believes that a rapid valuation re-rating may occur as JORC Resources are added to the recently released Inferred resource over a period of 6 months followed by Pre-Feasibility results within 18 months.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20295/minbos-resources-delivers-additional-resource-tonnes-to-dso-phosphate-operation-at-cabinda-20295.html