Celamin Holdings initial drill results underpin Tunisian phosphate projects

Celamin Holdings (ASX: CNL) has received results from a preliminary program of drilling in the Chaketma Exploration Permit in Northern Tunisia that confirm highly promising phosphate mineralisation grades and thicknesses.

Further work is planned to process this material to a saleable product which will test whether a +30% phosphate product can be made from the generally +20% phosphate drill intercepts.

The analytical results have been received for the first 187 samples from six of the twelve drillholes completed, with the thickest intercept at the Gasaa El Kebira prospect in hole three returning 24 metres at 19.8 % phosphate at a 10% phosphate cutoff grade.

Hole eight at Sidi Ali Ben Oum Ezzine is the next thickest intercept with incomplete results showing 16.4 metres at 20.75 % phosphate at the same cut off grade from 15.6 metres downhole.

David Regan, Celamin Holdings' executive director, said "we are keen to get the outstanding results from the remainder of the drilling and trenching, as well as the metallurgical program currently underway.

"The grade and thickness in particular support the sorts of targets we developed in the Bir El Afou Pre-Feasibility Study.”

As a result of a $1 million funding injection by the company announced on August 30 2011, Celamin is making solid exploration progress at Chaketma which is contained within a 56 square kilometre area.

Through Celamin Ltd, the company's immediate focus is the Bir El Afou Phosphate project held in partnership with local company Tunisian Mining Services SA (TMS). A Pre-Feasibility Study targeted on a high grade, low cost Stage 1 mine development has now been completed.

The Chaketma project has a larger target than Bir El Afou, where there is potential to host 150-200 million tonnes of phosphate at grades of 17%-22%.

In an important recent development on November 23, Celamin Holdings signed the final agreement which clears the way for the completion of the acquisition of Celamin Limited, which holds the North African phosphate and base metals assets. The acquisition means that Celamin Limited will become a 100% subsidiary of Celamin Holdings.

Celamin and TMS have now completed a 12 hole (1,200 mettres) diamond core drilling program and a 600 metres trenching program at Chaketma.

The trenching is complete and sampling is currently underway. The drilling is focused on the Gasaa El Kebira part of the EP initially. This prospect covers more than 2.0 square kilometres. It also included drillholes into two other areas, Kef El Louz and Sidi Ali Ben Oum Ezzine.

The initial drilling sample phosphate mineralisation grade and thickness results provide encouragement to Celamin. However, the observed geology of the phosphate mineralisation at Chaketma is different to that at Bir El Afou and further work is planned to test process this material to a saleable product.

Current metallurgical test work is testing whether a +30% phosphate product can be made from the generally +20% phosphate drill intercepts.

The company has commenced planning of the next phase of drilling at Chaketma with a further 12 hole program scheduled to test Kef El Louz and Gassaat Ezzerbate.

This first pass program is designed to determine the depth of over burden and the thickness and grade of the phosphate zone, before committing the to the resource definition phase of the exploration program.

Celamin continues to step up work that will further delineate the potential of its Oued El Kabir precious and base metal project in Algeria.

Celamin has also acquired rights to several base metal tailings Projects in Tunisia with TMS and is farming in to an exploration permit with base metal (lead/zinc) targets.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22983/celamin-holdings-initial-drill-results-underpin-tunisian-phosphate-projects-22983.html