Montero Mining appoints Turgis for Duyker Eiland PEA, due out in Q1 2012

Montero Mining and Exploration (CVE:MON) said Monday it has appointed Turgis Consulting to undertake a preliminary economic assessment (PEA) for its Duyker Eiland sedimentary phosphate project in South Africa, due to be released during the first quarter of next year.
Turgis is a Johannesburg-based engineering consultancy, focused on the mining industry, and has over 20 years of experience in engineering projects for mining companies in Africa.
Montero said the purpose of the study is to determine whether there are positive economics for the project, and will include a conceptual mine, plant, and infrastructure layout, as well as a basic risk assessment to show any "fatal flaws and areas of sensitivity" that require specific focus in the future.
The report will also look to define any work required for any pre-feasibility study done in the future.
"We are pleased to announce that a PEA on the initial Inferred NI 43-101 Mineral Resource at Duyker Eiland is well underway," said president and CEO, Dr Tony Harwood.
"Turgis have valuable local expertise and have been involved with this project throughout the due diligence exercise completed prior to acquisition.
"Turgis are also providing mining consulting services onour flagship Wigu Hill Rare-Earth Project in Tanzania as we focus on bringing this into production, however the phosphate assets provide excellent value-add to Montero’s portfolio.”

Work on the PEA has already begun and is due to be completed by year-end, the company said.

In mid-November, the company announced an initial resource estimate for the project, outlining a total inferred mineral resource of 32.8 million tonnes at a grade of 7.15% P2O5 from the preliminary drilling program of 26 boreholes, or 613 metres.

The company said that initial metallurgical test work thus far showed that an acid-grade phosphate concentrate of 33% to 35% P2O5 can be produced by flotation. The tests used a composite of material from the three mineralized zones, the Lower, Middle and Upper zones, prepared from reverse circulation material from four holes.

The project is located roughly 18 kilometres north of Vredenburg and 140 kilometres north-northeast of Cape Town. The Port of Saldanha, which has handled cargo in excess of 45  million tonnes annually, is 30 kilometres to the south.

The company said there is upside potential of increasing the resource base, by expanding the drilling program mainly to the north and west,  as the deposit remains open in those directions.

Montero Mining is primarily focused on rare earth elements (REE), phosphates and uranium in Tanzania, South Africa and Quebec, Canada. Its flagship Wigu Hill REE project in Tanzania has an inferred resource of 3.3 million tonnes at a grade of 2.6% light rare earth oxide (LREO5) on the Tembo and Twiga deposits, covering just the eastern ridge of the property.