Metallurgical testwork has been undertaken by Phosphate Australia (ASX: POZ) on selected reverse circulation and diamond drill core samples from the 2008 program at Highland Plains in the Northern Territory.
Interestingly for investors, early results may indicate that high recovery at concentrate (product) grade may be achievable.
Further testwork program will be undertaken to optimize both grade and recovery. Rounds of future test work will also include the diamond core samples from the recent 2009 drilling which will further enhance results.
The recently completed RC drilling program results are still pending. The company said it is "focused on continuing to advance our 100% owned Highland Plains Phosphate Project to an independent mining operation."
POZ's Highland Plains project in the Northern Territory has a total JORC Inferred Resource of 56 million tonnes at 16% P2O5 with a lower cut off of 10% P2O5.
Recent Phase 2 Reverse Circulation (RC) drilling in one hole at Highland Plains intersected 19 metres at 25.6% P2O5 from 3 metres, and includes 12 metres at 31.1% P2O5 from 9 metres. The results represents exceptionally strong and thick mineralisation from a very shallow depth.
The aim of Phase 1 work was to clearly identify the area at Highland Plains where a commercial phosphate mining operation could be initiated. As a result of Phase 2 results, the focus on the Western Mine Target Zone has been justified as the Western Mine Target Zone has shallower mineralisation, with a lower strip ratio anticipated to enable the building of a low capex ‘starter mine’.
The Company had $6.2 million cash on hand as at the end of the March quarter.
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