Ammaroo Phosphate Project, NT

Overview

The Ammaroo Phosphate Project is located 200km southeast of Tennant Creek. The project area contains the billion tonne 40km long Ammaroo Phosphate JORC Resource, the satellite Ammaroo South JORC Resource, the untested Rockhole phosphate prospect with high-grade phosphate at surface, and significant greenfields potential in the northeast. The updated Ammaroo prefeasibility study was completed and the findings announced to the ASX 9 September 2015.

 Ammaroo Titles

Tenement status as of 30 June 2016, showing granted ELs in green and ML applications in pink and all drilling including in areas now relinquished. Rockchip samples are blue triangles. The various categories of JORC resources are outlined in dark blue. Independently estimated "exploration potential" outlined in light blue. Pastoral lease shown in green and Aboriginal land in yellow.

 Ammaroo Phosphate Resource Update

As a result of reconciliation of cultural exclusion zones, a revised resource estimate for the main Ammaroo phosphate deposit was announced to the ASX on 09 December 2014. This estimate of 1.145 billion tonnes P2O5 at an average grade of 14% P2O5 using a 10% cut-off or 348Mt at 18% using a 15% cut off has not changed since.

5% P2O5 cut off

 

Mt

P2O5%

Al2O3%

CaO%

Fe2O3%

K2O%

MgO%

MnO%

Na2O%

SiO2%

TiO2%

U3O8ppm

Meas.

203

12.7

7.66

17.6

5.28

1.12

0.98

0.21

0.18

48.2

0.41

21.2

Ind.

141

12.1

7.42

17.0

6.70

1.49

1.26

0.23

0.19

47.1

0.41

18.4

Inf.

2,300

10

7.3

13

6.8

1.6

1.0

0.3

0.1

54

0.4

21

Total

2,644

10

7.3

14

6.7

1.6

1.0

0.3

0.1

53

0.4

21

10% P2O5 cut off

 

Mt

P2O5%

Al2O3%

CaO%

Fe2O3%

K2O%

MgO%

MnO%

Na2O%

SiO2%

TiO2%

U3O8ppm

Meas.

135

15.4

7.18

21.1

4.94

1.08

0.78

0.18

0.19

43.6

0.39

22.8

Ind.

80

15.3

6.81

21.0

6.75

1.40

0.85

0.22

0.21

41.8

0.38

19.9

Inf.

930

14

6.9

19

6.6

1.4

0.7

0.2

0.2

47

0.4

25

Total

1,145

14

6.9

19

6.4

1.4

0.7

0.2

0.2

46

0.4

24

15% P2O5 cut off

 

Mt

P2O5%

Al2O3%

CaO%

Fe2O3%

K2O%

MgO%

MnO%

Na2O%

SiO2%

TiO2%

U3O8ppm

Meas.

60

18.4

6.58

25.1

4.11

1.00

0.68

0.16

0.19

38.9

0.35

24.4

Ind.

38

18.1

6.06

24.7

6.68

1.26

0.72

0.22

0.21

36.7

0.33

21.2

Inf.

250

18

6.30

24

6.0

1.2

0.6

0.2

0.2

39

0.3

29

Total

348

18

6.32

24

5.7

1.2

0.6

0.2

0.2

39

0.3

27

20% P2O5 cut off

 

Mt

P2O5%

Al2O3%

CaO%

Fe2O3%

K2O%

MgO%

MnO%

Na2O%

SiO2%

TiO2%

U3O8ppm

Ind.

21

24.3

5.07

32.8

2.93

0.80

0.53

0.14

0.15

28.9

0.25

25.2

Inf.

34

22

5.4

30

4.4

1.0

0.5

0.2

0.1

31

0.3

29

Total

55

23

5.3

31

3.8

0.9

0.5

0.2

0.1

30

0.3

28

23% P2O5 cut off

 

Mt

P2O5%

Al2O3%

CaO%

Fe2O3%

K2O%

MgO%

MnO%

Na2O%

SiO2%

TiO2%

U3O8ppm

Ind.

3.6

27.0

4.11

36.2

2.38

0.57

0.45

0.15

0.12

25.0

0.20

29.7

Inf.

8.1

26

4.8

35

2.5

0.7

0.5

0.1

0.1

26

0.2

24

Total

11.7

26

4.6

35

2.5

0.7

0.5

0.1

0.1

26

0.2

26

 December 2014 Resource estimates for the Ammaroo Phosphate deposit, trimmed to exclusion zones. Figures are rounded and totals include rounding errors.

Mineralised Domains

Mineralised domains, drill holes and cultural exclusion zones. The blue arrows indicate where mineralisation is open laterally at 10%. The resources quoted have been trimmed to exclude the cultural exclusion zones shown above.

 The Limestone Bore area includes approximately 4km of potential mineralised strike tested by a single traverse of 200m to 400m spaced RC holes. This area has insufficient drilling for estimation of Mineral Resources. Broadly spaced drilling in this area suggests the presence of an Exploration Target of around 50Mt to 100Mt at 8% to 10% P2O5 at a cut off grade of 5% P2O5, and 10 to 20Mt at 12% to 15% P2O5 at a cut off of 10% P2O5. These estimates are based on broad spaced drilling. The potential quantities and grades are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain that future exploration will result in estimation of a Mineral Resource.

 Ammaroo South Resource

On 12 June 2014, a JORC 2012 Inferred phosphate resource, estimated at 70Mt at 13% P2O5 using a 10% cut-off, was announced for Ammaroo South on EL25185. This has not changed since.

Cut Off

P2O5%

Mt

P2O5%

Al2O3%

CaO%

Fe2O3%

K2O%

MgO%

MnO2%

Na2O%

SiO2%

TiO2%

U3O8 ppm

5

170

9.5

5.0

13

1.8

0.6

0.3

0.09

0.07

66

0.3

21

10

70

13

3.8

18

1.4

0.4

0.3

0.06

0.06

59

0.2

26

15

13

17

2.8

25

1.1

0.3

0.2

0.05

0.06

50

0.2

33

 Ammaroo South Inferred Resource.

In addition to the above, there are two areas of exploration potential adjacent to Ammaroo South, where broadly spaced drilling suggests the presence of an Exploration Target of around 200Mt to 400 Mt at 7% to 10% P2O5 at a cut off grade of 5% P2O5, and 50 to 100 Mt at 12% to 15% P2O5 at a cut off of 10% P2O5. This was reported to the market previously and in the previous annual report. The estimate has not changed since.

Updated Ammaroo Phosphate Pre-Feasibility Study

The initial Ammaroo Prefeasibility Study was completed and announced in September 2014. Completion of the preliminary feasibility study supported the economic and technical potential of the project to be developed as a phosphate rock concentrate export operation or for the production of phosphoric acid or the production of downstream ammonium phosphate fertilisers using proven technologies.

A reassessment and update of the Ammaroo preliminary feasibility study baseline economic evaluation was announced on 9 September 2015. The base case economic evaluations were reassessed to take into account long term forecasts of the Australian dollar's value that are considerably lower than previous forecasts, potential labour and other cost reductions in the Australian capital project and resource industry environment, reductions to forecast costs of diesel and gas associated with significant reductions in global prices for oil going forward and a reassessment of phosphate commodity pricing assumptions based on recent price evolution.

This revaluation has led to a significant uplift in the potential value of the Ammaroo Phosphate Project.

   

Case A – 2 Million tonnes per annum Phosphate Rock concentrate

Case B – 500,000 tonnes per annum Phosphoric Acid (100% P2O5)

Case C – 1,020,000 tonnes per annum Ammonium Phosphate Fertilisers

Indicative 50% Geared Post Tax NPV @ 8%

A$M

790

1,280

2,250

Geared Post Tax IRR

%

31

26

27

Indicative NPVs are after tax project NPVs and do not include corporate overheads

A$M: Millions of nominal Australian dollars

August 2015 project valuation summary for Ammaroo Phosphate Project.

The Ammaroo phosphate project remains a global-scale, very long life resource, positioned in proximity to existing transport and gas infrastructure and located in a stable OECD country. Currently the majority of the world’s seaborne traded phosphate originates from the Middle East and Northern Africa whereby the long term security of supply remains uncertain under a number of realistic scenarios. Australia currently imports approximately 80% of its phosphate requirements from countries such as Morocco, China, Saudi Arabia and the USA. The Ammaroo projects proximity to the Central Australian railway provides assess to markets in Asia through Darwin and to southern Australian agricultural users that are located in proximity to the southern railway terminus.

For further information regarding the completed pre-feasibility study please click HERE

 Di Ammonium Phosphate Fertiliser

Di Ammonium Phosphate Fertiliser Produced from Ammaroo Phosphate Rock at Prayon's Laboratory in Belgium 

Ammaroo Phosphate Project Video from Rum Jungle on Vimeo.