Minemakers progresses Wonarah toward JV

THE BOURSE WHISPERER: Australian phosphate play Minemakers has engaged international phosphate and fertiliser consultancy KEMworks to lead an Enabling Study on the full scale development of its Wonarah project.

The Wonarah project has JORC & NI43-101 Compliant Inferred Resources of 1,258 million tonnes at 12% phosphorous oxide.

Senior managers from KEMworks have recently been on site, in Perth and in Darwin to work with Minemakers’ Wonarah project management.

The aim of the study is for KEMworks to provide a technical and economic overview of the various alternatives for the development of Wonarah and for downstream processing to produce phosphate fertilisers.

Their report is due to be delivered in August 2011.

Once completed, Minemakers is hopeful the study will allow Bombay Stock Exchange-listed NMDC Limited to determine whether it enters into a Joint Venture with Minemakers under which a full bankable feasibility study would be undertaken.

Minemakers signed a non-binding Memorandum of Understanding with Bombay Stock Exchange listed NMDC Limited in June to lay down a pathway for the development of the Wonarah Phosphate deposit in the Northern Territory.

Under the terms of the non-binding MoU, NMDC would purchase a 50% interest in Wonarah and would be responsible for securing a debt facility to allow project development.

Two senior NMDC managers in engineering/development and finance, respectively, will be in Australia during the second half of July to gain Project familiarisation, and to work with Minemakers and KEMWorks’ management on the Enabling Study.

In its ASX announcement Minemakers said it is anticipating a positive result of the Enabling Study and has commenced preparation of the proposed Joint Venture Agreement and other related Agreements.

Wonarah has been subjected to an extraordinary wet season, which suspended drilling operations since October 2010.

The drilling program has recently been resumed.

A target area for possible shallow mineralisation in the northwest area of our project area is still inaccessible and so attention has being directed to characterising the northerly extent of the Main Zone to the north of the Barkly Highway.

Minemakers said it has been encouraged by initial assay results with a large area with sparse previous drilling being infill drilled along the southern edge of the Main zone.

The company said its overall aim is to choose the best economic site for the initial mining operation for material to be treated in a beneficiation plant.

Minemakers is targeting mineralisation at an 18% – 20% grade and is hopeful assay results received so far that have shown an increase in the relevant mineral resource estimate position mean this appears likely in due course.