THE BOURSE WHISPERER: Fertoz Limited (ASX: FTZ) has added to its phosphate interest in Canada through the acquisition of the Marten project in British Columbia.
The company described the Marten project to be an advanced stage underground exploration phosphate mine, which was developed by Consolidated Mining and Smelting Company of Canada Limited (Cominco) in the 1920’s.
Fertoz indicated it intends to focus on drilling and collecting a bulk sample from surface outcrop at the project.
The project consists of 1,215 hectares and is located between Fertoz’s existing projects at Crows Nest and Barnes Lake.
Source: Company announcement
The three projects, known as the Fernie Group, are located within 25 kilometres of each other and are well supported by a well-developed road and rail transportation, and links to ports on Canada’s west coast.
“The Marten phosphate project acquisition is consistent with our strategy to acquire small phosphate projects in established mining regions in the Americas which have potential to be developed and brought into production with low capital investment,” Fertoz Limited managing director Les Szonyi said in the company’s announcement to the Australian Securities Exchange.
“The property has excellent road and rail access and secondary logging and coal exploration roads as well as power and gas lines through the property.
“The outcrop of phosphate where an underground mine was established provides the opportunity for the rapid development of a small high-grade deposit.”
Although Cominco ceased exploration at Marten in 1930, Fertoz believes the project to be worth reviewing given its small size, shallow phosphate, proximity to infrastructure and potential low capital cost, all of which the company insists is consistent with its strategy.
Fertoz signalled it will undertake site works on the Marten project, as well as at Barnes Lake and Crows Nest during its 2014 exploration season.