Fertoz increases bulk sample to 9,500 tonnes
THE DRILL SERGEANT: Fertoz Limited (ASX: FTZ) has received approval to produce a second bulk sample at the company’s Wapiti East phosphate project in British Columbia, Canada.
The company explained the second bulk sample allows it to extract an additional 2,000 tonnes of product than it was permitted for in its first bulk sample of 7,500 tonnes in February for sale to the North American agricultural market.
Since the approval of the 7,500 tonne bulk sample in February, unseasonably warm weather conditions have prevented an ice bridge being constructed across Red Deer creek to access the sample location.
This has meant the company has been waiting until March for road access improvements to be carried out.
Fertoz now has permission to extract a total of 9,500 tonnes of phosphate.
Fertoz said it is now ready to extract its first saleable material as soon as the snow melts in the June quarter.
“We expect minor creek crossings will become passable and the roads will dry out towards the end of May allowing bulk sample collection to start,” Fertoz Limited managing director Les Szonyi said in the company’s announcement to the Australian Securities Exchange.
“We have taken advantage of the delay by having a second bulk sample approved and plan to increase each bulk sample to 10,000 tonnes to enable a total of 20,000 tonnes to be collected in 2014.
“The second bulk sample location also has the advantage that it can be accessed from upstream of Red Deer creek and does not require a portable bridge to be installed across the creek.”
Fertoz has previously announced two organic farmers are ready to take its product at the mine gate as soon as it becomes available.
The farmers will be undertaking farm trials and will be responsible for freight and rock phosphate processing.
Laboratory test results on the company’s Wapiti phosphate have demonstrated phosphate availability of 10 per cent, which – as Fertoz pointed out – compares well against other organic fertilisers that have availability as low as three per cent.
The Wapiti phosphate also contains important secondary and tertiary minerals required for good plant growth, which Fertoz claims makes it suitable for North American organic markets.
The company has commenced discussions with potential marketing agents and distributors, with the aim of appointing one in 2014 and has also commenced work on a small scale (up to 75,000 tonnes per annum) mining lease application which will include mine planning studies.
The company is currently reviewing a number of phosphate product options (such as bulk, pelletized and bagged phosphate) with the aim of supplying the US and Canadian organic markets in 2014.
Email: office@fertoz.com
Website: www.fertoz.com