Minbos increases Cabinda phosphate Resource

THE BOURSE WHISPERER: Emerging phosphate developer Minbos Resources has announced Inferred Resource Estimates for the company’s Chivovo and Chibuete deposits.

The new estimatyes have, in-turn, increased in the total resource estimate for Minbos’ Cabinda phosphate project located in the Republic of Angola.

The Chivovo deposit contains a JORC compliant inferred resource of 6.7 million tonnes at 20.3 per cent phosphate.

The Chibuete deposit contains a JORC compliant inferred resource of 150Mt at 8.3 per cent phosphate.

Total JORC compliant resource for the Cabinda project now stands at of 304Mt at 11.5 per cent phophate comprising resources from the Chivovo, Chibuete, Mongo Tando and Chibuete deposits.

 

Location of Cabinda project. Source: Company announcement

“The announcement of a JORC compliant resource of 304 million tonnes at 11.5 per cent phosphate for the Cabinda posphate project is yet another important milestone for Minbos,” Minbos resources executive chairman Peter Richards said in the company’s announcement to the Australian Securities Exchange.

“The Cabinda project can now be benchmarked against other world class phosphate projects and should result in a significant increase in the valuation of Minbos.

“Bayovar, currently being developed by Vale is a good example of such a project, containing  approximately 40 million tonnes of phosphate versus 35 million tonnes of phosphate already defined for the Cabinda project; based on a recent corporate transaction Bayovar has a valuation of over $US 1.1 billion.

“Equally significant is the feasibility study for the development of a high grade Direct Shipping Ore operation at Cacata and Chivovo which is underway.

“The 1.5 tonne ore sample for detailed metallurgical testwork obtained via diamond drilling is ready for dispatch and the environmental and port studies are progressing.

“The company is confident that the very robust financial numbers presented in the CRU scoping study will be confirmed and that the project will be fast tracked into production.”

Since November 2010, Minbos has completed approximately 20,000 metres of aircore drilling across five previously identified deposits that lie within the Cabinda phosphate license area.

The company has announced resource estimates for four of these five deposits.