Fertoz Ltd (ASX:FTZ) is on the path to earn returns from the Fernie phosphate project in British Columbia, Canada, by processing the first batch of direct application rock phosphate.
The company processed approximately 990 tonnes of rock phosphate through a hired crusher and pulverizer, producing a 90% powdered product, which is now available for sale and for additional field trials in British Columbia and Alberta.
The extraction of a further 2,000 tonnes of material from Fernie is still on track for the third quarter of this year, in order to process it and meet the sales agreement with a fertilizer manufacturer.
The high availability of equipment for rent has decreased Fertoz’s capex and is expected to improve an already robust IRR.
Fertoz is re-working the scoping study based on hiring crushing equipment for limited periods of time in order to crush phosphate rock in batches, thereby matching production runs with expected sales.
This should significantly reduce the expenditure at the company’s two direct application rock phosphate projects at Wapiti and Fernie.
Several customers have been provided with samples for testing and a number of potential users have been awaiting the crush to secure the product for blending, spreading or farm trials.
Although the company is focused on the organic farming market, conventional farmers are also potential users of direct application rock phosphate.
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