Minbos Resources (ASX: MNB) has achieved a maiden JORC compliant inferred resource estimate of 5 million tonnes at 12.6% phosphate (P2O5) on the first priority target area at the Mongo Tando phosphate project in Cabinda, Republic of Angola.
The resource estimate covers the first of four priority target areas and confirms that the company is on track to deliver the exploration target of between 333 Million tonnes (mt) and 538mt grading between 10% and 20% P2O5.
The resourse is very timely given that phosphate prices have increased almost eight-fold over the last 14 month period and currently cost about $400 per ton. Phosphate is used in different kinds of fertilizers.
Coffey Mining Pty Ltd carried out the geological modelling and resource estimation. The resource has a block cut-off grade of 4.5%.
Additional drilling has already been completed in Mongo Tando North and Mongo Tando South areas and is expected to further increase the resource.
The resource importantly confirms the grades, reported widths and other data from historical exploration. This has provided additional confidence for the ongoing exploration of the other 3 project areas within the Cabinda license.
Sample preparation for this drilling is underway in Cabinda with samples expected to be delivered to Set Point laboratories before the end of February 2011.
The company's exploration focus for the next two months is now on initiating drilling on its DRC licence areas.