Phosphate company Minbos Resources (ASX: MNB) has unveiled a JORC compliant indicated resource estimate of 22.5 million tonnes of phosphate for the Cacata project area in the Republic of Angola at a grade of 21.4% P2O5.
This included a high grade zone of 6.8 million tonnes at 32.3% P2O5 within the company’s Cabinda project area in Angola, which raises the possibility of a DSO operation.
Cacata is the second deposit (of five that have been drilled) which Minbos has announced a JORC compliant resource for, the 1st being Mongo Tando, with 117 million tonnes at 13.7% P2O5.
Ahead of receipt of the resource estimates for the three remaining deposits within the Cabinda License area, Minbos looks likely to meet its exploration target of between 333 million tonnes and 535 million tonnes at between 10% and 20% P2O5.
With an aircore drill program coming to a completion, Minbos is expecting to announce the global resource estimate for the Cabinda project area during the 4th quarter of 2011.
A scoping study has commenced to assess the economics and commercial viability of the Cacata project. The Indicated resource at Cacata may support a 1 to 1.5mtpa phosphate rock export operation.
In addition to Cacata the field results from Chivovo show the potential for additional high grade DSO type ore which should add to the Cacata quoted resource.
There will also be initial results from Kanzi in the Democratic Republic of Congo, which abuts the Angola border.
Minbos is exploring over 400,000ha of highly prospective ground hosting phosphate bearing ore. Minbos is growing its current Indicated and Inferred Resource bases in incremental stages as it drills out the known deposits.
The company’s strategy is to specifically target the development of low cost phosphate projects, in order to tap into the growing global demand for fertilisers. Phosphate is an essential component in certain agricultural fertilisers, with the market supported by the increasing global demand for food and bio-fuel products.