A major phosphate producer has confirmed its desire to undertake a two-phase pilot plant phosphate flotation study at Galileo Resources PLC’s (LON:GLR) 34%-owned Glenover project in South Africa.
The ultimate objective of the study is to either develop the project or sell it in whole or part to the MPP, Galileo said.
Two options
At the moment, the unnamed MPP has a couple of options of how it moves forward with the study.
Phase one for both scenarios is the same and will see it carry out a water and ore variability study, something which it is made a start on already.
While that gets underway, the MPP is deciding between one of two options that will follow phase one.
Option A would see the MPP produce 16 tonnes of phosphate concentrate through the pilot plant study. That option would cost around US$195,000.
The other, more expensive option would see the MPP produce 32 tonnes of phosphate concentrate. That would come at a cost of US$305,000.
Potential for a significant return on investment
“Galileo and Glenover JV partner (Ferminore) have been in discussions with various groups concerning the development of the project,” said Galileo chief executive Colin Bird.
“I am pleased that the potential exists by way of this agreement to realise a significant return on the company's initial investment in the project.”
Galileo has appointed a South Africa-based consulting group to execute a mining right application for the project whilst the study is taking place.
Importantly for the explorer, rare earths from the ore tailings would still be available for future beneficiation.
Shares ticked 1.3% higher to 9.9p shortly before market close.