Fertoz Ltd (ASX:FTZ) has secured access to a 100,000-tonne stockpile of high-quality rock phosphate located close to its operations in Montana.
The stockpile provides sufficient supply to meet the company’s sales targets of 30,000 to 50,000 tonnes of fertiliser products in CY19 and 100,000 tonnes in CY20.
The company has formalised this access reaching a marketing agreement which will see it use the ore in its fertiliser blends.
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Fertoz’s executive chairman Patrick Avery said: “Although we have made good progress recently in relation to permitting our Alberta leases for a bulk sample, we wanted to ensure we had sufficient ore available to make our CY19 fertiliser sales targets.
“After assessing various small deposits and stockpiles across North America, we settled on this particular stockpile due to its proximity to our existing operations, its similarly high quality, and its ability to be processed into the various blends and sizes that our customers demand.
“We plan to move over 5,000 tonnes of this ore to Butte, Montana over the coming weeks to process it, ready for deliveries in CY19.”
Plans to mine a bulk sample in Canada progressing
Fertoz remains confident that progress is being made on the bulk sample application for its Fernie phosphate project in Canada.
Once issued, the company plans to mine a 5,000-tonne bulk sample in the well-known mining area that has road, rail, and processing services infrastructure.
Avery added: “Separately, after discussions with the regulator in Alberta, we have updated our plans for a bulk sample permit.
“We are encouraged by the progress being made in Alberta and have recently applied for another parcel of land to complement our existing leases in the Fernie project.”
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Avery added: “Having secured the new 100,000 tonnes ore marketing agreement, and making progress at the Alberta and Fernie area leases, we have sufficient resources to meet our stated sales targets of 30,000 - 50,000 tonnes in CY2019 and 100,000 tonnes in CY2020.
“This is a critical step and accomplishment.”