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Phosphate Australia resource jumps at Highland Plains in Northern Territory
by Amy Dry

http://www.proactiveinvestors.com.au/companies/news/2917/phosphate-australia-resource-jumps-at-highland-plains-in-northern-territory-2917.html

Phosphate Australia (ASX: POZ) has upgraded the resource at Highland Plains to a 14 Mt, at the company’s flagship phosphate project in the Northern Territory.

Investors liked the news, pushing the stock up 8.7%.

The enhanced estimate within the project’s Western Mine Target Zone has been prepared at a cut-off of 15 per cent P2O5, compared with the zone’s previous estimate of seven Mt at 23 per cent P2O5.

The Highland Plain’s total Inferred Resource comprises 56 Mt grading 16 per cent P2O5.

Phosphate Australia managing director Andrew James said the company was in a good financial position to advance the project.

“The company is in a strong financial position to progress the project through the important near-term studies and reporting schedule required to achieve the Company’s objective of developing Australia’s lowest operating cost, new phosphate mining operation.

The WMTZ has emerged as the principal focus of the company, with the zone planned to support a startup mine with the production of 500,000 to 1 million tonnes per annum of beneficiated rock phosphate with trucking to the Gulf of Carpentaria coast.

With ongoing exploration drilling, there is further potential for Phosphate Australia to increase the global resource base at Highland Plains.

Last month, the company announced high grade hits at the project, including 10 metres at 24.7 per cent P2O5 from 8 metres; (with four metres at 31.1 per cent from 11 metres) and five metres at 24.7 per cent P2O5 from 34 metres at the project.

The project is located within EL 25068, 500km east of Tennant Creek and abutting the NT border with Queensland. There are also transport options to port, either to Queensland or ports in NT, as well as a rail option via the Tennant Creek Railhead.

Fresh from a capital raising, POZ is cashed up, with $8m cash on board.