No post on KRB for 4 years.
They have a host of projects outlined below.
KORELLA PHOSPHATE DEPOSIT
Environmental approval issued for Korella Mining Lease.
http://www.asx.com.au/asxpdf/20120504/pdf/4262j1tymsprcz.pdf
Final Stage of mining lease application completed.
http://www.asx.com.au/asxpdf/20120627/pdf/42726td758k78g.pdf
The Korella Phosphate Deposit (5 million tonnes @ 30.8% P2O5) is located close to the Government rail line and the Phosphate Hill Mine and Processing Plant (owned and operated by Incitec Pivot) and other important infrastructure such as accommodation, sealed roads, gas pipeline and airport.
After the grant of the Mining Lease and assuming an injection of funds into the Project
Krucible will embark on the final stages of the Feasibility Study – this will involve
*Infill and Geotechnical drilling to define an upgraded JORC Resource
*Pit Optimisation and scheduling by Independent Consultants
*Revised costings for CAPEX and operating costs to determine the economies of the Project
*Bulk Sampling supplied to potential customers for Offtake Agreements for Direct Shipping Ore
The current F.O.B. price of rock phosphate from North Africa is quoted at about $185- $200 per tonne. It is believed that Korella rock phosphate could offer competitive advantages to customers in Australia and South East Asia because of security of supply, purity of product and closer geographical proximity.
A Scoping Study for the Korella Phosphate deposit gave an indicative Net Present Value (NPV) of $83million (based on rock phosphate price of $200/tonne and a minimum mine life of 6 years at 600,000 tpa (this is a good fit with Queensland Rail Scheduling).
Krucible is actively engaging with a number of companies, who have signed Confidentiality Agreements, in an effort to secure funding for the Project. Discussions to date have been positive and should advance when the Mining Lease is granted.
OTHER AREAS FOR PHOSPHATE EXPLORATION
Krucible has recently completed a Study of Regional Potential for Phosphate Resources that covers a number of tenements, including Corella Bore, Pilgrim Fault, Stranger Creek, Merlin Tank and Isa West (see FIGURE 1 for Phosphate tenements).
It is concluded that there is potential for over 100 million tonnes of phosphate enrichment zones within the prospective Cambrian host (the Beetle Creek Group) in the Krucible tenement package. Further drill testing will be required to test the validity of these projections.
As has been reported previously a JORC Inferred Resource of 7MT @ 0.93kg/tonne Yttrium Oxide (Y2O3) has been outlined at Korella, with scope to add to this resource.
OTHER AREAS FOR RARE EARTHS
Work to date by Krucible has outlined a number of areas enriched in Rare Earths (mainly valuable heavy Rare Earths – HREE, such as Yttrium, Dysprosium, Neodymium and Europium as well as Uranium). The Company objective is to outline over 15 million tonnes of enriched material at shallow depths, to justify a Rare Earth processing operation.
These areas are Yttro, Coorabulka and Isa West – it is anticipated that the Company will outline more areas utilising the geological models for sedimentary enrichment that have been developed at Korella and Yttro
GARNET DRILLING / SQUIRREL HILLS
A total of 7 R.C. percussion holes were drilled at Garnet for 1,284 metres. The program was cut short (9 holes for approximately 1,650 metres planned) due to the onset of wet weather in black soil country.
The best results are outlined below;
SQRC20 4m @ 1210ppm Copper from 116m
& 2m @ 120ppm Uranium from 174m
SQRC22 4m @ 77ppm Uranium from 168m
SQRC23 3m @ 1960ppm Copper from 129m
SQRC24 2m @ 85ppm Uranium from 125m
2m @ 1940ppm Copper from 145m
2m @ 1475ppm Copper from 180m
SQRC25 3m @ 74ppm Uranium from 77m
COWIE MAG
Further extension lag sampling is planned at Cowie Mag in the next Quarter. This will be followed up by infill soil sampling surveys, to better define the Copper, Molybdenum, Zinc and Gold lag anomalies outlined to date (on 400 x 400m spacing) as well as outlining possible Silver anomalies. The depth of basement bedrock at Cowie is generally only 1-10 metres (beneath ground cover) and its’ proximity to the Cannington Mine and the Cowie
Lead/Silver working make it an attractive target area that has not yet been properly drill tested.
MERLIN TANK
Geophysical modelling of strong magnetic and conductive anomalies are currently being carried out on the PUMA Prospect – as mentioned in the previous Quarterly Report a SAM Survey (Sub Audio Magnetics) survey was carried out in late 2011 and this highlighted anomalies under cover (40-60 metres) which are considered to be similar to Copper/Gold mineralisation at the Selwyn and Houdini deposits (Ivanhoe Australia Ltd). A drill program
will be planned for PUMA after the geophysical and geological interpretation has been completed.
COORABULKA
As well as known Rare Earth Elements at the surface, the Coorabulka tenement is considered to be very prospective for Broken Hill – Cannington style basemetal mineralisation at depth. This is because of the strong and complex magnetic anomaly outlined by the Government aeromagnetic survey. This anomaly is considered to be similar to Cannington. Surface sampling from sediments has returned Lead values up to 0.16% Pb – this may be leakage from primary mineralisation at depth.
TOOMBA
Field exploration is set to commence in June 2012 at Toomba. R.C. percussion and diamond drilling is planned at CHAMP and other Prospects. As reported previously first pass and shallow drilling by Krucible at CHAMP intersected up to 3% Copper – the maximum depth of drilling to date is 80 metres. It is planned to test the Copper/Gold/ Bismuth mineralisation both at depth and adjacent to the structure at CHAMP where magnetic anomalies, associated with listric faults (see below) have been identified
KAMARAN DOWNS
Krucible is having difficulty gaining access to this ground because of the required Compensation / Access Agreement with the Pastoral leaseholder – it is hoped to reach agreement in May 2012. Deep drilling (300-500 metres) is planned for August 2012, as part of the Government’s Collaborative Drilling Initiative ($150,000 contribution to drill costs).
However a Joint Venture partner will be sought to fund the testing of this large Aeromagnetic/Gravity Anomaly (see below) which may be indicative of Olympic Dam style Copper/Gold/Uranium mineralisation
TOBERMOREY
Little work has been done to date on this tenement which is considered to be prospective for Carlin Style Gold mineralisation (see cover page) as well as Iron Oxide Copper Gold associated with magnetic anomalies. Field work is scheduled to commence in May 2012.
Director Alston continues to add to his already sizeable holdings.
http://www.asx.com.au/asxpdf/20120606/pdf/426ppjbhfhmdv4.pdf
http://www.asx.com.au/asxpdf/20120606/pdf/426pmbqwkqw42c.pdf
http://www.asx.com.au/asxpdf/20120518/pdf/426brzmq2rlpkr.pdf
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