GIB – Gibb River Diamonds

Re: POZ – Phosphate Australia

Catching up on POZ.

Total Shares on Issue 109,876,250
Options on Issue (exp July 31 2012 @ $0.20 & $0.30) 24,950,000
Options (exp 2013&14 @ $0.19 & $0.20) 500,000
Options (exp 2014 @ $0.10) 950,000
Market Capitalisation (undiluted $0.07c per share) $7.7 M
Cash on Hand (End Q Dec 2011) $2.95 M

MAJOR SHAREHOLDERS
Board & Management 35,250,000 – 32.4%. Options – 16,700,000
Top 20 Holders 63,339,060 – 57.7%. Options – 24,700,000
BHP Billiton Ltd 5,000,000 – 4.5%. Options – 6,000,000

POZ Flagship Project at Highland Plains in the NT has a JORC compliant resource of 53,000,000
tonnes @16%P2O5
Other POZ Phosphate projects in the vicinity with historic drilling intersections include
Buchanan Dam, Alroy and Alexandria
Projects owned 100% by POZ with no private royalties

Targeting Further Major Phosphate Deposits

• Alexandria – 6.1m @ 15.6% P2O5 from 48.8m
• Alroy – 6.4m @ 12.0% P2O5 from 16.2m
• Buchanan Dam – 6.1m @ 25% P2O5 from 12.2m

Metallurgy
Flotation tests: Best float test to date from the coarse fraction gives a grade of 37.4% P2O5 (upgraded from 23.4% P2O5) at 53% recovery of phosphate
Highland Plains phosphate has low levels of the contaminants organic carbon, sulphur, fluorine, chlorine, cadmium and uranium

Mine To Coast – Slurry Pipeline
 CAPEX estimates vary from AUD$184 M to AUD$226M
 OPEX estimates vary from A$2.06/t to A$3.69/t for a 2 to 3 Mtpa operation
 CAPEX payback: 2.5 to 3 years.
 Early hydro geology investigation indicates ample water to support slurry pipeline operation

OPEX – 2 million tpa operation*
(Life of Mine)
Activity AUD/Tonne
 Mining 20
 Beneficiation 30
 Slurry Pipeline Transport 4
 Barge Loading & Ship Loading 12
 Contingency 6
Total ~ 72AU/T

CAPEX – 2 million tpa operation
Activity AUD Million
 Mine Construction 72
 Beneficiation Plant 90
 Road Upgrades 20
 Slurry Pipeline and Handling 190
 Loading Facility and Barges 30
 Contingency 20
Total ~ 422

Tuckanarra Gold Project (WA)
100% interest in the historic Tuckanarra Gold Project, WA no private royalties
 Historic production ~125,000 ounces
 August 2011 – Project acquired
 Permits granted and 2 x drilling programs completed to date

 Cable West, Cable Central and Cable East Vein Targets
 New Target at Battery
 New Discovery at ‘Drogue’ (6m @ 156.6g/t ftom 6m (composite)

Other Projects and Deals
 Musgrave Project (WA) Anglo-American Farm in: $50,000 to POZ, Fly SPECTREM EM Survey, Right to earn 70% in a JV, must spend $3million, required to complete a minimum 5,000metres drilling. POZ then free carried through JV until completion of BFS.
Prospective for PGE’s and Ni-Cu. Platinum Group Element assays at surface of up to 3.4 g/t (mainly platinum), 10’s of km of strike potential. The BHP Billiton Ltd controlled Nebo-Babel deposit (393 Mt at 0.3% nickel and 0.3% copper) remains the most significant discovery in the region to date.
 Robinson River Manganese (NT) Agreement signed with Mineral Resources Limited subsidiary, PMI: to
exclusively explore and develop manganese deposits within POZ’s Robinson River project in NT for a free carried
royalty. PMI is a very significant manganese mining and development company with considerable expertise in bringing manganese resources to production.
 Nicholson Iron (NT) POZ 100%: Large area of 1,400 km² prospective for Clinton-style oolitic iron mineralisation.
Recently a one tonne metallurgical sample was collected by Company geologists from one of the mineralised sites POZ had discovered, the sample beneficiated to up to 59.1% Fe, 7.4%SiO2, 0.03% P with a 55% recovery. Overall size potential of the iron project in this under-explored region is large.

Be the first to comment

Leave a Reply

Your email address will not be published.


*