Perth, Oct 7, 2008 AEST (ABN Newswire) - Copperco Limited (ASX:CUO)(PINK:CPPWF) is to investigate expanding its exploration and development activity to include rock phosphate assets, including several historically defined phosphate occurrences within the Lady Annie Copper Project tenement package.
CopperCo has also acquired a large grassroots tenement package within the Georgina Basin, through the merger with Mineral Securities Limited, that is highly prospective for phosphate.
Lady Annie mine infrastructure is located close to known phosphate occurrences and may provide a platform to fast-track development of any phosphate resource that proves economic
CopperCo’s primary exploration focus in the region remains on defining additional oxide and sulphide copper resources to drive future growth of the Lady Annie copper operation. Production is slated to increase progressively from the current rate of 19,000tpa to 30,000tpa by mid-2009
CopperCo Limited ("CopperCo") owns a 100% interest in historically defined rock phosphate prospects located adjacent to its Lady Annie Copper Mine and SX-EW operation in Queensland and also has extensive exploration areas in Queensland and the Northern Territory prospective for new phosphate discoveries. CopperCo has recently diversified its product portfolio with the acquisition of Mineral Securities Limited, and now plans to explore for other commodities that provide opportunity to utilise exploration and production infrastructure associated with the Company's existing copper operation.
CopperCo has been active in the Mount Isa region for the past 4 years and has established a significant exploration base near Lady Annie. The exploration team have been very successful in defining a copper oxide and sulphide resource base that has under-pinned the development and recent upgrade of the Lady Annie copper mine. Exploration will continue to focus on expanding copper resources, but will additionally target other commodities contained on the existing leases that can be readily developed. Phosphate is one such commodity (along with uranium and other base metals) that will be targeted with a view to examining the possibility for early production.
The CopperCo phosphate project comprises two tenement packages located in the highly prospective Georgina Basin in the Northern Territory and Queensland.
- Lady Annie Phosphate Project located on 6 granted exploration licences and 2 exploration licence applications within the CopperCo Lady Annie tenement package, covering a total area of approximately 300 km2 on the eastern edge of the Georgina Basin.
- A large tenement package held by Australis Exploration Pty Ltd ("Australis"), a wholly owned subsidiary of CopperCo, consisting of 56 exploration licences in Queensland and the Northern Territory, covering a total area of approximately 41,600 km2. To date, 11 tenements have been granted in the Northern Territory.
Prospectivity
The Georgina Basin is a large sedimentary basin with a total area of about 325 000 km2 that hosts all the major phosphate projects in Queensland and the Northern Territory. The basin contains shallow marine sediments, including phosphate horizons of Middle Cambrian age, such as the Beetle Creek Formation, that are exposed along the edges of the basin and over basement highs within the basin.
The Middle Cambrian rocks of the Georgina Basin host several major phosphate occurrences, including Duchess-Phosphate Hill, Lady Annie-Lady Jane and D Tree in Queensland, and Wonarah, Alexandria, Alroy and Highland Plains in the Northern Territory. Economic phosphate deposits are being mined at Duchess where the phosphatic horizon is exposed in a restricted embayment bounded by older basement rocks. Most historical exploration has been concentrated along the eastern edge of the Georgina Basin, resulting in the discovery of numerous phosphate occurrences, including CopperCo's Lady Annie phosphate deposit.
Phosphate principally occurs as phosphorite or phosphate rock which typically has 15-35% P2O5 content. Phosphate commonly occurs with secondary uranium which can therefore be used as a pathfinder element from airborne radiometric surveys.
Lady Annie Phosphate Project
The Lady Annie Phosphate Project encompasses a number of historical phosphate occurrences that were identified during the late 1960's and early 1970's. A large proportion of these occurrences fall within granted CopperCo tenure adjacent to the Lady Annie copper mining and processing activities, representing an immediate development opportunity that can benefit from existing personnel and critical infrastructure components such as power and water supplies.
At the Lady Annie East Prospect, 5 km to the east of the Lady Annie oxide copper deposit, historical exploration has identified outcropping to shallow sub-cropping phosphate (up to 30% P2O5) mineralisation over an area of approximately 60 km2. Phosphate mineralisation within the Company's tenements covers an area of 28.8 km2 or 47% of the total area of mineralisation historically identified at Lady Annie East.
At the Lady Jane Prospect, located 23 km to the north of the Lady Annie oxide copper deposit, the Company holds 6.2 km2 of tenement where historical exploration has defined phosphate mineralisation.
At the East Galah Creek Prospect, located 6 km to the west - northwest of the Lady Annie oxide copper deposit, historical exploration has defined phosphate mineralisation over 3.2 km2, wholly within the Company's tenements.
The phosphate within the Lady Annie occurrences has been identified as being of primary origin, occurring as granular pellets of collophane (a common phosphate mineral) dispersed within flat lying to gently dipping, friable siltstones and fine grained sandstones. It is found in the mid- Cambrian phosphatic horizon of the Beetle Creek Formation. Historical metallurgical testwork by previous explorers has shown that the deposit can be upgraded to >33% P2O5.
The phosphate mineralisation at Lady Annie East, Lady Jane and East Galah Creek is situated immediately adjacent to the Lady Annie Copper Mine which is well serviced by grid power, water, haul road and accommodation facilities. This phosphate project therefore represents an opportunity for rapid development.
Beetle Creek Formation sediments have recently been mapped immediately to the south of the known historical phosphate occurrences. No historical drilling has been undertaken and as such the area represents high priority phosphate targets.
Shallow reverse circulation drilling could commence in the near term, targeting the historical phosphate occurrences with a view to defining a Mineral Resource estimate to support a prefeasibility study.
Australis Exploration Project
The Australis tenement package covers areas along the northern edge of the Georgina Basin in the Northern Territory as well as areas along a basement high referred to as the Alexander Ridge that hosts the Wonarah and Alroy phosphate occurrences. Numerous radiometric anomalies are present within the granted tenements and are considered high priority targets to undertake first pass soil geochemistry.
This project area will be targeted for direct shipping rock phosphate.
About Phosphate
Phosphate rock is an essential input for the production of phosphate based fertilisers. It is mixed with sulphuric acid to form phosphoric acid and then granulated with ammonia to create ammonium phosphate fertilisers eg - Super Phosphate. Traditionally, phosphate supply has been from Morocco which currently accounts for 46% of world supply. Demand has been growing steadily over the past few years without a steady increase in supply. Demand pressure has resulted from an increase in population growth, a change in diet and an increase in grain consumption for biofuels. Agricultural land is a depleting resource and fertilisers are a necessity to increase yields. This has resulted in a substantial price increase for phosphate from US$54/tonne in 2006 to the recent price of US$350/tonne, making it an attractive bulk commodity.
Note:
Mr SJ Pooley (MAusIMM, MAIG), a geologist employed full-time by CopperCo Limited, compiled the technical aspects of this report. Mr Pooley is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being reported on to qualify as a Competent Person as defined in the 2004 edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves". Mr Pooley consents to the inclusion in the report of the matters in the form and context in which it appears.
Contact
Brian Rear
Managing Director
Tel: +61-8-9260-8800
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