Submits Exploration Programme for Dry Ridge Project
Perth, April 15, 2014 AEST (ABN Newswire) - Fertoz Limited (
ASX:FTZ) ("Fertoz" or the "Company") is pleased to announce that it has submitted an exploration programme to the U.S. Bureau of Land Management ("BLM") for the Dry Ridge phosphate project in Idaho (see figure 1 in link below).
The Company has met its obligations to the vendor in accordance with the option agreement (announced on 10 December 2013) to submit the exploration programme before 30 May 2014.
Managing Director Les Szonyi said: "We have prepared a comprehensive three-year exploration programme so we don't have to seek environmental approvals from the BLM each year. Exploration is due to start in the second half of 2015 with the aim of identifying a JORC inferred resource early in 2016.
"While we progress with exploration approvals in Idaho, we will continue to focus on bulk samples and the small mining lease application from Wapiti East to ensure we will deliver first product in 2014."
The purpose of the Dry Ridge exploration programme is to provide an understanding of the phosphate formation rock types, orientation, geometry, quality, determine a JORC resource and collect environmental data in advance of mining.
Field work is scheduled to begin in the second half of 2014, to include geologic mapping and location of all disturbance areas (roads, drill pads, trenches). An existing road will be utilised to access the south end of the lease. A cultural survey report will be prepared by a qualified archaeologist, prior to commencing any disturbance activity.
The Dry Ridge Project is a Federal mineral lease located in the established phosphate mining region of South Eastern Idaho. South Eastern Idaho boasts the richest phosphate deposits in the Western United States, and is second only to Florida in phosphate production. This region is within an area which contains four operating phosphate mines and a number of smaller advanced exploration and development projects, some of which are directly along strike and hosted by the same sedimentary horizon which bears phosphate at the Dry Ridge Phosphate Project.
The three phosphate producers, Agrium Inc. ("Agrium"), Monsanto and the J.R. Simplot Company ("Simplot") all have processing plants in the region and are responsible for processing up to 14% of USA's phosphate rock (ref. Idaho Mining Association, Sep. 2013). These phosphate producers have operating mines within 30 to 140km from their processing plants where rock phosphate is transported and converted into a number of different phosphate products for distribution to customers throughout the USA and other countries.
Previous trenching, mapping and analysis (conducted by San Francisco Chemical Co. in 1956) identified relatively narrow but high-grade phosphate zones, within larger, lower-grade zones, much like the Company's flagship Wapiti East project in BC, Canada. Trench 1306A, one of two trenches excavated on the site, showed the following:
Table 1 - Trench 1306A Phosphate Zones
-----------------------------------------------------------Zone Width (f) Width (m) Grade % P205 -----------------------------------------------------------High Grade (>=31% P2O5) 9.8 3.0 33.2 Medium Grade (>=24-32% P2O5) 20.3 6.2 27.6 Low Grade (16-24% P2O5) 13.1 4.0 21.1 -----------------------------------------------------------Average 43.2 13.2 26.9-----------------------------------------------------------Ref: David Hovland, Steven Moore, Eagle Earth Sciences April 2013, unpublished report
Although there are numerous potential third party processing plants proximate to the Dry Ridge Project, the area is also becoming known for the production of organic phosphates. The U.S. is the largest organic market in the world, and as shown on the map below, the Dry Ridge Project is close to roads, rail networks, and regional farming communities.
About Dry Ridge
The Dry Ridge Phosphate Project is located in the established phosphate mining region of South Eastern Idaho, U.S.A.
This region is within an area designated by the United States Geosciences Survey as a "Known Phosphate Leasing Area", or KPLA, which contains four operating phosphate mines and a number of smaller advanced exploration/development projects, some of which are directly along strike and hosted by the same sedimentary horizon which bears phosphate at the Dry Ridge Phosphate Project. The Dry Ridge project has the potential to be developed and brought into production with relatively low capital investment. It is close to existing infrastructure, and three phosphate processing plants, two of which are within 35km of the Project.
To view map illustrations, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-FTZ-792954.pdf
About Fertoz Ltd
Fertoz (ASX:FTZ) is an Australian-based phosphate exploration and development company with a range of projects in British Columbia, Canada as well as Queensland and the Northern Territory. The Company is focused on becoming a fertiliser producer as quickly as possible, initially focusing on the Canadian/USA markets.
Fertoz plans to develop its exploration assets in Canada in order to identify any potential Direct Shipping Ore (DSO) projects. It intends to seek joint venture partners to assist in funding the exploration projects in Australia.
Phosphate is a commodity necessary for feeding the world, and Fertoz is ready to capitalise on this growing demand.
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