ASX-listed Minbos Resources has revealed that in a resource report issued by Coffey Mining, the resource in the Southern Section of the Kanzi Project in the Democratic Republic of the Congo (DRC) has been upgraded from the previously announced Inferred Resource of 46 Mt @17.2% P2O5 to an Indicated Resource of 58.5 Mt at 14.2% P2O5 in accordance with the JORC Guidelines.
This is a 27% increase in tonnage and 5% increase in contained P2O5 for the Southern Section of the Kanzi Project in the DRC.
Minbos also advised that the resource upgrade work for the northern area of the Kanzi deposit, that accounts for the difference to the latest resource number of 66 Mt, is ongoing and an updated total resource statement will be announced once the outstanding assays are completed.
This is a very positive development for the company as we work towards our goal of developing our West African phosphate assets. We plan on focusing initially on a smaller operation at Kanzi in order to speed up the path to production and cash flow, and will then seek to expand the operation to its optimal size, said Minbos Resources MD Scott Sullivan.
Minbos has undertaken initial studies in the form of a Phase 1 logistics study to assess whether a smaller Kanzi Project with significantly reduced capital is feasible and desirable to facilitate a quicker path to production, market and cash flow. This will provide cash flow for organic growth and to pursue the regions high exploration potential.
The study examined, in particular, the path for getting Kanzis concentrate product to market. This work has identified the likely route being barging on the Congo river which is approximately 6km from the project and trans shipping of the concentrate. Phase 2 of the study will commence in Q2 and will firm up capital and logistics solutions.
The company said that the definitive feasibility study for this reduced scale project is expected to be complete by the end of 2013.