Name of the Project
Ammaroo phosphate project.

Location
Northern Territory, Australia.

Client
Verdant Minerals.

Project Description
A feasibility study has determined that the Ammaroo project is technically feasible and will deliver positive economic benefits if developed in accordance with the prescribed design criteria.

The project has a proven and probable reserve of 32.4-million tonnes grading 18.2% phosphorous pentoxide (P2O5).

The feasibility study envisages the construction of the mine in two stages.

Stage 1 is expected to produce one-million tonnes a year of phosphate rock concentrate, followed by a replication of the Stage 1 processing and site infrastructure during Year 5 to produce two-million tonnes a year of rock concentrate from Year 6 for a 20-year mine life (Stage 2).

Production is based on conventional truck-and-shovel openpit mining and a screening, crushing, grinding and flotation circuit to produce low-cadmium, high-quality rock concentrate at about 33% P2O5.

Enabling infrastructure, including a rail spur, gas pipeline and water supply infrastructure for the whole mine life and beyond, will be built during Stage 1.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% nominal ungeared discount rate, of A$344-million and an ungeared internal rate of return of 18.1%.

Value
Stage 1 development is expected to require a capital investment of A$368-million.

Stage 2 will require a further A$200-million investment.

Duration
Stage 1 construction is estimated at 15 months.

Latest Developments
The Ammaroo phosphate project has received federal environmental approval, bringing the project one step closer to its targeted construction start in early 2019.

The approval represented a significant milestone in the permitting process and the attainment of a licence to operate.

The process to attain a Northern Territory approval continues, with the company working to finalise a supplementary environmental-impact statement to make a formal submission and trigger the final assessment phase.

The federal and territory approvals are expected to assist Verdant in continuing discussions with potential investment and offtake partners.

Key Contracts and Suppliers
Mining Plus (mine planning); Corem (metallurgical testwork); WorleyParsons (engineering, plant and infrastructure design; CRU (product market and pricing analysis); Balance Advisory (rail and port infrastructure and logistics); GHD (environmental-impact studies); Ground Water Science (hydrogeology and groundwater); and Magma Capital (financial modelling and debt advisory).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Verdant Minerals, +61 8 8942 0385, fax +61 8 8942 0318 or email info@verdantminerals.com.au.