Name of the Project
Ardmore phosphate rock project.

Location
North West Queensland, Australia.

Project Owner/s
Centrex Metals.

Project Description
Ardmore has a maiden ore reserve of 10.1-million tonnes at 30.2% phosphorous pentoxide supporting a ten-year life-of-mine (LoM). An October 2018 definitive feasibility study (DFS) confirmed the project as a high-quality asset with a relatively low capital investment, low technical risk and the potential to provide strong returns.

In February, Centrex Metals completed an optimisation study of the Ardmore DFS.

While the planned production of 800 000 t/y and a LoM of ten years have remained unchanged, the optimisation study has identified and assessed cost-saving design opportunities.

Key results of the DFS optimisation include:

• the revision of the mining fleet to two 140-t-capacity haul trucks from three 90 t trucks proposed in the October 2018 DFS, better matching the selected excavator providing use, fuel, labour and maintenance efficiency gains;

• the diversion of the highway currently crossing the Northern Zone pit has been brought forward to the first year of mining (from Year 4) to allow for scheduling across the Southern and Northern Zone pits earlier in the LoM. This increases fleet use in the early years, significantly reduces long-term stockpile volumes and further smooths the material movement profile;

• the centralisation, to one location, of the mining and processing offices and facilities.

The DFS optimisation study has also advanced several opportunities, including the assessment of design alternatives, progressed logistics contractor pricing, and submissions from alternate providers being received after the completion of the DFS.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The after-tax net present value has increased from A$109-million in the DFS to A$192-million in the optimisation study, while the internal rate of return has increased from 30% to 54%. Payback has been estimated at 1.8 years.

Capital Expenditure
The capital costs of the project have declined from A$77-million in the DFS to A$68.7-million in the optimisation study.

Planned Start/End Date
First operations are scheduled to start in mid-2019 with full-scale production scheduled for 2021.

Latest Developments
The Northern Australian Infrastructure Facility (NAIF) has completed a strategic assessment of the Ardmore phosphate rock project, and will now progress to a due diligence investigation, Centrex has said.

The company has told shareholders that NAIF, a $5-billion facility established as an initiative of the Australian government to provide loans, has not yet made a decision to offer a loan or provide financial assistance of any sort for the Ardmore project, but indicated that the company will continue to work with the NAIF and provide the necessary assistance with the due diligence process.

 Key Contracts and Suppliers
RPM Global (mineral resources); Optima Consulting & Contracting (ore reserves and mining); GR Engineering Services (process and mine site infrastructure, overall study compilation); WSP (roads and rail siding infrastructure); Integer Research (market review and pricing) and Golder Associates (environment, hydrology and hydrogeology).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Centex Metals, tel +61 8 8213 3100 or fax +61 8 8231 4014.