Name and Location
Farim phosphate project, Guinea-Bissau.

Project Description
The project is located about 5 km west of the town of Farim and some 120 km north of Bissau.

It consists of a high-grade sedimentary phosphate deposit of one continuous phosphate bed, which extends over a known surface area of about 40 km². The Farim phosphate deposit is a world-class, high-quality development containing a total resource of 128-million tons, at 29.8% phosphorus pentoxide (P₂O₅) and a 25-year mining plan of 68-million tons, grading at 29.9% P₂O₅.

The current strategy is to engage in a production of two-million tons of phosphate rock a year for a minimum of 25 years, through opencast mining using dredges and simple beneficiation processes to produce phosphate rock concentrate, while increasing the phosphate resources.

A total of 68-million tons of measured and indicated resources, at a grade of 29.9% P₂O₅, with a cutoff of 1.5 m and an average thickness of 3.3 m, has been defined on the northern side of the Cacheu river, which is the preferred mining area.

Value
Capital costs are estimated at $300-million and operating costs at $60/t.

Duration
First production is targeted to start in 2013.

Client
Plains Creek Phosphate Corporation (formerly Resource Hunter Capital Corporation).

Key Contracts and Suppliers
GBM Minerals Engineering & Golder Associates (bankable feasibility study (BFS)).

Latest Developments
GBM Minerals Engineering in partnership with Golder Associates, of London, have been awarded a contract to update the existing resource model, with a view to developing a definitive mine plan for the phosphate mining operation.

Meanwhile, drilling crews have been mobilised to undertake the geotechnical drilling and, where necessary, infill resource drill holes. Preliminary metallurgical samples have also been taken from the existing cores for bench-scale testing.

In addition, large-diameter drilling has started on site to collect a representative sample of around five metric tons of phosphate ore for metallurgical pilot tests and the production of product samples for potential offtake partners.

Engineering work has also restarted on the slurry pipeline, the beneficiation plant design, infrastructure and roads. The BFS study is expected to be completed in the fourth quarter of 2011.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Plains Creek Phosphate Corporation corporate development director and VP Carson Phillips, tel +1 604 657 5871 or email cphillips@plainscreek.com.