MBAC Fertilizer’s (MBC-T) quest to become one of the key fertilizer suppliers to the Brazilian market received a boost from positive drill results at its Itafos phosphate project in the country.
Drilling at the site was done with an eye towards upgrading its inferred resources into measured and indicated resources as it looks to update its resource estimate for a feasibility study which is due by the end of July.
In-fill drilling targeted inner parts of the Near Mine Block that had been drilled at a wider spacing and two areas known as Canabrava and Domingos, the company said.
Highlights from four separate holes at Canabrava included: 21 metres grading 10.03% P2O5; 20 metres grading 17.11% P2O5; 31 metres grading 5.23% P2O5 and 19 metres grading 10.27% P2O5.
Highlights from three separate holes at Domingos included: 24 metres grading 14.85% P2O5; 27 metres grading 9.06% P2O5 and 23 metres grading 11.55% P2O5.
The company says drilling confirms that phosphate ore is continuous and extends both north and south of the existing Near Mine mineralization.
Since the last resource estimate, an additional 13,228 metres were drilled over 382 holes.
MBAC’s president and chief executive Antenor Silva said in a statement that the results exceeded the company’s expectations on grade, strip ratio and continuity.
“[The results] are expected to materially increase measured and indicated resources from the 28.3 million tonnes reported in the previous 43-101,” Silva went on to say. “We believe that these recent drilling results support the upside potential for a significant increase in the value of the project.”
Itafos is located in the municipality of Arraias, in the southeast of Tocantins state 3-km from the town of Campos Belos.
MBAC is pushing to get the project into production by the second quarter of 2012.
At full capacity the mine is expected to produce 330,000 tonnes per year of phosphate rock concentrate at 28% P2O5.
MBAC is looking to build itself into an integrated producer of phosphate and potash fertilizer in and for the Brazilian market. It acquired Itafos Mineracao and its 100% stake in the Itafos phosphate mine back in 2008.
In Toronto on June 11 the company’s shares finished the day 5¢ higher at $1.55.
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