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Minbos Resources Targets Development Of 2Mta Phosphate Project At Kanzi

Minbos Resources (ASX: MNB) now has the building blocks for the development of the Kanzi project in place with a 42% increase in high grade resources, enough to support a 2 million tonne per annum phosphate rock export operation.

The new high grade resource of 44 million tonnes at 21.4% phosphorus is contained within an overall resource of 66 million tonnes at 15.3% phosphorus - up from 46 million tonnes at 17.2% phosphorus.

This increase is due to the entire Kanzi deposit in the Democratic Republic of Congo now being included in the resource estimate following the signing a joint venture agreement with Allamanda Trading SPRL for the exploration and development of the project.

Prior to this, just two thirds of the deposit was covered by the previous licence 12040.

The additional area was previously drilled by a selection of companies and has allowed the rapid re-estimation of the resource.

"The delineation of additional high grade ore at Kanzi, combined with the potential to further grow the resource in the very near term, highlights the potential for Minbos to grow Kanzi into a world class resource," Minbos executive chairman Peter Richards said.

"All the building blocks for the development of Kanzi are now in place. Ownership of the project has been consolidated through the recently announced JV agreement with Allamanda Trading. The next step is definition of the project's potential through completion of the bankable feasibility study.

"The Kanzi high grade orebody is ideally located to road infrastructure and the Port of Boma in far western DRC, and we are therefore very confident that the bankable feasibility study will demonstrate robust financials. Kanzi is an important project for Minbos and a key building block for the company in achieving its goal of becoming a low capex and opex phosphate rock producer and exporter."

Kanzi development

Minbos is focused on fast tracking development of Kanzi and has contracted Wallis drilling to recommence aircore drilling at Kanzi.

This will focus on infill drilling in the high grade areas to upgrade the current Inferred Resources to Indicated Resources, providing the basis for the start of a Bankable Feasibility Study.

Based on the success of this infill program, the Wallis rig may be tasked with a short diamond drilling program to further upgrade the Indicated Resources to Measured Resources, provide samples for metallurgical testwork and to provide information for the mining and environmental components of the BFS.

Once the infill and diamond drilling program has been completed, exploration drilling will continue within the local and regional areas with a view to continuing to increase the total resource base for the project.

Minbos has also restarted the Scoping Study it had halted pending resolution of the joint venture discussions with Allamanda.

Once this Study is completed, the similarities of the Kanzi and Cacata projects is likely to lead to the start of a BFS for Kanzi.

Further exploration upside

The start of the Kanzi BFS will also signal the start of the company's evaluation of the regional exploration concessions held by the joint venture.

The joint venture holds exclusive rights to about 200,000 hectares of prospective exploration ground around Kanzi, which will be evaluated in parallel to the Kanzi development.

These make Minbos the largest holder of phosphate exploration ground in the highly prospective Congo Basin, an area that could rapidly become a world class fertiliser hotspot.

Historical exploration work identified various zones of mineralisation at additional deposits throughout the licence areas and there is potential to discover and define significant additional deposits and resources in the region.

Kanzi background

The Kanzi deposit, located in the far west of the Democratic Republic of the Congo about 35 kilometres from the operating port of Boma, is found on the same mineralised trend that hosts the various deposits that make up the Cabinda Project.

It is described as being 1.5 kilometres long and 500 metres wide and previously straddled concession 12040 and concession 1449.

Kanzi was first explored during the 1970's, with around 3,500 metres drilled and limited metallurgical testwork carried out.

Minbos completed an initial round of 52 drill holes Kanzi to confirm historic data. Results were largely in line with historic data with phosphate mineralisation at 8.6 metres in thickness at 15.4% phosphate, and cut off grade of 5%, and averages overburden of 32.5 metres.

Analysis

Simply, Kanzi is becoming a world class resource with the latest increase in high grade resources. Additionally, the Kanzi high grade orebody is ideally located to road infrastructure and the Port of Boma in far western DRC.

Minbos is ticking all the boxes at Kanzi, and a key plank in it's aim of becoming a low capex and opex phosphate rock producer and exporter.

The next step is definition of the project's potential through completion of the bankable feasibility study.

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