Chatham Rock Phosphate posts Korella North NI 43-101 resource estimate, Australia

Chatham Rock Phosphate Ltd. [NZP-TSXV; CRP-NZX; Borse-FSE] has released the results from a NI 43-101 technical report on its Korella North phosphate property, Queensland, Australia, prepared by Derisk Geomining Consultants Pty. Ltd., an independent mining consulting firm based in Queensland, Australia, commissioned by the company.

Korella North is an Exploration Permit for Minerals application (EPMA 28589) that covers an area of approximately 6.6 km2. The company has been advised that the technical assessment and review of the application has been completed by Queensland Department of Resources except for the Native Title portion of the application, which cannot be completed before 9 December 2023.

Based on this advice the Company concludes that there is no reason to believe that EPMA 28589 will not be granted in due course. However, the company’s interest is restricted to the application, there is no assurance the application will be accepted, and the company’s rights are conditional on the grant of the concession.

Derisk prepared a new Mineral Resource estimate for the Korella North property that comprises Indicated and Inferred Mineral Resources.

Korella North Mineral Resource as at 11 August 2023 reported using a cut-off criterion of 10% P2O5. Measured and Indicated resources stand at 0.6 million tonnes grading 13.1% P2O5 for 80,000 tonnes contained P2O5. Inferred resources are 2.1 million tonnes grading 13.0% P2O5 for 275,000 tonnes contained P2O5.

The property is located in the northwest corner of the state of Queensland, Australia. The property is located 20 km north of another granted Exploration Permit for Minerals (EPM 28187), Korella South Property, held by the Company that is also prospective for phosphate.

Exploration in the local district has been undertaken by numerous tenement holders from the mid-1960s focused on a range of commodities including phosphate, uranium, copper/gold, lead/zinc, and rare earth element mineralization.

Chatham applied for EPMA 28589 in August 2022 and has completed several site visits to the property, an airborne light detection and ranging (LiDAR) survey to generate high-resolution surface topography, resurvey of drillhole collars, preliminary beneficiation assessment and mining study, and preparation of a new Mineral Resource estimate based on the results of the work completed by Krucible.

The company plans to investigate the potential to develop on open pit mining operation at the Property with simple on-site beneficiation to generate a product containing 20% P2O5 for sale domestically and internationally. Chatham has completed preliminary studies to assess mining options and an ore sorting technology for on-site beneficiation.

Planning has commenced for the application of a Mining Lease over the eastern side of the property where the Company considers there is potential to host an open pit phosphate mining and beneficiation operation. This application is not dependent on the grant of EPMA 28589.

Immediately upon the grant of EPMA 28589, the company’s first exploration objective will be to infill drill an initial 5-hectare area containing approximately 0.4 Mt of the existing Mineral Resource. The goal is to convert this material to Measured and Indicated Mineral Resource status in Year 1 and complete the technical work required to convert this material to a Mineral Reserve.