PhosCo’s March quarter powering its Chaketma fertiliser project in Tunisia
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Fertiliser maker PhosCo has two key goals for its Chaketma phosphate project in Tunisia: securing full ownership and working out an optimal development route.
While the latter leverages on work completed between 2015 and 2021, much progress has also been made during the March 2022 quarter including a 50% increase in resources to 55.5Mt at 21.2% P2O5 for the KEL deposit and a review of 2017 metallurgical testing that highlighted the potential to produce a commercial grade phosphate concentrate.
The resource upgrade includes a substantial upgrade of Inferred resources to the higher confidence Indicated and Measured categories.
During the quarter, PhosCo (ASX:PHO) also completed the $3.2m Tranche 2 placement and launched the seizure case against joint venture partner TMS, which owes US$5m in costs and damages, for its 48.99% interest in Chaketma.
The March quarter has also seen phosphate prices climb 85% over the previous year to US$179 per tonne, due in no small part to the sanctions on Russia for its invasion of Ukraine, the resumption of technical activities in Tunisia with associated appointments, and the start of business development activities.
During the current quarter, the company plans to upgrade resources for the GK deposit – the second of two major deposits at the project – by including an additional 21 holes.
This will be followed by a major project update following completion of the GAP analysis to determine the work required to complete a bankable feasibility study for Chaketma.
PhosCo will also recommence field work such as a LIDAR survey of the project and expects to report on the seizure case decision though that is subject to appeal.
Chaketma is located in Tunisia, putting it at the doorstep of key export markets in Europe.
The project has ready access to infrastructure such as road and rail, gas and power.
Consideration is also being given for wind, solar and treatment routes as part of the company’s ESG strategy.
This article was developed in collaboration with PhosCo, a Stockhead advertiser at the time of publishing.