August 3, 2012

 

Minbos Resources is making progress on the Kanzi project after signing a joint venture agreement with Allamanda Trading SPRL for the exploration and development of the project, with licenses being granted.

 

The eight new licences also make the company the largest holder of phosphate exploration acreage in the highly prospective Congo Basin and enable an increase in resources to be calculated from existing data in the near future.

 

Kanzi has a JORC Resource of 46 million tonnes at 17.2% phosphorus, including 31 million tonnes at 21.4% phosphorus. Kanzi is located in the Democratic Republic of Congo, with the joint venture also including the surrounding exploration areas.

 

In addition, Minbos and joint venture partner Allamanda Trading SPRL have the exclusive rights to about 200,000 hectares of prospective exploration ground around Kanzi, which will be evaluated in parallel to the Kanzi development.

 

"With the current high grade resources already identified at Kanzi, we have sufficient confidence in the robust nature of the project that completion of a bankable feasibility study is confirmed as the next step," Minbos executive chairman Peter Richard said.

 

"Exclusivity over the additional exploration licences surrounding Kanzi makes 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.

 

"In the 18 months since its listing, Minbos has moved from an exploration company to a company that now has two projects in development stage - confirmation that Minbos is rapidly achieving its goal of becoming a low capex and opex phosphate rock producer and exporter."

 

Minbos is issuing 2.6 million shares, paying a fee of US$162,500 and providing initial funding of US$600,000 to Allamanda Trading to earn its 65% interest in the Phosphalux joint venture, which holds 100% of the eight exploration licences. It will also pay a sales revenue royalty of 3% to Allamanda who will in turn be responsible for any government royalty payments for the entire project.

 

Minbos will also pay a once off fee in 12 months of US$0.05 per tonne of contained phosphate for Indicated Resources grading greater than 20% phosphorus capped at a maximum of US$1 million.

 

The joint venture gives Minbos the right to explore and develop the remaining concessions owned by Allamanda at a timing of its choice. This allows initial efforts to be focused on Kanzi before the regional programme is implemented.

 

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 test work 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.