Ann: Upgrade of Assay Data - Ammaroo Project , page-4

re: Ann: AAG: Upgrade of Assay Data - Ammaroo... I haven't followed MAK very closely, but going off that study Wonarah looks pretty marginal as a DSO operation at US $150/tonne phosphate. The other options open to them producing DAP, superphosphate, beneficiation etc, are high capex but if they can get a partner with deep pockets and a long term outlook it may well be viable. The equation is quite different, transport costs are relatively less significant, but they need to secure good cheap sources of chemicals and energy e.g. sulphur from Mt Isa smelters, gas for nitrogen, possibly could even use a stranded UCG deposit or similar.

These options are open to RUM too of course, but for making a quick start on a low capex dig-and-ship DSO operation RUM may be a lot better placed. They were suggesting in today's ann that the high grade in Area 1 may extend to 4km so perhaps could double my previous estimate to 40 MT or so. Also there was a slide showing the chert pebbles in phosphate, perhaps hinting that the upgrade to 30% + DSO is simply a matter of screening.

If anyone has any info from AGM would be interested to hear.