Potash West NL (ASX:PWN) announced that recent evaluation of phosphate mineralization at its Dinner Hill Deposit, resulted in the delineation of an indicated mineral resource of 58Mt at 3.0% phosphate at 2.2% lower cutoff. Mineralisation remains open to the north and the east in an area of postulated basin closure thought to present favourable conditions for the development of nodular phosphate within the Cretaceous Coolyena Group.

As quoted in the press release:

Highlights

• Indicated Mineral Resource of 58Mt at 3.0% P2O5 of phosphate mineralisation identified at Dinner Hill.
• Preliminary metallurgical studies indicate high recovery using simple screening, magnetic separation and flotation processes with +30% P2O5 grade concentrates produced.
• Deposit remains open to the north and to the east with the potential for substantially increased tonnage.
• Scoping study commenced with results anticipated in September.
• Favourable logistics expected to enhance project economics.

Potash West Managing Director, Patrick McManus, said:

We believe that the short, and long, term outlooks for phosphates are favourable, with very different market dynamics to the potash industry. A focused phosphate operation would allow a low cost entry into production for Potash West.

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