Celamin Holdings NL (CNL) has reported its maiden JORC resource at the Chaketma phosphate project in Tunisia. The inferred resource at the Kef El Louz North prospect comprises 37Mt of phosphate rock at a 21% P2O5 grade and using a cut-off grade of 10% P2O5. The maiden inferred resource exceeds the potential mineralisation of 30Mt at 19.7% P2O5, as outlined by Celamin in the scoping study in August and which is sufficient for a mine with an initial 10 years of production. The project will now move towards the engineering stage of a definitive feasibility study (DFS), which is to commence in March 2013.
Experienced Board Appointments
Celamin has also added experience to its board of directors with the appointment of Mr Russell Luxford as an executive director and Mr Garry Scanlan as a non-executive director. Mr Luxford brings over 20 years of mining experience, having previously worked with Rio Tinto, WMC and Goldfields. While at WMC, Mr Luxford was employed as the general manager of the Phosphate Hill project in Mt Isa. Mr Scanlan has some 28 years of mining industry experience, having worked at Newcrest Mining, Castlemaine Goldfields and PriceWaterhouseCoopers. Mr Scanlan also previously served as a non-executive director at Citadel Resources alongside the current Celamin Holdings chairman, the Hon. Andrew Thomson and managing director David Regan.
Improved Ore Thickness And Lower Strip Ratio
Ongoing drilling and trenching results at the Kef El Louz North prospect within the Chaketma exploration permit indicate improved ore thicknesses and consequently lower strip ratios than assumed at the time of the scoping study. The next phase of major technical work to be undertaken is a metallurgical evaluation and pilot plant testing of a 100-tonne bulk sample that is to be sent to Tunis early in 2013.
Valuation: A$0.75 -- DDF Basis
We maintain our previous valuation (A$0.75/share, using a 50:50 debt/equity split in our Update report published on 30 October). Our valuation of Celamin Holdings, based on a project dividend-discount factor (DDF) basis, is A$0.75 (10% discount factor, gearing ratio of 100% and a long-term phosphate rock price of US$150/tone – c 30% P2O5).
To Read the Entire Report Please Click on the pdf File Below.