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Central Australian Phosphate defines exploration potential of Arganara phosphate

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Central Australian Phosphate (ASX: CEN) has estimated that its Arganara Project in the Northern Territory has additional exploration potential of up to 1 billion tonnes to the east of the already defined 310 million tonne Resource.

MPR Geological Consultants has outlined an exploration target of between 600 million tonnes and 1 billion tonnes at 10 to 15% phosphate using a 5% cut-off.

This exploration target covers the mineralised phosphate corridor that runs east of the existing Inferred Resource of 310 million tonnes at 15% phosphate, using a 10% cut‐off, to Limestone Bore.

The mineralised domain extends over an area of about 22 kilometres east to west by 3 kilometres north to south, with an average thickness of around 9 metres.

Drilling in the eastern mineralised corridor includes 149 reverse circulation drill holes with mineralised intersections from 84 holes contributing to the estimate of the exploration target.

Included in the estimate are previously reported drill holes with grades above 20% phosphate.

Two holes returned intercepts of 4 metres at 23.4% phosphate from 19 metres, including 1 metre at 32.1% phosphate; and 9 metres at 17% phosphate from 18 metres, including 1 metre at 23.5% phosphate.

These holes are located around 10.6 kilometres to the east of the Arganara Resource boundary.


Potential takeover

Central Australian Phosphate is currently the subject of a proposed $12.7 million takeover bid by Rum Jungle Resources (ASX: RUM).

Rum Jungle is offering one share plus $0.20 cash for every 20 Central Australian Phosphate shares held.

Central Australian Phosphate has advised its shareholders to take no action until it has reviewed Rum Jungle’s Bidder’s Statement following which it will provide a formal recommendation.

The company said the offer is unsolicited and highly conditional.

Central Australian Phosphate had a cash position of around $1.04 million at the end of December 2012.


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Quick facts: Central Australian Phosphate

Price: 5.89 AUD

ASX:CEN
Market: ASX
Market Cap: $4.23 billion
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