MagIndustries Corp MAAFF

RE: RE: RE: MagIndustries Acquires Potasse du Cong

[pangloss81]

Africa Mining Intelligence
Potash Mines Back in Business
18 February 2009


Mined between 1969 and 1977 by the Compagnie des Potasse du Congo, an affiliate of France’s Mines Domaniales de Potasse d’Alsace, the potash resources of Kouilou at are attracting the attention of geologists once again. The potash price rose from USD 150 per ton in 2007 to USD 1,150/ton at the end of 2008. Relatively rare, potash is used on plantations as fertilizer for sugar cane, from which ethanol is extracted, particularly in Brazil.

The Congo Potash Company (CPT, Canada), a firm chaired by Jean-Claude Gonneau, managing partner of Duet Asset Management, and headed by Hugh Callaghan, ex-MD of Riversdale Mining Ltd., plans to complete a feasibility study on the Tschizalamou and Loango resources and win a mining license. At the end of last May, the company transformed its exploration permit at Tschizalamou into a research license and won an exploration permit in Loango which lies alongside a potash project of Magindustries. CPT called on Ercosplan GmbH of Germany to act as technical partner. The company estimate there is a workable resource of roughly 24 m t on the site, where 88 drillings totalling 60 km were carried out in the past. Located on the coast and linked to the deep water port of Pointe Noire by road, the project aims to export potash to Brazil, or five days’ away by ship. Brazil currently buys most of its potash from Canada. It is sent by boat and takes 23 days to reach Brazil. CPC plans to produce 500,000 t/yr with solution mining technology.