upcoming decionThe chart is pretty bad, showing no signs of a bottom. However, there should be a feasibility study very soon. Management owns 25%. "Itafos" is the property where that study is being conducted.
MBAC intends to build a 540,000 tpa SSP facility capable of producing
phosphate fertilizers starting in early- to mid-2012. MBAC is launching an
aggressive resource confirmation 20,000 m drill program through 2010 that will
trigger a “go”/“no-go” decision on the planned scale-up at ItaFós – management
estimates a minimum 45 million tonnes of economic phosphate are needed in the
reserve category to move ahead with the project in this Phase 1. (Aside: Phase 2
may entail further resource drilling to support expanded SSP production, but this
is unlikely before 2015.) Given an M&I plus Inferred resource over 104,000
tonnes @ 5.23% P2O5 at ItaFós (Exhibit 17) we suggest there is reasonably high
likelihood the resource hurdle will be met. The expected cost of this drill
program is US$3 million to US$4 million. A feasibility study has been
commenced and is expected to be completed in Q1 2010.