From FCV MD&A – end of 3rd quarter Aug.31, 2013 on SEDAR as of Oct 30,2013. Some excerpts from the MD&A, only with respect to the Peru phosphate prop's.
Bayovar 12 Phosphate Property:
12,575 hectare concession connected by sealed road to tidewater and marine port facilities 40km to the west, owned by the property owner.
The Pan-American Highway crosses the claim at its eastern end and power transmission lines for the Bayovar Mine, located 15km to the southwest, transect the property at its northern end.
Five historical exploration holes drilled within the former gypsum operations and spaced approximately 1.5 km apart all intersected multiple flat-lying phosphate beds from 36.5m depth which assayed between 10 - 22% P205. The phosphate intervals were broadly correlated from hole to hole into at least 6 main units within a sequence of diatomite some 30 – 40m in thickness.
The geology and mineralization are similar to the Bayovar Mine and adjacent Fosfatos del Pacifico deposit (Hochschild / Mitsubishi / Zuari). Vale’s Bayovar Mine is a low cost operation and one of the biggest phosphate deposits in South America, with a 27 year mine life. Operations began in 2010 with 239.2 million tonnes of Proven and Probable Reserves* grading 17.2% P205 and a mine life of 27 years. In 2012, the mine produced 3.21 Mt of phosphate concentrate grading a minimum of 29% P205 and production is expected to reach 3.9 Mt per annum in 2014.
Processing of ore has minimum environmental impact and involves a series of washing
and gravimetric separations using seawater, followed by rinsing and drying before being loaded on ships and exported to the Americas, Asia and Oceania. Use of sea water ensures that local water sources are preserved and chemical reagents are not used in any stage of the processing. Vale sold minority stakes in the project to Mosaic (35%) and Mitsui (25%) for $660 million in 2010. Fosfatos del Pacifico (Cementos Pacasmayo / Mitusibishi / Zuari is developing a phosphate deposit on its Bayovar 9 concession, located 15km west of Bayovar 12. Resources are quoted as 541 MT of 18.5% P205*** (wet density).
Mantaro Phosphate Project:
One of the world’s largest undeveloped phosphate deposits.
Jan 11, 2011: from Stonegate Agricom website
https://www.stonegateagricom.com/s/NewsReleases.asp?ReportID=4371364
“Based on Stonegate's 2009 drilling program at Mantaro, the West Zone alone is estimated to contain 39.5 million tonnes of Measured and Indicated mineral resources with an average grade of 10% P2O5 (consisting of 5.5 million tonnes of Measured mineral resources with an average grade of 10.8% P2O5 and 34.0 million tonnes of Indicated mineral resources with an average grade of 9.9% P2O5). The West Zone also is estimated to contain 376.3 million tonnes of Inferred mineral resources with an average grade of 9% P2O5.
In addition, the East and Far East Zones are estimated to contain over 700 million tonnes of conceptual tonnage with an average grade of 9 to 9.5% P2O5.
Mineral resources are estimated by Michelle Stone, Ph.D., P.Geo. as described in a Technical Report by Hains and Stone dated February 21, 2010. Measured and Indicated mineral resources are reported using a 4% P2O5 cut-off. Inferred mineral resources are reported with an assumed grade of 9% P2O5 and no cut-off.”
Machay Phosphate Project:
16 concessions covering 7,200 hectares
The geology and style of phosphate mineralization at Machay is analogous to the Mantaro Property, located approximately 30km to the southeast.
Considering that the claims cover an estimated 50 km+ strike of the Aramachay Formation, the Company is very encouraged with these early results.
Quebranta Phosphate Project:
The Quebranta project comprises 10,600 hectares acquired by direct staking, and the Company holds an option to acquire a 100% interest in 450 hectares.
Sampling of phosphatic sandstone units assayed from trace up to 16.5% P2O5.
The geological setting and stratigraphy is analogous to the Sechura region, northern Peru that hosts Vale’s Bayovar Mine.
The Ocucaje region is poorly explored for phosphates although several old reports from the 1950’s and 60’s note the presence of phosphate mineralization with assays of up to 31.8% P2O5.