Celamin Holdings NL (ASX:CNL) has announced drill results on their Tunisian Chaketma Phosphate project.
The company intersected very encouraging drill results, such as almost 40 meters in excess of 21% P2O5 and 26 meters at 22% P2O5. The grades are relatively similar to the expected grades, as outlined in the company’s scoping study.
We anticipate a maiden resource estimate on the Chaketma project this winter, and as the grades are excellent, this might be one of the best phosphate projects on the world. In their scoping study Celamin estimated the cash costs per tonne of phosphate at $55-65/tonne, way below the current market price of $160/tonne. A 750k tpa operation would bring in approximately $75M in operational cash flow per annum.
These are obviously only ballpark numbers, so we’ll have to wait for the definitive feasibility study to see the final IRR and NPV numbers.
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