Legend International Holdings Announces Georgina Basin Phosphate Project Update
Legend International Holdings, Inc (OTCBB:LGDI) is pleased to announce
this update on its Georgina Basin Phosphate Project currently being
developed near Mt. Isa, Queensland, Australia.
The Company has previously announced on April 8, 2011 that positive
discussions are still progressing with interested industry corporations
for a potential strategic transaction relating to the development and
financing of the phosphate assets. These discussions have advanced
considerably in the last few months. The Company is dealing with
multi-national corporations that are conducting extensive due diligence.
Although the negotiations are taking longer than expected the Company is
confident that a deal will be completed as interest in the project
remains strong.
Legend′s phosphate assets are of a high quality and size that has been
demonstrated with the recent reporting of Proven Reserves. Phosphate
deposits of this nature, in a stable legal jurisdiction, are unique and
a rare opportunity given the current and future outlook for agricultural
raw materials upon which food production is reliant. The global
population has a critical need to have projects such as Legend′s
phosphate project developed and producing fertilizers to meet the future
demand. Phosphate fertilizer prices reflect the current supply and
demand imbalance with Diammonium Phosphate (DAP) prices currently at
US$660 per tonne (FOB Tampa, U.S.A). Recent 10 year forecast prices by
CRU Group, London based commodity research unit (formerly British
Sulphur Consultants), show that prices will remain strong for the
foreseeable future. Using current prices the Project now has a forecast
operating margin of over US$300 per tonne.
Given the quality and inherent value in Legend′s phosphate assets
further patience is required in the short term so that a satisfactory
deal with an appropriate partner can be finalised to realise the best
value for shareholders in the long term.
Paradise North Reserve Estimate
On April 12, 2011 it was announced that Paradise North Mining Lease
(ML90191) was granted to Legend which is the second of three mining
lease applications to be granted to Legend.
The first stage of Paradise North phosphoric acid testing for reserve
determination has been completed. The results indicate that good quality
phosphoric acid with high P2O5 extraction and low
impurities can be produced from a range of drill samples. These results
are in line with Legend′s expectations from previous Paradise North
testing that has been carried out by external consultants in China and
USA. It is expected that Stage 2 work will be undertaken in the coming
weeks to test further drill samples with the objective of estimating a
US SEC compliant Mineral Reserve of in-situ high grade phosphate rock
suitable as direct feed into a phosphoric acid plant. This material is
expected to be used in Legend′s proposed Fertilizer Complex in Mt Isa,
without requiring beneficiation, enabling the construction of a
beneficiation plant to be deferred until the high grade deposit at
Paradise North has been depleted.
Paradise South Environmental Impact Statement Submitted
The Environmental Impact Statement (EIS) for the Paradise South project
covering mining, beneficiation, supporting infrastructure and transport
was submitted to the Queensland Department of Resource Management (DERM)
this month for assessment. The statutory timeframes indicate that an
Environmental Authority could be granted to Legend for the project in Q1
2012 which would subsequently lead to the grant of the Paradise South
Mine Lease (ML90197).
On February 24, 2011 the Company reported proven and probable Mineral
Reserves at Paradise South totalling 196.1 million tonnes at 14.6% P2O5
(55.5 million tonnes at 33% P2O5 of
recoverable rock concentrate) sufficient for a 60 year fertilizer
operation producing 600,000 tonnes of DAP/MAP per year.
Mine Infrastructure Lease Applications Submitted
Legend has submitted Mine Leases (MLs) for Infrastructure to the
Queensland Department of Mines and Energy (QME) for a water supply dam,
tailings storage facility, power transmission line and slurry pipeline.
These MLs will be assessed as part of the Paradise South Project EIS and
can be expected to be granted within similar timeframes as reported
above.
D -Tree Deposit Reserve Estimate Progress
Legend′s unique and efficient beneficiation process, which has a patent
pending, has recently been used in a laboratory pilot scale unit to test
a number of D -Tree drill core samples so that the current Australian
JORC resource estimate of 305 million tonnes at 15% P2O5
can be estimated to conform with a U.S SEC compliant recoverable rock
concentrate Mineral Reserve in the future. Results are being reviewed
and statistical analysis is being carried out to determine the
relationships between the mined feed grade, concentrate grade and
expected recoveries. Initial results from the beneficiation tests
indicate efficient coarse silica removal without needing to crush the
ore and excellent flotation concentration of phosphate. Results appear
similar to what was found for Paradise South ore, again highlighting the
success of Legend′s own developed flotation beneficiation process of
which the Company may look to commercialize in the future.
Drilling Commenced On Legend ? King Eagle Joint Venture Tenements
Legend is currently drilling on the Highland Plains project (EPM14906)
which forms part of the farm-in Joint Venture Agreement (JVA) that
Legend has with King Eagle Resources Pty Ltd, a subsidiary of Golden
Cross Resources Ltd (GCR). GCR are the tenement holders of Highland
Plains (EPM14906), Lily & Sherrin Creek (EPM14912) and Quita Creek
(14905), all of which contain substantial historically defined phosphate
deposits. Legend is spending A$3 million over 5 years to earn an 80%
interest in these tenements. After the Highland Plains drill program
Legend will move the drill rig to Lily & Sherrin Creek and Quita Creek
for further resource definition and validation with a view to be able to
estimate JORC compliant resource estimates for targeted areas of the
historically defined mineralisation.
Forward-Looking Statements
Forward-looking statements in this press release are made pursuant to
the 'safe harbour? provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such forward-looking
statements involve risks and uncertainties including, without
limitation, the risks of exploration and development stage projects,
risks associated with environmental and other regulatory matters, mining
risks and competition and the volatility of mineral prices. Actual
results and timetables could vary significantly. Additional information
about these and other factors that could affect the Company′s business
is set forth in the Company′s fiscal 2010 Annual Report on Form 10-K and
other filings with the Securities and Exchange Commission.
Legend International Holdings, Inc.
Joseph Gutnick, 011 613
8532 2866
Chief Executive Officer
Fax: 011 613 8532 2805
josephg@axisc.com.au
or
General
Manager Business
New York Office
Tel: 212-223-0018
Fax:
212-223-1169
legendinfo@axisc.com.au