TSX-V : GBL
Resource Hunter Capital Corp. Phosphate Mining in West Africa

Farim Phosphate

Summary

  • The project is a world class, high quality, development phosphate project containing measured resource of 64.6 million tonnes at 29.11% P2O5, indicated resource of 28.1 million tonnes at 27.68 P2O5 and additional inferred resources of 18.3 million tonnes at 28.66% P2O5 and a 25 year mining plan for a ROM of 32.5 million tonnes at 30.4% P2O5 @ 4.5%Fe2O3 and 2.5% Al2O3 producing 25 Mt at a rate of 1 Mt/yr beneficiated phosphate rock concentrate having a grade of 33.1% P2O5 @ 1.6%Fe2O3 and 1.4% Al2O3
  • Feasibility Study dated effective December 19, 2012 filed on SEDAR for a 1 Mt/year phosphate rock production grading 33.1% P2O5 @ 1.6% Fe2O3 and 1.4% Al2O3.
  • Production license granted. Strategy to move to production of up to 2 million tonnes of phosphate rock per annum for minimum 25 years.
  • Attractive economics - US $55.4 million average annual post-tax cash flow provides simple payback of the pre-production capital investment after approximately two years of operation, based on US $150 per tonne phosphate rock. Current prices are of the order of US$170 per tonne phosphate rock.
  • Good Infrastructure components that support production capabilities and accelerate transport to world markets - 80 kms to the location of the port.
  • Open cast mining using dredges, simple beneficiation process to produce phosphate rock product.
  • Potential to increase phosphate resources with deposit open in three directions.

Location

The Project is located in the northern part of central Guinea-Bissau, West Africa, approximately 25 km south of the Senegal border, approximately 5 km west of the town of Farim and some 120 km North of Bissau, the capital of Guinea-Bissau. The Project consists of a high grade sedimentary phosphate deposit of one continuous phosphate bed, which extends over a known surface area of approximately 40 km2.

Ownership

GB Minerals has entered into a Share Purchase Agreement to acquire 100% of the shareholding of GB Minerals AG of Switzerland which in turn owns 100% of the mineral rights to the Farim Phosphate project. GB Minerals acquired a 50.1% interest in the Farim Project in March 2011 and acquired the remaining 49.9% interest through staged acquisition in April 2013.  GB Minerals has now acquired 100% interest in the Farim Project.

Production Agreement

In May 2009, a comprehensive production agreement was signed with the Guinea Bissau Government. A summary of the production agreement is provided below:

  • Includes production license, mining lease and incentive agreement
  • 100% ownership with no government participation.
  • Agreement is for 25 years, renewable for successive period of 25 years
  • Port, roads, pipelines are at sole discretion of company.
  • No Government taxes, license fees or other costs
  • 10 year tax holiday from start of commercial operations
  • 2% tax deductible royalty on production

Resource

The Farim Phosphate Project contains 64.6 million tonnes at 29.11% P2O5, indicated resource of 28.1 million tonnes at 27.68 P2O5 and additional inferred resources of 18.3 million tonnes at 28.66% P2O5 and total proven and probable reserves of 33.0 Mt (dry) with an average ROM P2O5 grade of 30.4%. The deposit also contains an additional lower zone phosphate layer with an average grade of 10-15% P2O5 (Non 43-101).

Deposit

The Farim phosphate deposit occurs within the Middle Eocene Lutetien Formation in a Cenozoic sedimentary basin that extends from Morocco in the north through Mauritania, Senegal, Guinea-Bissau and into Guinea to the south. The basin hosts a number of important phosphate deposits and accounts for almost 25% of world production. Two main phosphate-bearing horizons have been identified at the Farim phosphate deposit and are referred to as the FPA and FPB Zones. 

Feasibility Study

In December 2012, GB Minerals completed a feasibility study for the production of 1.0 Mt per year of beneficiated phosphate rock concentrate with an average ROM P2O5 grade of 30.4%. Results of the feasibility study showed that the Farim Project is robust at the selected long term phosphate rock prices of US$150 per tonne. Accordingly, the study recommends that the project be advanced to the next stage of engineering and design. A summary of the feasibility study is provided below:

  • 25 year Mining Plan with production commencing 2014; exporting 1 million tonnes of phosphate rock concentrate per annum.
  • Attractive economics of US $55.4 million average annual post-tax cash flow provides simple payback of the pre-production capital investment after approximately two years of operation, based on US $150 per tonne phosphate rock. Current prices are of the order of US$170 per tonne phosphate rock.
  • Operating cost US$77.12 per tonne FOB and total capital costs of US$238.2 million
  • Simple mining process - open cast mining using dredges - straight forward beneficiation to produce phosphate rock concentrate.
  • Phosphate will be transported 80km distance by slurry pipeline to sea port location.
  • Simple and efficient beneficiation process in three basic steps: screening to discard +1mm and minus 10 micron particles, magnetic separation to remove iron oxide particles and finally dewatering.
  • Final product of 1 million dry tonnes of phosphate rock concentrate grading 30.4% P2O5.
  • Potential to increase phosphate resources with deposit open in three directions.

Deposit Open in 3 Directions