Plains Creek Phosphate Corp (PCP.V) - progress on schedule

Comment by Objective Capital , Aug 17, 2011
Click for previous reports on this company
Questions? |

Plains Creek Phosphate continues to advance its Farim phosphate project in Guinea-Bissau, primarily through four drill programmes undertaken from May through July, when drilling was suspended with the arrival of the rainy season, which usually ends by late Spetember. As well, GBM Minerals Engineering Consultants are reporting good progress on Plains Creek’s bankable feasibility study, which remains scheduled for completion late this year. Concurrently, Plains Creek and its consultants are working on a definitive mining plan, including required infrastructure.

The company completed 17 holes (915 metres) to further define the existing mineral resource, which will allow upgrades from inferred to measured and indicated resources. The holes also targeted an area farther north and west, with the intent of adding resources in this area. Golder Associates will incorporate the data into a revised resource model.

Plains Creek completed 20 holes (1,427 metres) on its 149,000-hectare exploration licence that surrounds the primary 30,600-hectare Farim licence. Preliminary data indicates as many as six of the holes intersected phosphate mineralisation. With continues success, these areas could expand the Farim phosphate resource base.

The company drilled nine large diameter (25 cm) holes (352 metres) as part of its metallurgical testing. Mineralisation from these holes, as well as phosphate obtained in earlier drilling, has been aggregated and shipped to Nancy, France, for further metallurgical testing. The results will be incorporated into the feasibility study.

Four holes (190 metres) were drilled for the installation of hydrological testing equipment and geotechnical testing. Data obtained form these tests will be incorporated into the feasibility study.

Objective's view:

We regard these developments as expected occurrences within our presumed timelines for development at Farim, which support our earlier valuation of Farim and Plains Creek. We do nevertheless gather increasing confidence from the progress to date.