Legend International Holdings, Inc. stepped up its drive to capitalize on Australia’s rich mineral deposits announcing an agreement today with Mt Isa Metals, an Australian based exploration company, to merge projects and form a joint venture to develop the D-Tree phosphate deposit in northeast Australia. The joint venture project covers an area of over 121,000 acres in Queensland, and includes a drilling-confirmed mineralized phosphorite area of over 24,000 acres. Legend will manage and hold 80% interest in the venture, with Mt Isa Metals holding the remaining 20%. The venture is seen as a significant step towards near term mine development.
In addition, the venture will also have access to plant and infrastructure at Legend’s proposed Lady Annie phosphate development, which lies 9 miles to the east of D-Tree.
The Managing Director of Mt Isa Metals, Peter Spiers, explained the reasoning behind the venture, and emphasized the importance of Legend’s involvement: “Consolidating the projects is a logical step given their geographic proximity and substantially enhances the project scope, as well as providing a clearer path towards near term commercialization. Legend is a significant participant in the Australian phosphate sector and has established strong links with one of the world’s major phosphate customers, the Indian Farmers Fertilizer Cooperative Limited (IFFCO).”
A 20,000 meter drilling program began in the area in September, 2008, and initial assay results are pending. The drilling program will be used to validate historical results. An early focus at D-Tree will be the identification of high-grade mineralization suitable for potential direct shipment via the Mt Isa railhead, which is less than 100 miles away.
Demand for rock phosphate is strong around the world, and the development of an early direct shipment operation can provide a foundation for consolidating longer term customer relationships while generating near term cash flow. Legend is an exploration state company, engaged in mineral exploration and development, with the focus on phosphate. Mt Isa Metals Limited is an Australian based exploration company focused on the discovery and development of world class mineral deposits in central and north-west Queensland.
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