Name of the Project
Ardmore phosphate rock project.

Location
North West Queensland, Australia.

Client
Centrex Metals.

Project Description
Ardmore has a maiden ore reserve of 10.1-million tonnes at 30.2% phosphorous pentoxide supporting a ten-year life-of-mine (LoM). An October 2018 definitive feasibility study (DFS) confirmed the project as a high-quality asset with a relatively low capital investment, low technical risk and the potential to provide strong returns.

In February, Centrex Metals completed an optimisation study of the Ardmore DFS.

While the planned production of 800 000 t/y and a LoM of ten years have remained unchanged, the optimisation study has identified and assessed cost-saving design opportunities.

Key results of the DFS optimisation include:

• the revision of the mining fleet to two 140-t-capacity haul trucks from three 90 t trucks proposed in the October 2018 DFS, better matching the selected excavator providing use, fuel, labour and maintenance efficiency gains;

• the diversion of the highway currently crossing the Northern Zone pit has been brought forward to the first year of mining (from Year 4) to allow for scheduling across the Southern and Northern Zone pits earlier in the LoM. This increases fleet use in the early years, significantly reduces long-term stockpile volumes and further smooths the material movement profile;

• the centralisation of the mining and processing offices and facilities and combined into one location.

The DFS optimisation study has also advanced several opportunities, including the assessment of design alternatives, progressed logistics contractor pricing, and submissions from alternate providers being received after the completion of the DFS.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The after-tax net present value has increased from A$109-million in the DFS to A$192-million in the optimisation study, while the internal rate of return has increased from 30% to 54%. Payback has been estimated at 1.8 years.

Value
The capital costs of the project have declined from A$77-million in the DFS to A$68.7-million in the optimisation study.

Duration
First operations are scheduled to start in mid-2019, with full-scale production scheduled for 2021.

Latest Developments
With its modular process plant expected to be commissioned in mid-2019, Centrex is on track to deliver its first shipments to customers this year.

The company is targeting an initial 30 000 t of production from the plant to provide its potential customers with 5 000 trial shipments to secure offtake to support full-scale project financing.

Key Contracts and Suppliers
RPM Global (mineral resources); Optima Consulting & Contracting (ore reserves and mining); GR Engineering Services (process and mine site infrastructure, overall study compilation); WSP (roads and rail siding infrastructure); Integer Research (market review and pricing); and Golder Associates (environment, hydrology and hydrogeology).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Centex Metals, tel +61 8 8213 3100 or fax +61 8 8231 4014.