D-Tree JV
Location: | 120km NNW of Mt Isa |
Tenement Area: | 490km2 |
Primary Target: | Phosphate |
Highlights: | Substantial sedimentary phosphate deposit discovered in the mid 1960's. |
Phosphate horizon extends for over 100 km2 on joint venture te | |
Proposed joint venture between Mt Isa Metals (20%) and Legend International Holdings, Inc (80% and manager). |
On the 28 October 2008 Mt Isa Metals and Legend International Holdings, Inc. announced that they had entered into a Heads of Agreement for the formation of a Joint Venture over each party's respective interest in tenements overlying the D-Tree phosphate deposit - The D-Tree Joint Venture.
Subject to completion of formal JV documents Mt Isa Metals will hold a 20% contributing interest in the joint venture, and Legend International Holdings, Inc. will manage and hold an 80% interest in the joint venture.
The joint venture will consolidate and rationalise tenement ownership over the D-Tree deposit and is a significant positive step towards near-term mine development. In addition to resource consolidation the joint venture will also have access to plant and infrastructure at Legend's 100%-owned proposed Lady Annie phosphate development which lies 15km to the east of D-Tree.
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).
Phosphate mineralisation at D-Tree is hosted within Cambrian age sediments of the Beetle Creek Formation which variably outcrop along the western edge of the Georgina Basin, a major sedimentary basin that hosts Australia's most economically significant phosphate deposits.
The JV tenements (including applications) cover a total area of 490km2 and include an estimated 100 km2 of mineralised phosphorite horizon that has been defined over a 30km strike length by historical drilling.
The D-Tree deposit was subject to extensive technical studies in the 1960s and 1970s including completion of approximately 150 drill holes over the entire deposit by IMC.
Rock phosphate prices have increased substantially over the past two years and significant phosphate deposits discovered in the past, such as D-Tree are now receiving detailed re-assessment.
A 20,000 metre reverse circulation / diamond drilling program commenced within the proposed JV area in early September 2008.
The current drilling program will be used to re-validate historical results, convert the historical results to reserve status, and collect material for beneficiation test work. An early focus for the joint venture will be the identification of high grade mineralisation suitable for potential direct shipment via the Mt Isa railhead.
The phosphate horizon is yet to be fully closed off and potential exists to further extend the defined mineralised zone through additional drilling.
Parts of the joint venture area overlap the Gregory Wild River area under the Gregory Wild River Declaration 2007 (GWRD) and as a result, the conducting of mining and exploration activities will be limited by any restrictions placed under the GWRD.
| Tenement Number | Tenement Name | Interest* |
| 14753 (EPM) | D-Tree | 20% |
| 15763 (EPM) | Thornton Creek | 20% |
| 17333 (EPMA) | Thorntonia | 20% |
| 17437 (EPMA) | D-Tree South | 20% |
| 17443 (EPMA) | East Galah | 20% |
| 17446 (EPMA) | Bean Tree | 20% |
* Subject to conclusion of formal JV documentation. JV Heads of Agreement signed 27 Oct 2008.
