Combined annual report for the period ending 31 July 2003 EL 9976, EL 9979 and EL 22168 Wonarah

Abstract

During the first half of 2003, AKD carried out a review of the Wonarah technical data base and undertook an internal assessment of the 2002 Reverse Economics study by Rio Tinto. AKD concluded that potential exists in the south-west of the project area to increase the volume and grade of the inferred resource of 72 Mt @ 23% P2O5 through the drilling of the outcropping and potentially shallower, high-grade phosphorite at Arruwurra. The economics of Wonarah has changed significantly since the withdrawal of Rio Tinto in November 2002 with the substantial rise in DAP prices. The infrastructural dynamics of the project has improved with the completion of the Darwin Alice Springs railway and the commencement of the pre-feasibility study of a new proposed railway from Mt Isa to Tennant Creek which would follow the Barkly Highway. Metallurgical beneficiation and upgrade of the Wonarah ore to acceptable high grades (>30% P2O5) is an important factor not only with regard to project economics but also in determining the eventual high-value fertiliser product at Wonarah. Resolving the metallurgical issues for the Wonarah ore is a priority for the economic viability of the project.