Phosphate Projects

SXG believes that the current shortage of rock phosphate and hence high price of this product is unlikely to be remedied in the near future due to the depletion of near surface, high grade deposits of guano combined with the increasing world population and concomitant use of bio-fuels. Hence the long term fundamentals of phosphate are believed to be good and are likely to withstand any downturn in mineral commodity markets. For this reason, SXG has embarked on a low profile and low cost search for projects with potential for phosphate in Western Australia, in particular in areas with good infrastructure or close to ports and/or markets (agricultural areas).

Three projects have been acquired based on their phosphate prospectivity (Figure 1). The Edgar Range Phosphate Project is the most advanced and consists of an option to purchase a 650km² exploration licence application (ELA) only 100km from the port of Broome (Figure 6). This covers about 140km strike of an unexplored outcropping geological unit (Jarlemai Siltstone) of Jurassic/Cretaceous age (a worldwide period of phosphate deposition) which is known to be highly phosphatic in old petroleum exploration wells located down dip of the outcrop. The unit is known to grade greater than 1% P₂O₅ over 122m width, with 10-15m intervals grading 4-5% P₂O₅ and several 3m intervals grading up to 9% P₂O₅. Selective grab sampling of nodular phosphate from the Jarlemai Siltstone by Heron Resources at their Langey Prospect has returned an average of 22.5% P₂O₅.

The Duchess Phosphate project in Queensland was discovered by identifying low grade phosphate in old petroleum wells and following the unit up dip to areas of outcrop. Hence the potential for discovering higher grade phosphate in the outcropping Jarlemai Siltstone is a proven exploration concept. SXG has applied for an additional three exploration licences (ELs) covering an area of about 1950km² surrounding the original ELA.

The other two phosphate projects are earlier stage. The Backdoor Hills Phosphate Project consists of three ELAs covering about 500km² of Proterozoic metasediments with stromatolitic units (algal mats known to host high grade phosphate mineralisation in Rajasthan, India) and anomalous phosphorus and vanadium in stream sediment samples. The Moonyoonooka Phosphate Project is a single ELA covering about 210km² less than 10km from Geraldton. It covers outcrop of Jurassic age sediments with a known phosphate occurrence.