South Africa – TSX-V listed Montero Mining and Exploration has completed an initial review of geological data relating to extensive off-shore sedimentary phosphate deposits within the Greenflash project area in South Africa.
The Greenflash project is the second phosphate asset being advanced with funding partner Ovation Capital in South Africa.
Ovation has committed to expenditures of roughly C$2.7 million to acquire a 10% interest in Montero’s Duyker Eiland project. At the Greenflash Project, Ovation has agreed to co-fund due diligence with Montero, where, upon receiving a positive review, may elect to provide Montero 100% of the funding to outline a resource for equity participation in the project.
The Greenflash project could potentially provide additional feedstock to a fertilizer plant envisaged to be developed in Saldanha Bay by Montero and Ovation.
Montero and Ovation have until March 10, 2016, to complete the due diligence on the Greenflash project after which the parties may elect to immediately earn a 49% interest by committing to complete a resource estimate which may then increase to a 75% interest by completing a feasibility study.
Dr. Tony Harwood, President and Chief Executive Officer of Montero comments: “The Greenflash project area is located 30 km from Saldanha Bay port where prior drilling was completed to investigate its diamond potential, and covers ~10% of the Greenflash project area.”
“Our initial review of data confirms that an extensive area of phosphate-rich sediment has been outlined and warrants further investigation. The acquisition fits with Montero and Ovations strategy of developing multiple phosphate rock assets to support a fertilizer plant in the Saldanha Bay area.”
The Greenflash project area contains extensive phosphorite-rich sediment accumulation located on the sea bed of the continental shelf off the western coastline of South Africa.
Within the Greenflash licence area, concentrations of phosphorite occur over an area of about 200 km2 off the coast of Saldanha Bay on the continental shelf at depths of between 100 m to 400 m below sea level.
Phosphorite rock is the principal resource for phosphate (P2O5).
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