Baobab Mining and Chemicals Corporation S.A, or BMCC, the 80%-owned subsidiary of ASX-listed Avenira, has received a Senegalese Government exploitation permit for the Gadde Bissik area within its Baobab phosphate project in the Republic of Senegal.
“The grant of this exploitation permit is a major milestone for our Baobab expansion and upgrade investment project,” says Avenira MD and CEO Louis Calvarin.
“Receiving the permit underpins all future steps including funding the project implementation, and increases our company’s feasibility study momentum.
The permit covers an area of 75 km2 around the former Gadde Bissik small mine permit and is valid for an initial renewable period of 20 years. Following the restructuring triggered by this permit grant, the Senegalese Government will hold a 10% free-carried interest in the legal entity owning the permit, and the new structure will be exempt from paying certain taxes.
The new permit covers the area identified by Avenira as offering the best economic potential for commercial phosphate rock mining. It surrounds the small mine operation launched by Avenira through BMCC in 2016.
This permit approval is a major milestone for Avenira’s Baobab feasibility study, currently projected to complete in the December 2018 quarter.
Following this, Avenira intends to initiate a bankable feasibility study phase based on the project configuration set at the conclusion of the feasibility study, aiming at a June 2019 quarter completion.
The indicated mineral resource within the permit area is estimated at 41.8 Mt at 19.4% P2O5 at a cut-off grade of 10% P2O5 , and the inferred mineral resource within the permit area is estimated at 247 Mt at 16.0% P2O5 at a cut-off grade of 10% P2O5 , both taking into account depletion by mining to date
The estimated indicated mineral resource and estimated inferred mineral resource within the permit area represent 99% of the total estimated indicated mineral resource and 77% of the total estimated inferred mineral resource, respectively, within the company’s Baobab project Cherif Lo-Ngakham exploration permit.