Our projects
Concentrations of phosphate at the Chilisai Licence Area are found in a shallow (average overburden in the licence area is 3 metres), thin (approximately 1 metre), flat-lying, practically continuous sedimentary layer occupying most of the licence area of approximately 836 square kilometres. Three distinct lithologies are present in the phosphate bearing zone; from top to bottom, a weakly cemented plate, a nodule zone, and a pebble zone.
In historic reports the P2O5 content averaged 10.1% without much variation vertically or horizontally. According to the CPR, resources are more than sufficient to support a conceptual 10 million tonnes per year mining and processing operation producing up to 1.76 million tonnes of DAP per year for 56 years.
Work Plan 2009-2010
Sunkar’s current work plan is based on three separate processes.
- Extraction of phosphate bearing ore from the Chilisai deposit in accordance with the subsoil use contract.
- Pursuing sales of 17% P2O5 dry concentrate.
- Completion of the Bankable Feasibility Study on the development of the fertiliser manufacturing plant, which would produce high value added end user fertilisers such as diammonium phosphate and/or monoammonium phosphate.
Mining
Early mining operations commenced in September 2009. Ore extraction to date has been undertaken by a surface miner (manufactured by Wirtgen) or by using bulldozers / excavators.
Under the subsoil use contract, Sunkar achieved requirement to extract 200,000 tonnes of ore during 2008. The subsoil use contract specifies that during 2009, 1,000,000 tonnes of ore is to be extracted. During the period January to April 2009, a total of 432,000 tonnes of ore had been extracted.
Mobile beneficiation equipment was introduced in November 2008 to produce dry concentrated ore with a P2O5 content of approximately 17% (up from the approximate 10% contained in the raw ore). The beneficiation plant capacity is currently being extended, aiming to match the current rate of extraction. The beneficiation process produces mine rejects which equates to approximately 50% of the raw extracted ore. These mine rejects are being used as backfill in the reclamation process.
Sales
Sunkar is pursuing two separate avenues of sales.
- Sales of concentrate ore to neighbouring country fertiliser manufacturing facilities to produce end user fertilisers such as Ammophos
- Sales of milled dry concentrate to local farmers to use as direct application rock. The concentrate was certified for the purpose during the Soviet era.
Bankable Feasibility Study (“BFS”)
The BFS is a core task for progressing the overall project and represents a critical path item preceding project finance agreements and subsequent construction of the fertiliser processing facilities. The BFS is planned to commence in mid 2009.
Phosphoric Acid Pilot Plant testing
As a precursor to the appointment of the BFS engineering contractor, thedry concentrate is being tested to confirm the rock’s ability to produce phosphoric acid of a quality suitable for diammonium phosphate and monoammonium phosphate manufacturing.
Samples of beneficiated rock have been sent to three separate technical contractors; Jacobs Engineering and KEMWorks in Florida, USA and Prayon Technologies, Belgium. Sunkar has chosen to establish the optimal process for producing the phosphoric acid and to determine the target product list in advance of appointing the BFS contractor.
Technical Advisor
Mr Chris Neser has been appointed as a Technical Advisor to Sunkar to advise on all technical and financial aspects of the project. Mr Neser has over thirty years of experience within the phosphates industry gaining hands-on experience in mining, beneficiation, phosphoric acid and DAP production, fertilizer logistics as well as international phosphate marketing, most recently as a consultant to Agrifos Fertilizers Inc. Between February 2007 and July 2008 he was Deputy CEO Operations, for Jordan Phosphate Mines. From 2004 to 2007 he was Business Director in charge of completing the feasibility study on the Saudi Arabian Mining Company's Al Jalamid Phosphate Project.
JORC Resources Estimate
As part of the competent persons report (CPR) contained in the AIM Admission Document, Behre Dolbear estimated the JORC resources by aligning historical data compiled under the Soviet Classification System. Sunkar contracted Wardell Armstrong International in late 2008 to produce a JORC compliant resource estimate in advance of the BFS for the Chilisai project.
BFS Contractor
The BFS engineering contract is to be awarded on competitive basis to one of pilot plant contractors and their associated engineering firms. Criteria for the selection of the contract will include timing and technology features of the proposals.