Grattidge and two co-authors reported in early 2014 that Rum Jungle Resources (RJR) proposed to develop a phosphate mine located approximately 200 km southeast of Tennant Creek and 300 km north-east of Alice Springs on the Ammaroo Pastoral Lease in the Northern Territory (Figure 1-1). The Ammaroo phosphate project, involves the open cut mining of shallow phosphate deposits, the beneficiation of that ore and the transport of it to markets. RJR have completed a scoping study and preliminary economic assessment of the Ammaroo project and have selected three possible options.
The Ammaroo Phosphate project currently comprises the Barrow Creek 1 deposit and now, after a successful takeover of Central Australian Phosphate, the adjacent Argannara deposit. The combined Measured, Indicated and Inferred Resource is resource is approximately 1.08 tonnes at an average grade of
approximately 15% P2O5 at a cut off of 10% P2O5. This project resource currently includes a Measured Resource of 136 million tonnes at an average grade of 15.7% at a cut-off of 10% P2O5.
All phosphate resources around the world have some form of heavy-metal contaminant. The phosphate resource at Ammaroo, in comparison to global standards, is very low in Uranium (<30 ppm) and very low in Cadmium and Arsenic (<5 ppm). For example, Moroccan and Florida phosphate ores have in excess of 200 ppm Uranium. Some areas of the resource have higher average lead levels (200-800 ppm) than comparative global ores. Whilst the level of lead is not high in general terms, the majority of it will need to be removed, somewhere along the phosphate fertilizer value stream, most likely in a phosphoric acid plant.
The rail and port export capacities are assumed to be 1.8 million tonnes of rock product per annum or approximately 900,000 tonnes of liquid phosphoric acid. The preferred mining method for the Ammaroo project for all 3 of the product options is strip mining. This is relatively shallow open cut mining used to access the ore horizon. Once ore has been exposed it is extracted leaving a void that is backfilled with the overburden excavated to expose the next strip of ore. As progressive strips are mined and the depleted mine is backfilled the mine front moves through the resource.
Rehabilitation is progressive reducing the overall environmental impact of the operation, reducing issues associated with erosion and dust. Strip mining is carried out by conventional truck and shovel systems as well as mechanized surface miners with conveyor belt systems providing mining solutions.
RJR hope to commence construction in the third quarter of 2015 with operations commencing mid to late 2016, pending receipt of all necessary approvals.
Three options have been identified as the most economically and technically viable for the Ammaroo
It should be noted here that Michael D. Campbell of Conoco first discovered phosphate of potential economic significance just north of the Ammaroo deposits in 1968. See report: https://www.i2mconsultants.com/downloads/corp/MDCAlroyNT.pdf
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