AMN - SENEGAL: Avenira makes good progress on Baobab

Avenira (AEV) has made good progress at the Baobab project which remains on schedule for second half production, with works “on time and on budget” according to the company.

According to a recent report by Foster Stockbroking, key activities during the quarter included,:

- Mining of the Stage 1 pit overburden at Gadde Bissik, utilising trucks and excavators. Mining of the overburden is the project’s critical path

- Completion of main site access road

- Delivery of site accommodation units

- Water and power supply works

- Maintenance facility works.

A key part of the mining preparation was to confirm presence of local water bores. Water drilling has since proven successful, with flow rates from the first deep process water bore “better than predicted” from the hydro study. Drilling of the second process water bore, as well as the community water bore, started recently.

Foster expects production of phosphate rock to start September and first sales in October. “However AEV could likely achieve these milestones sooner.

“The key piece of plant equipment, the wet screening plant, was trial erected in South Africa, while the ultrafine screens have been fabricated in the USA. Both these kits are being transported to Senegal where we expect the equipment to be fully delivered the end of May.

“While the obvious current focus is on achieving production from the SMP, AEV is also ensuring momentum is active on the larger Baobab project, including environmental permitting, resource drilling, and community impact assessments.

“We believe the key for the large project is proving sufficient resources to underpin a long mine life required, for example 20 years. Drilling to the east of Gadde Bissik was undertaken during the March quarter, with further proposed drilling aimed at increasing the Indicated Resources both within and adjacent to the SMP commencing late March.”

Avenira’s 80% owned, flagship asset is the Baobab phosphate project located in the Republic of Sénégal.

Key elements of the project include:

- Simple development plan – open pit mining method accessing mineralisation through the unconsolidated sand overburden

- Favourable metallurgy – test work indicates significant grade enhancement via simple, low cost wet screening techniques

- Access to skilled workforce – established early-stage MOU with experienced local contract miner with the proven capacity to strip the overburden and mine the phosphate

- Close proximity to infrastructure – mined rock phosphate, once dried on conventional pads, will be trucked 145 km on predominantly sealed roads to the Port of Dakar, which has sufficient existing capacity for export

- Close proximity to existing markets, particularly European and South American markets

- Stable and mining-friendly country

- Significant expansion potential – the SMP covers a small portion of the tenement and there is excellent potential for further exploration and expansion, pending licenses and permits for the expanded area.

www.avenira.com

News courtesy of International Mining