Mt Isa Metals moves D-Tree Phosphate Deposit closer to development with JV

Mt Isa Metals (ASX:MET) has executed formal documentation with Legend International Holdings, Inc. (Legend) over each party’s respective interest in tenements overlying the D‐Tree phosphate deposit, 120 kilometres north west of Mt Isa, Queensland.

D‐Tree North comprises an area of higher grade phosphate mineralisation defined by the 2008 drilling program which is considered prospective as potential direct shipment ore (DSO). A Mining Lease Application (MLA 90190) was recently submitted by the JV to the Queensland Department of Mines and Energy over the D‐Tree North area.

Definition drilling has resumed at D‐Tree North within MLA 90190. The drilling, on a maximum 100m x 100m grid, is aimed at defining JORC compliant Mineral Resources and Ore Reserves. Drilling within MLA 90190 is anticipated to be completed by the end of April with assay results thereafter.

The JV tenements (including applications) cover a total area of 492km2 and include an estimated 100 km2 of mineralised phosphorite horizon that has been defined by historical drilling.

The joint venture consolidates ownership over 100% of the D‐Tree deposit and is a significant positive step towards near‐term mine development.

Subject to conclusion of a positive Feasibility Study, the JV partners are targeting development of an 0.5Mtpa open pit mine producing direct shipment ore from the D‐Tree North Project area.

Mt Isa Metals Managing Director Peter Spiers said, “We are particularly pleased to announce formalisation of the Joint Venture with Legend. Legend brings a substantial amount of value to the project including an agreement with the Indian Farmers Federation Co‐operative Limited (IFFCO) for the purchase of 4 million tonnes of phosphate product per year.”

Peter Spiers further added, “We are very encouraged by the results achieved to date at D‐Tree and the significant progress made by Legend across all aspects of the project feasibility study.”

“We look forward to working closely with Legend to pursue all development options available from this substantial phosphate occurrence and to announcing further results on the project as they come to hand.”

Under the JV, Legend will contribute EPM 14753, EPMA’s 17333, 17437, 17443 and 17446, and, MET will contribute EPM 15763 (D‐Tree West).

Legend will manage the Joint Venture and holds an 80% interest. MET holds a 20% contributing interest in the Joint Venture. Significantly, the Joint Venture will also have the opportunity to access plant and infrastructure at Legend’s 100%‐owned proposed Paradise phosphate development located 15km to the east of D‐Tree.

The arrangements entered into with Legend also include a separate Marketing Agreement whereby Legend will act as Agent for the sale of all MET product derived from the JV tenements.