Chatham Rock Phosphate Ltd. made another stunning advance this week.
Shareholders will recall that in October, 2021, it announced the acquisition of the Korella phosphate and rare earth mining lease and assets based in Queensland.
Yesterday, it was advised that its application for an area of 196 square kilometres south of Korella has been accepted by the Queensland Department of Resources. The area covered by EPMA 28187 (Korella South) is approximately 12 times the size of the Korella mining permit that it is currently acquiring. Chatham’s wholly owned Australian subsidiary Avenir Makatea Pty. Ltd. made the application.
Korella South (EPMA 28187) covers an area that has been subject to considerable past exploration for a variety of minerals.
Based on the body of geological knowledge that currently exists concerning Korella South, the ground is highly prospective for both rock phosphates and rare earths.
The potential exists within Korella South for additional phosphate resources that will complement the existing low-cadmium, high-quality phosphate resources within the Korella mining permit.
The strong relationship between phosphate and rare earth elements (REE) has been the subject of considerable study both overseas and more locally by the Queensland Geological Survey, which has focused on the eastern rim of the Georgina basin that includes Korella South.
The potential for rare earth mineralization in Korella South is in addition to that already identified in Korella. It is expected to attract major players in the rare earth industry as potential joint venture partners for Chatham’s 100-per-cent-owned subsidiary company Pacific Rare Earths Ltd. (PRE).
PRE is proposed to manage and lead the rare earths facet of the Korella South development as it has already demonstrated in relation to the rare earths identified in the Chatham Rise deposit.
Chatham strategy
The acquisition of Avenir Makatea was the first step in the company’s strategy to build an international phosphate mining and trading house with a focus on low-cadmium, organic phosphate.
The second step was the acquisition of the fully permitted Korella phosphate mine in Queensland, Australia, with its ability to generate positive cash flows starting in 2022.
The third step, being the subject of this release, was the application for an exploration permit over a substantial area adjacent to the Korella phosphate mine to potentially increase phosphate reserves and associated rare earths.
Further, and as already announced, there are other phosphate projects (both mines and trading relationships) likely to be acquired or developed.
