- Project considered strategic US phosphate asset
- Exploration work targeted for 2026 and 2027 to validate historical data
- Targeting foreign estimate conversion to a JORC-compliant mineral resource.
- Well-funded to advance work with a cash balance of $6.25m
Canadian Phosphate (ASX:CP8) has completed acquisition of the large Diamond Mountain phosphate project in Utah and is fast-tracking further exploration work.
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The company’s early focus is on upgrading the current foreign estimate of 26.8 million tonnes (Mt) of Measured and Indicated and 23.1 Mt Inferred to a JORC-compliant mineral resource.
MD and CEO, Daniel Gleesonm, said the company is soon set to kick off exploration work to validate historical data and expand the mineralised footprint and support the JORC conversion.
“Completion of our acquisition of Diamond Mountain is an important step in CP8’s strategy to become a major North American phosphate supplier. The project provides scale, in an established US phosphate mining region, adjacent to a long-running 4.0 Mtpa phosphate mine,” he said.
“Diamond Mountain complements CP8’s Wapiti and Fernie projects in Canada and strengthens our platform to supply domestic fertiliser and LFP battery markets across North America.”
Diamond Mountain is an advanced sedimentary phosphate project covering approximately 550 hectares located within the Meade Peak Phosphoria Formation and adjacent to Simplot’s Vernal mine and beneficiation complex.
The project benefits from being in an established mining jurisdiction, with good regional infrastructure and close proximity to major US agricultural markets, as well as the rapidly evolving cathode manufacturing in North America.
Over the coming 18 months, CP8 aims to:
- Recover and validate historical drilling, assays, density and survey data; update the geological model; twin selected holes; and commence verification and step-out drilling as permitting allows.
- Undertake mineralogical, beneficiation and product suitability testing using representative samples.
- Complete infill and resource-definition drilling to support JORC classification and test priority extensions beyond the current foreign estimate.
Canadian Phosphate will pay total consideration of up to US$3.0 million to finalise the acquisition.
CP8 was steady at 12.5¢ with a Mkt cap of $48.56M prior to markets opening.
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