🕐18.09.09 - 02:25 Uhr

Phospate Australia to announce NT resource update in October after strong assay results



Phosphate Australia Limited
ABN 51 129 158 550
Suite 4, 6 Richardson Street
West Perth WA 6005
T +61 8 9322 6811
F +61 8 9226 0130
E
W www.phosphateaustralia.com.au
ASX RELEASE
18 September 2009
ASX Code: POZ
NT phosphate resource update due late October after strong
assay results from drilling of Highland Plains project
_____________________________________________________________
Highlights:
 New resource estimate expected by late October for 56Mt Highland Plains phosphate project in
NT after significant assay results from final round of May drilling.
 Strong phosphate mineralisation continues to be encountered, including high-grade intersections
at shallow depth.
 Drill hole intersections include:
o HRC121 with 10 metres at 24.7% P2O5 from 8 metres
(with 4 metres at 31.1% from 11 metres) and
o HRC072 with 5 metres at 24.7% P2O5 from 34 metres.
Table 1: Drilling Assay Results - Highlights Batch 7
Hole From
(m)
To
(m)
Width
(m)
P2O5
%
Fe2O3
%
Al2O3
%
CaO
%
MgO
%
SiO2
%
CaO:P2O5
Ratio
HRC047B 33 40 7 17.6 4.8 3.1 24.0 0.20 44.5 1.36
HRC048B 37 45 8 22.7 3.6 5.1 28.6 0.14 32.9 1.26
HRC072 34 39 5 24.0 5.0 4.4 32.6 0.25 27.2 1.36
HRC102 26 34 8 20.5 4.9 5.8 29.2 0.56 30.6 1.42
HRC103 12 18 6 20.2 2.6 4.5 29.5 1.72 32.4 1.46
HRC106 10 14 4 21.0 1.1 3.9 28.7 0.55 39.3 1.37
HRC106 24 27 3 17.7 1.3 3.2 24.1 0.27 48.5 1.36
HRC115 10 14 4 19.3 4.3 5.0 26.2 0.23 39.2 1.36
HRC115 19 21 2 20.6 12.3 3.4 28.2 0.26 28.1 1.37
HRC121 8 18 10 24.7 1.0 3.2 33.2 0.08 33.4 1.34
Includes
HRC121 11 15 4 31.1 0.5 2.3 41.7 0.08 20.6 1.34
1.0 Final assay results - Batch 7
Phosphate Australia Limited (ASX: "POZ") is pleased to announce that the Company has received
the last of the 2009 Phase 2 follow-up drilling campaign assay results (Batch 7) for its wholly-owned
Highland Plains phosphate project in the Northern Territory.

The project is located within EL 25068,
500 kilometres east of Tennant Creek and abutting the NT border with Queensland.
The results included holes drilled into or close to high grade mineralisation within the Western Mine
Target Zone within EL 25068.

The Zone has an Inferred Resource of 7.0 million tonnes (Mt) grading
23% P2O5 within the Highland Plains total Inferred Resource of 56 Mt grading 16% P2O5.
ASX RELEASE
Page 2 of 6
The latest Batch 7 assay results received from the assay laboratory in Mount Isa, are shown in Table
2 at the end of this announcement.

Drill collar location data has previously been released (ASX
release 2nd June, 2009).
Based on the receipt of this data, the Company"s resource consultancy, (Cube Consulting Pty Ltd of
Perth) will enhance the resource model to achieve both a better understanding of the resource from a
mine planning perspective, along with an updated resource estimate.

It is expected that this new
estimate will be available late in October.
Most of the area encompassing the Western Mine Target Zone (refer to Figure 2) has now been
drilled out to a 100 metre spacing.

This spacing, in conjunction with geophysical and core data
should allow for a much better understating of the structural and stratigraphic controls on the
Highland Plains phosphate mineralisation.

In particular, defining the areas of shallower and
higher grade mineralisation will have a significant impact on mine planning.
2.0 Current Activities and Outlook
In addition to the anticipated resource upgrade, Phosphate Australia also expects to announce by
late October an update on current metallurgical test work for the project"s mineralisation, and
anticipates by end of year to also receive reports on:
 The preliminary mining concept study based on the October resource update for the Western
Mine Target Zone;
 Fauna and flora survey to support the application for a mining license;
 Road engineering survey outlining costs and options for product movement to the Gulf of
Carpentaria; and
 Ground water analysis based on the drilling and installation of pump equipment on a series of
bores in the Highland Plains Project area.
All of this data will allow Phosphate Australia to update the Highland Plains project timeline and better
define the outcomes for the studies required in order to deliver a pre-feasibility report.

The key inputs
to this will comprise port investigations, pilot plant metallurgical studies and mine planning.

It is
expected that an engineering consultancy will be appointed by the company to co-ordinate this phase
in keeping with the Board"s philosophy of minimising fixed Company expenditure.
3.0 Summary
The Board is pleased with the excellent progress to date on Highland Plains.

With cash on hand of
approximately $8.1 million after the recent capital raising in August, the Company is in a strong
financial position to progress Highland Plains through the important near-term study schedule
required to achieve our objective of developing Australia"s lowest operating cost, new phosphate
mining operation.
ANDREW JAMES
Managing Director
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Mr Jim Richards and Ms Lisa Wells, who are both Members of The Australasian Institute of Mining
and Metallurgy.

Mr Richards and Ms Wells are both Directors of POZ and Ms Wells is also a full time employee.

Both Mr
Richards and Ms Wells have sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition
of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Mr Richards and Ms
Wells both consent to the inclusion in the report of the matters based on the information in the form and context in which it
appears.
ASX RELEASE
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Figure 1: Highland Plains Location and Transport/Barging/Shipping Options
ASX RELEASE
Page 4 of 6
Figure 2: Highland Plains Batch 7 Drilling Results Locations
ASX RELEASE
Page 5 of 6
Table 2: Batch 7 Assay Results
Hole From
(m)
To
(m)
Width
(m)
P2O5
%
Fe2O3
%
Al2O3
%
CaO
%
MgO
%
SiO2
%
CaO:P2O5
Ratio
HRC047B 1 10 9 15.8 1.0 6.4 21.4 0.47 48.4 1.35
HRC047B 33 49 16 14.1 15.7 3.0 19.2 0.32 39.1 1.36
Includes
HRC047B 33 40 7 17.6 4.8 3.1 24.0 0.20 44.5 1.36
HRC048B 37 45 8 22.7 3.6 5.1 28.6 0.14 32.9 1.26
HRC051B 12 17 5 10.7 5.4 4.0 14.3 0.17 60.0 1.34
HRC051B 17 20 3 15.5 10.7 4.8 21.1 0.31 39.9 1.36
HRC054B 41 43 2 11.4 2.0 3.7 15.8 0.49 61.7 1.39
HRC054B Hole ends at 46 m - 5.2% P2O5.

Requires deeper drilling.
HRC057B 41 44 3 15.6 8.5 3.2 20.7 0.30 46.8 1.33
HRC057B Hole ends in phosphate at 51 m - 6.3% P2O5.

Requires deeper drilling.
HRC058B 14 15 1 13.3 10.6 7.1 17.9 0.34 42.8 1.35
HRC072 34 39 5 24.0 5.0 4.4 32.6 0.25 27.2 1.36
HRC081 No significant phosphate mineralisation.
HRC092 11 19 8 12.4 2.2 5.7 16.8 0.29 56.5 1.35
HRC101 19 25 6 14.1 2.0 3.0 19.5 0.26 55.7 1.38
HRC101 26 31 5 10.7 6.7 4.9 15.6 0.41 54.7 1.46
HRC102 17 34 17 15.4 4.9 4.3 21.6 0.32 47.3 1.40
Includes
HRC102 26 34 8 20.5 4.9 5.8 29.2 0.56 30.6 1.42
HRC103 12 18 6 20.2 2.6 4.5 29.5 1.72 32.4 1.46
HRC104 9 20 11 9.9 20.6 4.3 13.7 0.50 42.3 1.38
HRC105 11 13 2 17.5 5.8 3.4 23.4 0.20 44.5 1.34
HRC105 13 16 3 9.8 15.1 4.8 12.9 0.36 49.8 1.32
HRC105 18 23 5 12.0 18.5 4.9 16.1 0.61 38.7 1.34
HRC106 10 14 4 21.0 1.1 3.9 28.7 0.55 39.3 1.37
HRC106 24 27 3 17.7 1.3 3.2 24.1 0.27 48.5 1.36
HRC106 39 55 16 9.8 12.5 2.9 15.1 1.26 49.0 1.54
HRC106 Hole ends at 55 m - 10.7% P2O5.

Requires deeper drilling.
HRC108 No significant phosphate mineralisation.
HRC109 2 15 13 11.9 4.7 4.6 15.6 0.16 56.8 1.31
Includes
HRC109 4 7 3 15.8 3.1 6.1 20.7 0.18 47.2 1.31
HRC110 7 16 9 12.2 4.2 4.0 16.5 0.23 58.2 1.35
Includes
HRC110 10 12 2 17.6 1.4 4.2 23.9 0.24 47.9 1.36
HRC111 9 11 2 15.1 3.3 3.4 20.4 0.19 53.4 1.35
HRC112 11 16 5 14.5 3.3 4.0 19.5 0.14 54.1 1.34
HRC113 9 16 7 14.9 6.5 4.1 20.5 0.20 47.7 1.38
HRC115 10 14 4 19.3 4.3 5.0 26.2 0.23 39.2 1.36
HRC115 19 21 2 20.6 12.3 3.4 28.2 0.26 28.1 1.37
HRC116 8 17 9 10.9 1.4 4.4 15.0 0.17 62.3 1.38
HRC117 11 25 14 12.0 3.9 6.1 16.5 0.35 54.7 1.38
Includes
HRC117 14 17 3 16.9 1.0 5.6 23.7 0.23 46.5 1.40
HRC118 14 21 7 12.0 1.7 3.6 17.1 0.80 58.8 1.43
HRC119 23 27 4 16.7 1.2 4.1 22.5 0.17 51.0 1.35
HRC120 24 31 7 19.2 4.4 3.4 26.2 0.21 39.3 1.36
ASX RELEASE
Page 6 of 6
Hole From
(m)
To
(m)
Width
(m)
P2O5
%
Fe2O3
%
Al2O3
%
CaO
%
MgO
%
SiO2
%
CaO:P2O5
Ratio
HRC121 8 18 10 24.7 1.0 3.2 33.2 0.08 33.4 1.34
Includes
HRC121 11 15 4 31.1 0.5 2.3 41.7 0.08 20.6 1.34
HRC122 19 20 1 18.9 1.0 6.5 25.9 0.27 39.7 1.32
HRC122 Hole ends at 25 m - 13.5% P2O5.

Requires deeper drilling.
NB: All assays by XRF; assays are uncut.
All holes were vertical RC and drilled dry except where drilling conditions required, then
water was injected and aircore returns used.
All Phase 2 drilling campaign holes have now been reported
Contaminants can vary widely within the above intersections.

The mineralisation can be
modeled according to metallurgical input requirements and mined accordingly to diminish
contaminants (especially iron).




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