The Company has a JV agreement with Baobab for the development of the Monte Muande licences in Mozambique, which are prospective for magnetite, phosphate, uranium and gold.

The Monte Muande magnetite/phosphate deposit is located 25km to the northwest of the provincial capital of Tete. The international highway to Zambia passes within 3km of the project. The deposit is hosted in a carbonatite and was explored during the 1980s by the Geological Institute of Belgrade ('GIB'). GIB completed two phases of vertical diamond drilling between 1983 and 1985 totalling 5,570m, 2,960m of which falls within the Joint Venture area. The institute also completed more than 10km of trenching and bench-scale metallurgical test work.

Using the GIB data sets in conjunction with more recent soil geochemistry and aeromagnetic surveys completed by Omegacorp, consultants Coffey Mining calculated an Exploration Target of 200Mt to 250Mt to an average depth of c.40m below surface. Coffey also carried out a high level review of the GIB metallurgical data which indicated that a magnetite concentrate containing 67% iron ('Fe') could be generated via a process of coarse grinding and magnetic separation, followed by regrinding and a flotation circuit to recover a phosphate rock concentrate containing 36% phosphorus ('P2O5'). Total magnetite and apatite recoveries of 92% and 70% respectively were recorded.

Drilling has intersected broad zones of shallow dipping magnetite and apatite mineralisation at Monte Muande. Following analysis by the ALS Chemex laboratory in Western Australia the Company announced significant drill results from magnetite rich intersections, with premium quality concentrate grades of 69% Fe at a mass recovery of 26% (weighted average). The magnetite concentrates are generally very low in deleterious elements. Phosphate mineralisation is ubiquitous with bench-scale test work required to determine quality and yield of a potential concentrate product. The head grades are in line with Coffey Mining's shallow depth 200Mt to 250Mt exploration target.

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