ANNUAL REPORT 2016
Drilling at Mt Monger, Western Australia
PHOSPHATE AUSTRALIA LIMITED
ABN 51 129 158 550
CONTENTS & CORPORATE DIRECTORY
CONTENTS
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Page
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Chairman's Letter
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1
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Report on Operations
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2
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Mineral Resources & Ore Reserves Statement
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9
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Financial Report for the year ended 30 June 2016
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Director's Report
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1
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Auditor's Independence Declaration
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9
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Statement of Comprehensive Income
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11
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Statement of Financial Position
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12
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Statement of Changes in Equity
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13
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Statement of Cash Flows
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14
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Notes to the Financial Statements
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15
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Directors' Declaration
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33
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Independent Audit Report
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34
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Additional Information
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36
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CORPORATE DIRECTORY
Directors
Jim Richards - Chairman
Mark Thompson - Non-Executive Director Grant Mooney - Non-Executive Director & Company Secretary
ASX Code: POZ
Website & Email
Website: www.phosphateaustralia.com.au Email: [email protected]
Principal Place of Business
Ground Floor 16 Ord Street
West Perth WA 6005 Phone: +61 (8) 9422 9555
Fax: +61 (8) 9422 9599
Registered Office:
Suite 4, 6 Richardson Street West Perth WA 6005 Phone: +61 (8) 9226 0085
Fax: +61 (8) 9226 0130
Share Registry Link Market Services Central Park
Level 4, 152 St Georges Terrace
Perth WA 6000
Phone: +61 1300 554 474
Fax: +61 (2) 9287 0303
Auditors
Grant Thornton Audit Pty Ltd Level 1, 10 Kings Park Road West Perth WA 6005 Phone: +61 (8) 9480 2000
Fax: +61 (8) 9322 7877
CHAIRMAN'S LETTER
Dear fellow shareholder,
I am pleased to present the Annual Report of Phosphate Australia Limited ('POZ' or the 'Company') for the year ended 30 June 2016.
Earlier in the year the Company acquired the Blina Alluvial Diamond Project situated in the Kimberley region of WA. This Project includes 40km strike of diamondiferous alluvial gravels. Four mining leases have been lodged over key areas of the channel and permitting is currently being prepared with a view to trial bulk sampling.
The Highland Plains Phosphate Project has a JORC Code (2004) compliant Inferred Resource of 53 million tonnes at 16% P2O5 (POZ ASX release dated 31 March 20091). POZ has entered into an Option Agreement over Highland Plains with Sydney-based company P2O5 Pty Ltd.
During the last year, our Company conducted two gold exploration drill programs in WA. Drilling at the Mount Monger Gold Project identified the target potential of the Kiaki Soaks Prospect to provide ore feed to a nearby gold mill. The Laverton gold project (adjacent to the world class Granny Smith Gold Mine), was also drilled and although economic mineralisation was not encountered, further areas were identified for follow up work.
I would like to thank the staff and my fellow directors at POZ. All exploration and acquisitions work for the year have been conducted most efficiently and a significant amount has been achieved for a modest outlay, without having to resort to any capital raisings.
The Company is well positioned with a cash balance of $2.6 million (30 June 2016) and we look forward to a busy year ahead.
Yours sincerely
Jim Richards
Chairman
PHOSPHATE AUSTRALIA LIMITED | ANNUAL REPORT 2016 1
REPORT ON OPERATIONS
1.0 Blina Diamond Project, Ellendale WA POZ 100%
Figure 1: Blina Diamond Project
The Blina Diamond Project ("Blina") in the Ellendale Diamond Province of Western Australia's Kimberley Region is 100% owned by POZ and has no private royalty obligations. The project area consists of two exploration tenement applications totalling 161 km2 and four mining lease applications (1,163Ha within the ELAs), situated 100km east of the town of Derby.
Blina hosts diamondiferous intrusions and alluvial gravels defined by previous explorers. The prime target for POZ is a large diamondiferous palaeo-channel, discovered in 1995, that drains the central section of the previously mined Ellendale diamond field. This channel is named Terrace 5 (Figure 1) and previous exploration has shown it to extend over some 40km, with channel widths of 200 to 500m. Where present, gravels average about one metre in thickness.
Diamonds recovered from the gravels are mostly of gem quality and considered large, with an average stone size of around 0.42 carats. The largest diamond recovered to date from Terrace 5 weighed 8.44 carats, with stones larger than two carats common.1 Importantly, diamonds from Blina include a population of fancy yellow diamonds for which the Ellendale field is renowned.
The Company has compiled a considerable amount of historical data into a modern database. This data along with previous fauna and flora, groundwater and other studies are now being used to generate applications for permitting of bulk sampling operations. These applications would be submitted to the mines department once the
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