Centrex Metals has completed the definitive feasibility study for its Ardmore phosphate rock project in north-west Queensland.
The company said the study had confirmed Ardmore to be a high-quality asset with a relatively low capital requirement, low technical risk and potential to provide strong returns.
The project, 128km south of Mount Isa, is expected to cost $77 million to bring online and have a payback period of four years.
The study was based on a mining operation with a processing facility with an annual production of 800,000 wet tonnes of premium grade phosphate rock concentrate.
Fabrication is underway for a modular processing plant with an output of about 30,000 wet tonnes to start supplying off-take customers in 2019.
Centrex expects Ardmore to ramp up to full production in 2021.
It has announced a maiden ore reserve of 10.1Mt at 30.2 per cent P2O5 (phosphorus pentoxide), supporting a minimum 10-year project life.