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Sunkar Resources SKR

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Sunkar Resources aims to become one of the lowest cost producers of phosphate fertiliser in the world with its Chilisai Project.

 

It plans to develop integrated production facilities at the mine site in NW Kazakhstan where it has access to more than 800Mt of ore averaging 10.5% P₂O₅ which can support production of 1.76 Mt a year of di-ammonium phosphate (DAP) or equivalent for over 56 years.

 

 

 

They IPO'd just under a year ago at £1.20 and since then the share prices has dived down to 7p. Back in April two directos added albeit only a small amount to their rather large holdings, I cant see any reason for the collapsed share price except for institutional selling. We all know how the markets have behaved since last year. The company has reduced expenditure and still has 12p a share worth of cash in reserves

 

Since April, volume has increased massively even though 2 or 3 funds have sold down their holdings.

 

Ive bought in at 7p and more up to 13p. This is a high risk gamble but as i said I cant see anything obviously wrong with the company, the one people were happy to buy into under a year ago at £1.20. The company presented a couple of weeks ago at a fertiliser conference and was recieved very positively

 

Results out out very soon and possible sale announcement of Phosphate rock which should lift the price and if they can prove that they can get the required % of phosphate out the rock to produce DAP then the IPO share price would have been a bargain at ipo let alone 14p

 

Anyone know anything about phosphates? Comments and thoughts appreciated

 

http://www.sunkarresources.com/

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Another AIM small cap - AIM wide spreads and fact that the number of firms listed is putting me off

 

Still outside of the short term phosphate fertiliser looks like being a growth industry what with the Chinese developing meat eating habits and the possibility of "peak soil" etc

 

They will be in competition with the canadian potash companies

 

I first thought this might be a reason for recent weakness, AIM issues aside

 

http://www.bloomberg.com/apps/news?pid=206...id=aym0w6OwbWsI

 

April 23 (Bloomberg) -- Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, said 2009 profit will be less than it previously expected after North American sales of the crop nutrient reached “a virtual halt.”

 

 

But then checking the chart - Potash has done quite well recently

 

http://www.google.co.uk/finance?q=NYSE:POT

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the spread is pretty silly but I have been able to buy in under.....will I be able to do the same when selling?

 

Hopefully wont have to worry about that for a while

 

Here is a summary of the presentation from last month

 

 

At the BMO Capital Markets Agriculture, Protein & Fertilizer Conference being held in New

York today, Sunkar’s CEO Serikjan Utegen will give an update on progress at the Company’s

wholly owned Chilisai phosphate project in North West Kazakhstan.

Progress Update Highlights

• Phosphoric acid pilot plant production testing currently underway with three

contractors in advance of appointing a Bankable Feasibility Study (“BFS”) engineer;

• Mining operations on the Chilisai field are being sustained at more than 100,000

tonnes per calendar month for the January to April period of the current year;

• Project is on target to mine 1 million tonnes during 2009;

• Beneficiation consistently producing a 17% P2O5 grade phosphate rock concentrate

and beneficiation plant is expected to reach full capacity in 3rd quarter 2009;

• Discussions are underway on toll milling of concentrates to enable early rock sales;

• A JORC compliant resource estimate planned to be announced in 3rd quarter 2009:

Wardell Armstrong International’s study is underway;

• Chris Neser has been appointed as Technical Advisor to the Company to provide

advice on all technical and financial aspects of the Project; and

• Cash position of US$27 million.

Phosphoric Acid Pilot Plant testing

Samples of beneficiated rock have been sent to three separate technical contractors; Jacobs

Engineering and KEMWorks in Florida, USA and Prayon Technologies, Belgium – for

analyses and pilot plant testing to confirm the rock’s ability to produce phosphoric acid of

quality suitable for Di-Ammonium Phosphate (DAP) and Mono-Ammonium Phosphate (MAP)

manufacturing. The Company has chosen to establish the optimal process for producing the

phosphoric acid and to determine the target product list in advance of appointing the BFS

contractor.

Mining Progress and Beneficiation

Mining facilities at the Chilisai Project have been established and during the period January to

April 2009, 432,000 tonnes of ore have been mined, giving the Company confidence that its

Distributed on behalf of Sunkar Resources PLC Limited by

Bankside Consultants, 1 Frederick’s Place, London EC2R 8AE

Telephone 020 7367 8888 Facsimile 020 7367 8899 E-mail: mail@bankside.com

target of one million tonnes in 2009 will be achieved. This also proves that mining during

winter months is achievable.

A mobile beneficiation plant was established in late 2008. Following testing and

improvements, the plant is producing 17% P2O5 grade phosphate rock concentrates. The

beneficiation plant is expected to reach full capacity during the 3rd quarter 2009. Discussions

are currently underway with a number of local companies for toll milling of the beneficiated

ore in order to facilitate the potential for sales of beneficiated ore to in-country consumers

during the current year.

JORC Resources Estimate

Sunkar contracted Wardell Armstrong International in December 2008 to produce a JORC

compliant resources estimate in advance of the BFS for the Chilisai project. Digitising of the

Soviet era drill holes database is being completed and confirmation trenching is due to be

completed in July 2009. Sunkar plans to announce the results of this review during the 3rd

quarter 2009.

Appointment of Company Adviser

The Company has appointed Mr Chris Neser as Technical Advisor to the Company to advise

on all technical and financial aspects of the project. Mr Neser has over thirty years of

experience within the phosphates industry gaining hands-on experience in mining,

beneficiation, phosphoric acid and DAP production, fertilizer logistics as well as international

phosphate marketing, most recently as a consultant to Agrifos Fertilizers Inc. Between

February 2007 and July 2008 he was Deputy CEO Operations, for Jordan Phosphate Mines.

From 2004 to 2007 he was Business Director in charge of completing the feasibility study on

the Saudi Arabian Mining Company’s Al Jalamid Phosphate Project. The Board welcomes

him to the Company and believes his experience will be invaluable in supporting the current

progress towards development of a world class fertilizer project.

Capital Resources

The Company has a cash balance of US$27 million as at 30 April 2009 and continues to

closely evaluate all capital expenditure.

Serikjan Utegen, CEO of Sunkar, commented:

“The Company has made substantial progress in the past six months. The groundwork for

the BFS has been firmly laid. The Company is on course to announce the first results of the

BFS economic model by early 2010. Thereafter, the evaluation of financing options will

follow.”

“In the short term we continue to negotiate access for the company’s beneficiated ore to a

third party milling facility. Grinding the rock to conditions prescribed in Soviet State Standards

for Direct Application Rock is paramount to early rock sales. This is important in establishing

early cash flow for the Project and in gaining acceptance for our product by local consumers.

There are a number of routes available to the Company to achieve this, all of which are being

actively pursued.”

 

 

 

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well the results are out

 

 

"The Company has made very real progress during the year, namely - the start of mining operations, renegotiation of the Subsoil Use Contract and the establishment of the beneficiation plant during the period under review. Most importantly, the Company has fully delivered on the mining programme outlined in its IPO Admission document on time and on budget, whilst the medium term outlook for the phosphate sector remains positive."

 

Brand new website

 

http://www.sunkarresources.com/home

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I will be adding more too shortly

 

 

 

On 7 July 2009, the Company received notification that on that same day, Mr Teck

Soon Kong, the Non Executive Chairman of the Company, acquired 100,000 ordinary

shares of 0.1p in the Company ("Ordinary Shares") at a price of 13p per share.

 

 

Further, on 8 July 2009, the Company received notification that on that same

day, Mr Kong, acquired 88,250 Ordinary Shares at a price of 13.25p per share.

 

 

Mr Kong now holds a beneficial interest in 1,000,000 Ordinary Shares,

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On 9 July 2009, the Company received notification that on 8 July 2009, Mr Donald

Sinclair, the Chief Financial Officer of the Company, acquired 110,455 ordinary

shares of 0.1p in the Company ("Ordinary Shares") at a price of 13.5p per share.

 

 

Mr Sinclair now holds a beneficial interest in 110,455 Ordinary Shares,

representing 0.07% of the issued share capital of the Company.

 

 

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Had a feeling for a while that an institution has been accumulating. Todays massive (relatively) trades proves to me pretty much it is not just mug PI picking these shares up

 

another bit of +ive news

 

 

RNS Number : 6362V

Sunkar Resources PLC

14 July 2009

 

SUNKAR RESOURCES PLC

("Sunkar" or "the Company")

 

Directors' Dealing

 

The Company has received notification today that Mr Serik Utegen and Mr Nurdin

Damitov, Chief Executive Officer and Director of the Company respectively, each

today acquired 350,000 ordinary shares of 0.1p in the Company ("Ordinary

Shares") at a price of 14.2p per share.

 

Both Mr Utegen and Mr Damitov now hold beneficial interests in 20,413,500

Ordinary Shares each, each representing 12.77% of the issued share capital of

the Company.

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Well I think it cant be long now before there is a serious price movement in the share price of SKR

 

Which way?

 

The next important mile stone the company has said it would deliver is the test results

 

"Phosphoric acid Pilot Plant tests are to prove that phosphoric acid of quality can be economically produced from 17% P2O5 Chlisai phosphate rock. The tests shall also produce target Product List of the Project and process economics. Target Product List will allow Sunkar to start marketing its future output to potential buyers. Results of Pilot Phosphoric acid Plant tests are expected in the 3Q 2009.

 

Other issues under question are proposed technical parameters of phosphoric acid plant suitable for processing of phosphoric acid from Chilisai rock on industrial scale. These parameters can affect capital and operating costs of such phosphoric acid plant and therefore they shall be important input for feasibility study.

To prove the viability of production of phosphoric acid of desired quality Sunkar has hired three independent contractors to run phosphoric acid pilot plant tests:

 

* Jacobs Engineering, FL, USA

* KEMWorks, FL, USA

* Prayon Technologies SA, Belgium"

 

 

 

The company so far has prided it self on timely delivery of project miles tones, so these results must be imminent as we enter the last month ofQ3 tomorrow. Co incidentally it will soon be 2 months since 4 directors bought shares in SKR Not entirely sure on how the restrictions work on AIM with regards to directors buying shares in their own company, but a two month gap should hopefully allow enough time so there will be no conflict of interest as regards insider dealing. Including Serikjan Utegen and Nurdin Damitov who bought 350k at 14.2p eack taking their holdings to 12.55% each.

 

Now in the meantime and a possible cause for concern is that a fund called Lawrence Asset management have been selling down theirSKR holding and on the 28th August announced that they had sold a further 3 million shares taking their holding down below the 3%

 

 

on further investigation, the relevant Lawrence Asset Managemnt fund has been doing pretty badly since inception since 2007. So even in the boom period of 2007 they managed to make a loss

 

 

A chap on ADVFN posted this with regards to Lawrence (and Adam I hope you dont mind me replicating it here, thanks)

 

 

"Of the 3.6m remaining - at the date of reporting August 17, 1m were apparently held by Lawrence Assset Management's "Global Agribusiness Trust". At least end the beginning of the year they were...

 

http://www.navinacapital.com/pdfs/AGB%2020...al%20Report.pdf

 

They are preculded from investing in anything below $150m

Liquidity risk

As at December 31, 2008, the majority of the Trust’s investment holdings are considered readily realizable, as they are actively traded on public exchanges. The Trust is restricted from investing in public securities with a market capitalization of less than US$150 million, to help reduce liquidity risk to the portfolio. The Trust’s investment restrictions do allow up to 10% of total assets to be invested in securities of issuers that are not publicly traded, based on value at cost

 

Notably - the cost price was $2.39/share (probably around the 120p float price), so I would not be inclined to read negatively into the disposal, given price is relatively immaterial (sub 1% of fund)

 

Number Security Average Fair % of of Shares Cost ($) Value ($) Net Assets

1,000,000 Sunkar Resources PLC 2,398,091 124,243 0.7

 

The fund has lost 50% of its value (floated Nov 2007 for $40m now worth $17m) - so clients might be selling in disgust and redemptions will force Trust to sell stock.

 

If holders of a substantial number of Trust Units

exercise their monthly or annual redemption rights,

the number of Trust Units outstanding and the net

asset value of the Trust could be significantly reduced.

A significant number of redemptions would decrease

the liquidity of the Trust Units in the market and

increase the management expense ratio of the Trust.

The Manager may terminate the Trust upon notice

to Unitholders prior to the termination date if, in the

opinion of the Manager, the net asset value of the Trust

is reduced as a result of redemptions or otherwise so

that it is no longer economically feasible to continue

the Trust"

 

----

 

 

Now since Lawrence started selling down all their shares and any others that have come to the market seems to be have quite agressively bought up. Now who is buying these is another matter, but I cant believe it is PI's. Most have been sold and bought in tranches of 10, 15, 20, 25k, 50k and 100K, not the sort of trades normally bought by PI, who buy as many shares as say for example £5k will allow.

 

I wrote to SKR financial consultants Bankside a week or so ago, asking for clarification on significant shareholders, I never got a reply but a few days later the Lawrence holding was announced, not sure if my complaint had anything to do with it, but there is definitely some sizable change in holdings going on.

 

Now another little bit of info that could be of interest is that the only signicant shareholder apart from the directors to actual announce an increase in SKR is Sun Avenue Partners. Beneficial interest in Sun Ave is held by one Almas Mynbayev. Could be coincidence but the ex Deputy Chairman of the Kazakh State Agency for Regulating Natural Monopolies and Protecting Competition is one Almas Mynbayev.......for all I know Mynbayev could be the equivalent of Smith in england

 

One more further point, two recent appointments lead me to believe that SKR reckon they will be able to produce DAP:

 

 

08.06.2009

 

 

Sunkar Resources, Plc. has appointed Chris F Neser as the Technical Advisor to the Company. Chris will advise on all technical and financial aspects of the Project development. He has over 30 years experience in the phosphate industry working on mining and manufacturing projects in South Africa and the Middle East including three years serving as a Business Director for the Ma’aden Al Jalamid Project and deputy CEO, Operations, of Jordanian Phosphate Mine Company.

 

*****

 

Chris F Neser

 

Chris studied at the University of Cape Town where he graduated with a BSc in Electrical Engineering and later obtained a Masters degree in Business Leadership from the University of South Africa.

 

He has spent more than 30 years in the phosphate industry, gaining hands on experience in mining, beneficiation, phosphoric acid and DAP production, fertilizer logistics as well as international phosphate marketing.

 

Chris is the author of a number of phosphate industry technical and marketing papers presented in South Africa and at various International fertilizer conferences. He has served on various International Fertilizer Association committees.

 

His career started in South Africa as a Bio-Engineer and then he joined Foskor with whom he spent 25 years at the phosphate mine in Phalaborwa and later the Richards Bay fertilizer plant. After three years as the Business Director on the Ma'aden Phosphate Project in Saudi Arabia he joined Jordan Phosphate Mines Company to manage a turnaround, but due to the phenomenal growth in the phosphate fertilizer industry, concentrated on implementing two Phosphoric acid projects and a dedicated low grade phosphate rock mine as well as a related harbor expansion and relocation project.

 

 

 

 

 

 

Sunkar Resources Plc (AIM:SKR) is pleased to announce the appointment of David Anthony Argyle as a non executive director of the Company

with immediate effect. Mr Argyle (aged 47) is currently President & CEO of Dynamite Resources Ltd (TSX-V:DNR) and has more than 16 years

experience in the phosphate industry. Mr Argyle has held senior management positions on mining and chemical projects in China, South East

Asia, Central Asia and Australia and holds a degree in Commerce from the University of Western Australia and an MBA from the University of

Michigan.

 

Teck Soon Kong, Non-executive Chairman of the Company commented "I am delighted to welcome David to the board of Sunkar Resources. His

in-depth knowledge of the phosphate industry will be invaluable to the Company as we work towards becoming one of the lowest cost producers

of phosphate fertilisers."

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from 2bozmo on advfn

 

GMP Securities:

 

 

- A year on from its IPO Sunkar has successfully started production of phosphate concentrate from its Chilisai project in Kazakhstan and is on course to mine c.1.2Mt, yielding c. 600Kt of 17% P2O5 concentrate during 2009.

 

- The company is now looking to acquire or rent milling equipment from the cement industry in order to produce and sell a fine grained flour-type DAPR (Direct Application Phosphate Rock). Management has been in discussions with buyers and believes that there is a market for such a product.

 

- Evaluation procedures are ongoing to determine the suitability of the concentrate for upgrading to a DAP/MAP product and results are expected by late-September. Results from a bankable feasibility study are expected by mid-2010.

 

- The company is trading at a significant, and in our view unwarranted, discount to other phosphate developers. We believe that the company is best in class in terms of the size of its resource, proximity to markets and to transport and power infrastructure. While its location should warrant some emerging market discount, we believe the current discount is too large.

 

- We base our valuation on an 80/20 weighted average of NPVs based on the project as a DAPR-only project and as an integrated DAP/MAP project. This yields a price target of 40p.

 

We raise our PT to 40p and re-iterate our Buy rating.

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again large volumes traded today (relatively), not long to go now till the test results are out

 

half year report:

 

During the period under review Sunkar has continued to deliver on the mining

programme mapped out in the Company's IPO Admission document, on time and on

budget.

 

 

For the period under review we have mined 634,000 tonnes of ore, giving us great

confidence our 2009 target of one million tonnes will be achieved. I would like

to thank the project team at Chilisai for their professionalism and commitment

in establishing mining during the winter months when conditions were harsh

and achieving better than expected mining rates this year.

 

 

Our mobile beneficiation plant is consistently producing target 17% grade rock

and has been augmented recently with the purchased of a Metso Lokotrack ST620

mobile screen. The beneficiation plant is expected to reach full capacity by the

end of the 3rd quarter of this year.

 

 

Our preparations for appointing an engineering contractor to complete a Bankable

Feasibility Study ("BFS") are at an advanced stage and details will be finalised

following completion of our full pilot plant test programme.

 

 

For the test programme, samples of beneficiated rock have been sent to three

independent technical contractors for analysis and pilot plant phosphoric acid

production. The results of these tests are expected to be announced

shortly. These results are of great importance to the Company and are expected

to confirm the processing route and the suitability for Di-Ammonium Phosphate

(DAP) and Mono-Ammonium Phosphate (MAP) manufacture of Chilisai rock.

 

 

In addition work has commenced to prepare a final product list. For this to be

completed, phosphoric acid from the pilot plant tests will be used to produce

sample quantities of the final fertiliser products. With this product list the

Company will start seeking off-take agreements for future fertiliser production.

 

 

While advancing the BFS the Company continues to seek sales of phosphate rock

and believes a market exists for milled phosphate rock. A small quantity of rock

has been milled and given to farmers for application this autumn to encourage

interest in a Direct Application Rock product. From discussions with domestic

farmers and regional phosphoric fertiliser plants it is clear a milled product

is preferred, if not essential, and the Company is exploring options for

investing in milling facilities, which we believe may be more beneficial than

outsourced milling contracts.

 

 

The medium term outlook for the phosphates sector remains positive as world

prices have started to rise again with benchmark US Gulf DAP now above US$300

per tonne. The industry is confident that volumes will be restored as the autumn

markets pick up. The underlying fundamentals of food demand and population

growth in Asia remain unchanged, and the project is well positioned, with good

infrastructure in place, to benefit from growing local and regional markets.

 

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We are liftoffs? He seems quite happy.

 

 

 

Pilot Plant Tests Update (Sunkar)

 

 

 

TIDMSKR

 

RNS Number : 7379Z

Sunkar Resources PLC

28 September 2009

 

?

 

 

 

 

SUNKAR RESOURCES PLC

("Sunkar" or the "Company")

 

 

Pilot Plant Tests Update

 

 

Sunkar Resources plc (AIM:SKR) is pleased to announce an update on its Pilot

Plant Tests for the production of phosphoric acid from its 17% P2O5 Chilisai

phosphate rock.

 

 

Highlights

 

 

* Two independent Pilot Plant Tests by KEMWorks and Prayon Technologies SA have

confirmed the ability that Chilisai rock is amenable to commercial conversion

into phosphoric acid;

* KEMWorks has confirmed that Di-Ammonium Phosphate ("DAP") of internationally

accepted grade can be produced from the phosphoric acid made during Pilot Plant

Tests after post-treatment of phosphoric acid;

* Scale and cost parameters of the future phosphoric acid and DAP plants are

estimated to be in line with that for plants processing commonly traded sedimentary rocks of 32 - 34% P2O5.

 

 

 

Serikjan Utegen, CEO of Sunkar, commented:

 

 

"We are very delighted with the results of the independent pilot plant tests,

carried out by acknowledged experts in this field. We never expected that our

rock would produce ideal results, but we are thrilled with the reaction speed of

our rock, the quality of the acid, and the confirmation of our ability to

produce commercial grade DAP. The losses associated with the removal of

impurities is not likely to materially detract from the Project's economics, and

we are pleased to now be able to commence the next stage of the Chilisai Project

development"

 

 

Background to the Pilot Plant Tests Program

 

 

To test a broader range of available phosphoric acid/phosphate fertiliser

technologies and testing approaches, Sunkar contracted high profile phosphoric

acid engineers. Each contractor conducted pilot plant tests of the conversion of

Chilisai rock (17% P2O5) into phosphoric acid by means of sulphuric acid attack.

 

 

The contractors are:

 

 

Prayon Technologies SA, Engis, Belgium ("Prayon Technologies");

Jacobs Engineering Group Inc., Lakeland, Florida, USA ("Jacobs");

KEMWorks Technology Inc., Lakeland, Florida, USA, ("KEMWorks")

 

 

The results from the Jacobs Pilot Plant investigations are currently being

finalised and will be announced shortly although management believe these will

largely be in line with the results from the other two contractors. The results

described below are those of KEMWorks and Prayon Technologies.

 

 

Company management found while discussing the feasibility study scope with

potential contractors in 2008, that there were substantial differences of

opinion among experts on the convertibility of Chilisai rock into phosphoric

acid used for the production of widely traded fertilisers, such as DAP and

Mono-Ammonium Phosphate ("MAP").

 

 

The experts' concerns were primarily related to

 

 

* Chilisai rock had never been converted into phosphoric acid on an industrial

scale, with the exception of a few trial conversions of blends of Chilisai rock

with other Soviet rocks in the 1980s;

 

* there is only one large scale phosphoric acid plant converting low grade

phosphate rock into phosphoric acid in Jordan. This plant was originally

commissioned to treat normal grade Jordanian rock and afterwards switched to low

grade rock.

 

The Company has kept control over costs and contingencies of testing by issuing

each contractor incremental scopes of work.

 

 

Behre Dolbear, USA, Inc., of Denver, Colorado, USA, the Company's competent

person from 2006 to 2008 recommended semi-industrial testing of direct

conversion of Chilisai rock (17% P2O5) into phosphoric acid after the completion

of their initial bench-scale testing, as published in the Company's AIM

Admission Document.

 

 

The Company has also appointed Mr. Chris Neser as a Technical Adviser. Mr. Neser

was recently involved with operations management at the Jordan Phosphate Mines

Company.

 

 

Phosphoric Acid Pilot Plant Tests

 

 

In March 2009, with the agreement of the above contractors and under the

supervision of an independent inspector, the Company prepared representative

samples of Chilisai ore. Numerous samples were taken from several locations

within the mine operating area, and were processed on site to produce a sample

concentrate. This sample tonnage was then blended, quartered and bagged to

provide a 1 tonne sample for each of the contractors.

 

 

Initial rock characterisation by the contractors confirmed that the sample grade

was consistent with on-going assays of dry concentrate produced from ore at the

Chilisai mine on an industrial scale since January 2009, and was of 17-18% P2O5

grade.

 

 

The reactivity tests carried out by KEMWorks prior to running the Pilot Plant

Tests. had shown that Chilisai rock is one of the most reactive phosphate rocks

in the world and is clearly more reactive than most widely traded rocks.

 

 

The Pilot Plant Tests have been conducted by contractors at their own phosphoric

acid pilot plants.

 

 

The typical industrial scale phosphoric acid plant consists of:

 

 

* reactor, where phosphate rock is reacted with sulphuric acid;

* filter, where the reactor's slurry output is filtered to separate phosphoric

acid from calcium sulphate (gypsum);

* clarification and concentration facility, where the acid is separated from the

remaining hard substances; and

* concentration of the phosphoric acid to a grade suitable to produce fertilisers

(DAP, MAP or Triple Super Phosphate ("TSP")) or Merchant Grade Acid ("MGA") by

the evaporation of water.

 

 

 

Further details of the above can be found in the Behre Dolbear competent person

report in the Company's AIM Admission document.

 

 

For Pilot Plant Test purposes the contractors chose to use the di-hydrate

process. The contractors performed several runs of their phosphoric acid pilot

plants with variation of plant parameters and the following observations have

been made by the contractors independently from each other:

 

 

* the continuous pilot plant conversion process was stable and complete with P2O5

recovery rates of more than 96%;

* the pilot plant's output (so called 'weak acid') was consistent and of expected

grade - between 26% and 28% of P2O5;

* all tests show that consumption of sulphuric acid was not higher than the

industry norm- 3 tonnes of H2SO4 per unit of P2O5 processed;

* a future Chilisai rock (17% P2O5) processing reactor will not be larger than a

typical reactor for 32-34% rock with the same P2O5 equivalent output;

* corrosion measurements were in line with industry norms, meaning that the

phosphoric acid plant would use normal stainless steel parts;

* filtration rates were found to be 50% lower than industry norm, which was

expected since the lower grade ore would result in a thicker filter cake. This

may result in the requirement for larger filtration units than the norm. However

by using certain filter aid agents, KEMWorks achieved significantly higher

filtration rates opening the path for further improvement;

* the phosphoric acid produced was opaque and needed standard clarification;

* after clarification the acid behaved normally while being concentrated up to 50%

of P2O5;

* weak acid had an expected relatively high minor elements ratio ("MER", sum of

Fe2O3, Al2O3, and MgO content, divided by P2O5 content) of between 0.17 and

0.19.

 

 

 

Test Production of Fertilisers

 

 

The phosphoric acid produced during the Pilot Plant Tests has been used by the

contractors to generate trial quantities of ammoniated phosphate fertilisers -

DAP and MAP. DAP, in order to be globally commercially acceptable, DAP has to

have N-P-K (Nitrogen (%) - Phosphate as P2O5 (%) - Potassium (%)) composition of

18-46-0, while having water soluble P2O5 at 90% of total P2O5. Typically the

commercially accepted DAP production requires the MER of acid to be between 0.08

- 0.1. MAP has to be of composition of 10-52-0 or better with P2O5 water

solubility of 43-47% (or 80-90% of total P2O5); the MAP specification is

normally less onerous than DAP and subject to contractual conditions.

 

 

The direct MAP and DAP generation from clarified and concentrated acid produced

the following results:

 

 

* the phosphoric acid produced MAP with N-P-K composition of 11-52-0 (KEMWorks)

with water solubility of P2O5 at 61.5% of total P2O5;

* due to the phosphoric acid's higher MER, the DAP produced directly from acid was

of N-P-K composition of 17-46-0 (nitrogen did not reach 18% level) with water

soluble P2O5 at 80% of total P2O5 (Prayon Technologies)

 

The contractors have informed the Company that it is possible to manufacture

commercially acceptable DAP once the MER has been brought to the required level.

After having carried out phosphoric acid post-treatment test work aimed at MER

reduction, the contractors have confirmed that certain well known techniques to

precipitate impurities with the loss of some P2O5, can reduce the MER to that

required to produce DAP of internationally accepted quality.

 

 

They reported that the loss of P2O5 may result in minor increases to operating

costs. The contractors have reported that the by-product of the process to

reduce the MER containing P2O5, could be potentially used to produce lower grade

fertiliser.

 

 

KEMWorks confirmed that after impurities precipitation, internationally

acceptable grade DAP has been produced with N-P-K at 18-46-0 with water soluble

P2O5 at 90% of total P2O5, and impurities precipitation resulted in an indicated

17% loss of P2O5, however this loss amount is subject to further confirmation

testing/optimisation.

 

 

Prayon Technologies, using a similar approach, indicated that the quality of

treated acid was sufficient for internationally acceptable DAP production, with

the P2O5 loss of approximately 13%, which is subject to further confirmation

and/or optimisation.

 

 

Prayon Technologies and KEMWorks have confirmed their confidence to

manufacture internationally acceptable grade DAP and have proposed further work

to be conducted to reduce P2O5 loss during post-treatment of acid, using

proprietary technologies, as well as a detailed costs implication assessment.

 

 

The technical feasibility of the production of international grade fertiliser

has been achieved and is no longer on the critical path item of the Feasibility

Study.

The technical information contained in this announcement has been reviewed and

approved by Mr. Chris Neser, who is engaged by the Company as a technical

adviser. Mr. Neser BSc (Eng.) MBL. has more than 32 years experience in all

aspects of the phosphate industry and the types of processes reported in this

announcement.

 

 

 

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seems to be no stopping this one now

 

taken some more profit again, hope its the right thing to do but a profit is a profit ;-)

 

 

 

Sunkar Resources

 

SKR : AIM : £0.34 | £56.0M | Buy, £1.10 ↑

 

Sunkar proves sceptics wrong -- BUY, raising target price 110p

 

Damien Hackett, 44.20.7050.6641

 

 

Event

Sunkar Resources' announcement today indicates that it has cleared its first major hurdle on the way to commercial production of

Di-ammonium phosphate (DAP) of internationally acceptable quality from its low-grade phosphate deposit at Chilisai in north-western Kazakhstan.

 

Impact

The ability to produce commercial ammonium phosphate from a low-grade primary source such as Chilisai at ~10% P2O5, even after local beneficiation to 17% P2O5, understandably presented some concern to investors. There is only one commercial plant in the world currently converting phosphate rock of grade less than 20% P2O5 into phosphoric acid and that is in Jordan. It now appears there might be another, this time in Kazakhstan.

 

Clearing this major hurdle enables us to reduce our project completion risk from 90% to 50%, which in turn lifts our net asset value for Sunkar to £1.14/share. On this basis, we are raising our target price from £0.25/share to £1.10/share.

 

Action

We continue to recommend buying Sunkar.

 

Next Catalyst

The company is due to appoint various contractors for the feasibility study before the year-end. We would suggest the start of the feasibility study is likely to be the next major stimulus to Sunkar's share price beyond our target of £1.10/share. "

 

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I'm averaged in at 18p. There's talk (i. unsubstantiated BB rumours) on ADVFN of a possible JV/takeover possibility, though of course a large pinch of salt is required.

 

Will hang on to mine until at least the IPO price I think. At the end of the day it was valued at £1.20 at IPO before the test results etc. Can see £2 personally in the future, though fund raising for the phosphate plant would need around the £750M mark through a mixture of debt / equity. If the plant can be built though, this company would appear to be able to generate large profits.

 

And some people seem to confuse phosphate mining with potash mining, when the two chemicals are completely different.

 

Potash = K (potassium)

Phosphate = P (phosphorous)

 

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Think I'm averaged in at about 28p but I think a similar path to you. They have seriously cheap fertiliser. Just need to complete the project now (or get bought out)!

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more press

 

From Minesite.com

 

October 08, 2009

 

Sunkar Resources Obtains Positive Results From First Tests On Pilot Plant

 

 

By John Taylor

 

 

 

Sunkar Resources has been one of the best performing stocks in the London market in recent weeks - a fact which must have come as a great relief to all involved as it has had a torrid time since its IPO at the end of June last year. The stock is currently trading at around 40p which, though it is still a long way below the IPO price of 120p, needs to be seen in the context of the low of only 5.25p which was reached in November last year - a fall of almost 96 per cent in less than five months. At that point, the company's cash position covered its market capitalisation by around four times; an extraordinary state of affairs even in those extraordinary times. For those few lucky investors that bought at the bottom, a return of nearly 800 percent since then is certainly something to smile about. But there are unlikely to be many as at the time the market was pricing in economic Armageddon and cash was seen as the only place to be. For those that bought in at the IPO it has been a grim experience and it resulted in the door to the mining IPO market being firmly closed - a situation which still prevails.

The reason for the recent strength lies in the release of results from pilot plant testwork which, says chief executive Serikjan Utegen, confirmed that Sunkar's project is capable of producing phosphate fertilisers of a suitable quality. At the time of the IPO, it was recognised that the phosphate rock resource at its Chilisai project in Kazakhstan was of much lower grade than almost all of the other deposits currently used as feedstock in the global phosphate fertiliser industry. As such, it...

 

http://www.minesite.com/nc/minews/singlene...ilot-plant.html

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chap over on advfn called Scab (who some believe to be Simon Cawkwell) has been buying thousands in 25k chunks and even a 250k chunk reckons we should be moving up soon

 

Certainly well over due the 3rd pilot test result by now

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I dont believe scab is cawkwell at all. scab is a rather tetchy individual based on his historical posting on the CHL thread on advfn. Cawkwell is not someone you would describe as uptight and tetchy is he?

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