Phosphate rocks are derived principally from two primary sources, namely phosphorous rich sediments known as phosphorites, and from carbonatite and alkaline igneous intrusive rocks. The phosphate deposit at Araxá is the latter type. Carbonatite and alkaline igneous intrusive sources of phosphate rocks are typically considerably smaller deposits than the sedimentary sources. However, these igneous deposits are often of a significant local importance for fertiliser industries or, alternatively, produce phosphate as a by- product of other minerals mined within the carbonatite host. The host mineral for phosphate at Araxá is apatite.

The Araxá Project forms a small part of the carbonatite complex and is situated on the northern limit of the pipe. The local geology, within this part of the complex, is comprised of phlogopite and subordinate beforite rock types. The surface is covered by hard iron-rich laterite, locally called “Canga”. Colluvial material covers the laterite on a saddle between the slopes of two small hills. There are limited exposures of highly weathered carbonatite.

The Araxá Project has defined a mineralised target area of 650m x 250m, as a result of the location of the boreholes associated with the exploration programme. Mineralisation is known to extend to a depth of 80m based upon this drilling. It is important to note that mineralisation is open ended in all directions and has been limited along the permit boundaries, positioning of the ........

The Araxá and Patrocínio phosphate deposit is part of a series of Late-Cretaceous, carbonatite-bearing alkaline ultramafic plutonic complexes belonging to the Alto Paranaiba Igneous Province. The phosphate ore is extracted through surface mining by limited drilling and blasting, loaded into trucks and transported to the beneficiation plants. Patrocinio does not have its own beneficiation plant, so the ore is transported by rail to Araxá for processing. Araxa mine has following designed parameters: - Overall slope angle (degree) - 30: - Face angle (degree) - 63; - Berm width (m) - 4.00; - Worktop height (m) - 4.00; - Width of the road (m) - 14.00.

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