PhosCo’s Simple Flotation Process Yields Premium 34% P2O5 Phosphate Concentrate

Breakthrough in Phosphate Concentrate Quality at Gasaat

PhosCo Ltd (ASX:PHO) has announced a significant metallurgical milestone for its Gasaat Phosphate Project in Northern Tunisia, with flotation testwork producing phosphate concentrate grades up to 34% P2O5; the highest ever reported for the project. This premium quality product, achieved through a simple single-stage flotation circuit, features low impurities and MgO levels below 1%, positioning PhosCo to target premium pricing in a market where high-grade phosphate commands a substantial price uplift.

Simplified Processing Validated, Reducing Technical Risk

The testwork, conducted by Bureau Veritas Minerals in Adelaide on samples from the KM prospect, confirms that a streamlined beneficiation process can deliver these exceptional grades. The new single-stage reverse flotation method simultaneously removes carbonates and silica, simplifying the flowsheet compared to the previously proposed two-stage approach by Jacobs Engineering Group. Notably, re-cleaning stages did not significantly enhance concentrate quality, suggesting they may be unnecessary, further reducing processing complexity and costs.

PhosCo’s Managing Director, Taz Aldaoud, emphasised the breakthrough’s significance: "The ability to produce a desirable phosphate concentrate with a simple flowsheet is a major breakthrough at a time when the world is looking for new suppliers. PhosCo remains firmly on track to become a cost-competitive, globally significant fertiliser producer."

Detailed Metallurgical Results and Market Implications

The flotation tests showed concentrate grades ranging from 31.4% to 34% P2O5 at recoveries between 73.5% and 77.8%. The optimal MgO collector dosage was identified at 1.3 kg/t, achieving MgO concentrate grades below the 1% target. The Minor Element Ratios (MER), a key impurity metric, were the lowest ever recorded for Gasaat, indicating a clean concentrate suitable for premium markets.

Phosphate rock with similar characteristics typically trades at a significant premium to regional benchmarks due to its scarcity and processing advantages. The ability to produce such a high-grade product using a simple flotation process could materially enhance the project’s economics, although final pricing will depend on confirmatory testwork and market conditions.

Geological and Sampling Rigor Supports Confidence

The metallurgical sample originated from hole GADD05 within the KM prospect, derived from carefully composited crushed material representing multiple 1-metre intervals. PhosCo’s drilling campaign in 2025 included 13 HQ-diameter diamond drill holes and 5 trenches, with detailed geological logging and quality assurance protocols in place. The company’s comprehensive JORC-compliant reporting confirms the robustness of the dataset underpinning these metallurgical results.

The KM deposit is a stratiform Eocene marine phosphorite hosted in a gently west-dipping package of phosphatic units, with mineralisation thickness reaching up to 56.4 metres. This geological setting and sampling density support the reliability of the metallurgical test outcomes.

Next Steps and Timing for Project Advancement

PhosCo plans to proceed with further MgO optimisation testwork and ore variability studies across KM and other Gasaat deposits to confirm feed and concentrate grade limits. These efforts will feed into a feasibility study incorporating locked cycle flotation tests and engineering design criteria.

The company has delayed its updated scoping study to October 2026 to incorporate these breakthrough metallurgical results and optimise project economics. This timing aligns with ongoing resource expansions and processing advancements across the Gasaat Project, which has recently seen new discoveries and resource upgrades at nearby prospects.

While these results mark a major technical advance, the ultimate market premium and economic impact remain contingent on further testwork validation and evolving market dynamics. Investors will be watching how PhosCo leverages this metallurgical success to refine its development pathway.