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-Sunkar Resources plc - Technology Tests Update.

Global Banking News-July 20, 2011--Sunkar Resources plc - Technology Tests Update(C)2011 ENPublishing - http://www.enpublishing.co.uk

ENP Newswire - 20 July 2011

Release date- 19072011 - Sunkar Resources plc (AIM: SKR) is pleased to announce an update on its phosphoric acid and phosphate fertilizer technology tests.

Full international specification DAP and MAP can be produced from Chilisai rock - two independent acid treatment technologies have been evaluated at the pilot scale and the test results are positive and consistent with earlier laboratory and bench-scale tests

The phosphoric acid production process has been consistently confirmed on the representative rock sample obtained across the total resource base area

Phosphoric Acid Pilot Plant Confirmation Tests

Sunkar's phosphoric acid process engineer for the Chilisai project, Prayon Technologies SA ('Prayon'), has run a series of pilot plant tests using representative rock samples from across the total resource base area. The consistency of the phosphoric acid process selected for the Chilisai phosphate has been re-confirmed.

Prayon will use the pilot plant test results to adjust the final phosphoric acid plant design. This will be incorporated into the Final Feasibility Study report.

Phosphoric Acid Post Treatment - Ion Exchange

In 2010, K-Technologies, Inc., Florida, USA ('K-Tech') ran batch scale tests using ion-exchange technology ('IX') to remove metal ions from the phosphoric acid to reduce the minor element ratio ('MER'). Following the success of these tests, and in order to refine the process design engineering associated with a post acid treatment installation at an industrial scale, a larger-scale IX pilot plant program was carried out and completed by K-Tech in early-mid 2011.

The pilot plant IX tests were completed on acid produced by the phosphoric acid pilot plant tests using the representative rock samples. The results from the pilot plant tests were consistent with the previous batch scale results and the resulting acid quality was considered to be suitable for the production of international specification DAP.

Phosphoric Acid Post Treatment - Pre-neutralization

Prayon has recently delivered the technical results of the pre-neutralisation tests (where phosphoric acid is partially pre-neutralised using ammonia) of the phosphoric acid made on their pilot plant from a representative sample of Chilisai rock from across the resource base area. The tests have produced MAP and DAP of a quality in excess of the requirements of international trade standards and were consistent with previous pre-neutralisation tests results.

Phosphoric acid pre-neutralization is a technology which has been widely used in the phosphoric acid industry in the conventional DAP production process for production of higher analysis ammonium phosphate products.

Serik Utegen, Chief Executive Officer commented: 'We are very pleased that the pilot plant re-confirmation tests and acid post treatment tests have produced the results we have been expecting. The confirmation that our phosphoric acid technology is valid for phosphate rock collected from various parts of our very large deposit gives the Board confidence that the chemical complex we are proposing to build will process the Chilisai mine output consistently through many decades.

The success of both of the acid treatment technologies we have selected for making acid suitable for production of international specification DAP gives us great confidence in the Chilisai project's ability to satisfy global phosphate market quality requirements, including especially, requirements by off-takers from South and East Asia.'

Contact:

Sunkar Resources plc

Serikjan UtegenCEOTel: +44 20 7930 8678

Ambrian Partners Limited

Anthony RowlandTel: +44 20 7634 4700

Bankside Consultants

Simon RothschildTel: +44 20 7367 8888

Editors Notes

Sunkar Resources plc

Sunkar Resources plc, through a wholly owned subsidiary Temir Service LLP, operates a phosphate rock mine in Aktobe Oblast, North West Kazakhstan. Temir Service LLP holds a Subsoil Use Contract to part of the Chilisai Phosphate Rock Deposit. The contract area is estimated to contain 800 Mt of phosphate ore.

Sunkar's strategy is to build a world class integrated ammoniated phosphate fertilizer plant with low operating costs. Sunkar's low cost base derives from its near surface phosphate rock deposit and access to sulphur from the nearby North Caspian oil and gas fields.

Representative Rock Samples

During the second half of 2010, the Company collected representative phosphate ore samples from 30 locations at the Chilisai deposit randomly selected from areas containing the majority of ore reserves calculated and signed off to date. The sampling locations were selected by the mining team of SNC Lavalin, the Feasibility Study contractor, who are preparing the mining plan for the development of the Chilisai Deposit.

The collected ore samples were combined into three bundles, each corresponding to a specific deposit area, and then were run through a full scale dry beneficiation plant at the Company's premises at the Chilisai mine. All sampling and beneficiation were performed with an independent inspection contractor in attendance and an inspection report was duly obtained. The beneficiated rock samples were sent to Belgium to Prayon Technologies SA.

MAP and DAP International Specification

The current international trade requirements (specifications) for the MAP and DAP quality have been derived from quality standards introduced in the United States of America by IFDC (IFDC.org). The most important parameters are:

Fertilizer composition in terms of N-P-K is traditionally 18-46-0 for di-ammonium phosphate (DAP) and 12-52-0 for mono-ammonium phosphate (MAP); the MAP requirements for international trade are somewhat less stringent and formulations as low as 10-50-0 are traded;

Water solubility of P-component (as P2O5) - when expressed as the percentage of water soluble P2O5 to the total P2O5 in the compound, the minimal value should be 90.5%. However, many contracts specify the absolute minimal water soluble P2O5 concentration, i.e. DAP must contain no less than 41.5% total water soluble P2O5;

Maximum moisture should not exceed 1% of total weight;

Fluoride content should not exceed 1%;

Heavy metal concentrations limits;

Granular sizes limitations and granules strength requirements.

For the phosphate rocks, and, inherently, derivative phosphoric acids, which have a MER ('minor element ratio', the ratio of the sum of the content of aluminum, iron, and magnesium oxides to the content of P2O5) higher than 0.1, during DAP manufacturing it is practically impossible to achieve nitrogen (N) content of 18% in the resulting di-ammonium phosphate salt. The phosphate ions preferentially combine with the impurity metal ions, those used to calculate MER, thereby preventing nitrogen-phosphate combination, which in-turn reduces the phosphorous available to the plants expressed as the water soluble phosphate.

The total ammonia content for DAP, and total phosphate water solubility for MAP and DAP, are the most commercially important parameters for the international fertilizer trade. Therefore, the phosphoric acid produced from some phosphate rocks requires additional treatment to reduce the MER, in order to produce compounds with nitrogen of the required formulation and thus having the required water soluble P2O5.

[Editorial queries for this story should be sent to newswire@enpublishing.co.uk]

((Distributed via M2 Communications - http://www.m2.com))
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Publication:Global Banking News (GBN)
Date:Jul 20, 2011
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