The Machay Phosphate Project lies near the towns of Tarma and La Oroya in central Peru, roughly 200km east of Lima.
During the course of ongoing property evaluations for precious and base metals, the Company identified an opportunity to acquire a land position in central Peru covering the trend of the phosphate--bearing Aramachay Formation, a Jurassic-aged sedimentary unit.
A number of old geological reports written in the early 1960's for the Cerro de Pasco Corporation, highlighted numerous phosphate occurrences in the Tarma-La Oroya region hosted within the Aramachay Formation. Stonegate Agricom's (TSX: ST) Mantoro phosphate deposit near Sincos is hosted by the same unit, approximately 30km to the south-east. To date, Stonegate has outlined measured and indicated resources of 39.5Mt @ 10% P2
and inferred resources of 376.3Mt @ 9% P2
(Refer on Sedar to "Technical Report on Mantoro Phosphate Deposit, Junin District, Peru, March 2, 2010"of Stonegate)
Phosphates are an essential component of many fertilizers. The price of phosphate rock concentrate was $155-165/t for 31-33% P2
as of January 6, 2011, and has risen by nearly 25% in the last year reflecting the growing global demand for fertilizer. Given this increase in demand, and Focus's presence on the ground in Peru, the Company made applications for 26 concessions covering roughly 17,000 hectares, now known as the Machay Property.
The claims are strategically located close to the La Oroya metallurgical complex, a potential source of sulphuric acid for fertilizer production.
Initial reconnaissance has commenced on the property. The main objective of the Company's preliminary work is to confirm the presence of the phosphate bearing rock units on the claims.