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TAMPA — Odyssey Marine Exploration Inc. (symbol: OMEX; recent price: $1.73) says an earlier report on the phosphate rock ore reserve at its offshore Oceanica deposit was too low. A new report estimates the phosphate rock ore there is closer to 360.7 million tons, a 20% increase over the last preliminary assessment total of 301.5 million tons for the site.
The report comes from 199 drill holes, which have been tested and analyzed to date. This compares to 161 drill holes that were previously analyzed. However, the sample area did not include the areas of pure phosphate, which leads the company to expect that further testing will increase the phosphorite resources estimated in the deposit.
The Florida Industrial and Phosphate Research Institute tested more than 760 total core samples from the site.
The company says it has completed an environmental impact report on mining the Oceanica deposit and is in the final stages of reviewing it before submitting it.
The mineral deposit is controlled by Odyssey's subsidiary, Oceanica Resources, S. de. R.L. In 2013, Odyssey Marine sold a minority stake in the Oceanica subsidiary for $27.5 million. The company reports it is working with J.P. Morgan to evaluate options to maximize the value of the project, including alternatives for financing, potential partnerships or other strategic options.
The deposited is located in waters 70-90 meters deep and centered 40 kilometers offshore. The company is not disclosing the specific location of the deposit for competitive reasons.
As of March, the commodity price for phosphate rock was $108 per metric ton, according to the World Bank Group.
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