Arianne Phosphate Reports New Reduction in Production Cost of its Phosphate Concentrate

Arianne Phosphate (TSXV:DAN) announced that it has reduced the production cost of its high-purity phosphate concentrate by an additional $8 per tonne, reducing the company’s operating expense.

As quoted in the press release:

According to the Company’s Feasibility Study (“FS”) filed in October 2013, Arianne initially projected an FOB Port of Saguenay cost of US$93.70 per ton for its premium quality 39% P2O5 concentrate.  Following the release of the Feasibility Study, the Company has launched numerous initiatives to improve the project economics with much of that effort targeted at reducing its operating costs.  To date, the Company has announced an optimized mining plan to include additional resources it had proved up, as well as savings associated with a more streamlined metallurgical process.  This subsequent reduction is a continuation of the Company’s efforts to move the Lac à Paul project even lower on the cost curve.

Jean-Sebastien David, COO of Arianne, commented:

Our latest success in reducing our anticipated production costs is very encouraging and, when looked at through its entire process, represents a considerable savings over the projected life of mine. From the day we released our Feasibility Study, we have set out to advance development of Lac à Paul.  In less than two years, we have expanded our resource, simplified our process to make a high-purity phosphate concentrate, concluded a power deal with Hydro-Québec and received an investment from the Government of Quebec.  Once the project proceeds to production, our most recent studies support a production cost of approximately $80 per tonne of concentrate.

Click here to read the full Arianne Phosphate (TSXV:DAN) press release.