Focus Ventures Releases Prefeasibility Study for Bayovar 12

Focus Ventures (TSXV:FCV) released results of a prefeasibility study for its Bayovar 12 phosphate project in Peru. The company will target the production of RPR concentrate for use as direct application phosphate fertilizer.
As quoted in the press release:

• Production of 18.5 Mt of Reactive Phosphate Rock (“RPR”) concentrate from 52.3 Mt of ore over a 20 year mine life
• Two RPR product lines producing +24% and +28% P₂O₅ concentrate by a simple, proven beneficiation process
• Post-Tax Internal Rate of Return (“IRR”) of 17.2% and Net Present Value (“NPV”) of $252.9 million at a 7.5% Discount Rate
• After-tax cash flow of $847 million over the mine life
• Payback of 6.6 years
• Proven and Probable open-pittable Reserves of 54.7 Mt of ROM (“Run-of-Mine”) ore (dry basis)
• Substantial mineral resources remain in inventory to extend mine life
• Initial capital costs of $127 million including pre-production stripping, process plant, tailings storage, water pipeline and powerline, owner’s costs and contingency
• Several opportunities identified to improve project economics via optimization studies including review of mine schedule, infrastructure requirements and extension of mine life

Focus Ventures president, David Cass, said:

Completion of the Study within 21 months of collaring our first drill hole is a big accomplishment. Located near tidewater and in an established phosphate mining district, the Study offers a base case for the open pit development and processing of the Project’s large-scale and near-surface RPR reserves and resources. Although meeting our year-end deadline date for the Study completion was a challenge, this is a solid first step and demonstrates the Project’s viability and potential to generate robust returns, with sufficient mineral resources to potentially support a mine life well beyond 20 years of operation.
We now intend to advance the Project to Feasibility Study with particular emphasis on optimization of the mine plan and equipment selection, earlier achievement of nameplate capacity in the process plant, pilot plant testing and definitive marketing studies. Bayovar 12 sits on the doorstep of a large and rapidly growing market for natural plant-ready rock fertilizer. Our goal is to make Bayovar 12 the long-term supplier of choice for those markets.

Click here for the full press release.