Arianne Phosphate Inc. (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) filed the NI 43-101 compliant technical report for the Lac à Paul Phosphate Rock Project on SEDAR. Highlights include Measured and Indicated Mineral Resources in the Paul Zone alone of 590 million tonnes grading an average of 7.1% P2O5 at a 4.0% cut-off grade.
As quoted in the press release:
- Net Present Value (“NPV”) of US$ 1,910.1 million at an 8% discount rate.
- Gross revenue, in real terms, of US$ 16,124.8 million and operating cash flow of US$ 7,379.6 million.
- Internal Rate of Return (“IRR”) of 20.7% with a capital payback of 4.4 years before taxes and mining duties.
- A 25.75 year mine life (excluding pre-production) with an average annual phosphate concentrate production of 3 million tonnes with a grade of 38.6% P2O5 and with average mill recovery of 90.0%
- The Initial Capital Cost of the Project is US$ 1,214.7 million comprising US$ 982.5 million for the mine and US$ 232.2 million for the concentrate transport system that delivers product to the deepwater Port of Saguenay open 365 days per year.
- The All-In Cost onboard the Ship in the Port of Saguenay is US$ 93.7/tonne life of mine (LOM) (i.e. FOB Port of Saguenay), yields an operating margin of 56% with an average selling price of $213/tonne at the port.
- Measured and Indicated Mineral Resources in the Paul Zone alone of 590 million tonnes grading an average of 7.1% P2O5 at a 4.0% cut-off grade.
- 75.7 million tonnes of saleable concentrate at 38.6% P2O5 in Proven and Probable Mineral Reserves reported at 3.5% P2O5 cut-off grade of 472.1 million tonnes at an average grade of 6.9 % P2O5 (taken from the Paul Zone Mineral Resource).
- Confirmed power availability of 115MWatt at the Chute des Passes power plant located 30 km from the mine.
Arianne Phosphate Inc. CEO, Brian Kenny, said:
We are very pleased to have filed the NI 43-101 report on the feasibility of the Lac a Paul project as a major achievement for Arianne. This accomplishment will allow Arianne to move forward with the activities which we have planned for 2013/2014 allowing us to advance the project to construction and production.