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Canadian junior exploration company Arianne Phosphate is moving forward with the development of its Lac à Paul phosphate project in Quebec.
In with the new
Over the last several months, a clear shift in Arianne’s focus has become evident. In May, Arianne officially changed its name to Arianne Phosphate and shed any remaining non-phosphate assets.
Furthermore, Arianne has added some valuable players to its management team and board of directors; their experience should enable the company to bring Lac à Paul into its final stages. The latest addition to the company’s management team came on June 26, when Brian Kenny was appointed CEO. Kenny has a proven track record of project development, including the $7-billion EMAL smelter project in Abu Dhabi. With his experience in project development, Arianne is confident that he will be able to assist in bringing Lac à Paul forward.
Other recent additions include Steven Pinney and Dominique Bouchard, who recently became board members. Pinney was formerly president of Cargill Fertilizer and senior vice president of phosphates and supply chain at Mosaic (NYSE:MOS). Bouchard was president of Rio Tinto’s (ASX:RIO,LSE:RIO,NYSE:RIO) iron and titanium branch until his retirement in May 2013.
Lac à Paul
Lac à Paul is an advanced-stage phosphate project located in the Saguenay—Lac-Saint-Jean region of Quebec. The project is positioned near rail and road leading to the Saint Lawrence River, a main pathway to world markets.
Lac à Paul hosts high-quality apatite mineralization. Apatite, for those who are unfamiliar, is a group of phosphate minerals that typically have high concentrations of OH-, F- and Cl- ions. In March, Arianne updated its mineral resource estimate for the Paul Zone to 590 million metric tons (MT) of measured and indicated P2O5 at an average grade of 7.13-percent P2O5.
Arianne’s 2011 prefeasibility study shows that the project can be worked as an open pit with a 17-year mine life. The project has an indirect capex cost of $136.1 million and an operating cost (including FOB) of $90 per MT. In August 2011, Arianne started the process for its bankable feasibility study, which it intends to have completed towards the end of 2013.
The company’s EIA was initiated in 2011 by GENIVAR, an international consultancy firm, Dessau – Groupe Conseil Nutshimit, Hydro-Ressources and Cegertec WorleyParsons. The assessment is aimed at gauging the impact that Lac à Paul will have on its surroundings, taking into account sustainable development, communication and relationships with the community. The EIA is an important milestone for Arianne as it attempts to meet its targeted production date of 2016. Should Arianne receive approval for the assessment from the Ministry, it will begin construction of the mine in mid-2014.
Why phosphate?
As the world’s population grows, the need for better crop yields is also increasing. Phosphate is used in conjunction with potash as a nutrient to support crop growth, increase yields and improve quality, particularly in difficult soils. The most important fact about phosphate is that there isn’t a substitute, which means that ensuring a steady supply can help ensure food security for the future.
Securities Disclosure: I, Vivien Diniz, hold not investment interest in any of the companies mentioned in this article.
Editorial Disclosure: Arianne Phosphate is a client of the Investing News Network. This article is not paid-for content.