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Arianne Phosphate Inc. (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) released results of the feasibility study for its Lac à Paul Phosphate Rock Project in Quebec, Canada.
Study Highlights:
- 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 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 (does not include 164 million tonnes of Manouane Zone mineral resources).
- 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 CEO Brian Kenny said:
We are extremely pleased with the results of the Feasibility Study, showing Lac a Paul to truly be a world class asset. It is important to note that, as opposed to Arianne’s 2012 Pre-Feasibility Study (PFS) that combined both the Paul and Manouane zones to get a mine life of 17 years, the FS considers only the Paul Zone. As a result of subsequent drilling through 2011 and 2012, the mine life from just the Paul Zone alone stands at 25.75 years for the FS. The Manouane resource could potentially provide an additional 8 years of mine life based on the 2012 PFS study. The FS study conclusively demonstrates an excellent long life project with high margins and low operating costs that will produce a low-contaminant, high-quality phosphate concentrate. Additionally, our optimised transport solution provides a low all-in cost on the ship in the deep-water Port of Saguenay for export 365 days per year to the global market making the product commercially competitive with its peers. Today’s announcement is a significant step forward in the development of our Lac-a-Paul Project, the world’s largest greenfield phosphate rock project.
Click here to read the Arianne Phosphate Inc. (TSXV:DAN) press release
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