Arianne Phosphate Reports on Q3 2013

Arianne Phosphate (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) filed its financial statements for the third quarter of 2013. The Company also made significant progress on the Lac a Paul Phosphate Rock Project during the third quarter. Highlights include filing the NI 43-101 compliant technical report on SEDAR and announcing positive results of the feasibility study for the project.

As quoted in the press release:

During the third quarter and through November, 2013, Arianne made significant progress on the Lac a Paul Phosphate Rock Project development:

• In November 2013, Arianne filed the NI 43-101 compliant technical report of the Lac à Paul Phosphate Rock Project under Arianne’s profile on SEDAR at www.sedar.com and on Arianne’ website at www.arianne-inc.com (see press release of November 18, 2013 for details);
• In October 2013, Arianne announced the positive results of the feasibility study for its Lac à Paul Phosphate Rock Project. The Feasibility study outlines an open pit mine, a concentrator producing a high quality apatite product and a transport system delivering the product to a year round deep water port on the Saguenay River. This study was prepared by Cegertec WorleyParsons. Here are the highlights (see press releases of October 24, 2013 for details);
  • 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
  • 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:

With the release of a positive feasibility study on the Lac à Paul Phosphate Rock Project, Arianne has taken a crucial step forward in its development.” In regards to next steps, Mr. Kenny stated: “We are now able to focus on further improving the value of the Lac a Paul project, proceeding with the permitting process, assuring social acceptability, and undertaking other key activities that move the project forward to the construction phase.

Click here to read the Arianne Phosphate (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) press release
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