The Conversation (0)
Arianne Resources (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) announced that Met-Chem Canada has completed and filed, as of July 16, 2012, the final NI 43-101 compliant report on its Pre-Feasibility Study Update. The final report confirms that a 3 million t/yr phosphate concentrate mine production scenario will generate an NPV8% close to $1 Billion ($985 million), a 23.2% IRR and a 3.9 year capital payback on a pre-tax basis.
As quoted in the press release:
Highlights of the Pre-Feasibility Study Update ($US)
- Measured & Indicated resources remain at 348 million tonnes @ 6.50% P2O5
- Additional Inferred resources of 114 million tonnes @ 5.46% P2O5 are not included in the Study
- Combined Paul and Manouane proven and probable Mineral Reserves remain at 307 million tonnes, with average grade of 6.59% P2O5 and average stripping ratio of 0.83 (Cut-off grade of 2.43% P2O5)
- Pre-tax NPV 8%: $985.1 million
- Pre-tax Capital payback: 3.9 years
Arianne Resources CEO Bernard Lapointe said:
We are pleased that Met-Chem has confirmed the economic viability of the 3 million mt/yr project in its final NI 43-101 compliant report. Our Bankable Feasibility Study will be based upon this production scenario, which will include a new resource calculation that we expect will support a mine life expectancy of 25 years minimum.
Click here to read the Arianne Resources (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) press release
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