Ressources d’Arianne Inc. (TSXV:DAN) announced the initial findings of the Lac-à-Paul phosphate prefeasibility study conducted by Met-Chem Canada Inc.

As quoted in the press release:

Highlights of the Prefeasibility Study ($US):

• Measured & Indicated resources quadruple to 348 million tonnes of 6.50% P2O5
• Additional Inferred resources of 114 million tonnes at 5.46% P2O5 are not included in the Study
• Combined Paul and Manouane proven and probable Mineral Reserves now total 307 Mt at an average grade of 6.59% P2O5 at an average stripping ratio of 0.83 (Cut-off grade of 2.43% P2O5)
• Annual production to average 2 million tonnes of 38% P2O5 apatite concentrate
• 25 year mine life at 33,000 tonnes/day with average mill recovery of 89%
• Average price of $175/tonne (comparable to 85 BPL FOB Russia which is currently sold at $223/tonne)
• Cash operating cost $98/tonne concentrate (FOB rail Dolbeau-Mistassini))
• Total Direct CAPEX Cost: $454 M
• Indirect CAPEX Cost: $121 M and Contingency: $74 M
• Total Initial CAPEX: $649 M
• Pre-tax IRR: 19.2%
• Pre-tax NPV 8%: $684 M
• Pre-tax Capital payback: 4.7 years

Ressources d’Arianne Inc. CEO, Bernard Lapointe, said:

“The all-in cost (CAPEX plus OPEX) estimate of $118 per tonne demonstrates that Lac a Paul is a world-class phosphate rock project with robust economics. The Study also confirms that, due to the significant increase in ore resources, a 3 million tonne/year P2O5 concentrate operation could further enhance project economics by as much as 50%. “

Click here to read the Ressources d’Arianne Inc. (TSXV:DAN) press release

Click here to see the Ressources d’Arianne Inc. (TSXV:DAN) profile.