EPM Mining Releases Preliminary Feasibility Study for Sevier Lake Playa Sulphate of Potash Project

EPM Mining Ventures Inc. (TSXV:EPK,OTCQX:EPKMF) released its Preliminary Feasibility Study (PFS) for the production of Sulphate of Potash from its Sevier Lake Playa Sulfate of Potash Project in Utah. The PFS forecasts average annual SOP production of 300,000 metric tonnes (t) with an estimated Net Present Value (“NPV”) of $629 million (after tax, inflated, 8% discount rate) and an estimated Internal Rate of Return (“IRR”) of 20% (after tax, inflated). Due to results of recent drilling, the PFS also includes an updated Mineral Resource Estimate, which estimate includes 31.486 million tonnes of SOP in the Measured and Indicated categories, which is a 7% increase from previously published estimates.

As quoted in the press release:

Economic Indicators

NPV (pretax, 8%) $ 957 M
NPV (after tax, 8%) $ 629 M
IRR (pretax) 24%
IRR (after tax) 20%
Average Annual SOP Production 300,000 t
Mine Life 30 years
Initial Direct Capital Costs $ 292 M
Initial Indirect Capital Costs $ 50 M
Initial Capital Contingency $ 36 M
Operating Cost $ 180.91/t
Production Royalties (% of gross revenues) 5.61%
Year 3 EBITDA (nameplate production) $ 143 M
Payback Period (from commencement of production) 5.5 years
Measured & Indicated SOP Resource 31.486 Mt

EPM Mining CEO, Lance D’Ambrosio, said:

We are very pleased with the completion and positive results of this important study. Through the efforts of a second drilling and fieldwork program, bench-scale testing of important evaporation and other process-related parameters, and significant hydrology modeling and analysis, the PFS highlights and supports the strong fundamentals and potential of our project.

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