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Ressources d’Arianne Inc. (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) reported that the initial findings of an Enhanced Pre-Feasibility Study (EPFS) confired that a 3 million t/yr phosphate concentrate mine production scenario will generate an NPV8% of US$1Billion, a 23.7% IRR and a 3.8 year capital payback on a pre-tax basis.
As quoted in the press release:
Highlights of the Enhanced Pre-Feasibility Study ($US)*
- Measured & Indicated resources stay at 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 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)
- Annual production will average 3 million tonnes of 38% P2O5 apatite concentrate with low impurities
- 17 year mine life at 50,000 tonnes ore/day production rate with average mill recovery of 90%
- Average concentrate price of $175/tonne FOB rail
- Cash operating cost $80/tonne concentrate mine site ($90/tonne FOB rail)
- Total Direct CAPEX Cost: $566 million
- Indirect CAPEX Cost: $137 million and Contingency: $92 million
- Total Initial CAPEX: $795 million
- Pre-tax IRR: 23.7%
- Pre-tax NPV 8%: $1.003 billion
- Pre-tax Capital payback: 3.8 years
* Some of the figures above may undergo slight changes in completion of filing the NI 43-101report within 45 days.
Arianne CEO Bernard Lapointe said:
“It is clear that this 3 million tonne/year production scenario places our Lac a Paul project among the lowest-cost and highest concentrate grades of new phosphate mines of the world” commented Bernard Lapointe, CEO Arianne. “At this higher production rate, the project’s sensitivity to price improves by 50% such that today’s rock price would easily triple the pre-tax NPV 8%”
Click here to read the Ressources d’Arianne Inc. (TSXV:DAN) press release
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