Potash

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.

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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