Jun 5 2015
Great Quest Fertilizer Ltd ("the Company") is pleased to announce the Malian Ministry of Environment, Sanitation and Sustainable Development, has granted the Company an environmental permit for the development of the Tilemsi phosphate deposit and the construction of the Phase I production facility in the agricultural region of Dogofry, Segou, Mali.
Within Mali, environmental permits are granted after the preparation and review of project plans and the submission of an Environmental and Social Impact Study, prepared in accordance with Malian guidelines based on standards set by the World Bank. This is an important milestone for our company and removes a key hurdle in the project's development. The Company will now apply for the exploitation permit as it advances towards the implementation of its Phase I Development plans for the production of granulated NPK fertilizer featuring Tilemsi direct application phosphate.
Phase I Development
The Phase I project comprises of small-scale mining, beneficiation, NPK blending and the granulation of 40,000 tons of phosphate rock per annum for twelve years. The facility is strategically located in Dogofry, Segou State, 1,024 km south west of the Tilemsi mining property, thus placing the production in Mali's agricultural heartland distant from the political instability of Northern Mali.
The Phase I production is expected to generate an internal return of 30%, with minimal capital expenditure (See Press Release "Great Quest Files Updated PEA for Multi-Phase Phosphate Production," dated February 5, 2015). This initial small-scale production in West Africa will allow the Company to establish the product and to build familiarity with potential customers capable of signing long-term supply agreements for future production.
Commenting, Jed Richardson President and CEO, "We express our thanks to the Ministry and the Government of Mali for their diligence in granting this necessary approval."
The decision to commence production at the Tilemsi Phosphate project is not based on a feasibility study of mineral reserves demonstrating economic and technical viability, but rather on a more preliminary estimate of inferred mineral resources. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with this production decision. Production and economic variables may vary considerably, due to the absence of a complete and detailed site analysis according to and in accordance with NI 43-101.
About Great Quest
Great Quest Fertilizer Ltd. is a Canadian mineral exploration company focused on the development of African agricultural mineral projects for local production of farm ready fertilizers. The Company's flagship asset is the Tilemsi Phosphate Project, encompassing 1,206 km² in northeastern Mali, containing high quality phosphate resources amenable to use as direct application fertilizer. Great Quest is listed on the TSX Venture Exchange under the symbol GQ, and the Frankfurt Stock Exchange under the symbol GQM.
ON BEHALF OF THE BOARD OF DIRECTORS OF GREAT QUEST FERTILIZER LTD.
President, Chief Executive Officer and Director