Nov 19 2013
Arianne Phosphate Inc. (the "Company" or "Arianne") is pleased to announce that NI 43-101 compliant technical report ("NI 43-101") of the Lac à Paul Phosphate Rock Project ("Lac à Paul" or "the Project") has been filed under Arianne's profile on SEDAR at www.sedar.com and on Arianne' website at www.arianne-inc.com. The technical report filing follows the press release of October 24, 2013, announcing the project feasibility study results.
Brian Kenny, the CEO of Arianne commented: "We are very pleased to have filed the NI 43-101 report on the feasibility of the Lac a Paul project as a major achievement for Arianne. This accomplishment will allow Arianne to move forward with the activities which we have planned for 2013/2014 allowing us to advance the project to construction and production".
Jean-Sébastien David, the Chief Operating Officer (COO) of Arianne commented: "The report's filing marks an important step in the development of the Lac à Paul project. We can now focus on working with the regulatory agencies to finalize the evaluation of the Environmental Impact Assessment. We expect to finalize the process of obtaining permits in the next year. We will also continue our dialogue with the communities of Saguenay-Lac-Saint-Jean and the First Nations to ensure the social acceptability of the project".
- Net Present Value ("NPV") of US$ 1,910.1 million at an 8% discount rate.
- Gross revenue, in real terms, of US$ 16,124.8 million and operating cash flow of US$ 7,379.6 million.
- Internal Rate of Return ("IRR") of 20.7% with a capital payback of 4.4 years before taxes and mining duties.
- A 25.75 year mine life (excluding pre-production) with an average annual phosphate concentrate production of 3 million tonnes with a grade of 38.6% P2O5 and with average mill recovery of 90.0%
- The Initial Capital Cost of the Project is US$ 1,214.7 million comprising US$ 982.5 million for the mine and US$ 232.2 million for the concentrate transport system that delivers product to the deepwater Port of Saguenay open 365 days per year.
- The All-In Cost onboard the Ship in the Port of Saguenay is US$ 93.7/tonne life of mine (LOM) (i.e. FOB Port of Saguenay), yields an operating margin of 56% with an average selling price of $213/tonne at the port.
- Measured and Indicated Mineral Resources in the Paul Zone alone of 590 million tonnes grading an average of 7.1% P2O5 at a 4.0% cut-off grade.
- 75.7 million tonnes of saleable concentrate at 38.6% P2O5 in Proven and Probable Mineral Reserves reported at 3.5% P2O5 cut-off grade of 472.1 million tonnes at an average grade of 6.9 % P2O5 (taken from the Paul Zone Mineral Resource).
- Confirmed power availability of 115MWatt at the Chute des Passes power plant located 30 km from the mine.
NI 43-101 Compliance
Unless otherwise indicated, Arianne has prepared the technical information contained in this news release ("Technical Information") based on information contained in the feasibility study dated October 24, 2013 relating to Arianne's Lac a Paul phosphate rock mine project available under Arianne's company profile on SEDAR at www.sedar.com. The feasibility study was prepared by or under the supervision of a qualified person (a "Qualified Person") as defined in NI 43-101. Readers are encouraged to review the full text of the feasibility study which qualifies the Technical Information (see press release of October 24, 2013). Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The feasibility study is intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the feasibility study.
The Technical Information has been prepared under the supervision of Jean-Sébastien David, Geo., COO, and Qualified Persons under NI 43-101.