Ressources d'Arianne Inc.: Lac-a-Paul Phosphate Project Pre-Feasibility Work Confirms $1 Billion NPV8 and 24% IRR
May 30 2012 - 8:00AM
Marketwired
Ressources d'Arianne Inc. (the "Company" or "Arianne") (TSX
VENTURE:DAN)(FRANKFURT:JE9N)(OTCBB:DRRSF) is pleased to announce
the initial findings of an Enhanced Pre-Feasibility Study (EPFS)
confirming that a 3 million t/yr phosphate concentrate mine
production scenario will generate an NPV8% of US$1Billion, a 23.7%
IRR and a 3.8 year capital payback on a pre-tax basis. The EPFS is
being completed by Met-Chem Canada of Montreal, Quebec in
compliance with NI 43101, and will be posted on the Arianne website
and SEDAR within the next 45 days.
The Company highlights the fact that this economic model does
not include resource estimates for additional mineralization
identified by core drilling completed since last fall (a portion of
which was included in press releases in December 2011 and March
2012). That drilling confirmed the increase in strike length of
Paul Zone mineralization from 1.3 km to in excess of 2.5 km. A new
resource calculation will be completed with the Bankable
Feasibility Study, which will begin this summer and be completed in
2013.
Highlights of the Enhanced Pre-Feasibility Study ($US)(i)
-- 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
(i) Some of the figures above may undergo slight changes in
completion of filing the NI 43-101report within 45 days.
"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%" he added. "Our
Bankable Feasibility Study will include a new resource calculation
for the extended Paul zone mineralization indicated by our drilling
success over the past 9 months. This additional Paul Zone
mineralization has the potential to extend the Lac a Paul mine life
beyond 25 years at this expanded production rate, he also
added."
Technical data of this news release has been reviewed by
Mary-Jean Buchanan, Eng. (Met-Chem) and Daniel Boulianne, Geo.
(Arianne), who are deemed to be Qualified Persons under NI
43-101.
Ressources d'Arianne Inc. (www.arianne-inc.com) is developing
the Lac a Paul phosphate-titanium deposits approximately 200 km
north of the Saguenay/Lac St. Jean area of Quebec, Canada.
Metallurgical testing of the ore has confirmed production of a high
quality igneous apatite concentrate grading 39% P2O5 with little or
no contaminant. The Company has 67 million shares outstanding.
Forward Looking Statements and Information
This news release contains "forward-looking statements" and
"forward-looking information" within the meaning of applicable
securities regulations in Canada and the United States
(collectively, "forward-looking information"). The forward-looking
information contained in this news release is made as of the date
of this news release. Except as required under applicable
securities legislation, the Company does not intend, and does not
assume any obligation, to update this forward-looking information.
Forward-looking information includes, but is not limited to,
statements with respect to estimated mineral resources, anticipated
effect of the completed drill results on the Project, timing of a
feasibility study, and timing and expectations of future work
programs. Often, but not always, forward-looking information can be
identified by the use of words such as "plans", "expects, "is
expected", "budget", "scheduled", "estimates", forecasts",
"intends", "anticipates", or "believes", or the negatives thereof
or variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might", or
"will" be taken, occur or be achieved.
CAUTIONARY NOTE TO US READERS
The SEC allows mining companies, in their filings with the SEC
to disclose only those mineral deposits they can economically and
legally extract or produce. Accordingly, information contained in
this News Release regarding our mineral deposits may not be
comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements under the
United States federal securities laws and the rules and regulations
of the Commission thereunder.
In particular, this News Release uses the term "indicated"
resources. U.S. readers are cautioned that while that term is
recognized and required by Canadian regulations, the SEC does not
recognize it. U.S. investors are cautioned not to assume that any
part or all of mineral deposits in this category will ever be
converted into mineral reserves.
This News Release also uses the term "inferred" resources. U.S
readers are cautioned that while this term is recognized and
required by Canadian regulations, the SEC does not recognize it.
"Inferred resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of feasibility or pre-feasibility
studies, except in rare cases. U.S. readers are cautioned not to
assume that part or all of an inferred resource exists, or is
economically or legally mineable.
Follow Arianne on:
Facebook:
http://www.facebook.com/pages/Arianne-Resources-Inc/113071105425184
Twitter: http://twitter.com/arianne_dan
Youtube: http://www.youtube.com/user/ArianneResources
Flickr: http://www.flickr.com/photos/arianneresources
Resource Investing
News:http://resourceinvestingnews.com/?s=Arianne
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Source: Bernard Lapointe, CEO Tel: (418)
549-7316bernard@arianne-inc.com Information: Jim Cowley, President
Tel: (801) 599-3789jim@arianne-inc.com Louis Morin, Investors
Relations Tel : (514) 845-1101lmorin@thebidcapitalmarkets.com
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