Itafos Inc. (TSX-V: IFOS) (“
Itafos” or the
“
Company”) is pleased to announce today that it
has filed an updated technical report for Itafos’ Conda project
(the “
Conda Technical Report”), a
vertically-integrated phosphate fertilizer project in Idaho (the
“
Conda Project”). The Conda Technical Report
demonstrates increased Mineral Reserves and the opportunity for
continued operations at the Conda Project through 2037.
The Conda Technical Report, titled “NI 43-101
Technical Report Itafos Conda Project Idaho, USA,” with an
effective date of July 1, 2023, was prepared for Itafos by WSP USA
Inc. (“WSP”) in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
(“NI 43-101”). The Conda Technical Report is
available on SEDAR+ (www.sedarplus.ca) under the Company’s issuer
profile and on the Company’s website (www.itafos.com).
Technical Report Highlights for Conda
Project:
- The mine schedule shows ore production for the Conda Project
through 2037.
- The Mineral Resource estimate for Husky1-South Maybe Canyon
(“H1SMC”) and North Dry Ridge
(“NDR”) (collectively “H1/NDR”)
increased from 38.1 million short tons (dry) at ~24.3% - ~27.0%
P2O5 to 40.5 million short tons (dry) at ~24.2% - 26.7% P2O5.
- The total estimated Mineral Reserves for Conda increased from
14.4 million short tons (dry) at ~26.6% P2O5 (as of July 1, 2019)
to 33.7 million short tons (dry) at ~25.0% P2O5 (as of July 1,
2023).
- The Rasmussen Valley Mine (“RVM”) block model
did not change based on the results from reconciliation between the
2019 model estimates and the production results up to the effective
date of the Conda Technical Report (July 1, 2023). The estimated
remaining Mineral Resource after the effective date of July 1, 2023
is 5.9 million short tons (dry) at ~25.9% P2O5. The estimated
remaining Mineral Reserve after the effective date of July 1, 2023
is 4.3 million short tons (dry) at ~26.0% P2O5.
David Delaney, the Company’s CEO commented, “The
updated Conda Technical Report validates and updates the proven and
probable reserve estimates that support the H1/NDR project with
proven mine life through 2037. Following the Notice to Proceed in
May 2023, we have been working diligently on capital activities
associated with the H1/NDR project with H1/NDR ore recovery
expecting to start in late 2024. The Conda Technical Report and
associated capital activities are the culmination of our strategic
objective of extending Conda’s mine life.”
The Conda Technical Report includes
Mineral Reserve estimates for RVM and H1/NDR, all of which are
wholly-owned by Itafos Conda. The Mineral Reserve estimates for
these deposits were prepared by WSP and this news release is the
initial public disclosure of such Mineral Reserve
estimates.
The effective date for the Mineral
Reserve estimate is July 1, 2023. There have been no material
changes in the available information for the deposits between the
effective date of the Mineral Reserve estimate and the date of this
news release.
Summary of Mineral Reserve
Estimates
|
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Property |
Resource Classification |
Volume (millions; bcf) |
Short Tons (Millions,
wet)a,b |
Short Tons (Millions,
dry)a,b |
P2O5
(wt.%)c |
MgO (wt.%) |
Fe2O3
(wt.%) |
Al2O3
(wt.%) |
|
|
|
|
|
|
|
|
|
RVM |
Proven |
62.2 |
4.6 |
4.1 |
26.0 |
0.82 |
1.1 |
3.0 |
Probable |
2.9 |
0.2 |
0.2 |
26.0 |
0.82 |
1.2 |
3.2 |
Proven + Probable |
65.1 |
4.8 |
4.3 |
26.0 |
0.82 |
1.1 |
3.0 |
|
|
|
|
|
|
|
|
|
NDRd |
Proven |
56.2 |
4.2 |
3.7 |
26.7 |
0.82 |
1.3 |
2.7 |
Probable |
10.0 |
0.7 |
0.7 |
26.8 |
1.05 |
1.1 |
2.3 |
Proven + Probable |
66.2 |
4.9 |
4.4 |
26.7 |
0.85 |
1.3 |
2.6 |
|
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|
|
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|
|
|
H1SMCe |
Proven |
282.9 |
20.9 |
18.6 |
24.3 |
0.97 |
0.9 |
2.4 |
Probable |
74.1 |
5.5 |
4.9 |
24.5 |
0.97 |
0.9 |
2.2 |
Proven + Probable |
356.9 |
26.4 |
23.5 |
24.3 |
0.97 |
0.9 |
2.3 |
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|
Stockpilesf |
Proven |
0.1 |
1.7 |
1.5 |
27.7 |
0.42 |
0.64 |
1.53 |
|
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|
Totals |
Proven |
401.3 |
31.4 |
27.9 |
25.0 |
0.90 |
0.9 |
2.4 |
Probable |
87.0 |
6.4 |
5.7 |
24.8 |
0.97 |
0.9 |
2.2 |
Proven + Probable |
488.3 |
37.8 |
33.7 |
25.0 |
0.91 |
0.9 |
2.4 |
Notes:
- A moisture content of 11% was assumed to convert from wet short
tons to dry short tons.
- A 97% mining recovery and 0% dilution was applied to the tons
selected as ore.
- A P2O5 cutoff grade of 20% was assigned as the minimum grade to
be considered ore. Grades are reported in dry basis.
- A pit optimization analysis was performed on the H1SMC deposit,
which incorporated the geotechnical parameters, mining costs of
$3.06/t wet overburden, $4.61/t wet ore, ore stockpiling and
shipping costs of $11.21/t wet. A Gross Margin available per mined
P2O5 ton (applied at the point of exchange of the tipple) of
$283.70/t dry ton P2O5 was used to define the limits of the mining
pit. The total processing costs are not disclosed in this report
but are higher for H1SMC relative to NDR due to an MgO reduction
circuit required for H1SMC.
- A pit optimization analysis was performed on the NDR deposit,
which incorporated the geotechnical parameters, mining costs of
$3.06/t wet overburden, $4.61/t wet ore, ore stockpiling and
shipping costs of $11.21/t wet. A Gross Margin available per mined
P2O5 ton (applied at the point of exchange of the tipple) of
$283.70/t dry ton P2O5 was used to define the limits of the mining
pits. The total processing costs are not disclosed in this report
but are higher for H1SMC relative to NDR due to an MgO reduction
circuit required for H1SMC.
- All stockpiles, which includes WV Tipple and plant stockpiles,
total dry tons, and average P2O5 grades are displayed.
About the Deposits
The phosphate mineralization encountered at the
deposits considered in the Conda Technical Report occur as
stratigraphically controlled sedimentary phosphate mineralization
within the Meade Peak Member of the Early Permian Phosphoria
Formation. The Meade Peak Member is further subdivided into an
Upper Phosphate Zone and a Lower Phosphate Zone, separated by an
unmineralized Center Interburden Zone. The Mineral Reserve
estimates include mineralization from both the Upper Phosphate Zone
and Lower Phosphate Zone.
Project Risks
Project risks have been outlined in the Conda
Technical Report along with mitigation plans to de-risk the Conda
Project. Costs have been estimated to a level of accuracy suitable
for a Preliminary Feasibility Study. Overall economic risks include
financing, price escalation, inflation, commodity sales price
variability and general global economic conditions. General
technical risks include project construction timeline, surface
water management, geotechnical uncertainty, mining productivity,
achieving optimum P2O5 grade and recovery, and waste
management.
Conda Technical Report and Qualified
Persons
Readers are encouraged to read the Conda
Technical Report in its entirety, including all qualifications,
assumptions and exclusions that relate to the preliminary
feasibility study. The Conda Technical Report is intended to be
read as a whole, and sections should not be read, or relied upon,
out of context.
Scientific and technical information contained
in this news release was reviewed and verified by:
Jerry DeWolfe, P.Geo,
WSP Canada Inc. (formerly WSP Golder), Geology and Mineral
ResourcesTerry L. Kremmel, P.E. WSP USA Inc. (formerly WSP Golder),
Mineral Reserves and Mining MethodsMitchell J. Hart, P.E. Arcadis
Inc., Environmental, Permitting, and Social or Community ImpactLuc
Adjanor, MIMMM, Adjanor and Associates Limited, Metallurgy and
Mineral Processing
Each of these persons is a “Qualified Person” as
defined by NI 43-101 for the Conda Project and have the ability and
authority to verify the authenticity and validity of the data and
is independent from the Company. Each of these Qualified Persons
has reviewed and verified the respective scientific and technical
disclosure contained in this news release.
Further information about the Conda Project,
including a description of the key assumptions, parameters,
description of sampling methods, data verification and QA/QC
programs, methods relating to resources and reserves and factors
that may affect those estimates will be contained in the Conda
Technical Report.
About Itafos
The Company is a phosphate and specialty fertilizer company. The
Company’s businesses and projects are as follows:
- Conda – a vertically integrated phosphate fertilizer business
located in Idaho, US with production capacity as follows:
- approximately 550 kt per year of monoammonium phosphate
(“MAP”), MAP with micronutrients (“MAP+”), superphosphoric acid
(“SPA”), merchant grade phosphoric acid (“MGA”) and ammonium
polyphosphate (“APP”); and
- approximately 27 kt per year of hydrofluorosilicic acid
(“HFSA”);
- Arraias – a vertically integrated phosphate fertilizer business
located in Tocantins, Brazil with production capacity as follows:
- approximately 500 kt per year of single superphosphate (“SSP”)
and SSP with micronutrients (“SSP+”); and
- approximately 40 kt per year of excess sulfuric acid (220 kt
per year gross sulfuric acid production capacity);
- Farim – a high-grade phosphate mine project located in Farim,
Guinea-Bissau;
- Santana – a vertically integrated high-grade phosphate mine and
fertilizer plant project located in Pará, Brazil; and
- Araxá – a vertically integrated rare earth elements and niobium
mine and extraction plant project located in Minas Gerais,
Brazil.
The Company is a Delaware corporation that is
headquartered in Houston, TX. The Company’s shares trade on the TSX
Venture Exchange (“TSX-V”) under the ticker symbol
“IFOS”. The Company’s principal shareholder is CL Fertilizers
Holding LLC (“CLF”). CLF is an affiliate of
Castlelake, L.P., a global private investment firm.
For more information, or to join the Company’s mailing list to
receive notification of future news releases, please visit the
Company’s website at www.itafos.com.
Forward-Looking Information
Certain information contained in this news
release constitutes forward-looking information
(“FLI”). Except for statements of historical fact
relating to the Company, information contained herein may
constitute FLI, including any information related to: the
successful development of the Conda Project; capital expenditures;
mine life; estimates of mineral resources and mineral reserves;
development of mineral resources and mineral reserves; realization
of mineral resources and mineral reserves estimates, including
whether mineral resources will ever be developed into mineral
reserves and information and underlying assumptions related
thereto; timing and amount of future production; expected
expenditures to be made by the Company; and timing, cost, quantity,
capacity and product quality of production at the Conda Project.
The use of any of the words “intend”, “anticipate”, “plan”,
“continue”, “estimate”, “expect”, “may”, “will”, “project”,
“should”, “would”, “believe”, “predict” and “potential” and similar
expressions are intended to identify forward-looking
information.
The FLI contained in this news release is based
on the opinions, assumptions and estimates of management set out
herein, which management believes are reasonable as at the date the
statements are made. Those opinions, assumptions and estimates are
inherently subject to a variety of risks and uncertainties and
other known and unknown factors that could cause actual events or
results to differ materially from those projected in the FLI. These
include the Company’s expectations and assumptions with respect to
the following: commodity prices; operating results; safety risks;
changes to the Company’s mineral reserves and resources; risk that
timing of expected permitting will not be met; changes to mine
development and completion; foreign operations risks; changes to
regulation; environmental risks; the impact of adverse weather and
climate change; general economic changes, including inflation and
foreign exchange rates; the actions of the Company’s competitors
and counterparties; financing, liquidity, credit and capital risks;
the loss of key personnel; impairment risks; cybersecurity risks;
risks relating to transportation and infrastructure; changes to
equipment and suppliers; adverse litigation; changes to permitting
and licensing; loss of land title and access rights; changes to
insurance and uninsured risks; the potential for malicious acts;
market volatility; changes to technology; changes to tax laws; the
risk of operating in foreign jurisdictions; and the risks posed by
a controlling shareholder and other conflicts of interest. Readers
are cautioned that the foregoing list of risks, uncertainties and
assumptions is not exhaustive.
Although the Company has attempted to identify
crucial factors that could cause actual actions, events or results
to differ materially from those described in FLI, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
FLI will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such information.
The reader is cautioned not to place undue reliance on FLI. The
Company undertakes no obligation to update forward-looking
statements if circumstances or management’s estimates, assumptions
or opinions should change, except as required by applicable
securities law. Risks and uncertainties affecting the FLI contained
in this news release are described in greater detail in the
Company’s current Annual Information Form and current Management’s
Discussion and Analysis available under the Company’s profile on
SEDAR+ at www.sedarplus.ca and on the Company’s website at
www.itafos.com. The FLI included in this news release is expressly
qualified by this cautionary statement and is made as of the date
of this news release.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX-V) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS
RELEASE.
For further information, please contact:
Matthew O’NeillItafos Investor
Relationsinvestor@itafos.com713-242-8446
Cautionary Note Regarding Mineral Resource and Mineral
Reserve Estimates
This press release uses Mineral Reserve and
Mineral Resource classification terms that comply with reporting
standards set forth in NI 43-101 for all public disclosure of
scientific and technical information concerning mineral projects by
Canadian registered issuers. NI 43- 101 standards differ
significantly from standards set forth by the United States
Securities and Exchange Commission (“SEC”).
Therefore, information regarding mineralization presented herein
may not be directly comparable to similar information disclosed by
companies in accordance with SEC standards. For instance, Mineral
Reserve estimates contained in this presentation may not qualify as
“reserves” under SEC standards. The reader is cautioned not to
assume that any part or all of the Mineral Resources identified as
“Mineral Resources,” “Measured Mineral Resources,” “Indicated
Mineral Resources” and “Inferred Mineral Resources” in this
presentation will ever be converted into Mineral Reserves as
defined in NI 43-101, be upgraded to a higher category, or be
economically or legally mineable.
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