Arianne Phosphate Inc. (the "Company" or "Arianne") (TSX
VENTURE:DAN)(FRANKFURT:JE9N)(OTCBB:DRRSF) is pleased to announce the positive
results of the feasibility study ("Feasibility Study" or "FS") for its Lac a
Paul Phosphate Rock Project ("Lac a Paul" or "the Project"), located north of
Saguenay-Lac-Saint-Jean in Quebec, Canada.
The FS outlines an open pit mine, a concentrator producing a high quality
apatite product and a transport system delivering the product to a year round
deep water port on the Saguenay River. The study was prepared by Cegertec
WorleyParsons with contributions from Dessau for tailings storage and
impoundment and water management, and SGS Canada Inc. and Ernst & Young for
financial modeling and economic analysis. Additional technical elements of the
study have been authored by Genivar (waste rock dump design and Environmental
Impact Assessment), Hydro Ressources, Journeaux Associates, CRU International
and Integer Research Ltd. The FS relies on a certified National Instrument ("NI
43-101") compliant Mineral Resource authored by Goldminds Geoservices Inc. and
published by Arianne on March 7th, 2013. In addition, Jacobs Engineering Group
Inc. (Jacobs) and COREM have conducted the metallurgical test work including
pilot test work for the process design. L. Nardella Associates Ltd also
supported Cegertec WorleyParsons in cost estimating and project execution
planning. (All dollars amounts expressed in US dollars unless otherwise
indicated and all tonnes are metric tonnes)
Study Highlights
-- 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 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
(does not include 164 million tonnes of Manouane Zone mineral
resources).
-- 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.
Brian Kenny, the CEO of Arianne commented: "We are extremely pleased with the
results of the Feasibility Study, showing Lac a Paul to truly be a world class
asset. It is important to note that, as opposed to Arianne's 2012
Pre-Feasibility Study (PFS) that combined both the Paul and Manouane zones to
get a mine life of 17 years, the FS considers only the Paul Zone. As a result of
subsequent drilling through 2011 and 2012, the mine life from just the Paul Zone
alone stands at 25.75 years for the FS. The Manouane resource could potentially
provide an additional 8 years of mine life based on the 2012 PFS study. The FS
study conclusively demonstrates an excellent long life project with high margins
and low operating costs that will produce a low-contaminant, high-quality
phosphate concentrate. Additionally, our optimised transport solution provides a
low all-in cost on the ship in the deep-water Port of Saguenay for export 365
days per year to the global market making the product commercially competitive
with its peers. Today's announcement is a significant step forward in the
development of our Lac-a-Paul Project, the world's largest greenfield phosphate
rock project.
Jean-Sebastien David, the Chief Operating Officer (COO) of Arianne commented:
"Where the FS has successfully shown the attractive scope, size and economics of
the Project, Arianne has also been busy on other important aspects of project
development including environmental, permitting and community relations.
Meetings and consultations with the First Nations and other communities have
been a major focus for Arianne. In addition, discussions with the various
regulatory agencies are proceeding. Arianne filed its Environmental Impact
Assessment in June of this year. We are pleased to operate in the
Saguenay-Lac-Saint-Jean region where the regional population has been supportive
of the Project and encouraging for some time. Over the coming months, we plan to
stay in close contact with the population, regional government agencies and
other stakeholders, and continue to work closely with them to develop the
Project and maximise the economic benefits for the region."
Brian Kenny summarized: "The FS shows Lac a Paul to be a project with great
economic potential, with open horizons for additional resources and a clear path
to permitting in one of the world's best mining jurisdictions."
Arianne will host a conference call on the Lac a Paul FS on Friday, October 25,
2013 at 10:00 am Eastern Standard Time. To participate in the call, dial
1-800-732-6870 (Canada/United States) or 416-641-6202 (International) callers. A
live webcast of the call can be accessed through our website at
www.arianne-inc.com.
If you are unable to participate in the conference call, a replay will be
available starting October 25, 2013 at 13:00 pm EST by dialing 1 800-558-5253
(Canada and United States) or 416-626-4100 (International), until December 25,
2013. The pass code is 21682126.
FEASIBILITY STUDY
This Feasibility Study was conducted subsequent to the updated Pre-Feasibility
Study, which included the 164 million tonnes M&I resources of Manouane Zone,
published by Arianne on July 1, 2012. The FS includes a mineral resource
estimate and a mine plan based only on the Paul Zone resources. The results of
the FS establish the technical and economic feasibility of an open pit mining
operation based on the Paul Zone resources, crushing, grinding and flotation
concentration of the phosphate ore, and its transport to a deepwater port based
on the Saguenay River which is open 365 days per year.
Economic analysis
This Feasibility Study demonstrates a profitable project with strong economics,
based on a milling rate of 55,000 tonnes per day with an average 18.6 Mt/year of
run of mine ore supplied to the process plant when full production is reached.
The study shows that the pre-tax IRR is 20.7% and the pre-tax NPV is $1,910.1
million at an 8% discount rate and the payback period is 4.4 years. The
following table is a summary of the key assumptions, operating highlights and
project economics.
Table 1: Key Assumptions, Financial Model and Results
-----------------------------------------------------------------------
Item Unit Feasibility Study
-----------------------------------------------------------------------
Phosphate Concentrate Price US$/tonne 213
Exchange Rate CAD$/US$ 0.9524
LOM (Paul Zone)(1) years 25.75
Discount Rate % per year 8.00%
NPV @ 8% (pre-tax) US$M 1,910.1
IRR (pre-tax) % 20.7
Payback Period (pre-tax) years 4.4
-----------------------------------------------------------------------
(1)Excluding pre-production
Table 2: Technical assumptions
-------------------------------------------------------------------------
Item Units Feasibility Study
-------------------------------------------------------------------------
Processing Design Rate tonnes/day 55,000
Average Process Recovery
over Mine Life % 90.0
Average Ore Grade to Mill % P2O5 6.88
Total Ore Mined (LOM) Mt 472.09
Concentrate Grade % P2O5 38.6
Total Tonnes of Concentrate
Produced Mt 75.7
-------------------------------------------------------------------------
Operating Costs
Based on all operating costs outlined in the Feasibility Study, the phosphate
concentrate annual operating cost FOB Port of Saguenay is US$ 93.7/tonne. Table
3 shows a breakdown of operating cost per tonne.
Table 3: Estimate of Operating Costs per tonne of concentrate
----------------------------------------------------------------------
Item Feasibility Study
($/tonne)
----------------------------------------------------------------------
Average Extraction Cost 27.3
Average Processing Cost 48.1
Average General and Administrative
Cost 4.3
Average Shipping Cost 14.0
----------------------------------------------------------------------
Total Operating Cost 93.7
----------------------------------------------------------------------
Table 4: LOM Estimate of Operating Costs
------------------------------------------------------------
Item Feasibility Study
(US$M)
------------------------------------------------------------
LOM Mining Operating Cost 2,069.1
LOM Process Operating Cost 3,642.3
LOM General & Administration
Operating Cost 323.2
LOM Concentrate Transport
Operating Cost 1,057.0
LOM Operating Cost 7,091.5
------------------------------------------------------------
Capital Costs
The capital cost in Table 5 is for the Lac a Paul Project based on a milling
rate of 55,000 tonnes per day, and is based on Cegertec WorleyParsons' standard
methods applicable for a Feasibility Study.
All duties and taxes are excluded from the capital cost, but are considered in
the economic analysis. Escalation and interests incurred during construction are
excluded from the capital cost. The effective date for the cost estimate is
September, 2013.
The pre-production initial capital cost for the mine and ore processing facility
is US$M 982.5, of which US$M 73.9 is contingency. The pre-production initial
capital cost for the mine-to-port transportation scope is US$M 232.2, of which
US$M 18.1 is contingency.
Table 5: Capital Costs - Mine Site
----------------------------------------------------------------------------
Feasibility Study
Item (US$ M)
----------------------------------------------------------------------------
Mill 470.8
Project General 108.5
General Mine Site 65.3
Mine Development 42.5
Open Pit Mine 29.6
Temporary Construction Facilities &
Services 23.1
Construction
Support/Equipment/Consumables 57.7
EPCM 61.7
Contingency 73.9
Owner's Cost 49.4
----------------------------------------------------------------------------
TOTAL 982.5
----------------------------------------------------------------------------
The open pit mine development, the ore processing facilities and all on-site
infrastructure and services necessary to support the mine operation have an
estimate accuracy of +/- 15%.
Table 6: Capital Costs - Transport
------------------------------------------------------------------------
Feasibility Study
Item (US$ M)
------------------------------------------------------------------------
Off-Site facilities & Infrastructure 167.9
Temporary Construction Facilities & Services 7.7
Construction Support/Equipment/Consumables 3.3
EPCM 20.9
Contingency 18.1
Owner's cost 14.3
------------------------------------------------------------------------
TOTAL 232.2
------------------------------------------------------------------------
Capital cost for the transport system is estimated at an accuracy of +/- 25%.
Table 7: LOM Capital Costs
-----------------------------------------------------------
Item Feasibility Study
(US$ M)
-----------------------------------------------------------
Initial Capital Cost 1,214.7
Sustaining Capital Cost 384.8
-----------------------------------------------------------
LOM Direct Capital Cost 1,599.5
Mine Closure and Rehabilitation 44.8
-----------------------------------------------------------
Product Pricing
The Lac a Paul average price in US$/tonne over a 25.75 year LOM is US$
213/tonne. The base case phosphate concentrate price model is based on cost
input data from marketing studies by CRU International (price forecast base date
May, 2013) and Integer Research Ltd (price forecast base date July, 2013).
The CRU "Benchmark FOB Morocco US$/tonne" is used as a basis to then calculate
the Lac a Paul average price. The Lac a Paul average price is derived from the
CRU Benchmark FOB Moroccan price plus a weighted average premium. The weighted
average premium is based on the predicted sales tonnage by location and sales
type, high purity rock customer or fertiliser customer, multiplied by the
relevant premium for each customer group. The premium data by location for the
high purity sales was derived from the Integer market study and the premium data
for the fertiliser sales was derived from the CRU market study.
Sensitivity Analysis
A sensitivity analysis has been carried out, with the base case described above
as a reference point, to assess the impact of changes in phosphate concentrate
price, total pre-production capital costs and operating costs on the project's
NPV @ 8% and IRR. Each variable is examined independently. An interval of +/-40%
with increments of 5% was used for all three variables.
The before-tax NPV and IRR are most influenced by price, followed by operating
costs and finally capital costs. A 10% increase in the sales price results in an
increase of US$M 602.9 in the before-tax NPV at 8%, whereas a 10% increase in
either operating costs or construction costs results in decreases of US$M 271.3
and US$M 116.4, respectively.
To view the figures regarding the Sensitivity Analysis please visit the
following link : http://media3.marketwire.com/docs/sensitivity-analysis.pdf.
Mineral Resources and Mineral Reserves
The anorthositic rock of the Lac-Saint-Jean area represents an assembly of
scales (or sheets) that straddle the older gneissic units. Anorthositic massifs
are particularly abundant in the Grenville Province. Its economic potential is
usually limited to deposits of Fe-Ti-P. The Lac a Paul project contains igneous
Fe-Ti-P rich rocks.
The mineral resource estimate incorporates the results of drilling programs
undertaken in 2011 and 2012 on the lateral and depth extensions of the Paul
Zone. In total, 153 holes, totaling 39,371 meters, have now been drilled on the
Paul Zone. The highlights are:
-- A cut-off grade of 4.0% P2O5 was used;
-- The measured and indicated mineral resource (M+I) of the Paul Zone
amounts to 590.24 Mt at 7.13% P2O5 and;
-- The mineral resource estimate was calculated according to NI 43-101.
Table 8a: Paul Zone Mineral Resource Estimate used for the Reserves
----------------------------------------------------------------------
Paul Zone
Resource (cut-off grade: 4.0% P2O5)
--------------------------------------------------
Tonnage (Mt) Grade (% P2O5)
----------------------------------------------------------------------
Measured (M) 336.76 7.22
Indicated (I) 253.48 7.02
----------------------------------------------------------------------
Total (M+I) 590.24 7.13
Inferred 9.81 5.89
----------------------------------------------------------------------
In addition to the mineral resources present in the Paul Zone, NI 43-101
compliant resources have already been estimated for Zones 2 and Manouane in the
Lac a Paul property. These resources, released in November 2011 in the NI 43-101
technical report by SGS Geostat (available on SEDAR under the Company's profile
at www.sedar.com), have not been updated because no additional drilling has been
carried out on these zones since 2011. They are summarized as follows:
Table 8b: Other mineral resources on the Lac a Paul property (Manouane Zone and
Zone 2)
---------------------------------------------------------------------------
Manouane Zone Zone 2
Resources (cut-off grade: 2.43% P2O5) (cut-off grade: 2.43% P2O5)
--------------------------------------------------------------
Tonnage Grade Tonnage Grade
(Mt) P2O5% (Mt) P2O5%
---------------------------------------------------------------------------
Measured (M) 136.90 5.93 - -
Indicated (I) 26.90 5.64 - -
---------------------------------------------------------------------------
Total (M+I) 163.80 5.88 - -
Inferred 64.00 4.55
---------------------------------------------------------------------------
Update of mineral resources effective: November 7, 2011(not taken into
account in the FS)
It is important to emphasize the very strong growth potential of the Lac a Paul
Project. The Paul Zone has considerable potential for extension and is open at
depth. In addition, during the exploration and drilling programs conducted in
the last three years, six other mineralized sectors were discovered. None of
these six sectors (Lise, Lucie, Nicole, Traman, Turc and Traverse) have NI
43-101compliant resource estimates.
In the Paul Zone Proven and Probable mineral reserves are reported to be 472.09
Mt at an average grade of 6.88 % P2O5 with a 3.5% P2O5 cut-off grade. This
includes allowance for 2% mining dilution and 97% ore recovery. The stripping
ratio for the first 4 years is 0.87 and 1.14 over the mine life. A total of 75.7
million tonnes of saleable concentrate grading at 38.6% P2O5 is defined.
Table 9: Mineral Reserve Estimate
-----------------------------------------------------------------
Paul Zone
Reserve (cut-off grade: 3.5% P2O5)
--------------------------------------------------
Tonnage (Mt) Grade (% P2O5)
-----------------------------------------------------------------
Proven 313.71 6.92
Probable 158.38 6.80
-----------------------------------------------------------------
Total (P+P) 472.09 6.88
-----------------------------------------------------------------
Mine Plan
The Lac a Paul FS is based on a single open pit and utilizes only Measured and
Indicated mineral resources contained within the Paul Zone, which were
considered for the development of mineral reserves.
Cegertec WorleyParsons completed the mining engineering technical work for the
FS. The mining work was completed using a block model that was provided to
Cegertec WorleyParsons by Claude Duplessis of Goldminds Geoservices Inc. Pit
optimizations were performed on the Measured and Indicated resources in the
model; the pit design yields a LOM of 25.75 years at a 3.5% P2O5 cut-off grade
with average grade of 6.88% P2O5. The final pit takes into account operational
parameters such as ramps, recommended geotechnical configurations, and the LOM
of 25.75 years (excluding pre-production period). The mineral reserves within
the pit are presented in Table 9.
The Paul Zone pit will be mined using conventional methods including drilling,
blasting, loading and hauling using shovels and trucks.
Metallurgy and Phosphate concentrate quality
The results of the metallurgical test work were that a scale-up to a commercial
facility will produce a 38.6% P2O5 product at 90% recovery. Chemical analysis of
a representative sample of the final concentrate from the process verification
test is given in Table 10.
Table 10: Concentrate chemical analysis1
-------------------------------------------------------
Constituent Units Analysis
-------------------------------------------------------
P2O5 % 38.60
-------------------------------------------------------
CaO % 51.25
-------------------------------------------------------
MgO % 0.70
-------------------------------------------------------
Fe2O3 % 2.00
-------------------------------------------------------
Al2O3 % 0.45
-------------------------------------------------------
SiO2 % 1.55
-------------------------------------------------------
TiO2 % 0.65
-------------------------------------------------------
Na2O % 0.37
-------------------------------------------------------
K2O % 0.19
-------------------------------------------------------
Cl % 0.06
-------------------------------------------------------
F % 1.08
-------------------------------------------------------
LOI % 0.54
-------------------------------------------------------
CaO/P2O5 Ratio 1.33
-------------------------------------------------------
MER Ratio 0.08
-------------------------------------------------------
(1) Analysis from COREM, 2013
Overall, the Lac a Paul phosphate concentrate is very high quality for the
following reasons:
-- Low CaO/P2O5 ratio leading to low sulfuric acid consumption rates;
-- High P2O5 recovery and high gypsum filtration rates are expected with
this rock when used as a feed for conventional wet process phosphoric
acid production;
-- The low CaO/P2O5 ratio will generate low amounts of gypsum; and
-- The low MER (minor element ratio) should facilitate easy production of
high quality granular fertilizer products, such as MAP and DAP.
Infrastructure
The Project is located 200 km north of the Saguenay-Lac-St-Jean region in
Quebec, Canada, an industrial region with a high-quality labour pool and good
existing infrastructure. Existing infrastructure includes hydropower generating
stations with sufficient capacity for the Project, road and rail networks and a
deepwater port.
The Lac a Paul Project will be powered by Hydro-Quebec through Rio Tinto Alcan's
power system from the Chute-des-Passes generating station which is located less
than 30 km from the Project. A 345-kV to 161-kV step-down substation will be
built at Chute-des-Passes. This new substation will supply the power through a
161-kV transmission line.
Construction of a permanent camp, a fresh process water system and pumping
station, tailings impoundments and a water treatment station is planned during
the preproduction phase. Waste rock dump will be built in the course of mining
operations.
A tailings storage facility, located only 2 km away from the concentrator, was
selected to store and manage the tailings for the 25.75 years LOM of the Lac a
Paul Project.
Phosphate concentrate transport
The phosphate concentrate will be transported by truck from the mine site on an
existing logging road to a deep water port located on the Saguenay river. As a
result of the spring thaw period, the FS assumes road transport will operate at
a reduced rate for 30 days. Consequently 30 days of product storage (250,000
tonnes) has been included at the Port and 21 days of storage (200,000 tonnes) at
the mine. This efficient solution will allow the product to be transported
directly from the mine to the deep water Port of Saguenay which is open 365 days
a year.
Environment
The Lac a Paul Project is located within the Fjord-du-Saguenay Regional County
Municipality (RCM). According to the RCM's applicable zoning regulation, the
Feasibility Study area overlaps the 20-2F zone, where industrial mining
extraction is authorized.
Arianne holds an exclusive lease to all surface rights for the area covering the
Project. The project footprint avoids lakes and the fish habitat encroachment
has been minimized. The Project will have easy access to water and will take
advantage of the topography to construct the tailings impoundment in a highly
secured manner at a location approximately 2 km from the concentrator. According
to Ministere du developpement durable, de l'environnement, de la faune et des
parcs (MDDEFP) Directive 019, Arianne's materials are classified as low risk
waste based on leachate results for waste rock, tailings and ore, which will
facilitate waste management.
Permitting
As part of the summer 2011 environmental assessment of the Lac a Paul Project,
Arianne began its baseline study. The data acquisition was completed in spring
2013. It was immediately followed by the preparing and filing of an
Environmental Impact Assessment (EIA) with the MDDEFP in June 2013. The Company
is currently working on providing answers and complementary information to the
MDDEFP's requests. Once this process has been completed, Arianne will be able to
move on to the next step, the BAPE public hearings (Bureau d'Audiences Publiques
en Environnement). The Company's goal is to finalize the entire process by H2
2014, resulting in a Ministerial Decree.
Based on a federal communication to Arianne dated August 8th, 2013, the Lac a
Paul Project is not subject to a federal environmental assessment under the
Canadian Environmental Assessment Agency CEAA (2012) and the Regulations
Designating Physical Activities. In addition, considering the non-metal nature
of the ore mined, the Project is not subject to Metal Mining Effluent
Regulations (MMER). However, Arianne must obtain permits from the federal
authorities in pursuance of the Explosives Act and the Fisheries Act.
Community Relations
In 2009, Arianne undertook a voluntary sustainable development process. It
implemented a Sustainable Development Policy and a Sustainable Development
Strategy/Action Plan. As a key element of the strategy action plan Arianne has
been since 2011 organizing meetings with local communities. Also the Company has
established an inventory of its greenhouse gas (GHG) emissions. Arianne is one
of the few companies of its size to publicly disclose its GHG emissions in its
annual and quarterly reports. The Lac a Paul project is on the Nitassinan of
three First Nations: the Innu of Mashteuiatsh, Essipit and Pessamit. Arianne has
had an ongoing relationship with the Mashteuiatsh nation since 2008 and with the
Pessamit nation since 2010. Discussions with the Essipit nation are planned.
next steps
----------------------------------------------------------------------
Milestone Timeline
----------------------------------------------------------------------
Appoint Financial Advisor Q4 2013
Transport Optimisation Studies Q1 2014
Metallurgical Optimisation at COREM H1 2014
Drilling to Increase Resources H1 2014
Secure Environmental Authorization H2 2014
Secure Strategic Partners and Off-Takers Q4 2013-Q4 2014
Project Financial Close Q4 2014
----------------------------------------------------------------------
Comparison Feasibility Study and Pre-feasibility Study
The approach to project development in the FS is very different than that taken
in the PFS for many important reasons. Among the major differences is the focus
in the FS of requiring only the development of the Paul resource due to the fact
that the resource was greatly expanded during the 2011 and 2012 drilling
campaigns. This has allowed a single production pit, the crusher to be located
closer to the pit limit and for the development of a single tailings
impoundment-area. The metallurgical testing campaigns at both JACOBS and COREM
have allowed for the development of a concentrator flow sheet which is
significantly more evolved than in the PFS. In addition the concentrator has
been sized for a 55,000 tonnes/day run of mine throughput versus 50,000
tonnes/day. Additional changes in the concentrator include choice of more
precise flotation reagents and the migration from fossil fuel drying to an
electric dryer for the final concentrate product. The PFS treatment of the
transport system was limited and rudimentary and in the FS this major project
challenge has been studied exhaustively to determine the most reliable and low
cost solution for the Project. The solution with a shipping dock located on the
Saguenay river is very different from the PFS solution. The result of these
major improvements and development of project requirements has resulted in a
successful FS which however is only very indirectly comparable to the PFS.
Bearing this fact in mind Arianne still wishes to provide some comparative data
between the previous studies and the current FS.
Table 11: Estimate of Operating Costs
----------------------------------------------------------
Feasibility Study Met-Chem PFS
Item ($/tonne) ($/tonne)
----------------------------------------------------------
Open Pit Mine 27.3 23.3
Processing 48.1 52.7
G&A 4.3 4.1
Transport by Truck 14 10.4(1)
----------------------------------------------------------
TOTAL 93.7 90.5
----------------------------------------------------------
(1) The PFS did not include the cost of ship loading.
Table 12: Estimate of Capital Costs for Mine Site and Transport System
-----------------------------------------------------------------
Feasibility Study Met-Chem PFS
Item ($USM) ($USM)
-----------------------------------------------------------------
Mill - Ore process 470.8 304.6
Open Pit Mine 29.6 60.2
Concentrate
Transport System 167.9 63.9
Professional
Services (EPCM &
others) 82.6 34.4
Other Costs (mine
development, owner's
cost, temporary
construction
facilities &
services,
communication,
indirect costs) 371.8 256.3
Contingency 92.0 94.5
-----------------------------------------------------------------
TOTAL 1,214.7 813.9
-----------------------------------------------------------------
Qualified Persons
All of the following Qualified Persons have reviewed and approved the contents
of this press release for which they are responsible:
Mr. Frederic Cote, eng. member of OIQ, working for L. Nardella Associates Ltd.,
is the independent Qualified Person responsible for capital cost estimate.
Mr. Claude Duplessis, eng. member of OIQ, working for Goldminds Geoservices
Inc., is the independent Qualified Person responsible for resource estimate and
market studies.
Mr. Gaston Gagnon, eng. member of OIQ, working for SGS Canada Inc., is the
independent Qualified Person responsible for financial analysis.
Mr. Michael Kelahan, QP member of the Mining and Metallurgical Society of
America (MMSA), working for Phosphate Consulting LLC, is the independent
Qualified Person responsible for mineral processing and metallurgical testing.
Mr. Simon Latulippe, eng. member of OIQ, working for Genivar, is the independent
Qualified Person responsible for permitting, environmental, social, waste rock
dump design and closure plan considerations.
Mr. Alex Topalovic, Chartered Professional of AusIMM, working for Cegertec
WorleyParsons, is the independent Qualified Person responsible for mine plan and
reserve estimate.
Mr. Pascal Vallee, eng. member of OIQ, working for Cegertec WorleyParsons, is
the independent Qualified Person responsible for operating cost estimate.
Mr. Ewan Wingate, Chartered Professional of AusIMM and a fellow of the SAIMM,
working for Cegertec WorleyParsons, is the independent Qualified Person
responsible for market studies and processing plant design.
NI 43-101 Disclosure
The Mineral Resource and Mineral Reserve estimates set out in this news release
were classified according to the CIM Definition Standards - For Mineral
Resources and Mineral Reserves (as adopted by CIM Council in November 2010).
Readers are advised that Mineral Resources not included in Mineral Reserves do
not demonstrate economic viability. Mineral Resource estimates do not account
for mineability, selectivity, mining loss and dilution. These Mineral Resource
estimates include Inferred Mineral Resources that are normally considered too
speculative geologically to have economic considerations applied to them that
would enable them to be categorized as mineral reserves. There is no certainty
that Inferred Mineral Resources will be converted to Measured and Indicated
categories through further drilling, or into Mineral Reserves, once economic
considerations are applied.
Arianne Phosphate will file on SEDAR at www.sedar.com a NI 43-101 compliant
technical report on the Lac a Paul FS within 45 days.
About Arianne Phosphate
Arianne Phosphate ("Arianne Phosphate Inc.") (www.arianne-inc.com) is developing
the Lac a Paul phosphate deposits located approximately 200 km north of the
Saguenay/Lac St. Jean area of Quebec, Canada. These deposits will produce a high
quality igneous apatite concentrate grading 38.6% P2O5 with little or no
contaminant. The Company has 79.8 million shares outstanding.
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.
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
Resources Investing News: http://resourceinvestingnews.com/?s=Arianne
This press release contains "forward-looking information" within the meaning of
Canadian securities legislation and "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995.
This information and these statements, referred to herein as "forward-looking
statements", are made as of the date of this press release and the Company does
not intend, and does not assume any obligation, to update these forward-looking
statements, except as required by law.
Forward-looking statements relate to future events or future performance and
reflect current expectations or beliefs regarding future events and include, but
are not limited to, statements with respect to: (i) the amount of mineral
resources and exploration targets; (ii) the amount of future production over any
period; (iii) net present value and internal rates of return of the mining
operation; (iv) assumptions relating to capital costs, operating costs and other
cost metrics set out in the Feasibility Study; (v) assumptions relating to gross
revenues, operating cash flow and other revenue metrics set out in the
Feasibility Study; (vi) assumptions relating to recovered grade, average ore
recovery and other mining parameters set out in the Feasibility Study; (vii)
mine expansion potential and expected mine life; (viii) expected time frames for
completion of permitting and regulatory approvals and making a production
decision; (ix) future exploration plans; (x) future market prices for rough
Phosphate Concentrate s; and (xi) sources of and anticipated financing
requirements. Any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words or phrases
such as "expects", "anticipates", "plans", "projects", "estimates", "assumes",
"intends", "strategy", "goals", "objectives" or variations thereof or stating
that certain actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved, or the negative of any of these terms and
similar expressions) are not statements of historical fact and may be
forward-looking statements.
Forward-looking statements are made based upon certain assumptions by Arianne
Phosphate or its consultants and other important factors that, if untrue, could
cause the actual results, performances or achievements of Arianne Phosphate to
be materially different from future results, performances or achievements
expressed or implied by such statements. Such statements and information are
based on numerous assumptions regarding present and future business strategies
and the environment in which Arianne Phosphate will operate in the future,
including the price of Phosphate Concentrate, anticipated costs and ability to
achieve goals. Certain important factors that could cause actual results,
performances or achievements to differ materially from those in the
forward-looking statements include, but are not limited to: (i) estimated
completion date for the Environmental and Social Impact Assessment; (ii)
required capital investment and estimated workforce requirements; (iii)
estimates of net present value and internal rates of return; (iv) receipt of
regulatory approvals on acceptable terms within commonly experienced time
frames; (v) the assumption that a production decision will be made, and that
decision will be positive; (vi) anticipated timelines for the commencement of
mine production; (vii) anticipated timelines for community consultations and the
conclusion of an Impact and Benefits Agreement; (viii) market prices for rough
Phosphate Concentrate and the potential impact on the Lac a Paul Project's
value; and (ix) future exploration plans and objectives.
By their very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and risks exist that estimates,
forecasts, projections and other forward-looking statements will not be achieved
or that assumptions do not reflect future experience. We caution readers not to
place undue reliance on these forward-looking statements as a number of
important risk factors could cause the actual outcomes to differ materially from
the beliefs, plans, objectives, expectations, anticipations, estimates,
assumptions and intentions expressed in such forward-looking statements. These
risk factors may be generally stated as the risk that the assumptions and
estimates expressed above do not occur, including the assumption in many
forward-looking statements that other forward-looking statements will be
correct, but specifically include, without limitation, (i) risks relating to
variations in the grade, phosphate rock lithologies and country rock content
within the material identified as mineral resources from that predicted; (ii)
variations in rates of recovery and breakage; (iii) the greater uncertainty of
exploration targets; (iv) developments in world Phosphate Concentrate markets;
(v) slower increases in Phosphate Concentrate valuations than assumed; (vi)
risks relating to fluctuations in the Canadian dollar and other currencies
relative to the US dollar; (vii) increases in the costs of proposed capital and
operating expenditures; (viii) increases in financing costs or adverse changes
to the terms of available financing if any; (ix) tax rates or royalties being
greater than assumed; (x) results of exploration in areas of potential expansion
of resources; (xi) changes in development or mining plans due to changes in
other factors or exploration results of Arianne Phosphate; (xii) changes in
project parameters as plans continue to be refined; (xiii) risks relating to
receipt of regulatory approvals or the conclusion of an Impact and Benefits
Agreement with aboriginal communities; (xiv) the effects of competition in the
markets in which Arianne Phosphate operates; (xv) operational and infrastructure
risks; and (xvi) the additional risks described in Arianne Phosphate's most
recently filed Annual Report, annual and interim MD&A, and Arianne Phosphate's
anticipation of and success in managing the foregoing risks. Arianne Phosphate
cautions that the foregoing list of factors that may affect future results is
not exhaustive.
When relying on our forward-looking statements to make decisions with respect to
Arianne Phosphate, investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. Arianne Phosphate does not
undertake to update any forward-looking statement, whether written or oral, that
may be made from time to time by Arianne Phosphate or on our behalf, except as
required by law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Source:
Brian Kenny
CEO
514-699-7436
brian.kenny@arianne-inc.com
Info:
Derek Lindsay
CFO
514-594-2372
derek@arianne-inc.com
Media:
Nadege Tollari
VP Business Affairs
514-932-8416
nadege@arianne-inc.com
Inform Resources (TSXV:IRR)
Historical Stock Chart
From Dec 2024 to Jan 2025
Inform Resources (TSXV:IRR)
Historical Stock Chart
From Jan 2024 to Jan 2025
