Vulcan Minerals Inc. – Atlas Salt Delivers Positive Feasibility Study for the Great Atlantic Salt Project
August 28 2023 - 9:50AM
Vulcan Minerals Inc. (“the Company” - “Vulcan” TSX-V:
VUL) is pleased to announce that Atlas Salt Inc., an
affiliated company, has released the results of a Feasibility Study
(FS) and updated Mineral Resource estimate prepared by SLR
Consulting (Canada) Ltd. (SLR) on the Great Atlantic Salt Project
(Great Atlantic, or the Project), located in western Newfoundland,
Canada. The FS represents a significant economic improvement over
the Preliminary Economic Assessment (PEA) released by Atlas January
31, 2023. The FS demonstrates robust economics based on
2.5
million tonnes per year (Mtpa) of production over a
34-year mine life with a pre-tax net present value (NPV) at an 8%
discount rate of
$1.017 Billion (Cdn) and an internal rate
of return (IRR) of 23%.
In addition, SLR has also provided an expansion
case to 4.0 Mtpa of salt production over a
47.5-year mine life presented at a Preliminary Economic Assessment
(PEA) level analysis demonstrating a robust upside production
scenario with an NPV at 8% of $2.015 Billion (Cdn) and a
pre-tax IRR of 28%. The expansion case is based on
Probable Mineral Reserves, with the remainder being Inferred
Mineral Resources. Inferred Mineral Resources are considered too
geologically speculative to have economic considerations applied to
them that would enable them to be categorized as Mineral Reserves.
There is no certainty that the production forecasts on which the
expansion case is based will be realized.
-
The FS includes the expansion of the Indicated Mineral Resources,
and first-time declaration of Mineral Reserves (in million tonnes
(Mt)
-
Indicated Mineral Resources totaling 383 Mt at
96.0 % NaCl
-
Inferred Mineral Resources totaling 868 Mt at 95.2
% NaCl
-
Probable Mineral Reserves totaling 88.1 Mt at 96%
NaClThe conversion of Inferred to Indicated Mineral Resources (and
subsequent conversion to Probable Mineral Reserves) has been
limited by the target of an initial 34-year mine life. It is
anticipated that further upgrading of Mineral Resources to Mineral
Reserves will be carried out from underground during the production
phase.
-
Key elements of the Project are designed to accommodate mine and
processing expansion of up to 4.0 Mtpa and to extend the mine life
beyond 34 years.
-
Great Atlantic would stand out as a low-cost producer and the first
major underground salt mine in North America designed to be
accessible by declines as opposed to shafts.
-
Designed to minimize environmental impact by utilizing electrified
equipment.
Patrick Laracy, President, commented, “This
independent feasibility study of the Great Atlantic salt project
confirms its substantial value and positive economic attributes as
a tier one asset. The production expansion case to 4 million tonnes
per year over a 47 year mine life underscores its long life
potential. Development of the mine will bring significant benefits
to all stakeholders. With Richard LaBelle’s stewardship as our new
Atlas Salt CEO, the project is on a very positive trajectory.”
The full news release by Atlas can be found here
https://atlassalt.com/independent-feasibility-study-and-expansion-case-for-atlas-salts-great-atlantic-project/
About VulcanVulcan Minerals is
a precious and base metals exploration company based in St. John's
NL, with strategic land positions in multiple active Newfoundland
gold exploration and development belts. The Company has leveraged
its exploration exposure in most of this land position through
equity ownership of other explorers obtained by way of option and
royalty agreements. It also holds approximately 30.5% of the
outstanding shares in Atlas Salt (TSXV: SALT). Atlas is developing
the Great Atlantic salt project in western Newfoundland
strategically located in the robust road de-icing market of eastern
North America. Vulcan also owns a 3% net production royalty on the
Great Atlantic salt project.
We seek safe harbour.
For information please contact:Patrick J.
Laracy, P.Geo.President (709)
754-3186info@vulcanminerals.cawww.vulcanminerals.ca
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considered reasonable by the respective parties, are inherently
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