Ressources d'Arianne Inc.: Lac-a-Paul Phosphate Project Pre-Feasibility Work Confirms $1 Billion NPV8 and 24% IRR
SAGUENAY, QUEBEC -- (Marketwire) -- 05/30/12 -- 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.
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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) 549-7316
bernard@arianne-inc.com
Information:
Jim Cowley, President
Tel: (801) 599-3789
jim@arianne-inc.com
Louis Morin, Investors Relations
Tel : (514) 845-1101
lmorin@thebidcapitalmarkets.com