Arianne Resources Inc./Final NI 43-101 Lac-a-Paul Pre-Feasibility Study Update Filed on SEDAR
SAGUENAY, QUEBEC -- (Marketwire) -- 07/31/12 -- Ressources d'Arianne Inc. (the "Company" or "Arianne") (TSX VENTURE: DAN)(FRANKFURT: JE9N)(OTCBB: DRRSF) is pleased to announce that the final NI 43-101 compliant report on its Pre-Feasibility Study Update (PFSU) has been completed by Met-Chem Canada and posted on SEDAR as of July 16, 2012. The final report confirms the initial findings reported on May 30, that a 3 million t/yr phosphate concentrate mine production scenario will generate an NPV8% close to $1 Billion ($985 million), a 23.2% IRR and a 3.9 year capital payback on a pre-tax basis.
The Company highlights the fact that this new economic model does not include resource estimates for the additional mineralization identified by drilling programs completed since last fall (see press releases in December 2011 and March 2012). That drilling confirmed the increased strike length of Paul Zone mineralization from 1.3 km to in excess of 2.5 km. Because results from that drilling were unknown at the start of this work, only resources calculated in November 2011 were used for the final PFSU. A new resource calculation will be completed as part of the upcoming Bankable Feasibility Study.
Highlights of the Pre-Feasibility Study Update ($US)
-- Measured & Indicated resources remain at 348 million tonnes @ 6.50% P2O5
-- Additional Inferred resources of 114 million tonnes @ 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: $583.3 million
-- Indirect CAPEX Cost: $136.1 million and Contingency: $94.5 million
-- Total Initial CAPEX: $813.9 million
-- Pre-tax IRR: 23.2%
-- Pre-tax NPV 8%: $985.1 million
-- Pre-tax Capital payback: 3.9 years
Bernard Lapointe, CEO, commented: "We are pleased that Met-Chem has confirmed the economic viability of the 3 million mt/yr project in its final NI 43-101 compliant report. Our Bankable Feasibility Study will be based upon this production scenario, which will include a new resource calculation that we expect will support a mine life expectancy of 25 years minimum."
Technical data of this news release has been reviewed by Mary-Jean Buchanan, Eng. (Met-Chem) and Claude Duplessis, Eng. (SGS Canada Inc), who are deemed to be Qualified Persons under NI 43-101.
Arianne Resources (www.arianne-inc.com) through its wholly owned subsidiary Canada Phosphate (www.canadaphosphate.com) owns and is developing the Lac a Paul phosphate-titanium deposit that produces a superior grade apatite concentrate grading close to 39% P2O5. Arianne Resources also owns several other exploration properties exploring for gold, silver and other metals in Canada and Mexico. The Company currently has 67 M shares issued.
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 there under.
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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Resources 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
(418) 549-7316
bernard@arianne-inc.com
Info:
Jim Cowley, President
(801) 599-3789
jim@arianne-inc.com
Louis Morin, Investor Relations
(514) 845-1101
lmorin@thebidcapitalmarkets.com