ARIANNE PHOSPHATE ADVANCES PREFEASIBILITY STUDY FOR A PURIFIED PHOSPHORIC ACID PLANT -project would create the largest producer of battery grade acid outside of China DAN: TSX-V ( Canada ) JE9N: FSE ( Germany ) DRRSF: OTCQX (
ARIANNE PHOSPHATE ADVANCES
PREFEASIBILITY STUDY FOR A PURIFIED
PHOSPHORIC ACID PLANT
-project would create the largest producer of battery grade acid outside of
China
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTCQX (
USA
)
SAGUENAY, QC
,
Jan. 30, 2024
/CNW/ -
Arianne Phosphate (the "Company" or "Arianne")
(TSXV: DAN) (OTCQX: DRRSF) (FRANKFURT: JE9N), a development-stage phosphate mining
company, advancing the Lac à Paul project in
Quebec's
Saguenay-Lac-Saint-Jean region, is pleased
to announce that it has commenced work on a Prefeasibility Study ("PFS") to construct a
downstream purified phosphoric acid plant ("PPA") in the region, capable of converting the
Company's high-purity phosphate concentrate into a finished PPA product. In pursuing this
downstream integration, Arianne will be able to move beyond being a producer and seller of
concentrate and leverage its geological advantage into becoming a dominant player in the high-
purity, battery and specialty markets. As well, by moving to a fully vertically integrated operation, the
Company will benefit from significantly enhanced economics and allow the Saguenay region to
establish itself within the global battery ecosystem. As currently planned, the facility would be the
largest producer outside of
China
and, given the rare igneous nature of Arianne's deposit, should be
very cost competitive as well.
Purified phosphoric acid has gained considerable interest over the last few years as it is an
important ingredient in the lithium-iron-phosphate ("LFP") battery. Currently, the supply of PPA is
constrained, especially outside of
China
, as it has historically been used in food preservatives and
other industrial applications, and now, the LFP is rapidly encroaching on existing supply. Today,
the LFP battery represents over 30% of all batteries, with many industry analysts projecting it to be
the most common of all battery chemistries within the next few years. This demand growth will result
in the need for more PPA production, with Benchmark Mineral Intelligence projecting that
requirement at an additional +1 million tonnes of PPA annually; a very significant increase over what
is currently produced globally. Furthermore, with
China
today producing over 90% of all LFP
batteries, Western supply is extremely limited.
Acknowledging the importance of phosphate, and access to it, the Government of
Quebec
recently
placed the phosphate-bearing mineral, apatite on its critical and strategic mineral list. This move
follows other jurisdictions that have done the same, including the European Union.
"There is no doubt that we will need a significant increase in the supply of PPA, the question is
where will that come from," said
Brian Ostroff
, President of Arianne Phosphate. "Today Arianne's
Lac á Paul project is the world's largest, independently owned resource, capable of producing a very
high-purity/low-contaminant phosphate concentrate, already tested and confirmed to produce a
battery-grade PPA. Our project is well situated in
Quebec, Canada
near necessary infrastructure,
fully permitted and shovel ready. Over the last 18 months, the Company has expended a
considerable amount of time and effort to ensure that we will be able to capitalize on this enormous
opportunity. In answering the question of where this needed supply will come from, I would say
that Arianne is ideally placed to address this urgent requirement and, in so doing, benefit from very
significant strategic and economic advantages. As planned, our facility would be able to produce
enough PPA to address 350 GWh of annual demand from Western gigafactories, a significant
portion of what will be required."
The PFS is studying the construction of a PPA plant situated in the Saguenay region of
Quebec
,
trucking distance from Arianne's mine and, with easy access to major North American battery hubs
such as Bécancour,
Quebec
, the US "battery-belt" in the southeast and the American automotive
industry in
Michigan
and surrounding states. The project anticipates the production of 350,000
tonnes of battery-grade PPA, which would make Arianne the single largest producer outside of
China
and capable of addressing a significant portion of Western battery requirements. Further, the
facility would also produce over 200,000 tonnes of a secondary premium phosphoric acid used for
animal feeds and specialty fertilizers. Due to projected closures both in
North America
and
Europe
,
this secondary market will be greatly underserviced and also provide additional economic opportunity
to Arianne.
"The Saguenay region is already known for its global advantage in industries such as aluminum,"
said
Raphael Gaudreault
, COO of Arianne Phosphate, "it would now become the player in Western
production of phosphate for specialty uses like batteries. The integrated project, both mine and PPA
plant, will be of significant benefit to the Province and Country. The region provides access to a
skilled workforce, advanced infrastructure including port, rail and hydroelectricity and, the ability to
access emerging battery markets in both
North America
and
Western Europe
. As well, with the
project being situated in
Quebec, Canada
, it will allow both Arianne and its customers to benefit from
the economic incentives provided for by various government programs, with this further supported by
phosphate's addition to the
Quebec's
critical mineral list. Lastly, as
China
currently represents over
90% of all LFP production, this facility will allow for the continued diversification away from Chinese
sources to a Western supply chain."
About Arianne Phosphate:
Arianne Phosphate ("Arianne Phosphate Inc.") (
www.arianne-inc.com
) is developing the Lac à 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
39% P
2
O
5
with little or no contaminants (Feasibility Study released in 2013). The Company has
196,809,271 shares outstanding.
Qualified
Person
Raphael Gaudreault
, eng., Qualified Person by NI 43-101, has approved this release. Mr.
Gaudreault is also the Company's Chief Operating Officer.
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:
https://www.facebook.com/ariannephosphate
Twitter:
http://twitter.com/arianne_dan
YouTube:
http://www.youtube.com/user/ArianneResources
Flickr:
http://www.flickr.com/photos/arianneresources
Resource Investing News:
http://resourceinvestingnews.com/?s=Arianne
Cautionary Statements Regarding Forward Looking 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"). Forward-looking information includes, but is
not limited to, anticipated quality and production of the apatite concentrate at the Lac à Paul
project. 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. Forward-looking information is
subject to be known and unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such forward-looking information,
including but not limited to: volatile stock price; risks related to changes in commodity
prices; sources and cost of power facilities; the estimation of initial and sustaining capital
requirements; the estimation of labour and operating costs; the general global markets and
economic conditions; the risk associated with exploration, development and operations of
mineral deposits; the estimation of mineral reserves and resources; the risks associated with
uninsurable risks arising during the course of exploration, development and production;
risks associated with currency fluctuations; environmental risks; competition faced in
securing experienced personnel; access to adequate infrastructure to support mining,
processing, development and exploration activities; the risks associated with changes in the
mining regulatory regime governing the Company; completion of the environmental
assessment process; risks related to regulatory and permitting delays; risks related to
potential conflicts of interest; the reliance on key personnel; financing, capitalization and
liquidity risks including the risk that the financing necessary to fund continued exploration
and development activities at Lac à Paul project may not be available on satisfactory terms,
or at all; the risk of potential dilution through the issue of common shares; the risk of
litigation. Forward-looking information is based on assumptions management believes to be
reasonable at the time such statements are made, including but not limited to, continued
exploration activities, no material adverse change in commodity prices, exploration and
development plans proceeding in accordance with plans and such plans achieving their
stated expected outcomes, receipt of required regulatory approval, and such other
assumptions and factors as set out herein. Although the Company has attempted to identify
important factors that could cause actual results to differ materially from those contained in
the forward-looking information, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such forward-looking information. Accordingly, readers
should not place undue reliance on forward-looking information. Forward-looking
information is made as of the date of this press release, and the Company does not
undertake to update such forward-looking information except in accordance with applicable
securities laws.
SOURCE
Arianne Phosphate Inc.
View original content:
http://www.newswire.ca/en/releases/archive/January2024/30/c3783.html
%SEDAR: 00003556E
For further information:
Source : Raphael Gaudreault, COO, Tel. : 418-590-1318,
[email protected]; Info: Brian Ostroff, President, Tel.: 514-908-4202,
CO: Arianne Phosphate Inc.
CNW 07:00e 30-JAN-24