Arianne Phosphate Receives Engineering Study Updating Its LAC À Paul Capex DAN: TSX-V ( Canada ) JE9N: Fse ( Germany ) Drrsf: OTCQX ( USA )
ARIANNE PHOSPHATE RECEIVES
ENGINEERING STUDY UPDATING ITS LAC À
PAUL CAPEX
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTCQX (
USA
)
SAGUENAY, QC
,
March 30, 2023
/CNW/ -
Arianne Phosphate (the "Company" or "Arianne")
(TSXV: DAN) (OTCQX: DRRSF) (FSE: 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 received an updated engineering study regarding the projected capital
expenditure ("CapEx") for its Lac à Paul phosphate project. The study was undertaken in late 2022
and early 2023 and estimates CapEx for the Lac à Paul project to be approximately US
$1.55 billion
,
based on a
$1.35
US/CAD exchange rate. The CapEx estimate also includes required infrastructure
upgrades, including a hydroelectric transmission line from dam to site and, a ship-loading facility on
the north shore of the Saguenay River.
Given recent uncertainties and cost overruns facing many mining construction projects, Arianne
engaged LCO Construction & Management Consultants Inc. ("LCO") of
Montreal, Quebec
in late
2022 to update the projected cost to build Lac à Paul. The study focused solely on the CapEx as the
construction, mining and transportation plans for Lac à Paul remain the same, as does Arianne's
statement of mineral reserves. LCO was chosen to do this work due to their knowledge of the
phosphate industry and their familiarity with the project, having conducted work of this type in the
past for Arianne.
"This report should go a long way towards dispelling the view that our CapEx has appreciated to the
point of significantly diminishing our project," said
Brian Ostroff
, President of Arianne. "While cost
overruns due to inflationary pressures, supply chain issues and procurement have affected most
projects and, investors now factor in cost increases of 50%-100% into their models, a less than 30%
increase from our last reported number should be most welcomed. It is also worth highlighting that
although our CapEx is higher since our last report, so too is the price of phosphate and the benefits
of the USD/CAD exchange rate. Further, with the industry's projected demand increases from the
growth of the LFP battery and, Arianne's ability to supply this market, it should continue to provide a
major tailwind for years to come."
As with all mining projects, the sale price of the underlying commodity, the project's CapEx and the
currency exchange rate are important elements in determining the robustness of a project. As
previously reported, Arianne anticipates that the mine will produce 3 million tonnes a year of high-
purity phosphate concentrate which today, according to numerous industry sources, sells for over
$300
/t versus the
$213
/t used in its previous study. As well, the current USD/CAD exchange rate is
over
$1.35
versus
$1.05
that was used at the time of the last study.
"Uncertainty is never a good thing," said Arianne Phosphate's COO,
Raphael Gaudreault
. "Updating
our CapEx number removes uncertainty associated with Arianne's project and, is an important step
in reducing any lingering concerns. Being able to provide current numbers is an important data point
as the Company discusses financing and development options with interested parties."
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
190,310,681 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 labor 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/March2023/30/c6023.html
%SEDAR: 00003556E
For further information:
Source : Raphael Gaudreault, COO, Tel. : 418-590-1318,
[email protected]; Brian Ostroff, President, Tel. : 514-908-4202,
CO: Arianne Phosphate Inc.
CNW 07:00e 30-MAR-23