Itafos Announces Results of Itafos Conda Technical Report, Incr Eased Mineral Resource Estimates and PATH Forward FOR MINE Life Extension
ITAFOS ANNOUNCES RESULTS OF ITAFOS CONDA TECHNICAL REPORT, INCR EASED
MINERAL RESOURCE ESTIMATES AND PATH FORWARD FOR MINE LIFE EXTENSION
TORONTO, ON – October 30, 2019 – Itafos (TSX VENTURE: IFOS) (the “ Company”)
announced today the results of an independent technical report encompassing Itafos Conda and
Itafos Paris Hills deposits concluding increased existing Mineral Resource estimates and defining
the Husky1/North Dry Ridge (“ H1/NDR”) deposits as the Company’s path forward for mine
development. The technical report compiled by Golder Associates Ltd. (“Golder”) and titled “ NI
43-101 Technical Report on the Itafos Conda and Itafos Paris Hills Mineral Projects, Idaho, USA”
(the “Itafos Conda Technical Report”) will be filed on SEDAR within the next 45 days.
“This is a significant step towards executing on our key object ive at Itafos Conda of extending
phosphate ore supply from a combination of additional resources in existing mines and defining
the path forward for long-term ore continuity by focusing effor ts and resources on H1/NDR. In
addition, these results provide further flexibility in terms of timing of required growth capex,” said
Tim Vedder, General Manager of Itafos Conda.
The Itafos Conda Technical Report concluded that, with respect to Itafos Conda’s existing mines,
the Rasmussen Valley Mine (“RVM”) deposit contains Mineral Resource estimates of 15.2 million
short tons. This Mineral Resource estimate for RVM is a 37% inc rease over Itafos Conda’s
historical internal estimates. Further, the Itafos Conda Techni cal Report concluded that, with
respect to Itafos Conda’s mine development options, the H1/NDR deposits contain Mineral
Resource estimates of 38.1 million short tons at approximately 24.3% P 2O5. This Mineral
Resource estimate for H1/NDR is a 60% increase over Itafos Cond a’s historical internal
estimates.
The Itafos Conda Technical Report includes Mineral Resource est imates for RVM, Lanes Creek
Mine (“LCM”) and H1/NDR deposits, all of which are wholly owned by Itafos Conda. The Mineral
Resource estimates for these deposits were prepared by Golder a nd this news release is the
initial public disclosure of such Mineral Resource estimates. T he Itafos Conda Technical Report
also includes an update of the previous Mineral Resource estima te for the Paris Hills (“ PH”)
deposit, which is wholly owned by Stonegate Agricom Ltd. (“STG”), the owner of Itafos Paris Hills.
The previous Mineral Resource estimate for PH was prepared by A gapito Associates Ltd. on
behalf of STG within the technical report titled “NI 43-101 Technical Report Paris Hills Phosphate
Project Bloomington, Idaho, USA” dated as of January 18, 2013 and restated as of July 8, 2013
and filed under STG’s profile on SEDAR.
The effective date for the Mineral Resource estimates is July 1 , 2019. There have been no
material changes in the available information for the deposits between the effective date of the
Mineral Resource estimates and the date of this news release. Only Mineral Resource estimates
are being reported at this time. The Company intends to report Mineral Reserve estimates for
RVM and LCM once current mine planning and other modifying fact ors studies have been
completed to a minimum of a Pre-Feasibility level of study.
About the Deposits
The phosphate mineralization encountered at the deposits consid ered in the Itafos Conda
Technical Report occur as stratigraphically controlled sediment ary phosphate mineralization
within the Meade Peak Member of the Early Permian Phosphoria Fo rmation. The Meade Peak
Member is further subdivided into an Upper Phosphate Zone and a Lower Phosphate Zone,
separated by an unmineralized Center Waste Zone. The Mineral Re source estimates include
mineralization from both the Upper Phosphate Zone and Lower Phosphate Zone.
The Mineral Resource estimates were prepared by Golder under th e supervision of an
independent Qualified Person in accordance with the definitions presented in NI 43-101 and the
CIM Definition Standards, 2014. The Mineral Resource estimates were based on all verified
exploration and pre-production drill holes and analytical sampl es drilled to date for the deposits
considered in the Itafos Conda Technical Report. Data verificat ion was performed under the
supervision of an independent Qualified Person while exploratio n data collection was performed
under the supervision of Itafos Conda geologists and engineers that also meet the standard for
Qualified Persons under the applicable definitions.
Reverse Circulation (“RC”) drilling was the predominant drilling method for RVM, LCM, NDR and
H1 deposits while all PH deposit drill holes were cored. Wireline gamma logs were performed on
most of the drill holes across the deposits considered in the I tafos Conda Technical Report and
were used to perform bed picks for lithological domain correlat ion and analytical sampling
purposes.
A summary of the drill hole and sample data used in the geological models and Mineral Resource
estimates are presented for each of the deposits considered in the Itafos Conda Technical Report
as follows:
Summary of Drill Hole and Sample Data
Notes:
1. RVM = Rasmussen Valley Mine; LCM = Lanes Creek Mine; NDR = N orth Dry Ridge
Deposit; H1 = Husky1 Deposit; PH = Itafos Paris Hills Deposit.
2. Sample counts are based on samples containing P 2O5 values of greater than 0%.
Summary of Mineral Resource Estimates
Notes:
1. RVM = Rasmussen Valley Mine; LCM = Lanes Creek Mine; NDR = N orth Dry Ridge
Deposit; H1 = Husky-1 Deposit; PH = Paris Hills Deposit; UPZ = Upper Phosphate
Zone; LPZ = Lower Phosphate Zone; bcf = bank cubic feet; wt.% = weight percent.
2. The effective date of the Mineral Resource estimates is July 1, 2019.
3. The categorization of Measured, Indicated and Inferred Miner al Resources is
presented in accordance with the CIM Definition Standards, 2014.
4. The Mineral Resource estimates are reported on a dry in-situ basis. Masses have
been converted from wet to dry basis using a 10% moisture factor.
5. No recovery, dilution or other similar mining parameters hav e been applied.
6. The Mineral Resource estimates for RVM and LCM reflect remai ning in-situ resources
using end of June 2019 mining surfaces; material mined from the deposits prior to this
date has been depleted from the Mineral Resource estimates.
7. The Mineral Resource estimates presented are not Mineral Res erve estimates and do
not reflect demonstrated economic viability. The reported Infer red Mineral Resource
estimates are considered too speculative geologically to have t he economic
considerations applied to them that would enable them to be cat egorized as Mineral
Property Zone Resource
Classification
Volume
(millions;
bcf)
Short Tons
(Millions,
dry)
P2O5
(wt.%)
MgO
(wt.%)
Fe2O3
(wt.%)
Al2O3
(wt.%)
Measured 197.5 13.0 26.6 0.90 0.86 2.33
Indicated 27.0 2.0 26.2 0.63 0.90 2.46
Inferred 2.5 0.2 25.7 0.59 0.92 2.48
Measured 14.0 1.0 27.5 0.90 0.80 1.34
Indicated 6.5 0.5 28.2 0.98 0.76 1.62
Inferred 0.5 0.0 27.5 1.15 0.66 1.56
Measured 95.0 6.5 26.9 0.82 ‐ 2.38
Indicated 19.0 1.5 27.0 0.91 ‐ 2.32
Inferred 2.0 0.1 26.8 0.94 ‐ 2.39
Measured 314.5 21.0 24.3 0.98 0.82 2.09
Indicated 128.0 8.5 24.7 0.98 0.84 2.13
Inferred 10.5 0.5 24.3 0.89 0.82 2.04
Measured 320.5 26.0 22.9 0.89 0.80 1.15
Indicated 492.0 40.0 22.3 0.86 0.81 1.06
Inferred 93.0 7.5 22.0 0.89 0.75 0.99
Measured 157.5 13.0 30.9 0.26 0.51 1.02
Indicated 223.5 18.0 29.5 0.59 0.49 0.81
Inferred 49.0 4.0 30.1 0.63 0.46 0.77
Measured 1099.0 80.5 25.5 0.81 0.70 1.67
Indicated 896.0 70.5 24.6 0.80 0.72 1.19
Inferred 157.5 12.3 24.8 0.80 0.65 1.00
Totals
UPZ & LPZ
Combined
UPZ & LPZ
Combined
PH
UPZ
LPZ
H1
UPZ & LPZ
Combined
UPZ & LPZ
Combined
UPZ & LPZ
Combined
RVM
LCM
NDR
Reserve estimates. There is no certainty that all or any part o f Mineral Resource
estimates will be converted into Mineral Reserve estimates.
8. Mineral Resource estimates are not precise calculations, bei ng dependent on the
interpretation of limited information on the location, shape an d continuity of the
occurrence and on the available sampling results. All figures are rounded to reflect the
relative accuracy of the estimates and totals may not add correctly.
9. The Mineral Resource estimates for the potentially surface m ineable resources (RVM,
LCM, NDR and H1) were constrained by conceptual pit shells for the purpose of
establishing reasonable prospects of eventual economic extraction based on potential
mining, metallurgical and processing grade parameters identifie d by mining,
metallurgical and processing studies performed to date on the resources.
10. The Mineral Resource estimates for the potentially undergro und mineable resources
at PH were constrained by property boundaries on north, south a nd east sides. A
vertical limb on the west side of the property would require an alternative mining
method and to date has not been drilled to the extent to support an estimate of geologic
resources.
11. Key constraint inputs included reasonable assumptions for o perating costs, CRU
fertilizer product forecast prices and a 20% minimum P 2O5 grade, based on current
Itafos Conda plant specifications, for all estimated resources except for the Lower
phosphate Zone Mineralization at PH. The Lower Phosphate Zone at PH was defined
using a 24% minimum P 2O5 grade to allow for a head-grade of 30% P 2O5 which is
amenable to direct-shipping without the need for beneficiation.
Qualified Persons Statement
Unless otherwise indicated, the responsible Qualified Person, within the guidelines set forth in NI
43-101, who has reviewed and approved the scientific and technical information contained in this
news release is Jerry DeWolfe, a Qualified Person who is a Professional Geologist (P.Geo.) with
the Association of Professional Engineers and Geoscientists of Alberta. Mr. DeWolfe is a full-time
employee of Golder and is independent of Itafos and its affilia tes. Mr. DeWolfe has sufficient
experience that is relevant to the style of mineralization and type of deposit under consideration
and to the activity being undertaken to qualify as a Qualified Person as defined under NI 43-101
and the CIM Definition Standards, 2014. Mr. DeWolfe consents to the inclusion in the news
release of the matters based on this information in the form and context in which it appears.
About Itafos
The Company is a vertically integrated phosphate fertilizers and specialty products company with
an attractive portfolio of long-term strategic businesses and p rojects located in key fertilizer
markets worldwide.
The Company owns, operates and is developing the following businesses and projects:
Itafos Conda – a vertically integrated phosphate mine and fert ilizer business with
production and sales capacity of approximately 550kt per year o f monoammonium
phosphate (“MAP”), MAP with micronutrients (“ MAP+”), superphosphoric acid (“ SPA”),
merchant grade phosphoric acid (“ MGA”) and specialty products including ammonium
polyphosphate (“APP”) located in Idaho, US;
Itafos Arraias – a phosphate fertilizer business with producti on and sales capacity of
approximately 500kt per year of single superphosphate (“ SSP”), SSP with micronutrients
(“SSP+”), premium PK compounds and approximately 40kt per year of exc ess sulfuric
acid located in Tocantins, Brazil;
Itafos Paris Hills – a high-grade phosphate mine project locat ed in Idaho, US;
Itafos Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau;
Itafos Santana – a vertically integrated high-grade phosphate mine and fertilizer plant
project located in Pará, Brazil;
Itafos Mantaro – a large phosphate mine project located in Jun in, Peru; and
Itafos Araxá – a vertically integrated rare earth elements and niobium mine and extraction
plant project located in Minas Gerais, Brazil.
For more information, or to join the Company’s mailing list to receive notification of future news
releases, please visit the Company’s website, www.itafos.com.
Forward Looking Information
Certain information contained in this news release constitutes forward looking information. All
information other than information of historical fact is forward looking information. The use of any
of the words “intend”, “anticipate”, “plan”, “continue”, “estim ate”, “expect”, “may”, “will”, “project”,
“should”, “would”, “believe”, “predict” and “potential” and sim ilar expressions are intended to
identify forward looking information. This information involves known and unknown risks,
uncertainties and other factors that may cause actual results o r events to differ materially from
those anticipated in such forward looking information. No assur ance can be given that this
information will prove to be correct and such forward looking i nformation included in this news
release should not be unduly relied upon.
Forward looking information is subject to a number of risks and other factors that could cause
actual results and events to vary materially from that anticipa ted by such forward looking
information. Although the Company has attempted to identify imp ortant factors that could cause
actual results to differ materially from those contained in for ward-looking statements, there may
be other factors that cause results not to be as anticipated, e stimated or intended. Factors that
may cause actual results to differ materially from expected res ults described in forward-looking
statements include, but are not limited to, those risk factors set out in the Company’s Management
Discussion and Analysis and other disclosure documents availabl e under the Company’s profile
at www.sedar.com. Readers are cautioned that the foregoing list of risks, uncertainties and
assumptions are not exhaustive. The forward-looking information included in this news release is
expressly qualified by this cautionary statement and is made as of the date of this news release.
Itafos undertakes no obligation to publicly update or revise any forward-looking information except
as required by applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PR OVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXC HANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information, please contact:
Itafos Investor Relations
www.itafos.com