Itafos Files and Announces Results of Updated Itafos Conda Technical Report, Increasing Mineral Reserves and Successful MINE Life Extension Through 2037
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TSX-V: IFOS
News Release
ITAFOS FILES AND ANNOUNCES RESULTS OF UPDATED ITAFOS CONDA TECHNICAL REPORT,
INCREASING MINERAL RESERVES AND SUCCESSFUL MINE LIFE EXTENSION THROUGH 2037
HOUSTON, TX – April 29, 2024 – Itafos Inc. (TSX-V: IFOS) (“Itafos” or the “Company”) is pleased to announce today
that it has filed an updated technical re port for Itafos’ Conda project (the “Conda Technical Report ”), a vertically-
integrated phosphate fertilizer project in Idaho (the “ Conda Project ”). The Conda Technical Report demonstrates
increased Mineral Reserves and the opportunity for continued operations at the Conda Project through 2037.
The Conda Technical Report, titled “NI 43-101 Technical R eport Itafos Conda Project Idaho, USA,” with an effective
date of July 1, 2023, was prepared for Itafos by WSP USA Inc. (“WSP”) in accordance with National Instrument 43-101
– Standards of Disclosure for Mineral Projects (“NI 43-101”). The Conda Technical Report is available on SEDAR+
(www.sedarplus.ca) under the Company’s issuer profile and on the Company’s website (www.itafos.com).
Technical Report Highlights for Conda Project:
The mine schedule shows ore production for the Conda Project through 2037.
The Mineral Resource estimate for Husky1-South Maybe Canyon (“ H1SMC”) and North Dry Ridge (“NDR”)
(collectively “H1/NDR”) increased from 38.1 million short tons (dry) at ~24.3% - ~27.0% P 2O5 to 40.5 million
short tons (dry) at ~24.2% - 26.7% P2O5.
The total estimated Mineral Reserves for Conda increased from 14.4 million short tons (dry) at ~26.6% P 2O5
(as of July 1, 2019) to 33.7 million short tons (dry) at ~25.0% P2O5 (as of July 1, 2023).
The Rasmussen Valley Mine (“ RVM”) block model did not change based on the results from reconciliation
between the 2019 model estimates and the production results up to the effective date of the Conda Technical
Report (July 1, 2023). The estimated remaining Mineral Re source after the effective date of July 1, 2023 is
5.9 million short tons (dry) at ~25.9% P2O5. The estimated remaining Mineral Reserve after the effective date
of July 1, 2023 is 4.3 million short tons (dry) at ~26.0% P2O5.
David Delaney, the Company’s CEO commented, “The updated Conda Technical Report validates and updates the
proven and probable reserve estimates that support the H1/NDR project with proven mine life through 2037. Following
the Notice to Proceed in May 2023, we have been working diligently on capital activities associated with the H1/NDR
project with H1/NDR ore recovery expecting to start in late 2024. The Conda Technical Report and associated capital
activities are the culmination of our strategic objective of extending Conda’s mine life.”
The Conda Technical Report includes Mineral Reserve estimates for RVM and H1/NDR, all of which are wholly-
owned by Itafos Conda. The Mineral Reserve estimates for these deposit s were prepared by WSP and this
news release is the initial public disclosure of such Mineral Reserve estimates.
The effective date for the Mineral Reserve estimate is July 1, 2023. There have been no material changes in the
available information for the deposits between the effective date of the Mineral Reserve estimate and the date
of this news release.
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Summary of Mineral Reserve Estimates
Notes:
a. A moisture content of 11% was assumed to c onvert from wet short tons to dry short tons.
b. A 97% mining recovery and 0% dilution was applied to the tons selected as ore.
c. A P 2O5 cutoff grade of 20% was assigned as the minimum grade to be considered ore. Grades are reported in dry basis.
d. A pit optimization analysis was performed on the H1SMC deposit, which incorporated the geotechnical parameters,
mining costs of $3.06/t wet overburden, $4.61/t wet ore, ore stockpiling and shipping costs of $11.21/t wet. A Gross
Margin available per mined P2O5 ton (applied at the point of exchange of the tipple) of $283.70/t dry ton P2O5 was used to
define the limits of the mining pit. The total processing costs are not disclosed in this report but are higher for H1SMC
relative to NDR due to an MgO reduction circuit required for H1SMC.
e. A pit optimization analysis was performed on the NDR deposi t, which incorporated the geotechnical parameters, mining
costs of $3.06/t wet overburden, $4.61/t wet ore, ore stockpiling and shipping costs of $11.21/t wet. A Gross Margin
available per mined P2O5 ton (applied at the point of exchange of the tipple) of $283.70/t dry ton P2O5 was used to define
the limits of the mining pits. The total processing costs are not disclosed in this report but are higher for H1SMC relative to
NDR due to an MgO reduction circuit required for H1SMC.
f. All stockpiles, which includes WV Tipple and plant stockpiles, total dry tons, and average P2O5 grades are displayed.
About the Deposits
The phosphate mineralization encountered at the deposits considered in the Co nda Technical Report occur as
stratigraphically controlled sedimentary phosphate mineralization within the Meade Peak Member of the Early Permian
Phosphoria Formation. The Meade Peak Member is furt her subdivided into an Upper Phosphate Zone and a Lower
Phosphate Zone, separated by an unmineralized Center Interburden Zone. The Mineral Reserve estimates include
mineralization from both the Upper Phosphate Zone and Lower Phosphate Zone.
Project Risks
Project risks have been outlined in the Conda Technical Report along with mitigation plans to de-risk the Conda Project.
Costs have been estimated to a level of accuracy suitable fo r a Preliminary Feasibility Study. Overall economic risks
include financing, price escalation, inflation, commodity sales price variability and general global economic conditions.
General technical risks include project construction time line, surface water management, geotechnical uncertainty,
mining productivity, achieving optimum P2O5 grade and recovery, and waste management.
Conda Technical Report and Qualified Persons
Readers are encouraged to read the Conda Technical Report in its entirety, including a ll qualifications, assumptions
and exclusions that relate to the preliminary feasibility study. The Conda Technical Report is intended to be read as a
whole, and sections should not be read, or relied upon, out of context.
Scientific and technical information contained in this news release was reviewed and verified by:
Property Reserve
Cla ssifica tion
Volume
(millions;
bcf)
Short Tons
(Millions,
wet)a,b
Short Tons
(Millions,
dry)a,b
P2O5
(wt.%)c
MgO
(wt.%)
Fe2O3
(wt.%)
Al2O3
(wt.%)
Proven 62.2 4.6 4.1 26.0 0.82 1.1 3.0
Probable 2.9 0.2 0.2 26.0 0.82 1.2 3.2
Proven + Probable 65.1 4.8 4.3 26.0 0.82 1.1 3.0
Proven 56.2 4.2 3.7 26.7 0.82 1.3 2.7
Probable 10.0 0.7 0.7 26.8 1.05 1.1 2.3
Proven + Probable 66.2 4.9 4.4 26.7 0.85 1.3 2.6
Proven 282.9 20.9 18.6 24.3 0.97 0.9 2.4
Probable 74.1 5.5 4.9 24.5 0.97 0.9 2.2
Proven + Probable 356.9 26.4 23.5 24.3 0.97 0.9 2.3
Stockpilesf Proven 0.1 1.7 1.5 27.7 0.42 0.64 1.53
Proven 401.3 31.4 27.9 25.0 0.90 0.9 2.4
Probable 87.0 6.4 5.7 24.8 0.97 0.9 2.2
Proven + Probable 488.3 37.8 33.7 25.0 0.91 0.9 2.4
Totals
RVM
NDRd
H1SMCe
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Jerry DeWolfe, P.Geo, WSP Canada Inc. (formerly WSP Golder), Geology and Mineral Resources
Terry L. Kremmel, P.E. WSP USA Inc. (formerly WSP Golder), Mineral Reserves and Mining Methods
Mitchell J. Hart, P.E. Arcadis Inc., Environmental, Permitting, and Social or Community Impact
Luc Adjanor, MIMMM, Adjanor and Associates Limited, Metallurgy and Mineral Processing
Each of these persons is a “Qualified Person” as defined by NI 43-101 for the Conda Project and have the ability and
authority to verify the authenticity and validity of the data and is independent from the Company. Each of these Qualified
Persons has reviewed and verified the respective scientific and technical disclosure contained in this news release.
Further information about the Conda Project, including a descr iption of the key assumptions, parameters, description
of sampling methods, data verification and QA/QC programs, methods relating to resources and reserves and factors
that may affect those estimates will be contained in the Conda Technical Report.
About Itafos
The Company is a phosphate and specialty fertilizer company. The Company’s businesses and projects are as
follows:
Conda – a vertically integrated phosphate fertilizer busi ness located in Idaho, US with production capacity
as follows:
- approximately 550 kt per year of monoammonium phosphate (“MAP”), MAP with micronutrients
(“MAP+”), superphosphoric acid (“SPA”), merchant grade phosphoric acid (“MGA”) and ammonium
polyphosphate (“APP”); and
- approximately 27 kt per year of hydrofluorosilicic acid (“HFSA”);
Arraias – a vertically integrated phosphate fertilizer business located in Tocantins, Brazil with production
capacity as follows:
- approximately 500 kt per year of single super phosphate (“SSP”) and SSP with micronutrients (“SSP+”);
and
- approximately 40 kt per year of excess sulfuric ac id (220 kt per year gross sulfuric acid production
capacity);
Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau;
Santana – a vertically integrated high-grade phosphate mine and fertilizer plant project located in Pará,
Brazil; and
Araxá – a vertically integrated rare earth elements and niobium mine and extraction plant project located in
Minas Gerais, Brazil.
The Company is a Delaware corporation that is headquarte red in Houston, TX. The Company’s shares trade on the
TSX Venture Exchange (“ TSX-V”) under the ticker symbol “IFOS”. The Comp any’s principal shareholder is CL
Fertilizers Holding LLC (“CLF”). CLF is an affiliate of Castlelake, L.P., a global private investment firm.
For more information, or to join the Company’s mailing list to receive notification of future news releases, please visit
the Company’s website at www.itafos.com.
Forward-Looking Information
Certain information contained in this news release constitutes forward-looking information (“FLI”). Except for statements
of historical fact relating to the Company, information contained herein may constitute FLI, including any information
related to: the successful development of the Conda Projec t; capital expenditures; mine life; estimates of mineral
resources and mineral reserves; development of mineral resources and mineral reserves; realization of mineral
resources and mineral reserves estimates, including whether mineral resources will ever be developed into mineral
reserves and information and underlying assumptions related thereto; timing and amount of future production; expected
expenditures to be made by the Company; and timing, cost, quantity, capacity and product quality of production at the
Conda Project. The use of any of the wo rds “intend”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”,
“project”, “should”, “would”, “believe”, “predict” and “potential” and similar expressions are intended to identify forward-
looking information.
The FLI contained in this news release is based on the opinions, assumptions and estimates of management set out
herein, which management believes are reasonable as at the date the statements are made. Those opinions,
assumptions and estimates are inherently subject to a variety of risks and uncertainties and other known and unknown
factors that could cause actual events or results to differ ma terially from those projected in the FLI. These include the
Company’s expectations and assumptions with respect to t he following: commodity prices; operating results; safety
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risks; changes to the Company’s mineral reserves and res ources; risk that timing of expected permitting will not be
met; changes to mine development and completion; foreign operations risks; changes to regulation; environmental
risks; the impact of adverse weather and climate ch ange; general economic changes, including inflation and foreign
exchange rates; the actions of the Co mpany’s competitors and counterparties; financing, liquidity, credit and capital
risks; the loss of key personnel; impairment risks; cybersecurity risks; risks relating to transportation and infrastructure;
changes to equipment and suppliers; adverse litigation; changes to permitting and licensing; loss of land title and access
rights; changes to insurance and uninsured risks; the potent ial for malicious acts; market volatility; changes to
technology; changes to tax laws; the risk of operating in foreign jurisdictions; and the risks posed by a controlling
shareholder and other conflicts of interest. Readers are caut ioned that the for egoing list of risks, uncertainties and
assumptions is not exhaustive.
Although the Company has attempted to identify crucial fact ors that could cause actual actions, events or results to
differ materially from those described in FLI, there may be other factors that cause actions, events or results not to be
as anticipated, estimated or intended. There can be no assurance that FLI will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such information. The reader is cautioned not to place
undue reliance on FLI. The Company undertakes no obligation to update forward-looking statements if circumstances
or management’s estimates, assumptions or opinions should change, except as required by applicable securities law.
Risks and uncertainties affecting the FLI contained in this news release are described in greater detail in the Company’s
current Annual Information Form and current Management’s Discussion and Analysis available under the Company’s
profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.itafos.com. The FLI included in this
news release is expressly qualified by this cautionary statement and is made as of the date of this news release.
NEITHER THE TSX-V NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX-V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS
RELEASE.
For further information, please contact:
Matthew O’Neill
Itafos Investor Relations
713-242-8446
Cautionary Note Regarding Mineral Resource and Mineral Reserve Estimates
This press release uses Mineral Reserve and Mineral Reso urce classification terms that comply with reporting
standards set forth in NI 43-101 for all public disclosure of scientific and technical information concerning mineral
projects by Canadian registered issuers. NI 43- 101 standards differ significantly from standards set forth by the United
States Securities and Exchange Commission (“SEC”). Therefore, information regarding mineralization presented herein
may not be directly comparable to similar information disclosed by companies in accordance with SEC standards. For
instance, Mineral Reserve estimates contained in this presentation may not qualify as “reserves” under SEC standards.
The reader is cautioned not to assume that any part or all of the Mineral Resources identified as “Mineral Resources,”
“Measured Mineral Resources,” “Indicated Mineral Resources” and “Inferred Mineral Resources” in this presentation
will ever be converted into Mineral Reserves as defined in NI 43-101, be upgraded to a higher category, or be
economically or legally mineable.