Vulcan Minerals Inc. – Atlas Salt Delivers Positive Feasibility Study for t he Great Atlantic Salt Project
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946, Email: [email protected] Website: www.vulcanminerals.ca
News Release
August 28, 2023
Vulcan Minerals Inc. – Atlas Salt Delivers Positive Feasibility Study for t he Great
Atlantic Salt Project
St. John’s, Newfoundland and Labrador - Vulcan Minerals Inc. (“the
Company” - “Vulcan” TSX-V: VUL) is pleased to announce that Atlas Salt
Inc., an affiliated company, has released the results of a Feasibility Study (FS)
and updated Mineral Resource estimate prepared by SLR Consulting (Canada)
Ltd. (SLR) on the Great Atlantic Salt Project (Great Atlantic, or the
Project), located in western Newfoundland, Canada. The FS represents a
significant economic improvement over the Preliminary Economic Assessment
(PEA) released by Atlas January 31, 2023. The FS demonstrates robust economics
based on 2.5 million tonnes per year (Mtpa) of production over a 34-year mine
life with a pre-tax net present value (NPV) at an 8% discount rate of $1.017 Billion
(Cdn) and an internal rate of return (IRR) of 23%.
In addition, SLR has also provided an expansion case to 4.0 Mtpa of salt
production over a 47.5-year mine life presented at a Preliminary Economic
Assessment (PEA) level analysis demonstrating a robust upside production
scenario with an NPV at 8% of $2.015 Billion (Cdn) and a pre-tax IRR of 28%.
The expansion case is based on Probable Mineral Reserves, with the remainder
being Inferred Mineral Resources. Inferred Mineral Resources are considered
too geologically speculative to have economic considerations applied to them
that would enable them to be categorized as Mineral Reserves. There is no
certainty that the production forecasts on which the expansion case is based will
be realized.
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946, Email: [email protected] Website: www.vulcanminerals.ca
• The FS includes the expansion of the Indicated Mineral Resources, and first-
time declaration of Mineral Reserves (in million tonnes (Mt)
o Indicated Mineral Resources totaling 383 Mt at 96.0 % NaCl
o Inferred Mineral Resources totaling 868 Mt at 95.2 % NaCl
o Probable Mineral Reserves totaling 88.1 Mt at 96% NaCl
The conversion of Inferred to Indicated Mineral Resources (and
subsequent conversion to Probable Mineral Reserves) has been
limited by the target of an initial 34 -year mine life. It is anticipated
that further upgrading of Mineral Resources to Mineral Reserves will
be carried out from underground during the production phase.
• Key elements of the Project are designed to accommodate mine and
processing expansion of up to 4.0 Mtpa and to extend the mine li fe beyond
34 years.
• Great Atlantic would stand out as a low -cost producer and the first major
underground salt mine in North America designed to be accessible by
declines as opposed to shafts.
• Designed to minimize environmental impact by utilizing electrif ied
equipment.
Patrick Laracy, President , commented, “This independent feasibility study of
the Great Atlantic salt project confirms its substantial value and
positive economic attributes as a tier one asset. The production expansion
case to 4 million tonnes per year over a 47 year mine life underscores its long life
potential. Development of the mine will bring significant benefits to all
stakeholders. With Richard LaBelle’s stewardship as our new Atlas Salt CEO, the
project is on a very positive trajectory.”
The full news release by Atlas can be found here
https://atlassalt.com/independent-feasibility-study-and-expansion-case-for-atlas-
salts-great-atlantic-project/
About Vulcan
Vulcan Minerals is a precious and base metals exploration company based in St.
John's NL, with strategic land positions in multiple active Newfoundland gold
exploration and development belts. The Company has leveraged its exploration
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946, Email: [email protected] Website: www.vulcanminerals.ca
exposure in most of this land position through equity ownership of other explorers
obtained by way of option an d royalty agreements. It also holds approximately
30.5% of the outstanding shares in Atlas Salt (TSXV: SALT). Atlas is developing the
Great Atlantic salt project in western Newfoundland strategically located in the
robust road de-icing market of eastern North America. Vulcan also owns a 3% net
production royalty on the Great Atlantic salt project.
We seek safe harbour.
For information please contact:
Patrick J. Laracy, P .Geo.
President
(709) 754-3186
www.vulcanminerals.ca
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release includes certain “forward-looking information” and “forward-looking statements” (collectively
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referenced assessments and assumptions related thereto. Actual future results may differ materially.
There can be no assurance that such statements will prove to be accurate, and actual results and future
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timing, completion and delivery of the referenced assessments and analysis. Readers should not place
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