TORONTO, Jan. 11, 2012 /CNW/ - IC Potash Corp. (TSX: ICP; OTCQX: ICPTF)
(the "Company") is pleased to announce it has filed on SEDAR (www.sedar.com) and the Company website (www.icpotash.com), a technical report dated December 30, 2011, entitled "NI 43-101
Technical Report Prefeasibility Study for the Ochoa Project Lea County,
New Mexico." The technical report was prepared for ICP by Gustavson
Associates, LLC of Colorado, a leading global mining consulting firm
consisting of geologists and engineers.
The report includes a detailed analysis of the Ochoa project, including
geology and mineralization, exploration and drilling, resources and
reserves, mining methods, mineral processing and metallurgical testing,
infrastructure, hydrology, environmental permitting, marketing, capital
costs, operating costs, and project economics. Based on these and other
detailed sections of the report, Gustavson has concluded that the
results of this study warrant continued efforts to advance the Ochoa
Project, and that the data and information presented justify further
definition drilling, metallurgical testing, continued development and
permitting, and preparation of a Feasibility Study.
Mr. Sidney Himmel, CEO of IC Potash, stated: "The completion and filing
of our pre-feasibility, and the recommendations of Gustavson, provide
us a high level of confidence that we have a world class project with
immense commercial potential. We have been actively defining the
Feasibility Study team and remain on track to achieve our near and long
term objectives. I would like to personally thank all members of the
prefeasibility team for their hard work and dedication displayed during
the preparation of this report."
Project highlights from the prefeasibility study include:
Annual production at full capacity of 843,000 tons composed of 568,000
tons of SOP and 275,000 tons of SOPM.
Operating cost of $147 per ton of SOP and SOPM.
Projected full capacity capital cost of $706 million.
139 million tons of recoverable potash reserves in the proven and
probable ore category within the 40-year mine plan, and an additional
205 million tons of recoverable potash reserves in the mine plan area
not included in the 40 year economic model.
Construction planned to start in late 2013 upon completion of an
environmental impact statement.
Preproduction construction period of 24 months (completion during the
fourth quarter of 2015), with completion of a second train of
crystallizers nine months following initial production.
Full production 18 months after plant start-up with production
commencing in the fourth quarter of 2015 and full capacity reached in
second quarter of 2017.
Underground mining rate varies with mine grade, with an average planned
production rate of 3.5 million tons of ore per year at an average
concentration ratio of 4.15:1.
Average metallurgical recovery estimated at 90 per cent.
SOP prices forecasted by CRU for the period 2015 to 2025
Economic highlights from the prefeasibility study include:
Internal rate of return on a before-tax basis of 32 per cent, on a
100-per-cent equity basis, and 26 per cent on an after-tax basis.
After-tax net present value of $1,286-million, using an after tax
discount rate of 10 per cent and no debt.
Payback period from the commencement of production is 3.9 years after
About IC Potash Corp.
ICP intends to become a primary producer of Sulphate of Potash ("SOP")
and Sulphate of Potash Magnesia ("SOPM") by mining its 100%-owned
Polyhalite Ochoa property in New Mexico, a highly advanced mineral
deposit containing proven and probable reserves of more than 400
million tons of ore within the proposed mine plan. SOP is a
non-chloride based potash fertilizer that sells at a substantial
premium over the price of regular potash known as Muriate of Potash
("MOP"). MOP contains chloride and is therefore not the optimal potash
for numerous crops and in situations where there is high soil
salinity. ICP is focused on becoming the lowest cost producer of SOP
in the world. The SOP market is towards six million tonnes per year.
SOP is a significant fertilizer in the fruit, vegetable, tobacco,
potato, and horticultural industries. SOP is also applicable in soils
where there is substantial agricultural activity with varieties of
crops and therefore where the salinity of the soil has increased, and
in areas where soils are dry. SOPM is a highly desirable potash product
for soils with magnesium deficiency, including those found in Europe
and Southeast Asia and has a total global market size of over one
million tonnes. ICP's Ochoa property consists of over 100,000 acres of
federal subsurface potassium prospecting permits and State of
New Mexico Potassium mining leases.
Forward-Looking Statements Certain information set forth in this news release may contain
forward-looking statements that involve substantial known and unknown
risks and uncertainties. These forward-looking statements are subject
to numerous risks and uncertainties, certain of which are beyond the
control of ICP, including, but not limited to, risks associated with
mineral exploration and mining activities, the impact of general
economic conditions, industry conditions, dependence upon regulatory
approvals, and the uncertainty of obtaining additional financing.
Readers are cautioned that the assumptions used in the preparation of
such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements.
SOURCE IC Potash Corp.
For further information:
please visit www.icpotash.com or contact Lisa Faiella at +1-778-838- 2887 or Sidney Himmel at +1-416-624-3781.