VANCOUVER, Jan. 17, 2013 /CNW/ - Plains Creek Phosphate Corporation ("Plains Creek", the "Company") (TSX‐V: PCP) is pleased to announce the filing of a new, single current technical
report for the feasibility study on the Company's Farim Phosphate
Project entitled, "Feasibility of the Beneficiated Phosphate Rock
Concentrate of the Farim Phosphate Project, Guinea-Bissau, An NI 43-101
Report" dated effective December 19, 2012 (the "Report").
The Report supercedes the previously filed technical reports entitled,
"Feasibility of the Beneficiated Phosphate Rock Concentrate of the
Farim Phosphate Project, Guinea-Bissau, An NI 43-101 Report" and the
"Feasibility Study of the Direct Shipping Option of the Farim Phosphate
Project, Guinea-Bissau, An NI 43-101 Report", each dated effective
November 2, 2012 (the "Previous Reports"). The Report was prepared further to comments received from the
British Columbia Securities Commission (the "BCSC") as described in a news release of the Company dated December 3, 2012.
In particular, the Report has made the following changes from the
Previous Reports to address BCSC comments and meet the requirements of
disclosure is amended to show power costs separately from the combined
water and power costs, including disclosure of gross power consumption
and power cost individually and in more detail, using standard industry
measures, with explanations of the basis for estimation;
an after-tax economic analysis has been provided, with a detailed
analysis of applicable taxes and royalties and the basis for assumption
of those applicable taxes which provides reasonable grounds for
product pricing has been clarified to a level of certainty supported by
quotes, contracts, agreements or industry information.
The Report is prepared by the following qualified persons who are
responsible for the entirety of the Report with respect to their
respective sections of the Report: Michael Short, BE, FIMMM, CEng,
Richard Elmer, CEng, MIMMM (CP), Dr. Martin Preene, CEng, Dr. Marcelo
Godoy, MAusIMM (CP), Terry Kremmel, PE (MO and NC), SME (CP), Hendrik
J.H. Otto, PrEng (SA) and Matthew Clark, P.E., CEng, PMP (QP). All of
the foregoing qualified persons are independent from the Company
pursuant to NI 43-101.
The Company is pleased to announce that considering beneficiated
phosphate rock production for the Farim Phosphate Project on a
stand-alone basis, the undiscounted pre-tax cash flow totals US $1.526
billion over a 25 year mine life and US $1.220 billion on a post-tax
basis. Pre-tax operating cash flows averages US $67.69 million per year
and US $55.42 million per year post-tax. Simple payback of the
pre-production capital investment is achieved after approximately two
years of operation on a pre-tax and post-tax basis. The pre-tax
internal rate of return is 37.69% compared to 35.87% post-tax. At a
discount rate of 15%, the net present value of the project is US $216
million compared to US $175 million post-tax. Minor refinements to the
capital and operating cost estimates changes certain economic figures
only slightly from the pre-tax scenario considered in the Previous
Report for the beneficiated phosphate rock alternative.
There has been no change in the Report from the Previous Reports with
respect to the stated mineral resources or mineral reserves estimates.
However, the economic assessment has changed somewhat as the analysis
has been conducted on a post-tax basis, as described above. Most
significantly, the Company decided to focus on the feasibility study
for beneficiated phosphate rock production rather than the direct
shipping option ("DSO") of phosphate matrix mining product due to an
anomaly identified in testwork for anticipated moisture levels for the
dewatered matrix. The relationship between the transshipable moisture
limit and the matrix moisture levels requires further evaluation of the
DSO influence whether the DSO is technically feasible and, even if the
DSO is technically feasible, local regulatory conditions may also
inhibit the potential for the DSO. Consequently, consideration of
beneficiated phosphate rock production, rather than the DSO, has been
the focus of the feasibility study. In the result, the Report
demonstrates that beneficiated phosphate rock production at the project
is both economically attractive and technically robust.
The authors of the Report have recommended that the Company and GB
Minerals AG continue to advance the project for beneficiated phosphate
rock production to the engineering design and construction stages and
to seek the necessary project financing and off-take agreements.
About Plains Creek Phosphate Corporation
Plains Creek Phosphate Corporation is a Canadian mining and exploration
company focused on advancing the Project in Guinea‐Bissau, West Africa
through the company, GB Minerals AG. The Project currently comprises a
phosphate deposit consisting of one continuous flat lying phosphate bed
with a Mineral Resource estimate, disclosed in the Company's
Feasibility Studies on the Project in accordance with National
Instrument 43-101, which defines a Measured Resource of 64.6 MT at an
average grade of 29.11% P2O5, an Indicated Resource of 28.1 Mt at an average grade of 27.68 % P2O5, and an Inferred Resource of 18.3 Mt at an average grade of 28.66 % P2O5 and states total proven and probable reserves of 33.0 Mt (dry) with an
average ROM P2O5 grade of 30.4%. The Measured and Indicated Resource estimates stated
above are inclusive of the resources comprising the Proven and Probable
Reserve estimates. The Feasibility Studies are authored by the
Qualified Persons listed above, are filed on SEDAR and are publicly
available under the Company's profile at www.sedar.com. A two-phased
development is planned for the Project as an open pit mining operation.
Phase One consists of a 1.3 Mt per year phosphate rock product direct
shipping option project or a 1.0 Mt per year beneficiated phosphate
rock concentrate project and Phase Two consists of the production of
2.0 Mt per year of phosphate rock concentrate and includes a
beneficiation plant and associated infrastructure, pipeline and port.
As indicated above, the supporting reports are under amendment, and the
Company will promptly disclose if any material changes to a mining
study or mineral reserves result from amendments to its reports.
The Company's shares are listed on the TSX Venture Exchange under the
trading symbol "PCP". For additional information, please visit us at www.plainscreek.com.
ON BEHALF OF THE BOARD
Vice‐President, Corporate Development and Director
Statements in this release may be viewed as forward‐looking statements.
Such statements involve risks and uncertainties that could cause actual
results to differ materially from those projected. There are no
assurances the Company can fulfill such forward‐statements and the
Company undertakes no obligation to update statements. Such forward
looking statements are only predictions; actual events or results may
differ materially as a result of risks facing the Company, some of
which are beyond the Company's control.
The reader should be cautioned that there are risks that could affect
the potential development of the Farim Phosphate Project's (the "Project") mineral resources, which include: the political instability in Africa
and Guinea‐Bissau in particular, which is where the Project is located;
and that additional financing will be required to ultimately develop
the Project and the ability to obtain such financing on favorable terms
will be affected by prevailing market conditions. A more detailed
discussion of such risks are outlined in the Company's Management's
Discussion & Analysis and the Reports, all of which are filed under the
Company's profile on SEDAR at www.sedar.com.
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.
SOURCE: Plains Creek Phosphate Corp.
For further information:
Vice‐President, Corporate Development and Director
Telephone: (604) 569‐0721 E‐mail: email@example.com