Arianne Phosphate identifies significant cost savings through the optimization of its Lac-à-Paul mine plan
04 Feb, 2015, 07:00 ET
DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC BB (USA)
SAGUENAY, QC, Feb. 4, 2015 /CNW/ - Arianne Phosphate (the "Company" or "Arianne") (TSX VENTURE: DAN) (FRANKFURT: JE9N) (OTCBB: DRRSF) today announced that its ongoing cost optimization program has identified an additional cost savings of US$4.26 per ton related to its planned production of phosphate concentrate at the Company's Lac-à-Paul Project in Quebec.
According to Arianne's Feasibility Study ("FS") filed in October 2013, the Company initially projected an FOB Port of Saguenay cost of US$93.60 per ton for its premium quality 39% P2O5 concentrate. The reduction of US$4.26 per ton represents a cost savings of almost 5% and, according to the Company's FS, should result in annual savings of roughly US$12.75 million, or close to US$330 million over the planned 26 year life of mine.
Arianne generated the cost savings by optimizing its original mine plan and commencing operations on the western part of the deposit, thereby improving the stripping ratio, and allowing the Company to adopt a different schedule on material waste handling.
"This significant reduction in our mining costs strengthens the economics of our project and moves us even lower on the cost-curve, improving our competitive advantage," said Jean-Sébastien David, Chief Operating Officer of Arianne Phosphate. "Lac-à-Paul is the world's largest greenfield phosphate rock project and will produce one of the highest purity concentrates commercially available. These cost improvements will save hundreds of millions of dollars over the life of mine, and make our project even more attractive."
Following the release of its FS, Arianne launched a cost optimization program that was aimed at reducing the Company's operating costs. In addition to reductions brought about by optimizing the mine plan and previously announced cost savings from reagent consumption, Arianne is currently looking into several other initiatives that it believes may be able to further reduce its operating costs. The Company expects to provide the results of these initiatives in the coming months as it moves its project towards production.
Mr. David added, "Arianne is fully committed to achieving the milestones that it has set out for itself in 2015. Today's cost savings announcement and the recently disclosed start of the BAPE permitting process, demonstrate the momentum that we're building."
Jean-Sébastien David, P.Geo., Qualified Person by NI 43-101, has approved this release.
About Arianne Phosphate
Arianne Phosphate ("Arianne Phosphate Inc.") (www.arianne-inc.com) is developing the Lac à Paul phosphate deposits located approximately 200 km north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits will produce a high quality igneous apatite concentrate grading 39% P2O5 with little or no contaminants. The Company has 95,325,755 million shares outstanding.
(1) Cautionary Statements: Operating cost estimates have been developed by Arianne utilizing internal and skilled third party resources and are dependent on agreement with government and statutory authorities and vendors which have not all yet been completed .
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.
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Forward Looking Statements and Information
This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, "forward-looking information"). The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, anticipated effect of the additional metallurgical tests on the Project, and timing and expectations of future work programs. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects, "is expected", "budget", "scheduled", "estimates", forecasts", "intends", "anticipates", or "believes", or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.\
SOURCE Arianne Phosphate Inc.
For further information: Contact Information: Source: Jean-Sébastien David, C.O.O., Tel: 418-549-7316 or [email protected]; Investors: Dino Fuoco, C.F.O., Tel: 514-945-9313 or [email protected]; Joe Racanelli, Tel: 416-815-0700, 243 or [email protected]; Medias: Karyna Tremblay, Community Relations Coordinator, Tel.: 418-549-7316 or [email protected]
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