Arianne Reduces Phosphate Production Cost

Arianne Phosphate Inc of Saguenay, QC reports further success in its efforts to reduce the production cost of the high-purity phosphate concentrate at its Lac a Paul project in Quebec. The company says it has achieved an additional CDN$8/tonne reduction in the company’’s operating expense. Jean-Sebastien David, Arianne’s COO, commented, “Our latest success in reducing our anticipated production costs is very encouraging and, when looked at through its entire process, represents considerable savings over the projected life of the mine. From the day we released our feasibility study, we have set out to advance development of Lac a Paul. “In less than two years, we have expanded our resource, simplified our process to make a high-purity phosphate concentrate, concluded a power deal with Hydro-Quebec and received an investment from the Government of Quebec. Once the project proceeds to production, our most recent studies support a production cost of approximately CDN$80/tonne of concentrate.” Arianne’s feasibility study estimated that the initial capital cost of the project, based on a milling rate of 55,000 tonnes/day, at US$1.21 billion. A 25.75 year mine life with an average annual phosphate concentrate production of 3 million tonnes with a grade of 38.6% P2O5 and with average mill recovery of 90.0%.

Volume 29 issue 13

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