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Update: Arianne Phosphate Identifies Cost Savings At Lac Paul

Arianne Phosphate (DRRSF) has announced that its ongoing optimization study of the Lac Paul project has resulted in an expected saving of $4.26 per tonne of end product. In its original feasibility study which was released in the fall of 2013, Arianne expected its FOB cost per tonne to be around $93.6 for its end product with an average grade of 39% P2O5.

To put things in perspective, the identified cost reduction will have an impact of approximately 5% on the operating cost and will increase the annual cash flow in excess of $12M as Arianne plans to produce approximately 3 million tonnes of phosphate per year. The total savings over the entire life of mine would be in excess of $330M (undiscounted and based on a 26-year mine life). So whilst $4.26/t sounds like peanuts, it will add more than $100M to the net present value of the Lac… Read More …