First Phosphate Corp. (CSE: PHOS) (OTCQB: FRSPF) (FSE: KD0) is pleased to announce the positive results of its Preliminary Economic Assessment on the Bégin-Lamarche Property located 75 km northwest of Saguenay, Quebec, Canada.
The PEA provides a potentially viable case for developing the Property by open pit mining for the primary production of phosphate concentrate and secondary bi-product recovery of magnetite concentrate.
Highlights (all dollar amounts in Canadian dollars on a 100% project ownership basis unless otherwise indicated):
“We are pleased with the results and timely completion of this PEA. Existing local infrastructure keeps our capex low, our mine size controlled and our mine economics robust,” says First Phosphate CEO, John Passalacqua. “Our internal Pre-Feasibility work is also near completion and we are now in a position to determine the timing on our Feasibility Study.”
PEA BASE CASE FINANCIAL SUMMARY (all dollar amounts in $Canadian unless otherwise noted, presented on a 100% ownership basis):
Pre-Tax Net Present Value (8% discount rate) | $2.100 Billion |
After-Tax Net Present Value (8% discount rate) | $1.590 Billion |
Pre-Tax Internal Rate of Return | 37.1% |
After-Tax Internal Rate of return | 33.0% |
After-Tax Payback | 2.9 Years |
Pre-production Capital | $675 Million |
Sustaining Capital | $317 Million |
Mine Life | 23 Years |
Process Plant Throughput | 18,000 tpd |
Concentrate Prices | |
Phosphate (40% P2O5) | $350/t USD |
Magnetite (92% Fe2O3) | $168/t USD |
Exchange Rate $CAD:$USD | $1.37 (0.73) |
PEA TECHNICAL SUMMARY
Mine Life | 23 years |
Mine Plan Tonnage | 150.5 Million tonnes |
Process Plant Feed Grade | |
P2O5 | 5.76% |
Fe2O3 | 10.32% |
Strip Ratio (Waste:Process Plant Feed) | 1.5:1 |
Operating Cost (per tonne of process plant feed) | $28.31 |
Pit-Constrained Mineral Resource Estimate at 2.5% P2O5 Cut-off (1-4) | ||||||||
Classification | Zone | Tonnes (M) |
P2O5 (%) |
P2O5 (kt) |
Fe2O3 (%) |
Fe2O3 (Mt) |
TiO2 (%) |
TiO2 (kt) |
Indicated | Mountain | 9.3 | 8.19 | 758 | 9.95 | 0.9 | 3.23 | 299 |
Northern | 32.2 | 6.00 | 1,934 | 10.91 | 3.5 | 3.33 | 1,073 | |
Total | 41.5 | 6.49 | 2,692 | 10.69 | 4.4 | 3.31 | 1,372 | |
Inferred | Mountain | 6.8 | 8.57 | 584 | 10.34 | 0.7 | 3.68 | 251 |
Northern | 44.3 | 6.98 | 3,090 | 11.14 | 50 | 3.26 | 1,442 | |
Southern | 162.9 | 5.63 | 9,177 | 10.85 | 17.6 | 3.73 | 6,080 | |
Total | 214.0 | 6.01 | 12,851 | 10.89 | 23.3 | 3.63 | 7,773 |
Note: P2O5 = phosphorus pentoxide, Fe2O3 = iron oxide/ferric oxide, TiO2 = titanium dioxide.
1. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.
2. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation socio-political, marketing, or other relevant issues.
3. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
4. The Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
BÉGIN-LAMARCHE PHOSPHATE DEPOSIT
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The mine plan uses conventional truck/shovel open pit methods utilizing 90-tonne capacity haulage trucks and shovels equipped with 10 cubic metre buckets. The open pit will be mined over a period of 22 production years and six months of pre-stripping. Low-grade mineralization that is stockpiled over the life-of-mine will be processed for an additional production year. Mineralized material will be transported by haulage trucks to the nearby process plant, and waste rock will be stored at a facility located approximately 800 metres southeast of the open pit. Backfilling of the mined-out open pit with 61 Mt of waste rock is planned, which will reduce the amount required to be stored on surface and lead to proactive restorative measures. Mining is to be conducted at an initial rate of 15 Million total tonnes per annum (Mtpa), and will reach a peak of 28 Mtpa based on process plant feed and waste rock removal requirements.
The process plant feed is contained within an optimized subset of the Mineral Resource set out in the table above. The open pit contains 150.5 Mt of process plant feed (inclusive of mining dilution and loss factors) averaging 5.76% P2O5 and 10.32% Fe2O3. The process plant feed is associated with 219 Mt of waste rock and overburden resulting in an overall life-of-mine strip ratio of 1.5:1. It is notable that all Mineral Resources considered for mining are in the Indicated and Inferred classifications.
Extensive metallurgical testing was carried out at SGS, Quebec City. The test work has indicated process recoveries of phosphate and magnetite to be reasonably high and relatively consistent. The most recent tests focused on circuit stability and maximizing concentrate recovery. Elements of potential concern in traditional phosphate operations based on sedimentary phosphate deposits used for fertilizers are not an issue since the Bégin-Lamarche Mineral Resource is based on a clean igneous rock deposit. Moreover, the low sulphur content suggests the tailings material would not create an environmental risk for acid generation or for metal leaching. Lastly, dry stack tailings and waste rock management are designed for closure and the elimination of concerns for acid drainage or metal leaching.
Initial Capital Costs ($Canadian Millions)
Pre-Stripping | 6 |
Process Plant Equipment and Building | 262 |
Mining Equipment (leased) | 23 |
Tailings Management Facility | 29 |
Indirects, EPCM and Owner’s Costs | 154 |
Site Infrastructure | 89 |
Contingency | 112 |
Total Initial Capital | 675 |
LOM Sustaining Capital Costs ($Canadian Millions)
Mining | 100 |
Process Plant | 63 |
Tailings Management Facility | 39 |
Site Infrastructure | 45 |
EPCM | 4 |
Reclamation | 16 |
Contingency | 50 |
Total Sustaining Capital | 317 |
LOM Operating Costs ($Canadian per tonne)
Mining Cost per Tonne Mined Material (waste and mineralized material | 2.73 |
Mining Cost per Tonne Process Plant Feed | 6.71 |
Processing Cost per Tonne Feed | 12.56 |
G & A per Tonne Process Plant Feed | 1.28 |
Tailings and Water Management | 3.45 |
Concentrate Handling and Transport | 4.31 |
Total Cost per Tonne Process Plant Feed | 28.31 |
The Project site is within the ancestral lands of the Pekuakamiulnuatsh Takuhikan First Nation, which confers certain rights to indigenous peoples in the area. First Phosphate recognizes the traditional rights of Indigenous people and acknowledges the exercising of treaty rights to preserve their cultural identity and customs. A formal collaboration agreement with Pekuakamiulnuatsh Takuhikan First Nation was signed on April 9, 2024 which includes the ability for the First Nation to become involved financially in the mining activity and other related downstream facilities to be developed by First Phosphate.
Qualified Persons
The scientific and technical disclosure for First Phosphate included in this News Release have been reviewed and approved by Gilles Laverdière, P.Geo. VP Exploration for First Phosphate and Mr. Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants Inc. Messrs. Laverdière and Puritch are Qualified Persons under National Instrument 43-101 Standards of Disclosure of Mineral Projects. Mr. Puritch is independent of First Phosphate.
About First Phosphate Corp.
First Phosphate (CSE: PHOS) (OTCQB: FRSPF) (FSE: KD0) is a mineral development company fully dedicated to extracting and purifying phosphate for the production of cathode active material for the Lithium Iron Phosphate (“LFP”) battery industry. First Phosphate is committed to producing at high purity level, in a responsible manner and with low anticipated carbon footprint. First Phosphate plans to vertically integrate from mine source directly into the supply chains of major North American LFP battery producers that require battery grade LFP cathode active material emanating from a consistent and secure supply source. First Phosphate is owner and developer of the Bégin-Lamarche Property in Saguenay-Lac-St-Jean, Quebec, Canada that consists of rare anorthosite igneous phosphate rock that generally yields high purity phosphate material devoid of harmful concentrations of deleterious elements.
About P&E Mining Consultants Inc.
P&E was established in 2004 and provides geological and mine engineering consulting reports, Mineral Resource Estimate technical reports, Preliminary Economic Assessments and Pre-Feasibility Studies. P&E is affiliated with major Toronto based consulting firms for the purposes of joint venturing on Feasibility Studies. P&E’s experience covers over 450 NI 43-101 Technical Reports including First Phosphate’s Bégin-Lamarche NI 43-101 Mineral Resource Estimate which was completed in October 2024.
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