First Phosphate (CSE: PHOS | OTC Pink: FRSPF | FSE: KD0) has announced the preliminary economic assessment (PEA) results for its Lac à l’Orignal property, indicating a viable opportunity for open pit mining and production of phosphate concentrate, as well as the recovery of magnetite and ilmenite concentrates.
The Lac à l’Orignal property is located 84km northeast of Saguenay, Quebec, Canada. First Phosphate acquired and negotiated a 100% royalty free interest in the property in 2022.
“We are very pleased with the results of this preliminary economic assessment of our Lac à l’Orignal property and its timely completion. Our strategy to keep capex low and mine size controlled echoes these PEA results nicely,’’ commented First Phosphate President, Peter Kent.
“We’re now in a position to prudently evaluate next steps for the company as we continue with our mission to apply a partnership-based approach to integrate vertically from mine to value-added production of purified phosphoric acid and LFP cathode active material for the North America LFP battery industry.”
Highlights of the assessment include an estimated average annual production of 425,000t of phosphate concentrate with a content of over 40%. Additionally, the project is expected to yield 280,000t of magnetite and 97,000t of ilmenite over its 14.2-year mine life.
The PEA includes a pre-tax internal rate of return (IRR) of 21.7%, a pre-tax net present value (NPV) of C$795M at a 5% discount rate, and an after-tax IRR of 17.2% and NPV of C$511M. Preproduction capital is estimated at C$550M, with an estimated payback period is 4.9 years from the start of production, with an after-tax cash flow of C$567M in the first five years.
First Phosphate already has a memorandum of understanding with Prayon Technologies of Belgium to take up to 400,000t of phosphate concentrate annually. Additionally, the company has secured a long-term purified phosphoric acid toll processing agreement.
For further information, please visit: www.firstphosphate.com
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