TORONTO, April 26, 2017 /CNW/ - Potash Ridge
Corporation ("Potash Ridge" or the "Corporation") (TSX: PRK)
is pleased to announce it has published a revision to an
independent NI 43-101 compliant Prefeasibility Technical Report for
the Corporation's Blawn Mountain
Project in Utah ("Blawn Mountain") dated
January 18, 2017 (the "January 2017 PFS"). This updated NI 43-101
Prefeasibility Technical Report (the "April
2017 PFS") includes Alumina Resources from alunite contained
in the tailings and was prepared by Millcreek Mining Group and
Resource Development Inc.
Based on the April 2017 PFS, Blawn
Mountain contains 19.4 million tons of measured and indicated
alumina Resources contained in the alunite ore.
The United States Geological Survey reports that in 2015,
bauxite which is 50% alumina and 50% other materials, sold for
US$28 per ton in the United States, while processed alumina
sold for US$410 per ton.
Based on the recommendations from the April 2017 PFS, Potash Ridge intends to undertake
additional metallurgical testing to determine the most economic
means to extract alumina from the residual waste material.
The April 2017 PFS will be posted
on the Corporation's website (www.potashridge.com) and on SEDAR
(www.sedar.com).
Key Highlights of the April
2017 PFS (all figures denominated in U.S. dollars and U.S.
short tons):
- Surface mine with conventional crushing, roasting,
leaching and crystallization processes;
- Proven and probable mineral reserves of 153 million tons;
reserves support a 46-year project life;
- 19.4 million tons of measured and indicated alumina
resources;
- An average of 255,000 tons of potassium sulphate per
annum during first 10 years of operation after ramp-up; life of
mine average of 232,000 tons of potassium sulphate per annum;
- Flexible process capable of producing both crystalline
soluble and granular potassium sulphate to meet market
conditions;
- Installed potassium sulphate capital cost of $456 million;
- Expected to be the lowest cost producer of potassium sulphate
in North America: average net
cash operating costs after by-product sulphuric acid credits of
$177/ton of potassium sulphate
(exclusive of royalties), which includes approximately $40/ton in transportation costs;
- Unlevered after tax internal rate of return of
20.1%, based on assumed price of $675/ton for potassium sulphate and $115/ton for sulphuric acid in 2020 and 2%
inflation;
- Strong earnings potential: average operating margin of
$133 million per annum during
first 10 years of operation after ramp-up; life of mine average of
$178 million per annum;
- Strong cash flow generation: average after tax cash flow of
$107 million per annum during
first 10 years of operation after ramp-up; life of mine average of
$130 million per annum;
- Project After Tax Net Present Value of $489 million using a 10% discount rate:
-
- No terminal value added to the NPV, which assumes no extension
to life of operations;
- Potential upside in economics through:
-
- Expansion of initial production rate;
- Realization of the potential economic value in the 19.4
million tons of alumina resources.
"Blawn Mountain is already a world-class SOP fertilizer project,
with a long project life and very low operating costs," stated
Guy Bentinck, the Corporation's CEO.
"The realization of market demand for the alumina contained in our
tailings provides tremendous value upside potential and diversity
to our revenue stream."
Qualified Persons
Each of the Qualified Persons ("QPs") shown below has reviewed
and approved the scientific and technical disclosures contained in
the PFS and in this release and are independent of the company. QPs
have verified the data including sampling, analytical and test data
underlying the information or opinions contained herein. The QPs
responsible are:
Jason Todd - Mining and
Financial
Steven Kerr – Geology
Deepak Malhorta – Engineering and
Processing
About Potash Ridge
Potash Ridge's strategy is to become a premier producer of
potassium sulphate in North America. The Corporation owns two
SOP projects: the Valleyfield Project that plans to
produce SOP through the Mannheim Process; and the Blawn
Mountain Project in Utah that plans to produce
potassium sulphate by mining and processing alunite bearing
rock. Potash Ridge has a highly qualified and proven
management team in place with significant financial, project
management and operational experience and the ability to take
projects into production. The Corporation currently has 126.4
million common shares outstanding.
Forward-Looking Statements
This press release contains forward-looking statements, which
reflect the Corporation's expectations regarding future growth,
results of operations, performance and business prospects. These
forward-looking statements include statements related to advancing
the Valleyfield Project and may also include statements that are
predictive in nature, or that depend upon or refer to future events
or conditions, and can generally be identified by words such as
"may", "will", "expects", "anticipates", "intends", "plans",
"believes", "estimates", "guidance" or similar expressions. In
addition, any statements that refer to expectations, projections or
other characterizations of future events or circumstances are
forward-looking statements. These statements are not historical
facts but instead represent the Corporation's expectations,
estimates and projections regarding future events. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by the Corporation,
are inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements. Such factors include,
but are not limited to: the state of the equity capital markets;
the receipt of any required approvals for the private placement;
the future financial or operating performance of the Corporation
and its subsidiaries and its mineral projects; the anticipated
results of exploration activities; the estimation of mineral
resources; the realization of mineral resource estimates; capital,
development, operating and exploration expenditures; costs and
timing of the development of the Corporation's mineral projects;
timing of future exploration; requirements for additional capital;
climate conditions; government regulation of mining operations;
anticipated results of economic and technical studies;
environmental matters; receipt of the necessary permits, approvals
and licenses in connection with exploration and development
activities; appropriation of the necessary water rights and water
sources; changes in commodity prices; recruiting and retaining key
employees; construction delays; litigation; competition in the
mining industry; reclamation expenses; reliability of historical
exploration work; reliance on historical information acquired by
the Corporation; optimization of technology to be employed by the
Corporation; title disputes or claims and other similar
matters.
If any of the assumptions or estimates made by management
prove to be incorrect, actual results and developments are likely
to differ, and may differ materially, from those expressed or
implied by the forward-looking statements contained herein. Such
assumptions include, but are not limited to, the following: that
general business, economic, competitive, political and social
uncertainties remain favorable; that agriculture fertilizers are
expected to be a major driver in increasing yields to address
demand for premium produce, such as fruits and vegetables, as well
as diversified protein rich diets necessitating grains and other
animal feed; that actual results of exploration activities justify
further studies and development of the Corporation's mineral
projects; that the future prices of minerals remain at levels that
justify the exploration and future development and operation of the
Corporation's mineral projects; that there is no failure of plant,
equipment or processes to operate as anticipated; that accidents,
labour disputes and other risks of the mining industry do not
occur; that there are no unanticipated delays in obtaining
governmental approvals or financing or in the completion of future
studies, development or construction activities; that the actual
costs of exploration and studies remain within budgeted amounts;
that regulatory and legal requirements required for exploration or
development activities do not change in any adverse manner; that
input cost assumptions do not change in any adverse manner, as well
as those factors discussed in the section entitled "Risk Factors"
in the Corporation's Annual Information Form (AIF) for the
year-ended December 31,
2016 found on sedar.com. The Corporation
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required by applicable
law.
SOURCE Potash Ridge Corporation