VANCOUVER,
Jan. 17, 2013 /CNW/ - Plains Creek
Phosphate Corporation ("Plains Creek", the "Company")
(TSX‐V: PCP) is pleased to announce the filing of a new,
single current technical report for the feasibility study on the
Company's Farim Phosphate Project entitled, "Feasibility of the
Beneficiated Phosphate Rock Concentrate of the Farim Phosphate
Project, Guinea-Bissau, An NI
43-101 Report" dated effective December 19,
2012 (the "Report").
The Report supercedes the previously filed
technical reports entitled, "Feasibility of the Beneficiated
Phosphate Rock Concentrate of the Farim Phosphate Project,
Guinea-Bissau, An NI 43-101
Report" and the "Feasibility Study of the Direct Shipping Option of
the Farim Phosphate Project, Guinea-Bissau, An NI 43-101 Report", each
dated effective November 2, 2012 (the
"Previous Reports"). The Report was prepared further to
comments received from the British Columbia Securities Commission
(the "BCSC") as described in a news release of the Company
dated December 3, 2012. In
particular, the Report has made the following changes from the
Previous Reports to address BCSC comments and meet the requirements
of NI 43-101:
- disclosure is amended to show power costs separately from the
combined water and power costs, including disclosure of gross power
consumption and power cost individually and in more detail, using
standard industry measures, with explanations of the basis for
estimation;
- an after-tax economic analysis has been provided, with a
detailed analysis of applicable taxes and royalties and the basis
for assumption of those applicable taxes which provides reasonable
grounds for certainty; and
- product pricing has been clarified to a level of certainty
supported by quotes, contracts, agreements or industry
information.
The Report is prepared by the following
qualified persons who are responsible for the entirety of the
Report with respect to their respective sections of the Report:
Michael Short, BE, FIMMM, CEng,
Richard Elmer, CEng, MIMMM (CP), Dr.
Martin Preene, CEng, Dr.
Marcelo Godoy, MAusIMM (CP), Terry
Kremmel, PE (MO and NC), SME (CP), Hendrik
J.H. Otto, PrEng (SA) and Matthew Clark, P.E., CEng, PMP
(QP). All of the foregoing qualified persons are independent from
the Company pursuant to NI 43-101.
The Company is pleased to announce that
considering beneficiated phosphate rock production for the Farim
Phosphate Project on a stand-alone basis, the undiscounted pre-tax
cash flow totals US $1.526 billion
over a 25 year mine life and US $1.220
billion on a post-tax basis. Pre-tax operating cash flows
averages US $67.69 million per year
and US $55.42 million per year
post-tax. Simple payback of the pre-production capital investment
is achieved after approximately two years of operation on a pre-tax
and post-tax basis. The pre-tax internal rate of return is 37.69%
compared to 35.87% post-tax. At a discount rate of 15%, the net
present value of the project is US $216
million compared to US $175
million post-tax. Minor refinements to the capital and
operating cost estimates changes certain economic figures only
slightly from the pre-tax scenario considered in the Previous
Report for the beneficiated phosphate rock alternative.
There has been no change in the Report from the
Previous Reports with respect to the stated mineral resources or
mineral reserves estimates. However, the economic assessment has
changed somewhat as the analysis has been conducted on a post-tax
basis, as described above. Most significantly, the Company decided
to focus on the feasibility study for beneficiated phosphate rock
production rather than the direct shipping option ("DSO") of
phosphate matrix mining product due to an anomaly identified in
testwork for anticipated moisture levels for the dewatered matrix.
The relationship between the transshipable moisture limit and the
matrix moisture levels requires further evaluation of the DSO
influence whether the DSO is technically feasible and, even if the
DSO is technically feasible, local regulatory conditions may also
inhibit the potential for the DSO. Consequently, consideration of
beneficiated phosphate rock production, rather than the DSO, has
been the focus of the feasibility study. In the result, the Report
demonstrates that beneficiated phosphate rock production at the
project is both economically attractive and technically robust.
The authors of the Report have recommended that
the Company and GB Minerals AG continue to advance the project for
beneficiated phosphate rock production to the engineering design
and construction stages and to seek the necessary project financing
and off-take agreements.
About Plains Creek Phosphate
Corporation
Plains Creek Phosphate Corporation is a Canadian
mining and exploration company focused on advancing the Project in
Guinea‐Bissau, West Africa through
the company, GB Minerals AG. The Project currently comprises a
phosphate deposit consisting of one continuous flat lying phosphate
bed with a Mineral Resource estimate, disclosed in the Company's
Feasibility Studies on the Project in accordance with National
Instrument 43-101, which defines a Measured Resource of 64.6 MT at
an average grade of 29.11% P2O5, an Indicated
Resource of 28.1 Mt at an average grade of 27.68 %
P2O5, and an Inferred Resource of
18.3 Mt at an average grade of
28.66 % P2O5 and states total
proven and probable reserves of 33.0 Mt (dry) with an average
ROM P2O5 grade of 30.4%. The Measured
and Indicated Resource estimates stated above are inclusive of the
resources comprising the Proven and Probable Reserve estimates. The
Feasibility Studies are authored by the Qualified Persons listed
above, are filed on SEDAR and are publicly available under the
Company's profile at www.sedar.com. A two-phased development is
planned for the Project as an open pit mining operation. Phase One
consists of a 1.3 Mt per year phosphate rock product direct
shipping option project or a 1.0 Mt per year beneficiated phosphate
rock concentrate project and Phase Two consists of the production
of 2.0 Mt per year of phosphate rock concentrate and includes a
beneficiation plant and associated infrastructure, pipeline and
port. As indicated above, the supporting reports are under
amendment, and the Company will promptly disclose if any material
changes to a mining study or mineral reserves result from
amendments to its reports.
The Company's shares are listed on the TSX
Venture Exchange under the trading symbol "PCP". For additional
information, please visit us at www.plainscreek.com.
ON BEHALF OF THE BOARD
"Carson Phillips"
Carson Phillips
Vice‐President, Corporate Development and Director
Cautionary Statement
Statements in this release may be viewed as
forward‐looking statements. Such statements involve risks and
uncertainties that could cause actual results to differ materially
from those projected. There are no assurances the Company can
fulfill such forward‐statements and the Company undertakes no
obligation to update statements. Such forward looking statements
are only predictions; actual events or results may differ
materially as a result of risks facing the Company, some of which
are beyond the Company's control.
The reader should be cautioned that there are
risks that could affect the potential development of the Farim
Phosphate Project's (the "Project") mineral resources, which
include: the political instability in Africa and Guinea‐Bissau in particular, which
is where the Project is located; and that additional financing will
be required to ultimately develop the Project and the ability to
obtain such financing on favorable terms will be affected by
prevailing market conditions. A more detailed discussion of such
risks are outlined in the Company's Management's Discussion &
Analysis and the Reports, all of which are filed under the
Company's profile on SEDAR at www.sedar.com.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION
SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE
TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
SOURCE Plains Creek Phosphate Corp.