-project would create the largest producer of
battery grade acid outside of China
DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTCQX (USA)
SAGUENAY,
QC, Jan. 30, 2024 /CNW/ - Arianne Phosphate
(the "Company" or "Arianne") (TSXV: DAN) (OTCQX: DRRSF)
(FRANKFURT: JE9N), a development-stage phosphate mining
company, advancing the Lac à Paul project in Quebec's Saguenay-Lac-Saint-Jean region, is
pleased to announce that it has commenced work on a Prefeasibility
Study ("PFS") to construct a downstream purified phosphoric acid
plant ("PPA") in the region, capable of converting the Company's
high-purity phosphate concentrate into a finished PPA product. In
pursuing this downstream integration, Arianne will be able to
move beyond being a producer and seller of concentrate and leverage
its geological advantage into becoming a dominant player in the
high-purity, battery and specialty markets. As well, by moving to a
fully vertically integrated operation, the Company will benefit
from significantly enhanced economics and allow the Saguenay
region to establish itself within the global battery ecosystem. As
currently planned, the facility would be the largest producer
outside of China and, given the
rare igneous nature of Arianne's deposit, should be very cost
competitive as well.
Purified phosphoric acid has gained considerable
interest over the last few years as it is an important ingredient
in the lithium-iron-phosphate ("LFP") battery. Currently, the
supply of PPA is constrained, especially outside of
China, as it has historically been
used in food preservatives and other industrial applications, and
now, the LFP is rapidly encroaching on existing supply. Today,
the LFP battery represents over 30% of all batteries, with
many industry analysts projecting it to be the most common of all
battery chemistries within the next few years. This demand growth
will result in the need for more PPA production, with
Benchmark Mineral Intelligence projecting that requirement at an
additional +1 million tonnes of PPA annually; a very significant
increase over what is currently produced globally. Furthermore,
with China today producing over
90% of all LFP batteries, Western supply is extremely
limited.
Acknowledging the importance of phosphate, and
access to it, the Government of Quebec recently placed the phosphate-bearing
mineral, apatite on its critical and strategic mineral list. This
move follows other jurisdictions that have done the same, including
the European Union.
"There is no doubt that we will need a
significant increase in the supply of PPA, the question is where
will that come from," said Brian
Ostroff, President of Arianne Phosphate. "Today Arianne's
Lac á Paul project is the world's largest, independently owned
resource, capable of producing a very high-purity/low-contaminant
phosphate concentrate, already tested and confirmed to produce a
battery-grade PPA. Our project is well situated in Quebec, Canada near necessary infrastructure,
fully permitted and shovel ready. Over the last 18 months, the
Company has expended a considerable amount of time and effort to
ensure that we will be able to capitalize on this enormous
opportunity. In answering the question of where this needed supply
will come from, I would say that Arianne is ideally placed to
address this urgent requirement and, in so doing, benefit from very
significant strategic and economic advantages. As planned, our
facility would be able to produce enough PPA to address 350
GWh of annual demand from Western gigafactories, a significant
portion of what will be required."
The PFS is studying the construction of a PPA
plant situated in the Saguenay region of Quebec, trucking distance from Arianne's mine
and, with easy access to major North American battery hubs such as
Bécancour, Quebec, the US
"battery-belt" in the southeast and the American automotive
industry in Michigan and
surrounding states. The project anticipates the production of
350,000 tonnes of battery-grade PPA, which would make Arianne
the single largest producer outside of China and capable of addressing a significant
portion of Western battery requirements. Further, the facility
would also produce over 200,000 tonnes of a secondary premium
phosphoric acid used for animal feeds and specialty fertilizers.
Due to projected closures both in North
America and Europe, this
secondary market will be greatly underserviced and also
provide additional economic opportunity to Arianne.
"The Saguenay region is already known for its
global advantage in industries such as aluminum," said Raphael Gaudreault, COO of Arianne Phosphate,
"it would now become the player in Western production of phosphate
for specialty uses like batteries. The integrated project, both
mine and PPA plant, will be of significant benefit to the
Province and Country. The region provides access to a skilled
workforce, advanced infrastructure including port, rail and
hydroelectricity and, the ability to access emerging battery
markets in both North America and
Western Europe. As well, with the
project being situated in Quebec,
Canada, it will allow both Arianne and its customers to
benefit from the economic incentives provided for by various
government programs, with this further supported by phosphate's
addition to the Quebec's critical
mineral list. Lastly, as China
currently represents over 90% of all LFP production, this
facility will allow for the continued diversification away from
Chinese sources to a Western supply chain."
About Arianne Phosphate:
Arianne
Phosphate ("Arianne Phosphate Inc.") (www.arianne-inc.com) is
developing the Lac à Paul phosphate deposits located approximately
200 km north of the Saguenay/Lac St. Jean area of Quebec,
Canada. These deposits will
produce a high-quality igneous apatite concentrate grading 39%
P2O5 with little or no contaminants
(Feasibility Study released in 2013). The Company has 196,809,271
shares outstanding.
Qualified Person
Raphael Gaudreault, eng., Qualified Person by NI
43-101, has approved this release. Mr. Gaudreault is also the
Company's Chief Operating Officer.
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.
Follow Arianne
on:
Facebook: https://www.facebook.com/ariannephosphate
Twitter: http://twitter.com/arianne_dan
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Flickr: http://www.flickr.com/photos/arianneresources
Resource Investing
News: http://resourceinvestingnews.com/?s=Arianne
Cautionary Statements Regarding
Forward Looking Information
This news release contains "forward-looking
statements" and "forward-looking information" within the meaning of
applicable securities regulations in Canada and the
United States (collectively, "forward-looking information").
Forward-looking information includes, but is not limited to,
anticipated quality and production of the apatite concentrate at
the Lac à Paul project. Often, but not always, forward-looking
information can be identified by the use of words such as "plans",
"expects, "is expected", "budget", "scheduled", "estimates",
forecasts", "intends", "anticipates", or "believes", or the
negatives thereof or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might", or "will" be taken, occur or be achieved.
Forward-looking information is subject to be known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied
by such forward-looking information, including but not limited to:
volatile stock price; risks related to changes in commodity prices;
sources and cost of power facilities; the estimation of initial and
sustaining capital requirements; the estimation of labour and
operating costs; the general global markets and economic
conditions; the risk associated with exploration, development and
operations of mineral deposits; the estimation of mineral reserves
and resources; the risks associated with uninsurable risks arising
during the course of exploration, development and production; risks
associated with currency fluctuations; environmental risks;
competition faced in securing experienced personnel; access to
adequate infrastructure to support mining, processing, development
and exploration activities; the risks associated with changes in
the mining regulatory regime governing the Company; completion of
the environmental assessment process; risks related to regulatory
and permitting delays; risks related to potential conflicts of
interest; the reliance on key personnel; financing, capitalization
and liquidity risks including the risk that the financing necessary
to fund continued exploration and development activities at Lac à
Paul project may not be available on satisfactory terms, or at all;
the risk of potential dilution through the issue of common shares;
the risk of litigation. Forward-looking information is based on
assumptions management believes to be reasonable at the time such
statements are made, including but not limited to, continued
exploration activities, no material adverse change in commodity
prices, exploration and development plans proceeding in accordance
with plans and such plans achieving their stated expected outcomes,
receipt of required regulatory approval, and such other assumptions
and factors as set out herein. Although the Company has attempted
to identify important factors that could cause actual results to
differ materially from those contained in the forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such forward-looking information. Accordingly,
readers should not place undue reliance on forward-looking
information. Forward-looking information is made as of the date of
this press release, and the Company does not undertake to update
such forward-looking information except in accordance with
applicable securities laws.
SOURCE Arianne Phosphate Inc.