Itafos (TSX VENTURE: IFOS) (the “
Company”)
announced today the results of an independent technical report
encompassing Itafos Conda and Itafos Paris Hills deposits
concluding increased existing Mineral Resource estimates and
defining the Husky1/North Dry Ridge (“
H1/NDR”)
deposits as the Company’s path forward for mine development. The
technical report compiled by Golder Associates Ltd.
(“
Golder”) and titled “NI 43-101 Technical Report
on the Itafos Conda and Itafos Paris Hills Mineral Projects, Idaho,
USA” (the “
Itafos Conda Technical Report”) will be
filed on SEDAR within the next 45 days.
“This is a significant step towards executing on
our key objective at Itafos Conda of extending phosphate ore supply
from a combination of additional resources in existing mines and
defining the path forward for long-term ore continuity by focusing
efforts and resources on H1/NDR. In addition, these results provide
further flexibility in terms of timing of required growth capex,”
said Tim Vedder, General Manager of Itafos Conda.
The Itafos Conda Technical Report concluded
that, with respect to Itafos Conda’s existing mines, the Rasmussen
Valley Mine (“RVM”) deposit contains Mineral
Resource estimates of 15.2 million short tons. This Mineral
Resource estimate for RVM is a 37% increase over Itafos Conda’s
historical internal estimates. Further, the Itafos Conda Technical
Report concluded that, with respect to Itafos Conda’s mine
development options, the H1/NDR deposits contain Mineral Resource
estimates of 38.1 million short tons at approximately 24.3% P2O5.
This Mineral Resource estimate for H1/NDR is a 60% increase over
Itafos Conda’s historical internal estimates.
The Itafos Conda Technical Report includes
Mineral Resource estimates for RVM, Lanes Creek Mine
(“LCM”) and H1/NDR deposits, all of which are
wholly owned by Itafos Conda. The Mineral Resource estimates for
these deposits were prepared by Golder and this news release is the
initial public disclosure of such Mineral Resource estimates. The
Itafos Conda Technical Report also includes an update of the
previous Mineral Resource estimate for the Paris Hills
(“PH”) deposit, which is wholly owned by Stonegate
Agricom Ltd. (“STG”), the owner of Itafos Paris
Hills. The previous Mineral Resource estimate for PH was prepared
by Agapito Associates Ltd. on behalf of STG within the technical
report titled “NI 43-101 Technical Report Paris Hills Phosphate
Project Bloomington, Idaho, USA” dated as of January 18, 2013 and
restated as of July 8, 2013 and filed under STG’s profile on
SEDAR.
The effective date for the Mineral Resource
estimates is July 1, 2019. There have been no material changes in
the available information for the deposits between the effective
date of the Mineral Resource estimates and the date of this news
release. Only Mineral Resource estimates are being reported at this
time. The Company intends to report Mineral Reserve estimates for
RVM and LCM once current mine planning and other modifying factors
studies have been completed to a minimum of a Pre-Feasibility level
of study.
About the Deposits
The phosphate mineralization encountered at the
deposits considered in the Itafos Conda Technical Report occur as
stratigraphically controlled sedimentary phosphate mineralization
within the Meade Peak Member of the Early Permian Phosphoria
Formation. The Meade Peak Member is further subdivided into an
Upper Phosphate Zone and a Lower Phosphate Zone, separated by an
unmineralized Center Waste Zone. The Mineral Resource estimates
include mineralization from both the Upper Phosphate Zone and Lower
Phosphate Zone.
The Mineral Resource estimates were prepared by
Golder under the supervision of an independent Qualified Person in
accordance with the definitions presented in NI 43-101 and the CIM
Definition Standards, 2014. The Mineral Resource estimates were
based on all verified exploration and pre-production drill holes
and analytical samples drilled to date for the deposits considered
in the Itafos Conda Technical Report. Data verification was
performed under the supervision of an independent Qualified Person
while exploration data collection was performed under the
supervision of Itafos Conda geologists and engineers that also meet
the standard for Qualified Persons under the applicable
definitions.
Reverse Circulation (“RC”)
drilling was the predominant drilling method for RVM, LCM, NDR and
H1 deposits while all PH deposit drill holes were cored. Wireline
gamma logs were performed on most of the drill holes across the
deposits considered in the Itafos Conda Technical Report and were
used to perform bed picks for lithological domain correlation and
analytical sampling purposes.
A summary of the drill hole and sample data used
in the geological models and Mineral Resource estimates are
presented for each of the deposits considered in the Itafos Conda
Technical Report as follows:
Summary of Drill Hole and Sample
Data
Property |
Drill Hole Count |
Total Drilling (ft) |
Sample Count |
Nominal Drill Section Line Spacing (ft) |
RVM |
210 |
59,787 |
11,788 |
200 |
LCM |
142 |
21,957 |
3,057 |
300 (locally irregular spacing) |
NDR |
293 |
48,130 |
3,896 |
200 |
H-1 |
305 |
109,094 |
17,005 |
400 (locally 200) |
PH |
65 |
73,042 |
1,865 |
700 (south half) & 1,600 (north half) |
|
|
|
|
|
Notes:
- RVM = Rasmussen Valley Mine; LCM = Lanes Creek Mine; NDR =
North Dry Ridge Deposit; H1 = Husky1 Deposit; PH = Itafos Paris
Hills Deposit.
- Sample counts are based on samples containing P2O5 values of
greater than 0%.
Summary of Mineral Resource
Estimates
Property |
Zone |
Resource Classification |
Volume (millions; bcf) |
Short Tons (Millions, dry) |
P2O5
(wt.%) |
MgO (wt.%) |
Fe2O3
(wt.%) |
Al2O3
(wt.%) |
RVM |
UPZ & LPZ Combined |
Measured |
197.5 |
13.0 |
26.6 |
0.90 |
0.86 |
2.33 |
Indicated |
27.0 |
2.0 |
26.2 |
0.63 |
0.90 |
2.46 |
Inferred |
2.5 |
0.2 |
25.7 |
0.59 |
0.92 |
2.48 |
|
|
|
|
|
|
|
|
|
LCM |
UPZ & LPZ Combined |
Measured |
14.0 |
1.0 |
27.5 |
0.90 |
0.80 |
1.34 |
Indicated |
6.5 |
0.5 |
28.2 |
0.98 |
0.76 |
1.62 |
Inferred |
0.5 |
0.0 |
27.5 |
1.15 |
0.66 |
1.56 |
|
|
|
|
|
|
|
|
|
NDR |
UPZ & LPZ Combined |
Measured |
95.0 |
6.5 |
26.9 |
0.82 |
- |
2.38 |
Indicated |
19.0 |
1.5 |
27.0 |
0.91 |
- |
2.32 |
Inferred |
2.0 |
0.1 |
26.8 |
0.94 |
- |
2.39 |
|
|
|
|
|
|
|
|
|
H1 |
UPZ & LPZ Combined |
Measured |
314.5 |
21.0 |
24.3 |
0.98 |
0.82 |
2.09 |
Indicated |
128.0 |
8.5 |
24.7 |
0.98 |
0.84 |
2.13 |
Inferred |
10.5 |
0.5 |
24.3 |
0.89 |
0.82 |
2.04 |
|
|
|
|
|
|
|
|
|
PH |
UPZ |
Measured |
320.5 |
26.0 |
22.9 |
0.89 |
0.80 |
1.15 |
Indicated |
492.0 |
40.0 |
22.3 |
0.86 |
0.81 |
1.06 |
Inferred |
93.0 |
7.5 |
22.0 |
0.89 |
0.75 |
0.99 |
|
|
|
|
|
|
|
|
LPZ |
Measured |
157.5 |
13.0 |
30.9 |
0.26 |
0.51 |
1.02 |
Indicated |
223.5 |
18.0 |
29.5 |
0.59 |
0.49 |
0.81 |
Inferred |
49.0 |
4.0 |
30.1 |
0.63 |
0.46 |
0.77 |
|
|
|
|
|
|
|
|
|
Totals |
UPZ & LPZ Combined |
Measured |
1,099.0 |
80.5 |
25.5 |
0.81 |
0.70 |
1.67 |
Indicated |
896.0 |
70.5 |
24.6 |
0.80 |
0.72 |
1.19 |
Inferred |
157.5 |
12.3 |
24.8 |
0.80 |
0.65 |
1.00 |
|
|
|
|
|
|
|
|
|
Notes:
- RVM = Rasmussen Valley Mine; LCM = Lanes Creek Mine; NDR =
North Dry Ridge Deposit; H1 = Husky-1 Deposit; PH = Paris Hills
Deposit; UPZ = Upper Phosphate Zone; LPZ = Lower Phosphate Zone;
bcf = bank cubic feet; wt.% = weight percent.
- The effective date of the Mineral Resource estimates is July 1,
2019.
- The categorization of Measured, Indicated and Inferred Mineral
Resources is presented in accordance with the CIM Definition
Standards, 2014.
- The Mineral Resource estimates are reported on a dry in-situ
basis. Masses have been converted from wet to dry basis using a 10%
moisture factor.
- No recovery, dilution or other similar mining parameters have
been applied.
- The Mineral Resource estimates for RVM and LCM reflect
remaining in-situ resources using end of June 2019 mining surfaces;
material mined from the deposits prior to this date has been
depleted from the Mineral Resource estimates.
- The Mineral Resource estimates presented are not Mineral
Reserve estimates and do not reflect demonstrated economic
viability. The reported Inferred Mineral Resource estimates are
considered too speculative geologically to have the economic
considerations applied to them that would enable them to be
categorized as Mineral Reserve estimates. There is no certainty
that all or any part of Mineral Resource estimates will be
converted into Mineral Reserve estimates.
- Mineral Resource estimates are not precise calculations, being
dependent on the interpretation of limited information on the
location, shape and continuity of the occurrence and on the
available sampling results. All figures are rounded to reflect the
relative accuracy of the estimates and totals may not add
correctly.
- The Mineral Resource estimates for the potentially surface
mineable resources (RVM, LCM, NDR and H1) were constrained by
conceptual pit shells for the purpose of establishing reasonable
prospects of eventual economic extraction based on potential
mining, metallurgical and processing grade parameters identified by
mining, metallurgical and processing studies performed to date on
the resources.
- The Mineral Resource estimates for the potentially underground
mineable resources at PH were constrained by property boundaries on
north, south and east sides. A vertical limb on the west side of
the property would require an alternative mining method and to date
has not been drilled to the extent to support an estimate of
geologic resources.
- Key constraint inputs included reasonable assumptions for
operating costs, CRU fertilizer product forecast prices and a 20%
minimum P2O5 grade, based on current Itafos Conda plant
specifications, for all estimated resources except for the Lower
phosphate Zone Mineralization at PH. The Lower Phosphate Zone at PH
was defined using a 24% minimum P2O5 grade to allow for a
head-grade of 30% P2O5 which is amenable to direct-shipping without
the need for beneficiation.
Qualified Persons Statement
Unless otherwise indicated, the responsible
Qualified Person, within the guidelines set forth in NI 43-101, who
has reviewed and approved the scientific and technical information
contained in this news release is Jerry DeWolfe, a Qualified Person
who is a Professional Geologist (P.Geo.) with the Association of
Professional Engineers and Geoscientists of Alberta. Mr. DeWolfe is
a full-time employee of Golder and is independent of Itafos and its
affiliates. Mr. DeWolfe has sufficient experience that is relevant
to the style of mineralization and type of deposit under
consideration and to the activity being undertaken to qualify as a
Qualified Person as defined under NI 43-101 and the CIM Definition
Standards, 2014. Mr. DeWolfe consents to the inclusion in the news
release of the matters based on this information in the form and
context in which it appears.
About Itafos
The Company is a vertically integrated phosphate
fertilizers and specialty products company with an attractive
portfolio of long-term strategic businesses and projects located in
key fertilizer markets worldwide.
The Company owns, operates and is developing the
following businesses and projects:
- Itafos Conda – a vertically integrated phosphate mine and
fertilizer business with production and sales capacity of
approximately 550kt per year of monoammonium phosphate
(“MAP”), MAP with micronutrients
(“MAP+”), superphosphoric acid
(“SPA”), merchant grade phosphoric acid
(“MGA”) and specialty products including ammonium
polyphosphate (“APP”) located in Idaho, US;
- Itafos Arraias – a phosphate fertilizer business with
production and sales capacity of approximately 500kt per year of
single superphosphate (“SSP”), SSP with
micronutrients (“SSP+”), premium PK compounds and
approximately 40kt per year of excess sulfuric acid located in
Tocantins, Brazil;
- Itafos Paris Hills – a high-grade phosphate mine project
located in Idaho, US;
- Itafos Farim – a high-grade phosphate mine project located in
Farim, Guinea-Bissau;
- Itafos Santana – a vertically integrated high-grade phosphate
mine and fertilizer plant project located in Pará, Brazil;
- Itafos Mantaro – a large phosphate mine project located in
Junin, Peru; and
- Itafos Araxá – a vertically integrated rare earth elements and
niobium mine and extraction plant project located in Minas Gerais,
Brazil.
For more information, or to join the Company’s
mailing list to receive notification of future news releases,
please visit the Company’s website, www.itafos.com.
Forward Looking Information
Certain information contained in this news
release constitutes forward looking information. All information
other than information of historical fact is forward looking
information. The use of any of the words “intend”, “anticipate”,
“plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”,
“should”, “would”, “believe”, “predict” and “potential” and similar
expressions are intended to identify forward looking information.
This information involves known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ
materially from those anticipated in such forward looking
information. No assurance can be given that this information will
prove to be correct and such forward looking information included
in this news release should not be unduly relied upon.
Forward looking information is subject to a
number of risks and other factors that could cause actual results
and events to vary materially from that anticipated by such forward
looking information. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. Factors that may cause actual
results to differ materially from expected results described in
forward-looking statements include, but are not limited to, those
risk factors set out in the Company’s Management Discussion and
Analysis and other disclosure documents available under the
Company’s profile at www.sedar.com. Readers are cautioned that the
foregoing list of risks, uncertainties and assumptions are not
exhaustive. The forward-looking information included in this news
release is expressly qualified by this cautionary statement and is
made as of the date of this news release. Itafos undertakes no
obligation to publicly update or revise any forward-looking
information except as required by applicable securities laws.
NEITHER THE 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.
For further information, please
contact:
Itafos Investor
Relationsinvestor@itafos.comwww.itafos.com
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