Encanto files NI 43-101 report for the pre-feasibility study for Muskowekwan Property and clarifies after tax numbers

About this update from Encanto Potash Corp.

[{"type":"text","content":"\n\n\n\n\n\nTRADING SYMBOL:  TSXV: EPO\n\n\nVANCOUVER, March 1, 2013 /CNW/ - Encanto Potash Corp. (\"Encanto\" or the\n \"Company\") (TSXV: EPO and OTCQX: ENCTF) is pleased to report that the\n Technical Report summarizing the Preliminary Feasibility Study for the\n Muskowekwan First Nations Project (the \"Project\") dated February 28,\n 2013 has been filed on SEDAR.com and available on the Company's website at www.encantopotash.com.  The Company advises that a correction to the Pre-Feasibility Study\n results which were announced February 4, 2013 was necessary and the\n revised results are stated below.  During the NI 43-101 finalization\n review of the economic model, it was determined an inflation adjustment\n factor was not applied to all the royalties and taxes.  The inflated\n taxes and royalties now used have been taken into account in the\n financial model and result in the IRR for the project now being 18.0%\n (20.0 % before tax) versus the announced IRR of 19.1% (20.4% before\n taxes) and the after tax NPV, discounted at 10%, is now $2.84 billion\n ($4.12 billion before tax) versus the announced after tax NPV\n discounted at 10% of $3.63 Billion ($4.47 billion before tax). There\n has been no change to the announced Mineral Reserves that are\n sufficient to support the production of 2.8 million tonnes per year of\n Potash (MOP) for 58 years.\n\n\nJim Walchuck, President & CEO of Encanto commented \"The Company is\n pleased to have achieved another milestone of filing the completed NI\n 43-101 and with these adjustments, the Project remains robust.  The\n Company is continuing to move the Project forward toward production\n with the Feasibility Study ongoing.\"\n\n\nA summary of the Revised Financial Model is as follows:\n\n\nRealized Potash Price (FOB Vancouver)\n\n\n$460/t standard$485/t granular\n\n\nDiscount Rate\n\n\n10%\n\n\nNPV - After Tax\nNPV - Pre-Tax\n\n\n$2.84B$4.12B\n\n\nIRR - After Tax\nIRR - Pre - Tax\n\n\n18.0%\n20.0%\n\n\nInflation Rate\n\n\n2%\n\n\nOPEX at full capacity\n(includes utilities, labour, maintenance, reagents, fuel, insurances and\n municipal taxes)\nSustaining capital cost\n(includes brine field and Tailing Management Area extensions)\n\n\n$54.32/t$32.21/t\n\n\nLogistics Costs (rail and port)\n\n\n$50.50/t\n\n\nTaxes and Royalties\n(includes Potash Production T...

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