Business
MBAC announces results of Feasibility Study for Santana Phosphate Project
TSX: MBC OTCQX: MBCFF Shares Outstanding: 152,029,492 Fully Diluted: 166,974,330...
About this update from Itafos Inc
[{"type":"text","content":"\n\n\n\n\n\nTSX: MBC\nOTCQX: MBCFF\nShares Outstanding: 152,029,492\nFully Diluted: 166,974,330\n\n\nTORONTO, Oct. 17, 2013 /CNW/ - MBAC Fertilizer Corp. (\"MBAC\" or the \"Company\") (TSX:MBC and OTCQX:MBCFF) announces the results of a Feasibility Study (the \"Feasibility Study\"),\n for its 100% owned Santana Phosphate Project (the \"Santana Project\" or\n the \"Project\") located in the southeast of Pará State close to the\n border of Mato Grosso State in Brazil.  The Santana Project is a high\n grade phosphate fertilizer project located in the heartland of one of\n the most promising agricultural areas in South America.\n\n\nThe Feasibility Study includes a detailed analysis of the technical,\n operating and capital cost considerations.  A technical report in\n connection with the Feasibility Study results will be filed on SEDAR (www.sedar.com) within 45 days of the date of this press release, and will also be\n made available on MBAC's website.\n\n\nFeasibility Study Highlights\n\n\n\nMineral reserves of 45.5 million tonnes (Mt) with an average grade of\n 12.9% P2O5 (3% cut off);\n\n\nEstimated mine life of 32 years based on current reserves;\n\n\nAverage annual production of 500,000 tonnes of granulated Single Super\n Phosphate (\"SSP\");\n\n\nInitial capital cost estimate of US$376.7 million before a contingency\n of US$50 million;\n\n\nGranulated SSP 0-19-0 (Nitrogen-Phosphate-Potassium content ratio) with\n a selling price of US$345/tonne in 2016 (first year of sales);\n\n\nEstimated operating cost of US$113/tonne in 2017 (expected first year of\n full production);\n\n\nAfter tax Internal Rate of Return of 19.9%;\n\n\nAfter tax Net Present Value of US$396 million;\n\n\nPayback is 5 years (from start of operation in 2016).\n\n\n\nSantana Project Background\n\n\nMBAC, through one of its subsidiaries, is the beneficial holder of eight\n exploration claims with an additional three exploration permits under\n application, totaling of 97,949 hectares. The Santana Project is\n located in the southeast of Pará State, Brazil. The target phosphate\n fertilizer markets for the Santana Project are the northern and eastern\n regions of Mato Grosso State and the southern region of Pará State.\n Mato Grosso State is the largest soybean producer in Brazil and the\n largest consumer of fertilizer, while Pará...