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MBAC Reports Initial NI 43-101 Preliminary Economic Assessment and Resource Estimate for Santana Phosphate Project, Brazil
TSX: MBC OTCQX: MBCFF Shares Outstanding: 86,374,336 Fully Diluted: 94,388,643 ...
About this update from Itafos Inc
[{"type":"text","content":"\n\n\n\n\n\n\n\n\nTSX: MBCOTCQX: MBCFFShares Outstanding: 86,374,336Fully Diluted: 94,388,643\n\n\nTORONTO, Sept. 12, 2011 /CNW/ - MBAC Fertilizer Corp. (\"MBAC\" or the \"Company\") (TSX:MBC and\n OTCQX:MBCFF) is very pleased to announce the results of an initial National\n Instrument 43-101 (\"NI 43-101\") compliant Preliminary Economic\n Assessment (\"PEA\") for the Company's 100% owned Santana Phosphate\n Project (the \"Project\") located in the southeast of Pará State,\n Brazil.  The PEA is based on an initial inferred mineral resource\n estimate determined by drilling completed up to July 31, 2011. The PEA\n is preliminary in nature.  It includes inferred mineral resources which\n are considered too speculative geologically to have the economic\n considerations applied to them that would enable them to be categorized\n as mineral reserves and there is no certainty that the preliminary\n economic assessment will be realized. The Company will file on SEDAR a\n NI 43-101 technical report containing the mineral resource estimate and\n PEA within the next 45 days.\n\n\nHighlights of the NI 43-101 Technical Report:\n\n\nThe initial resource estimate for the Santana deposit is inferred\n resources of 33.5Mt with an average P2O5 content of 12.4% (using a 3% P2O5 Cut-off)\n\n\nThis grade deposit makes Santana one of the highest grade phosphate\n mines in Brazil\n\n\nHighlights of the PEA:\n\n\nEstimated production of 500,000 tonnes per annum of Single\n Superphosphate (\"SSP\") production starting in Q3, 2015, using 300,000\n tonnes of P2O5  34% concentrate\n\n\nA robust NPV of $423 million (at a discount rate of 10%) and an IRR of\n 26.3%\n\n\nOperating cash costs of $127 per tonne SSP (includes a10% contingency)\n\n\nCapital costs of $385 million\n\n\nMine life of 22 years (based on initial resource estimate)\n\n\nProduction target Q3, 2015\n\n\nSignificant resource expansion potential\n\n\nOpportunities to increase value by production of other higher-content\n phosphate fertilizers and animal nutrient products.  A review of which\n will be finalized before completion of the feasibility study\n\n\nThe initial lab tests with concentrates resulted in high quality SSP and\n phosphoric acid suitable for Triple Superphosphate (\"TSP\") and\n Di-calcium Phosphate (\"DCP\") production\n\n\nAntenor Silva, Preside...