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Vulcan Minerals – Atlas Salt Releases Robust PEA Results on the Great Atlantic Salt Deposit
ST. JOHN’S, Newfoundland and Labrador, Jan. 31, 2023 (GLOBE NEWSWIRE) -- Vulcan Minerals Inc. (“the Company” - “Vulcan” TSX-V: VUL), is pleased to announce that
About this update from Vulcan Minerals Inc.
[{"type":"text","content":" ST. JOHN’S, Newfoundland and Labrador, Jan. 31, 2023 (GLOBE NEWSWIRE) -- Vulcan Minerals Inc. (“the Company” - “Vulcan” TSX-V: VUL), is pleased to announce that Atlas Salt Inc. (TSXV: SALT), a related company, has released the results from a Preliminary Economic Assessment (PEA) of its Great Atlantic salt deposit in Western Newfoundland completed by SLR Consulting (Canada) Ltd. The complete copy of the Atlas Salt news release can be found here https://atlassalt.com/news/ providing full context for the highlights below. Highlights: Robust economic valuation based on a pre-tax net present value (NPV) of $909 million at an 8% discount rate as per a 30 year cash flow model at a production rate of 2.5 million tonnes per year (Mtpa) yielding an Internal Rate of Return of 22% Low cost production – utilizing a Q4 cost basis of $23.81 per tonne FOB Mining infrastructure designed to increase production up to 4 Mtpa plus recognition that mineral resources are available for a much longer mine life Indicated Mineral Resource of 187 million tonnes (Mt) at 96.4 % NaCl, plus Inferred Mineral Resource of 999 Mt at 95.6 % NaCl Project designed to utilize electricity as the environmentally friendly energy source Access to the underground deposit through dual declines allowing for production scalability and economic efficiencies Economic Summary: Table 1:Summary of Economic Outcomes – Initial 30 Year Production Plan at 2.5 Mtpa Metric Units Value Pre-Tax Payback Period yrs 4.2 Pre-Tax IRR % 22.1% Pre-tax NPV at 5% discounting C$ '000 1,627,736 Pre-tax NPV at 8% discounting C$ '000 909,338 Pre-tax NPV at 10% discounting C$ '000 620,247 Post-Tax Payback Period yrs 5.0 Post-tax IRR % 17.3 Post-tax NPV at 5% discounting C$ '000 920,320 Post-tax NPV at 8% discounting C$ '000 481,900 Post-tax NPV at 10% discounting C$ '000 304,935 Vulcan retains a 3% net production royalty on the mineral licences it transferred to Atlas Salt (formerly Red Moon Resources Inc.) upon spinout of Atlas Salt from the company in 2012, which includes the Great Atlantic Salt project. Vulcan also owns 28,891,000 shares (31.2% of the outstanding shares) in Atlas Salt Inc. Patrick Laracy, President commented “The PEA evaluation is very impressive. It is gratifying to have this independent PEA confirm the project’s compelling commercial merits....