IC Potash Announces Filing of Feasibility Study for the Ochoa
Sulphate of Potash Project
TORONTO, ON--(Marketwired -
March 10, 2014) - IC Potash Corp. (TSX: ICP) (OTCQX:
ICPTF) ("ICP" or the "Company") is pleased to announce the
filing of the "NI 43-101 Technical Report, Ochoa Project
Feasibility Study, Lea County, New Mexico, USA" (the "Report") on
SEDAR (www.sedar.com). The Report is also filed on the Company
website (www.icpotash.com). The date of the Report is March 7,
2014, with an effective date of January 9, 2014. It was prepared by
Qualified Persons from Agapito Associates Inc. and SNC-Lavalin Inc.
All dollar amounts in this press release are U.S. dollars and all
tons are short tons.
The Report includes a summary of the Ochoa Project (the
"Project"), including geology and mineralization, exploration and
drilling, resources and reserves, mining methods, mineral
processing and metallurgical testing, infrastructure, hydrology,
environmental permitting, marketing, capital costs, operating
costs, project economics, and conclusions and recommendations.
The Report recommends that ICP immediately seek funding for
bridge engineering while also seeking full funding of the Ochoa
Project. The Report also recommends that the Company move to
implementation by commencing engineering, procurement, and
construction management ("EPCM") activities and completing the
environmental permitting.
Mr. Sidney Himmel, CEO of ICP, stated: "The completion and
filing of this report, and the recommendations of its authors,
allows the Company to progress to obtain financing and project
partners to advance towards construction and production."
Highlights from the Report include:
- The financial model covers approximately three years of
construction and commissioning beginning in Q2 2014 and continuing
through Q2 2017, followed by 50 years of operation. Sulphate
of Potash ("SOP") production in 2017 is estimated at 48% of annual
capacity, with full capacity expected in 2018.
- The Company remains on schedule to receive a record of decision
on its environmental impact statement in Q2 2014, which will allow
construction to commence as planned.
- The ore bed will be accessed via a 25-foot diameter, two
compartment mine ventilation and service shaft, and a 12,000-foot
long slope.
- Room-and-pillar mining and dual split super section mining
methods are expected to be used to extract ore from the deposit at
a nominal rate of 3.7 million tons per year.
- The plant is designed to operate 7,912 hours annually and
employ approximately 400 people at full production.
- The Company has full right to appropriate non-potable water
from the Capitan Reef aquifer for mining and industrial use.
- Average K2O process recovery is estimated to be 82%.
- Steady-state annual production at full capacity is expected to
be 714,400 tons of SOP. The product mix is projected to be 229,400
tons of standard SOP, 385,000 tons of granular SOP, and 100,000
tons of soluble SOP.
- Steady-state operating production cost is estimated to be $195
per ton of SOP.
- The capital cost of the Project is estimated to be $1,018
million, with an accuracy of +/-15%.
- The after-tax Net Present Value ("NPV") is US$612 million using
an after tax discount rate of 10% and no debt. The after-tax
internal rate of return is 16%. The after-tax NPV is US$1.019
billion, using an after-tax discount rate of 8% and no debt.
- Payback period from the commencement of production is expected
to be 5.4 years after tax.
The Report identifies Measured and Indicated Resources of
1,017.8 million tons at an average grade of 83.9% by weight
polyhalite. Mineral Resources that are not Mineral Reserves do not
have demonstrated economic viability. Mineral Resources are
summarized in the table below:
Ochoa Project Mineral Resources, (effective date May 31,
2013)
|
|
|
Average Thickness(ft) |
|
ResourceArea(acres) |
|
In-Place Tons1,2,3 (millions) |
|
Polyhalite(wt %) |
|
Equivalent K2SO4(wt %) |
|
Anhydrite(wt %) |
|
Halite(wt %) |
|
Magnesite (wt %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASURED4 |
|
5.2 |
|
26,166 |
|
511.7 |
|
84.5 |
|
24.4 |
|
4.02 |
|
3.27 |
|
7.94 |
INDICATED5 |
|
5.0 |
|
26,698 |
|
506.0 |
|
83.3 |
|
24.1 |
|
4.00 |
|
3.30 |
|
8.61 |
TOTAL
M&I |
|
5.1 |
|
52,865 |
|
1,017.8 |
|
83.9 |
|
24.2 |
|
4.01 |
|
3.28 |
|
8.27 |
INFERRED6 |
|
4.8 |
|
15,634 |
|
284.0 |
|
82.6 |
|
23.9 |
|
4.11 |
|
3.37 |
|
8.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Average in-situ bulk density of 173.5
pounds per cubic foot (pcf). |
2 Bed thickness cutoff 4.0 ft, composite
grade cutoff 65.0% polyhalite, excludes out-of-seam
dilution. |
3 Mineral Resource includes Mineral
Reserves. |
4 Measured Resource located within 0.75-mile
radius from an exploration core hole. |
5 Indicated Resource located between
0.75-mile and 1.5-mile radius from an exploration core
hole. |
6 Inferred Resource located between 1.5-mile
and 3.0-mile radius from an exploration core hole. |
Note: Gypsum
weight percent negligible for all resource classifications. |
|
The Company released the details of a feasibility study on
January 23, 2014. The Report outlines a detailed 50-year mine plan
as well as calculated Proven and Probable Mineral Reserves based on
the Project's Measured and Indicated Mineral Resources. Contained
within the mine plan are approximately 182.4 million tons of Proven
and Probable Reserves grading 78.05% by weight polyhalite. Measured
and Indicated mineral resources become Proven and Probable Mineral
Reserves once it has been determined that the resources are
economic for extraction. These Reserves are shown below:
Ochoa Project Mineral Reserves, (effective date January 9,
2014)
|
|
AverageMinedThickness1 (ft) |
|
50 Year Mine Plan Mined Area(million ft2 ) |
|
ROM Mined Tons 2,3 (millions) |
|
Mining Recovery4 (%) |
|
Polyhalite(wt %) |
|
EquivalentK2S04 (wt %) |
|
Anhydrite(wt %) |
|
Halite(wt %) |
|
Magnesite(wt %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVEN |
|
5.9 |
|
246 |
|
125.0 |
|
47.1% |
|
78.42 |
|
22.66 |
|
11.29 |
|
3.66 |
|
7.79 |
PROBABLE |
|
5.9 |
|
113 |
|
57.4 |
|
64.8% |
|
77.20 |
|
22.31 |
|
11.60 |
|
3.65 |
|
8.30 |
TOTAL
P&P |
|
5.9 |
|
359 |
|
182.4 |
|
51.5% |
|
78.05 |
|
22.55 |
|
11.39 |
|
3.66 |
|
8.08 |
1 Bed thickness cutoff 4.0 ft,
composite grade cutoff 66.0% polyhalite, includes out-of-seam
dilution. |
2 Average in-situ bulk density of 173.5
pcf. |
3 No inferred tons mined |
4 Areal recovery (mined area) inside 50
Year Mine Plan boundary |
Note: Gypsum weight percent negligible
for all resource classifications. |
Mineral
Reserves are included in Mineral Resources |
|
Measured and Indicated Mineral Resources exist to the north,
east, and west of the 50-year mine plan boundary and there is a
reasonable expectation that those resources will be economically
mineable, which would allow for an extension of mining operations
beyond 50 years.
Qualified Persons Report:
All scientific and technical disclosures in this press release
have been prepared under the supervision of and approved by Deepak
Malhotra, Ph.D. and registered SME member, president of Resource
Development Inc., a Qualified Person within the meaning of National
Instrument 43-101 - Standards of Disclosure for Mineral Projects
("NI 43-101") and an advisor to the Company.
The Report authors are Gary Skaggs, P.E., P.Eng.; Leo Gilbride,
P.E.; Tom Vandergrift, P.E.; Susan Patton, Ph.D., P.E.; Vanessa
Santos, PG; Lawrence Berthelet, P.Eng., MBA; and Jack Nagy, P.
Eng., each an independent Qualified Person within the meaning of NI
43-101.
About IC Potash Corp.
ICP has demonstrated a low-cost method to produce Sulphate of
Potash ("SOP") from its 100%-owned Ochoa polyhalite deposit in
southeast New Mexico. The Company intends to become a primary,
long-term producer of SOP. The global market for SOP is 5.5 million
tons per year, with producers benefiting from substantial price
premiums over regular potash, known as muriate of potash. SOP is a
non-chloride potash fertilizer widely used in the horticultural
industry and for high value crops, such as fruits, vegetables,
tobacco and potatoes. It is applicable for soils where there are
substantial agricultural activity, high soil salinity, and in arid
regions. The Ochoa Project has access to excellent local labor
resources, low-cost electricity and natural gas, water, rail lines,
and the Port of Galveston, Texas. ICP's land holdings consist of
nearly 90,000 acres of federal subsurface potassium prospecting
permits and State of New Mexico potassium mining leases. For more
information, please visit www.icpotash.com.
Forward-Looking Statements
Certain information set forth in this news release may contain
forward-looking statements that involve substantial known and
unknown risks and uncertainties and other factors which may cause
the actual results, performance or achievements of ICP to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Forward-looking statements include statements that use
forward-looking terminology such as "may", "will", "expect",
"anticipate", "believe", "continue", "potential" or the negative
thereof or other variations thereof or comparable terminology. Such
forward-looking statements include, without limitation, reserve
estimates, ICP's expected position as one of the lowest cost
producers of SOP in the world, the timing of receipt and
publication of ICP's environmental permits, the sufficiency of
ICP's cash balances, the timing of production, and other statements
that are not historical facts. These forward-looking statements are
subject to numerous risks and uncertainties, certain of which are
beyond the control of ICP, including, but not limited to, risks
associated with mineral exploration and mining activities, the
impact of general economic conditions, industry conditions,
dependence upon regulatory approvals, the uncertainty of obtaining
additional financing, and risks associated with turning reserves
into product. Readers are cautioned that the assumptions used in
the preparation of such information, although considered reasonable
at the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking
statements.
FOR MORE INFORMATION, PLEASE CONTACT: Mr. Mehdi Azodi Investor
Relations Director Phone: 416-779-3268 E-mail:
mazodi@icpotash.com
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