This drilling program is another step in the process of achieving the Company’s objective of significantly increasing the mineral resources and extending the operational life of its Lac à Paul Phosphate Rock Project.
The Paul Zone currently consists of 590 million tonnes of measured and indicated (M & I) resources at a grade of 7.1% P2O5 for which mineral reserves totalling 472.1 million tonnes at a grade of 6.9% P2O5 have been established based on the mining plan of the Feasibility Study (the "Study") for the Lac à Paul project filed in 2013.
According to the Study, these reserves support a minimum mine life of 25.75 years by mining just the Paul Zone, as currently defined and will generate an NPV of 1.9B$ US at an 8% discount rate. In addition, the Manouane Zone contains 164 million tonnes of measured and indicated resources (M & I) at a grade of 5.88% P2O5 and Zone 2 consists of 64 million tonnes of inferred resources at 4.55% P2O5 (see press release of November 8, 2011).
This new drilling program has two main targets: the first is to test the western extension of the Paul Zone which has not yet been drilled while the second is to test the depth potential of the TraMan Zone, located about 5 km south of the ore treatment facility.
There is a strong magnetic anomaly on the TraMan Zone, similar to the one defined on the Paul Zone. More than two hundred (200) samples were collected on the TraMan Zone during the summer 2013 surface exploration program Of these samples, one hundred ten (110) returned values greater than 5% P2O5, with eighteen (18) having values greater than 8% P2O5.
The best results were as high as 16.6%P2O5, 14.8%P2O5, 14.4% P2O5 and 13.8% P2O5.
Brian Kenny, chief executive officer of the Company, said, "We are already aware of the excellent economics of the Lac a Paul project and of its exceptional P2O5 potential. Accordingly, we are confident that the results of this drilling program will further increase the property’s major mineral resources and significantly extend the life of our world-class project."
