EPM Mining Ventures Inc. - Special Call
Oct 29 13
To discuss results of a preliminary feasibility study for the production of Sulphate of Potash from its Sevier Lake Playa Sulfate of Potash Project located in southwestern Utah
EPM Mining Ventures Inc. Announces Results of Preliminary Feasibility Study for its Sevier Lake Playa Sulphate of Potash Project
Oct 29 13
EPM Mining Ventures Inc. announced the results of a preliminary feasibility study for the production of Sulphate of Potash from its Sevier Lake Playa Sulfate of Potash Project located in southwestern Utah. The PFS was prepared by CH2M HILL Engineers Inc., Agapito Associates Inc. and Norwest Corporation. Preliminary Feasibility Study Highlights: The PFS forecasts average annual SOP production of 300,000 metric tonnes with an estimated Net Present Value (NPV) of $629 million (after tax, inflated, 8% discount rate) and an estimated Internal Rate of Return of 20% (after tax, inflated). The PFS includes an updated Mineral Resource Estimate, which estimate includes 31.486 million tonnes of SOP in the Measured and Indicated categories, a 7% increase from previously published estimates, due primarily to results of recent drilling. The total direct capital costs of the Project are estimated to be $292 M, not including indirect costs and contingency, as of 2013. All capital costs in the economic model are inflated by 2% annually beginning in year PP-3. Contingency is 12% of direct capital costs. The capital cost estimate has an accuracy of +25%/-20%. Based on the Parthenon Farmer Survey, the company anticipates strong future demand potential not only for SOP but also for micronutrients such as sulphur and magnesium, both of which are contained in the Project's brine resource. One of the important outcomes of the Farmer Survey was the need for better end-user education as to the economic benefits of SOP. The company believes that with additional research, marketing, and educational outreach, greater market potential for SOP may be realized. The SOP price forecast utilized in the PFS was based upon the 2012 CRU International Ltd. (CRU) price forecasts of $566/t in 2015, and reaching $721/t in 2020 (inflated at 2% annually thereafter); standard grade product, FOB Vancouver/Portland. Based on the premium for granular and soluble product over standard grade product in the marketplace; the company's proposed mix of granular, soluble, and standard grade product; the company's estimated mix of domestic and international sales; and the estimated transportation costs between the mine gate and Vancouver/Portland (including port fees); the price forecast used in the economic model represents FOB mine gate (ex-works) pricing, and is estimated to be equal to the prices projected by CRU. The PFS only considered SOP production. The company anticipates completing a Feasibility Study in 2014 that will consider minerals extraction in addition to SOP, including products such as magnesium sulphate, magnesium chloride, sodium sulphate, and possibly lithium. Given the presence of other mineral constituents in the brine resource, ancillary minerals may provide the Company with a source of additional value if such minerals prove to be economic as the result of further studies. The total Measured and Indicated Resource for SOP increased from 29.485 Mt in the May 2012 Technical Report, to 31.486 Mt in the PFS, an increase of approximately 7%, primarily due to the results of the 2013 drilling program.
EPM Mining Ventures Inc. Provides Update on Preparation of Preliminary Feasibility Study
Jun 18 13
EPM Mining Ventures Inc. announced continuing progress on its Preliminary Feasibility Study by CH2M HILL Engineers Inc., Agapito Associates Inc., and Norwest Corporation for the production of Sulfate of Potash from its Sevier Playa Project in southwestern Utah. The estimated completion date of the PFS remains mid-2013 with a Definitive Feasibility Study expected by the end of the year. Norwest has completed a new resource estimate that will be included as part of the PFS. CH2 and its engineering support teams have made significant progress in design, engineering, and process work for the PFS in the following areas: The hydrology and hydrophysical field-testing that were being carried out by CH2 and Colog is now complete. Process works is advancing and a fully developed flow sheet is expected soon. Laboratory evaporation testing of the Project brine is nearing completion by Hazen Research Inc. Production plant design, trans-load facility design, and site surveys are almost finalized with 3-D design also nearing completion. Development of a comprehensive financial model and detailed economic analysis showing anticipated capital and operating costs. AAI continues work on the Sevier Playa system and is nearing completion of the following: Analysis of data from the hydrogeological and hydrophysical field-testing program. Preparation of hydrogeological models of the System. Finalizing the design and capital cost estimates for the ponds, well fields, and trenches; and Completing their Reserve model.