Atlas Salt receives positive Great Atlantic feasibility, Newfoundland
Atlas Salt Inc. [SALT-TSXV] released the results of a feasibility study (FS) and updated mineral resource estimate prepared by SLR Consulting (Canada) Ltd. on its 100%-owned Great Atlantic salt project located in western Newfoundland, Canada.
The FS represents a significant economic improvement over the preliminary economic assessment (PEA), also completed by SLR, released by Atlas Jan. 30, 2023 (all figures in Canadian dollars).
In addition, SLR has also provided an expansion case to 4.0 million tonnes per year (Mtpa) of road deicing salt over a 47.5-year mine life presented at a Preliminary Economic Assessment (PEA) level analysis. This demonstrates a robust upside production scenario with a pre-tax net present value (NPV) at 8% of $2.015 billion (CDN) and a pre-tax IRR of 28%. The expansion case is based on Probable Mineral Reserves, with the remainder being Inferred Mineral Resources.
FS Highlights – Robust economics based on 2.5 million tonnes-per-year production over a 34-year mine life:
Pre-Tax Economics: Internal Rate of Return (IRR) of 23%; Net Present Value (NPV) at 8% of $1.017 billion; Payback in 4.2 years after commencement of operations; Low-cost production – utilizing a Q3 2023 cost basis of $22.70 per tonne FOB originating port.
Expansion of Indicated Mineral Resources, and first-time declaration of Mineral Reserves – Updated Mineral Resource Estimate: Indicated Mineral Resources totaling 383 Mt at 96.0 % NaCl; Inferred Mineral Resources totaling 868 Mt at 95.2 % NaCl; Probable Mineral Reserves totaling 88.1 Mt at 96% NaCl.
Rick LaBelle, CEO, commented: “I am thrilled to be joining the Company at this pivotal point in its history. The Independent Feasibility Study is a major milestone on the path to the development of the massive high-grade Great Atlantic deposit which will stand out as the salt mine of the 21 st century in North America, strategically located in the heart of a robust salt market serving Eastern Canada and the U.S. East Coast.”
LaBelle added, “I’m excited to be working with President Rowland Howe, who played such an important role in the development of the world’s largest underground salt mine at Goderich, and we’re in the midst of assembling a top-notch team to get the job done at Great Atlantic. The expansion scenario underscores how there is substantial additional room to optimize an already strong Feasibility Study. We have de-risked this project and we will maximize the value of this unique, transformative asset for shareholders in an investor-friendly way.”
LaBelle concluded, “I look forward to a very busy Q4 as we build momentum and accordingly I expect Atlas Salt will have much more to announce.”
The FS considers developing Great Atlantic into an underground operating mine capable of producing 2.5 Mtpa of rock salt with key mine access and plant infrastructure designed for 4.0 Mtpa. Construction of the mine would occur over three years, with access to the deposit via twin declines. Extraction of rock salt would occur using the room and pillar method, with continuous mining equipment.
Processing of the salt will take place at a crushing and screening plant located within the underground mine.
Upon completion of the FS, Atlas intends to release a supporting NI 43-101 Technical Report filed on SEDAR within 45 days of this news release.