Atlas Salt (TSXV:SALT; OTCQB:REMRF) has shared the results of an independent preliminary economic assessment (PEA) and updated mineral resource estimate from its 100%-owned Great Atlantic salt project, located on the west coast of Newfoundland.
According to the assessment, the project has a pre-tax internal rate of return of 22%, a net present value (with 8% discount) of $909 million and payback in just over four years after commencement of operations. Base case is reported to be 2.5 million t/y production for a 30-year mine life with a processing design to accommodate expansion up to 4.0 million t/y and capable of extending the expected mine life.
Based on 2022 fourth quarter, production costs are valued at $23.81 per tonne. According to the estimate, indicated mineral resources are 187 million tonnes at 96.4% salt and inferred mineral resources of 999 million tonnes at 95.6% salt.
Upon completion of the PEA, Atlas intends to release a supporting NI 43-101 compliant report posted to SEDAR within 45 days of this news release. Ongoing work towards feasibility study completion include updating geological modelling based on the most recent drilling (such as drill hole CC-9, which is not incorporated into the current mineral resource estimate), continued progress in the areas of environmental baseline monitoring, and targeting completion of the feasibility study in the first half of 2023.
“In my 30+ years in this industry I have not come across a salt project as unique as Great Atlantic, given its combination of size, shallowness, and logistical advantages. This robust PEA confirms our vision for the project,” said Rowland Howe, Atlas President.
To learn more, visit www.AtlasSalt.com.