Saguenay, October 27, 2010.The management of Arianne Resources Inc. (« Arianne » or « Company ») and its subsidiary Canada Phosphate Inc. announce that they will participate to two major events in Quebec this fall: the Montreal Investment Conference will be held in Montreal November 5 and 6 at the Palais des Congrès ,(booth323) as well as the Québec Exploration 2010, which will take place at the Château Frontenac in Quebec City on November 23 to 25.
About phosphates:The price for phosphate rocks went up 20 US$/t just recently, to reach 150 to 170 US$/t(for CFR India grading 72-75% BPL – compared to the Lac à Paul concentrate which grades 84-87% BPL and will be produced for less than 60 CDN$/t). Experts agree that the price for phosphate rocks and their by-products (fertilizers) should continue to rise in the coming months and possibly years. It is difficult to imagine how these prices could come down since phosphorus is one of the three elements in fertilizers (the two others being potassium and nitrogen) and it can not be replaced or synthesized. This element plays a key role in the growth of cereals (http://www.ipni.net/ and http://arianne-inc.com/userfiles/file/phosphore/phosphorus_2_pages_ang.pdf). These cereals are at risk of going into shortage, if the pressures on current food stocks, from the growth of the world population as well as the changes in eating habits from development countries, are not reduced.
The possibility of another food crisis is never far. As a proof of this, the recent increase in wheat prices, due to floods and fires (http://arianne-inc.com/userfiles/file/communique/news_letter_sept2010_ang.pdf ). Even if Canada holds a strategic position in the fertilizer industry because of Potash Corp and Agrium; we only have one operating phosphorus mine and it is scheduled to close within the next five years. In this context, mining projects such as the Lac à Paul project become of a strategic importance. It is imperative for this future phosphorus mine to come into production quickly (less than 5 years), in order to maintain a Canadian production.
Arianne Resources(www.arianne-inc.com) is a Canadian exploration company with the primary mission to explore and develop gold, silver and phosphate-titanium deposits in Canada and Mexico. The Company has approximately 29 M shares issued. Canada Phosphate(www.canadaphosphate.com ) is Arianne’s wholly-owned subsidiary that develops the Lac à Paul phosphate-titanium deposits that will produce a high grade apatite concentrate grading 40% P2O5.
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