Saguenay, March 7, 2013. The management of Arianne Phosphate (“Arianne” or the “Company”) is pleased to announce that the updated mineral estimate for the Paul Zone amounts to 590 million metric tons (Mt) of measured and indicated resources. This National Instrument 43-101-compliant resource calculation conducted by GoldMinds Geoservices Inc., in cooperation with Arianne personnel, provides an updated estimate of the resources present in the Paul Zone, which is the main zone of the Lac à Paul phosphorus mining project, Saguenay–Lac-St-Jean, Quebec.
The updated mineral resource estimate incorporates the results of drilling programs undertaken during the last quarter of 2011 (December 12, 2011, press release) and in 2012 (March 20, September 5 and October 23, 2012, press releases) on the lateral and depth extensions of the Paul Zone. This update includes 105 new drill holes. In total, 153 holes, totalling 39,371 metres, have now been drilled on the Paul Zone. The highlights are:
- For this disclosure of resources, a cut-off grade of 4.0% P2O5, instead of 2.43% P2O5 in 2011, was used.
- Although the cut-off grade is higher, the measured and indicated resources of the Paul Zone have increased by 221% compared to the last estimate released in 2011.
- The measured and indicated mineral resources (M+I) of the Paul Zone amount to 590.24 Mt at 7.13% P2O5.
- The mineral resource estimate was calculated according to NI 43-101.
Other mineral resources of the Lac à Paul mining property
In addition to the mineral resources present in the Paul Zone, NI 43-101-compliant resources have already been estimated for Zones 2 and Manouane in the Lac à Paul property. These resources, released in November 2011 in the NI 43-101 technical report by SGS Geostat, have not been updated because no additional drilling has been carried out on these zones since 2011. They are summarized as follows:
Parameters used for resource estimation and classification:
– The resources include blocks tabulated above 4.00% P2O5; this new cut-off grade was applied to show the robustness of the resource; the Feasibility Study underway will determine the exact cut-off grade
– Model with 10 mE x 5m N x 10 mZ blocks
– The model extends from 373,100 to 376,200 m E, 5,528,850 to 5,529,900 m N and 550 to 100 Z, 450 being the surface perpendicular to the deposit
– Average density of 3.42 t/m3; additional measurements are underway to use a variable density in the final feasibility study – 3 m composites
– The Paul zone is divided into two areas, the nelsonite area and the nelsonite combined with anorthositic gabbro area, the first being in the northern part and the second in the southern part of the deposit
– Grades were estimated using an inverse distance squared interpolation in 3 passes with the following parameters: pass 1 with the number of composites limited to 12, a minimum of 4 and a maximum of 3 from the same drill hole; the estimate for pass 2 was carried out with the number of composites limited to 12, a minimum of 3 and a maximum of 3 for the same drill hole; the estimate for pass 3 was carried out with the number of composites limited to 12, a minimum of 3 and a maximum of 3 for the same drill hole; the search ellipses were identical for pass 1 and pass 2, while pass 3 used a larger ellipse; the first ellipse in the eastern sector measured 250 x 150 x 50 m with the long axis oriented 112 degrees north and the intermediate axis dipping 80 degrees southwest (subvertical); the second ellipse measured 350 x 150 x 75 m and was oriented 102 degrees and dipped 70 degrees; in the western sector, the same measurements were used for the first pass with the long axis oriented 90 degrees north and the intermediate axis dipping 70 degrees south
– Major intrusions were eliminated from the model while minor intrusions were included in the model as dilution – The block model was cut by the rock/overburden interface
– The classification parameters were measured with at least two drill holes within a 70 x 70 x 35 m ellipse oriented, for all categories, 102 degrees north with the intermediate axis dipping 70 degrees southwest (subvertical) and indicated with at least two drill holes in a 140 x 140 x 70 m ellipse and a drill hole with 3 composites in 350 x 200 x 90 m
– A QA/QC program was followed to monitor laboratory analytical results
Mineral reserves
The update of the Paul Zone’s mineral resources does not affect current mineral reserves for the Manouane and Paul zones which are mentioned in the Updated Pre-Feasibility Study conducted by Met-Chem Canada Inc. in 2012. They are still as follows:
A new estimate of mineral reserves for the Paul Zone based on the new resource calculation will be established and integrated into the Feasibility Study that is currently being prepared by Cegertec WorleyParsons Inc.
Mine life
The Feasibility Study underway is based on an extraction rate of 50,000 metric tons of ore per day, for an annual production of about 3 Mt of phosphate concentrate. Based on these parameters, the NI 43-101 technical report from the 2012 Pre-Feasibility Study estimates mine life at 17 years, that is, 9 years for the Paul Zone and 8 years for the Manouane Zone.
“Based on the new measured and indicated resources estimates, the mine life of the Paul Zone alone should be many years longer, since the estimate of available resources is tripled the earlier estimates,” said CEO Bernard Lapointe.
Geology and mineralized zones
The mineralization of the Lac à Paul deposits is magmatic and is associated with apatite-rich (economic mineral) nelsonite and anorthositic gabbro. There are three major zones with phosphorus (P) mineralization within the Lac à Paul property. They are known as the Paul Zone, Manouane Zone and Zone 2 and are shown in the attached figure (http://bit.ly/WtT2EP).
The figure also shows other sectors where drilling intersected significant mineralization (Nicole, La Traverse, Lucy and Lise sectors). They are located along a magnetic anomaly that is nearly 20 km long and is indicative of the significant phosphorus potential of the Lac à Paul property.
Outlook – Other project developments
Cegertec WorleyParsons are presently conducting the Feasibility Study with a planned completion date of Q3 2013. Processing tests of ore from the Paul Zone is being carried-out by Jacobs Engineering, Florida, and COREM, Québec. The Environmental and Social Impact Assessment being prepared by Genivar should also be filed in Q3 2013.
Additional information
Additional information required under Part 3 of NI 43-101 and not contained in this release can be obtained from the Pre-Feasibility Study of the Lac à Paul project, dated July 13, 2012, available on the Company’s website www.arianne-inc.com. The Pre-Feasibility Study contains details regarding Arianne’s data verification and QA/QC programs and measures.
Qualified persons
The Paul Zone’s mineral resource update was prepared by Claude Duplessis, Eng., of GoldMinds Geoservices Inc., considered an independent qualified person under NI 43-101. Mr. Daniel Boulianne, P.Geo., Qualified Person for the Company as per NI 43-101, has approved this press release.
Arianne Phosphate (www.arianne-inc.com) owns and is developing the Lac a Paul phosphate-titanium deposit that produces a superior grade apatite concentrate grading close to 39% P2O5. The Company currently has 75 M shares issued.
Forward Looking Statements and Information
This news release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable securities regulations in Canada and the United States (collectively, “forward-looking information”). The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, statements with respect to estimated mineral resources, anticipated effect of the completed drill results on the Project, timing of a feasibility study, and timing and expectations of future work programs. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects, “is expected”, “budget”, “scheduled”, “estimates”, forecasts”, “intends”, “anticipates”, or “believes”, or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, or “will” be taken, occur or be achieved.
CAUTIONARY NOTE TO US READERS
The SEC allows mining companies, in their filings with the SEC to disclose only those mineral deposits they can economically and legally extract or produce. Accordingly, information contained in this News Release regarding our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations of the Commission thereunder.
In particular, this News Release uses the term “indicated” resources. U.S. readers are cautioned that while that term is recognized and required by Canadian regulations, the SEC does not recognize it. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into mineral reserves.
This News Release also uses the term “inferred” resources. U.S readers are cautioned that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. readers are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Source: Bernard Lapointe, CEO Tel: (418) 549-7316 bernard@arianne-inc.com
Info: Jim Cowley, President Tel: (801) 599-3789 jim@arianne-inc.com
Media: Jean-Philippe Côté Tel: (514) 754-9407 jpcote@bcp.ca
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