SAGUENAY, QUEBEC – (October 14, 2014) – Arianne Phosphate (the “Company” or “Arianne”) (TSX VENTURE: DAN) (FRANKFURT: JE9N) (OTCBB: DRRSF), a development-stage phosphate company advancing the Lac à Paul Project in Quebec’s Saguenay-Lac-Saint-Jean region is pleased to report an updated resource estimate on its Paul Zone has amounted to 668 million tonnes at 7.01% P2O5 with a 4.0% P2O5 cut-off grade in the measured & indicated category. In addition, the Company has also identified a new inferred resource on the Paul Zone of 38 million tonnes at 6.13% P2O5 at 4.0% P2O5 cut-off grade.(2)This updated resources estimate, provided by GoldMinds Geoservices Inc., shows a 13% increase in measured and indicated resources (668 MT vs 590 MT) and resulted from the 2014 winter drilling program on the Paul Zone (Pau-14-154 to Pau-14-160) and on its Western Extension (Pau-14-161 to Pau-14-169).
“The continued growth of our resource is very exciting” stated Jean-Sebastien David, COO of Arianne Phosphate. “Of particular interest is the new resource shown in the Western Extension. It is located near the surface and is a real positive for us since it could reduce our stripping ratio and thus our operating costs (OPEX). Our team has been hard at work to define more mineralised targets near the Paul Zone so that we can achieve our stated goal of a 50 year mine life(3) at our world class Lac a Paul Project. To this end, Arianne recently concluded a 3 000 meter diamond drilling campaign on the eastern extension of the Paul Zone.”
Location of the drill holes and the zones is shown on the following figures.
Current Mineral Reserves
The Paul Zone is the main zone of the Phosphate Lac à Paul Project. According to the Company’s Feasibility Study (released October 24, 2013), the Paul deposit alone currently has proven and probable reserves of 472 million tonnes of ore at 6.90% P2O5 (cut-off grade of 3.5% P2O5) and is projected to have a mine life of roughly 26 years. The mineral resource estimate (released March 7, 2013) which was used to establish these reserves reported 590 Mt of measured and indicated resources at 7.13% P2O5 with a cut-off grade of 4% P2O5.
Description of the Updated Mineral Resources
The updated mineral resources estimate on the Paul Zone and its Western Extension has been done using diamond drill holes (Pau-08-01 to Pau-14-169), fixed density of 3.42 T/m3, the LIDAR 3D topographic survey, high resolution airborne magnetic geophysical survey (HeliMAGerTM), completed in February 2014, and variables search ellipsoid, with a steeply dipping to the south, following the axes defined by the magnetic survey, using the first primary derivative for contact and extent. Note that the holes are not still surveyed. It will be done after the next campaign.
|Mineral resources estimate |
Paul Zone + Western Extension
|Density||P2O5 %||TiO2 %||Tons|
|Inferred||3.42||6.13||6.31||37 850 000|
|Indicated||3.42||6.83||7.25||348 150 000|
|Measured||3.42||7.19||7.63||320 550 000|
|Indicated + Measured||3.42||7.01||7.43||668 700 000|
|Mineral resource estimate|
|Density||P2O5 %||TiO2 %||Tons|
|Inferred||3.42||5.69||5.78||28 600 000|
|Indicated||3.42||6.80||7.23||332 250 000|
|Measured||3.42||7.18||7.62||318 050 000|
|Indicated + Measured||3.42||6.99||7.42||650 300 000|
|Mineral resource estimate|
|Density||P2O5 %||TiO2 %||Tons|
|Inferred||3.42||7.51||7.93||9 250 000|
|Indicated||3.42||7.53||7.77||15 900 000|
|Measured||3.42||8.29||8.14||2 500 000|
|Indicated + Measured||3.42||7.63||7.82||18 400 000|
* Note that tables above contain rounded numbers
Data used for the estimate:
– One hundred sixty (160) diamond drill holes on Paul Zone (Pau-08-01 to Pau-14-160);
– Total drilled length on Paul Zone of 40 902 meters;
– 13 597 assay results for %P2O5, %TiO2, %SiO2, %Fe2O3, %AL2O3, %CaO, %K2O, %Na2O, %MnO & %MgO;
– 14 008 deviation data; and,
– 674 lithological description records.
– Nine (9) diamond drill holes on Western Extension (Pau-14-161 to -169);
– Total drilled length on Western Extension of 1 323 meters;
– 420 assay results for %P2O5, %TiO2, %SiO2, %Fe2O3, %AL2O3, %CaO, %K2O, %Na2O, %MnO & %MgO;
– 412 deviation data; and,
– 52 lithological description records.
Parameters of the estimate are:
– Composites of 3 meters;
– The fixed density of 3.42, as for the mineral resource estimation of 2013;
– Rectangular blocks of 10mE x 10mN x 15mZ meters;
– 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 inverse distance squared interpolation. For the Paul zone four (4) runs with the following parameters were used: runs one and two with a number of composites limited to fifteen (15) and to a minimum of 10 with a maximum of five (5) from the same drill hole. Passes three and four with a number of composites limited to fifteen (15) and to a minimum of five (5) with a maximum of five (5) from the same drill hole.
– A variable direction search ellipsoid was used for the grade estimation. For run one (1) the search ellipse size is 150 x 150 x 50 meters; the search ellipses were identical for passes two (2) and three (3) 250 x 250 x 50; for the pass four (4) a larger ellipse was used 350 x 350 x 75m.
– The classification parameters were for Paul Zone:
o Measured with at least two (2) drill holes within a 75 x 75 x 30 m variable direction ellipse (for all categories). Minimum of 6 composites.
o Indicated with at least two (2) drill holes in a 150 x 150 x 60 m variable direction ellipse. Minimum of 6 composites.
o Inferred with a drill hole with five (5) composites in 350 x 200 x 90 m variable direction ellipse.
– For the western extension of the Paul Zone, one single pass was run for the estimate using a variable direction search ellipse of 350 x 150 x 75 m with a number of composites limited to fifteen (15) and to a minimum of 10 with a maximum of five (5) from the same drill hole. Similar classification parameters were used as the Paul main deposit except for the ellipse of 60 x 60 x 30 m for Measured and 120 x 120 x 60 m for Indicated as early classification of Paul Zone mineral resources with a minimum of 8 composites for Measured and 6 for Indicated.
QA/QC procedures included blanks and standards are in line with expected values.
(1) Cautionary Statements: Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
(2) Cautionary Statements: Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. That it is uncertain if further exploration will result to upgrade this inferred resource at indicated and measured resource.
(3) Cautionary Statements: The 50 years target is conceptual in nature, that there has been insufficient exploration to define an indicated and measured mineral resource to that size and that it is uncertain if further exploration will result in the target being delineated as an indicated and measured mineral resource. The 50 years target is based on 472 Mt in reserve and other resources on the project (released 24 October 2013) and the other resources and potential targets (released May 15th and June 12th of 2014).
Mr. Claude Duplessis, ing. GoldMinds Geoservices Inc. Independent Qualified Person as per NI 43-101, has prepared the mineral resources with assistance of Mr. Merouane Rachidi Ph D. Geo. Mr. Duplessis is responsible for the technical information presented in the release.
Mr. Daniel Boulianne, P.Geo., Arianne V.P. of Exploration Qualified Person as per NI 43-101, has approved this press release.
About Arianne Phosphate
Arianne Phosphate (“Arianne Phosphate Inc.”) (www.arianne-inc.com) is developing the Lac à Paul phosphate deposits located approximately 200 km north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits will produce a high quality igneous apatite concentrate grading 39% P2O5 with little or no contaminants. The Company has 92.9 million shares outstanding.
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.
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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, 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. Any forward looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.