Saguenay, September 7, 2010.The management of Arianne Resources Inc. (« Arianne » or « Company ») is pleased to announce the creation of its new subsidiary Canada Phosphate inc. in which will be transferred all of the Lac à Paul phosphorus-titanium project. Arianne will own 100 % of the shares of Canada Phosphate.
The Company is currently negotiating with different potential partners in order to advance this important deposit to the production phase. This would generate a significant economic impact for the Saguenay Lac St-Jean area. The management believes that Canada Phosphate inc. will provide a better platform for the development of the project and help define the development of the new company for the stock market. It will also make it easier for a potential partner to participate directly in the phosphate-titanium project so Arianne can continue to develop its other projects.
About fertilizers: Fertilizers are currently under the spotlight with the possible sale of Potash Corporation to foreign investors. This shows the strategic importance of fertilizers in the modern world and also confirms the growth potential of this industry. Phosphate (phosphorus or P) is, with potash (potassium or K) and nitrogen (N), an indispensable element for the growth of any kind of plant. There are no known substitutes to these elements for the fabrication of fertilizers. Experts agree that if food production doesn’t increase in the following years, we will see another food crisis similar to the one in 2007/2008. The only solution is to increase the surface and productivity of the cultivated lands. To improve the productivity of the cultivated lands, one must include fertilizers.
“The world is facing a global food production crisis in the wake of a rapidly rising population, changing diets in Asia and increasingly limited land. Potash [phosphorusandnitrogenise] is central to fertiliser, and fertiliser critical to food production.”– IndustrialMineral, August 2010
About Lac à Paul:The Lac à Paul deposits are comprised of many phosphate deposits. Three of these deposits underwent a 43-101 compliant resource calculation. During the latest drilling campaign on the Paul Zone in January 2010, drill holes reached vertical depths of 240 m and the mineralized zone remained open. A resource calculation was provided for the three zones:
- Indicated Resources : 78.34 Million tons at 7.24 %P2O5 and 7.84 % TiO2
- Inferred Resources : 58.25 Million tons at 6.97 % P2O5 and 8.00 % TiO2
- Manouane Zone :
- Inferred Resources : 137.65 Million tons at 5.71 %P2O5 and 8.92 % TiO2
- 2Zone :
- Inferred Resources : 64.25 Million tons at 4.54 % P2O5 and4.56 % TiO2
The NI-43-101 compliant Scoping Study filed in May 2010 indicates an Internal Rate of Return (IRR) of 20.8%and a discounted (3%) net present value (DNPV) of 439M$.
The igneous phosphate that will be produced from this mine will have a very high grade of 40% P2O5, making it one of the purest on the marketplace.
Appointment: The Company is pleased to announce the appointment of Mr. Daniel Boulianne, geo, as Vice-president- Exploration. Mr. Boulianne was exploration manager for many years. He worked for more than 25 years in the mining exploration industry in Quebec, Ontario, Mexico, West Africa and French Guyana. Mr. Boulianne, along with Dr. Nadège Tollari, Vice-president – Research and Development, will also work in Canada Phosphate Inc. Dr. Tollari is a specialist in igneous phosphates, the product the Company wants to market.
ArianneResourcesis 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. Investors are welcome to visit our website at www.arianne-inc.com.
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.