Arianne to proceed to a prefeasibility study; receives support and a financial contribution
SAGUENAY, QC, Aug. 9, 2018 /CNW Telbec/ – Arianne Phosphate (the “Company” or
“Arianne”) (TSXV: DAN) (OTC: DRRSF) (FRANKFURT: JE9N), a development-stage phosphate mining company, advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, today is pleased to announce that it has partnered with the Province of New Brunswick to further its review of constructing a phosphoric acid plant in Belledune, New Brunswick. As part of this agreement, the Government, through Opportunities New Brunswick (“ONB”), will provide a financial contribution toward the cost of a prefeasibility study, the next step in Arianne’s assessment of its downstream opportunity.
“Over the last year, Arianne has been reviewing the possibility of vertically integrating its own phosphate rock production into a facility to produce phosphoric acid,” said Brian Ostroff, CEO of Arianne Phosphate. “Our work to date has been positive and, especially with the industry now recovering from a five-year slump, it makes sense to move the idea to the next step, a prefeasibility study. We are in an enviable position. By having our own phosphate rock, we have the flexibility of either being a seller of our rock to those who need it or, going downstream and capturing that additional margin ourselves.”
After the review of several locations Arianne believes that Belledune, New Brunswick would be a strong location to construct a plant. Most of the crucial infrastructure is already in place, namely a port that has the additional capacity to handle our operation, access to a skilled labour force, easy-access to some of the other necessary ingredients beyond Arianne’s phosphate rock and, a strong willingness of would-be stakeholders to see this project advance.
“We want to thank all involved up to this point,” said Jean-Sebastien David, Arianne Phosphate’s COO. “The support from the Government of New Brunswick and Opportunities New Brunswick has been tremendous and has definitely helped steer us in the direction of Belledune. We appreciate their commitment to helping us fully review the possibility and, their contribution towards the prefeasibility study, which will be a deciding factor in our ultimate decision to proceed.”
Arianne has already been working with the various groups that will be involved in the study, many of them local to New Brunswick. Once finalized, the prefeasibility study is expected to take roughly five months and will give the Company and the Province a good look at the opportunity. The results of the study will help isolate next steps.