SAGUENAY, QUEBEC–(November 27, 2012) – Arianne Resources Inc. (the “Company” or “Arianne”) (TSX VENTURE:DAN), (FRANKFURT:JE9N), (OTCBB:DRRSF) today filed its interim financial statements for the quarter ended September 30, 2012.
During the third quarter, Arianne made significant progress in the development of its Lac-a-Paul phosphate project, including:
– The Pre-Feasibility Study Update (PFSU) was completed. The report confirms that a 3 million t/yr phosphate concentrate mine production scenario will have a 23.2% IRR and a 3.9 year capital payback on a pre-tax basis. These results do not include resource estimates for the additional mineralization identified by drilling programs completed since the end of 2011. That drilling confirmed the increased strike length of Paul Zone mineralization from 1.3 km to 2.7 km.
– Closed secured financing of $11 million with minimal dilution.
– The Company launched its Feasibility Study (FS) by contracting with Cegertec WorleyParsons. Significant progress has been made, with the completed FS expected in the second half of 2013.
– Metallurgical testing of Paul and Manouane Zone ores advanced significantly. Jacobs Engineering has been contracted to validate all previous metallurgical work and further optimize the design of the proposed Lac-a-Paul facilities. Jacobs has received over 50 tons of ore samples and is expected to complete bench-scale testing by year-end. Completion of pilot-scale testing and the final engineering report is expected mid -2013.
– Significant advances in the Environmental Impact Assessment (EIA) were made with the preliminary version of the EIA expected to be submitted in the first half of 2013.
“In launching our FS, Arianne has chosen to partner with global experts in the phosphate mining industry to ensure a robust analysis that validates the attractive metallurgical results seen to date and proves up the substantial phosphate reserves we believe exist on the Lac-a-Paul property.” commented Bernard Lapointe, Chief Executive Officer of the Company.
The net loss for the three-month period ended September 30, 2012 was $1,585,171 compared to a net loss of $597,951 for the same period in 2011. The higher loss is primarily due to accelerated development of the Lac-a-Paul project and higher expense for stock-based compensation.
During Q3 2012, the Company spent $3,621,434 developing Lac-a-Paul in a variety of areas including technical reports, drilling and road work. The net loss for the quarter includes a share based compensation expense of $1,174,143 (compared to $365,750 in 2011) and represents the value of share purchase options issued over the period. This increase is mainly due to a grant of 1,025,000 options during the quarter.
The net loss for the nine-month period ended September 30, 2012 amounts to $2,672,918 compared to $614,763 for the same period in 2011, due to the same factors noted above. For the nine-month period ended September 30 2012, the Company spent $6,659,929 developing Lac-a-Paul primarily on technical reports, drilling and road work. Also a factor was significantly higher professional fees incurred for the transition from GAAP to IFRS for the preparation of financial statements for 2011.
The Company’s Interim Financial Statements and accompanying management’s discussion and analysis for the quarter ended September 30, 2012 and its Annual Information Form for the year ended December 31, 2011 are available on the Company’s website and on SEDAR at www.sedar.com. Unless otherwise noted, all figures in the news release are reported in Canadian dollars.
The Board of Directors of the Company announces the grant of 250,000 stock options to directors pursuant to its stock option plan and subject to regulatory approval. The stock options are exercisable for a term of 10 years at an exercise price of $1.07 per share.
About Arianne Resources
Arianne Resources (www.arianne-inc.com) is developing the Lac à Paul phosphate-titanium deposits located approximately 200 km north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits should produce a high quality igneous apatite concentrate grading 39% P2O5 with little or no contaminant. The Company has 68 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.
Source: Bernard Lapointe, CEO Tel: (418) 549-7316 email@example.com
Info: Jim Cowley, President Tel: (801) 599-3789 firstname.lastname@example.org
Follow Arianne on:
Resources Investing News: http://resourceinvestingnews.com/?s=Arianne