Vulcan Minerals (TSXV: VUL) affiliated company Atlas Salt (TSXV: SALT) has released the findings of a comprehensive feasibility study and an updated mineral resource estimate conducted by SLR Consulting on its Great Atlantic salt project situated in western Newfoundland and Labrador, Canada.
The feasibility study represents a significant economic improvement over its preliminary economic assessment (PEA), also completed by SLR, released by Atlas on 30 January 2023, including an annual production of 2.5Mt salt (NaCl) over a 34-year mine life and a post-tax net present value (NPV) at an 8% discount rate reaching C$600M and an internal rate of return (IRR) of 19%.
President of Vulcan Minerals, Patrick Laracy, commented, “This independent feasibility study of the Great Atlantic salt project confirms its substantial value and positive economic attributes as a tier one asset.”
SLR Consulting also introduced an expansion case featuring a salt production scale of 4.0Mtpa across a 47.5-year mine life and reported an NPV at 8% amounting to about C$2.02B (pre-tax) and a pre-tax IRR of 28%.
The feasibility study includes the enlargement of indicated mineral resources and mineral reserves with indicated mineral resources of 383Mt NaCl at 96.0%, inferred mineral resources of 868Mt at 95.2% NaCl, and probable mineral reserves of 88.1Mt at 96.0% NaCl.
“The expansion scenario underscores how there is substantial additional room to optimize an already strong feasibility study,” Rick LaBelle, Atlas CEO commented. “I look forward to a very busy Q4 as we build momentum and, accordingly, I expect Atlas Salt will have much more to announce.”
For further information, please visit: www.vulcanminerals.ca & www.atlassalt.com
To read more articles like this, please visit: www.theassay.com
