Plains Creek Provides Update for the Development of the Farim Phosphate Project, Guinea Bissau, West Africa
VANCOUVER, Aug. 28, 2012 /PRNewswire/ – Plains Creek Phosphate Corporation (“Plains Creek” or the “Company”) (TSX V: PCP) is pleased to provide an update on the development of its Farim
Phosphate Project located in Guinea Bissau, West Africa.
Preliminary Economic Assessment – Direct Shipping Option
The previously announced Preliminary Economic Assessment (“PEA”) for the
Direct Shipping Option (“DSO”) Project will be filed on SEDAR on or
before 15(th) September 2012.
A presentation has been compiled on the 500,000 tonnes per annum
phosphate rock DSO Project and is available on the Company’s website – www.plainscreek.com.
Off take Agreements and Strategic Partners
The Company has been active in discussions with potential off-takers for
the DSO phosphate rock and the phosphate rock concentrate product.
There is a greater preference for the phosphate rock concentrate
product from off-takers because of the higher P(2)O(5) content and lower impurity levels (particularly iron and alumina
oxides) that result from the beneficiation of the phosphate rock. In
addition the phosphate rock would be subject to price discounts due to
the lower P(2)O(5) content and impurities compared to the phosphate rock concentrate
Plains Creek has also been engaged in discussions with strategic
investors who would be prepared to contribute towards the corporate
funding of the Company and the project level funding necessary to
develop the Farim Phosphate Project.
One Million tonne per Annum Phosphate Rock Concentrate Feasibility Study
Based on the positive results from the PEA DSO and the better off-take
demand and prices for the beneficiated phosphate rock concentrate
product, the Company has decided to prepare a Feasibility Study for a
one million tonne per annum phosphate rock concentrate project. This
project combines the advantages of the DSO – namely lower capital
investment, time to production, contract mining, higher grade run of
mine phosphate, lower stripping ratios and the use of river barges to
transport the phosphate rock concentrate product to the Rio Cacheu
estuary for transshipment onto ocean going vessels and the better
product specifications and prices obtained from beneficiation. This
Feasibility Study is slated for completion by 30(th) September 2012.
Two Million tonne per Annum Phosphate Rock Concentrate Bankable
The Stage 2 beneficiated two million tonne per annum phosphate rock
concentrate project slated to process the balance of the existing
phosphate resource will be delayed to allow completion of the above one
million tonne per annum phosphate rock concentrate project. This two
million tonne per year phosphate rock concentrate project will be
completed by 31(st) October 2012.
The three alternative production scenarios, namely: (1) the DSO product,
(2) the 1 million tonne per annum, and (3) the 2 million tonne per
annum phosphate rock concentrate product, which have been investigated
above will provide the Company with three alternatives for the
progressive development of the Farim Phosphate Project, depending on
the phosphate market conditions, the economic and political climate in
Guinea Bissau and the availability of capital and skilled manpower to
develop the Farim Phosphate project.
About Plains Creek Phosphate Corporation:
Plains Creek Phosphate Corporation is a Canadian mining and exploration
company focused on advancing the Farim Phosphate Project located in
Guinea Bissau, West Africa. The Farim Project currently comprises a
high grade phosphate deposit consisting of one continuous flat lying
phosphate bed with a NI 43 101 compliant Mineral Resource estimate that
defines a Measured Resource of 64.6 Mt at an average grade of 29.11% P(2)O(5), an Indicated Resource of 28.1 Mt at an average grade of 27.68 % P(2)O(5) and an Inferred Resource of 18.3 Mt at an average grade of 28.66 % P(2)O(5). A two-phased development is planned for the Farim Phosphate Project as
an open pit mining operation. Phase One consists of either a Direct
Shipping Option Project with an annual phosphate production of 0.5 Mt
per annum or a 1 Mt per annum phosphate rock concentrate project and
Phase Two which consists of the production of 2 Mt per annum of
phosphate rock concentrate and includes a beneficiation plant and
associated infrastructure, pipeline and port.
The Company’s shares are listed on the TSX Venture Exchange under the
trading symbol “PCP”. For additional information, please visit us at www.plainscreek.com.
ON BEHALF OF THE BOARD
(Signed) “Carson Phillips”
Vice President, Corporate Development and Director
Statements in this news release may be viewed as forward-looking
statements. Such statements involve risks and uncertainties that could
cause actual results to differ materially from those projected. There
are no assurances the Company can fulfill such forward-statements and
the Company undertakes no obligation to update statements. Such forward
looking statements are only predictions; actual events or results may
differ materially as a result of risks facing the Company, some of
which are beyond the Company’s control. In addition, pursuant to
National Instrument 43-101, the Company cautions that mineral resources
that are not mineral reserves do not have demonstrated economic
Factors that contribute to risk include, among others, delay or failure
to receive regulatory, shareholder or other required approvals to
complete the Farim Phosphate Project, timing and ability to raise
capital on acceptable terms, not realizing the potential benefits of
the Farim Phosphate Project, risks related to the actual results of
exploration activities, conclusions of economic evaluations, risks
associated with mining and mineral exploration activities, uncertainty
in the estimation of mineral resources, including, without limitation,
the assumptions on which such estimates are based, changes in project
parameters as plans continue to be refined, future prices of metals,
economic and political stability in Guinea Bissau, environmental risks
and hazards, increased infrastructure and/or operating costs,
availability of future financing, labour and employment matters, and
government regulation. There is no guarantee that any drill targets or
economic mineral deposits will be found on the Plains Creek’s
properties. For a more detailed discussion of such risks and other
factors, refer to the most recent Management Discussion and Analysis of
the Company filed with Canadian securities regulators available on www.sedar.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.
SOURCE Plains Creek Phosphate Corp.