Arianne Phosphate Reports on Fourth Quarter FY2012
SAGUENAY, QUEBEC -- (Marketwired) -- 04/23/13 -- Arianne Phosphate
(the "Company" or "Arianne") (TSX
VENTURE:DAN)(FRANKFURT:JE9N)(OTCBB:DRRSF) filed today its financial
statements for the year ended 2012.
During the fourth quarter and early part of Q1 2013, Arianne made
significant progress on the Feasibility Study ("FS") of the Lac a
Paul phosphate project, including:
-- Arianne announced that it will seek shareholders' approval to change its
name from "Arianne Resources Inc." to "Arianne Phosphate Inc." at its
next annual general meeting of shareholders in May 2013 to recognize the
focus of its activities on developing the world class Lac a Paul
-- The Company announced its intention to divest all its non-phosphate
exploration properties in order to focus exclusively on becoming a
leading Canadian phosphate producer. The decision to sell these non-core
assets is a logical step in Arianne's evolution and reflects the
transition of the Company from exploration to mine development.
-- Arianne announced that the updated mineral estimate for the Paul Zone
amounts to 590 million metric tons (Mt) of measured and indicated
resources. This National Instrument ("NI") 43-101 compliant resource
calculation conducted by GoldMinds Geoservices Inc. provides an updated
estimate of the resources present in the Paul Zone, which is the main
zone of the Lac a Paul project, Saguenay, Quebec. The updated mineral
resource estimate incorporates the results of drilling programs
undertaken during the last quarter of 2011 on the lateral and depth
extensions of the Paul Zone. In total, 153 holes, totaling 39,371
metres, have now been drilled on the Paul Zone. The highlights are:
1. For this disclosure of resources, a cut-off grade of 4.0% P2O5, instead
of 2.43% P2O5 in 2011, was used.
2. Although the cut-off grade is higher, the measured and indicated
resources of the Paul Zone have increased by 221% compared to the last
estimate released in 2011.
3. The measured and indicated mineral resources of the Paul Zone amount to
590.24 Mt at 7.13% P2O5.
-- Arianne announced that the Interim Bench-Scale S
tatus Report has been
delivered by Jacobs Engineering. The following is an excerpt from the
report: "During the five locked cycle tests, the cleaner 3 concentrate
reached an average of 40% P2O5 for an 86.84% recovery. The MER (minor
element ratio) and CaO/P2O5 values are acceptable at less than 0.1 and
1.3, respectively." This metallurgical testwork and its conclusions will
be used in development of the Company's FS.
-- Arianne announced the implementation of measures to strengthen its ties
with local communities. The Company intends to take an active part in
various committees created by the Innu communities and the various MRCs
across the Saguenay-Lac-Saint-Jean region with the objective of
promoting local economic benefits. It has also committed to become a
participant in the regional committee on economic benefits in order to
facilitate the realization of regional benefits that should accrue from
the development of the Lac a Paul phosphate mining project.
-- Arianne announced the commencement of public consultations on the
transportation component of its project to operate a phosphate mine in
Lac a Paul, located at kilometre 168 on Chemin des Passes, in the Lac-
Saint-Jean region. Public meetings will be held in municipalities most
likely to be affected. Following these consultations, Arianne intends to
create a working group on transportation, with community representatives
and experts in an effort to optimize this major component of the
project. The scenario currently under study involves transporting ore by
road using heavy haulage trucks from the mine to a sorting centre
located north of Saint-Ludger-de-Milot. The ore will then be transported
by standard truck to a transfer yard located near the former Rio Tinto
Alcan plant in Alma. From this location, the apatite concentrate will be
shipped by train to North American markets or to the deep-water port in
Grande-Anse, Saguenay, to supply mainly international markets. In
collaboration with municipal authorities in Alma, Arianne intends to
pursue discussions with representatives from the Quebec Ministere des
Transports (MTQ) to make sure the project to build a bypass road in the
Isle Maligne area continues to progress.
-- Arianne, the Commission scolaire du Pays-des-Bleuets and the
Pekuakamiulnuatsh Takuhikan Education and Labour Department are pleased
to announce the signing of a letter of intent to create training
services for mine workers as part of the Lac a Paul mine project. The
training programs will affect various types of jobs, from pre-production
to operations, including technical services.
Mr. Bernard Lapointe, Chief Executive Officer of the Company
commented: "Arianne made significant progress on its Feasibility
Study in the fourth quarter of 2012 and is on track to release a
comprehensive and robust analysis of the Paul deposit in September
2013 that validates the attractive metallurgical results seen to date
and proves up the substantial phosphate reserves that exist on the
Key milestones upcoming in 2013 include the following:
-- Issuing a new NI 43-101 compliant resource estimate in Q3 2013 that will
be included in the FS.
-- New pilot scale metallurgical testing to be issued in Q2 2013 that will
also be included in the FS.
-- Submitting the Environmental and Impact Assessment (EIA) with the
preliminary version of the EIA to be submitted at the end of Q2 2013.
-- Continuing the various steps required to obtain permits required for the
operation of the proposed Lac a Paul mine.
-- Adding new members to the team currently in place to further develop the
Lac a Paul phosphate project.
-- Organizing additional public consultations to discuss all aspects of the
Lac a Paul mining project. Public meetings will be held in the
municipalities mainly affected by road transport.
The net loss for the three-month period ended December 31, 2012 was
$2,729,669 compared to a net loss of $2,823,930 for the same period
in 2011. The lower loss is primarily due to lower expenses for stock
based compensation in 2012 partially offset by the write-off of the
100% owned non-phosphate properties and increased costs related to
the Lac a Paul FS.
During Q4 FY2012, the Company announced it would seek to sell off its
non-core phosphate properties that had not already been joint
ventured. These assets include Heva, La Dauversiere R-14, Moly-Hill,
Black Dog, Chico, Dulain and Terres Rares. As part the year end
audit, the Company reviewed the fair value of these assets and
determined that these properties should be fully written off. This
write-off totaled $2,059,680.
In addition, the Company spent in the last quarter $1,574,000 on the
Lac a Paul FS in a variety of areas including metallurgical tests,
technical reports, mine planning and drilling. The net loss for the
quarter includes share based compensation expense of $4,250 (compared
to $503,050 in 2011), and represents the value of share purchase
options vested during the period.
The net loss for the twelve month period ended December 31, 2
$5,402,587 compared to a net loss of $3,438,693 for the same period
in 2011 and is due to higher spending on the FS and the write-off of
the non-phosphate assets partially offset by lower expense for share
based compensation. For the twelve months ended December 31, 2012,
the Company spent $4,143,206 on the FS. As noted, the write-off in
2012 was $2,059,680.
The net loss for the 2012 year includes share based compensation
expense of $1,565,883 (compared to $3,417,971 in 2011) which
represents the value of share purchase options vested during the
period. In 2012, 1,777,500 options were vested versus 3,795,000
options vested in 2011.
The Company ended 2012 with cash of $5,225,976 access to undrawn
credit lines of $4,600,000 and mining tax credit receivable of
$2,502,426. Based on current spending estimates for the FS and future
project development, Arianne anticipates it will need additional
financing before the end of 2013. The Company expects it will be able
to raise the required amount of funds at competitive rates.
The Company's financial statements and accompanying management's
discussion and analysis for the year ended December 31, 2012 are
available on the Company's website and on SEDAR at www.sedar.com.
Arianne's annual information form for FY2012 will be filed before the
end of May. Unless otherwise noted, all figures in the news release
are reported in Canadian dollars.
About Arianne Phosphate
Arianne Phosphate (www.arianne-inc.com) is developing the Lac a 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 76 million shares
Follow Arianne on:
Resources Investing News: http://resourceinvestingnews.com/?s=Arianne
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.
Bernard Lapointe, CEO
Jim Cowley, President
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