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American Pacific Borate & Lithium enhances borate project DFS with low-capex initial phase

Further results of the definitive feasibility study enhancement will be released to market over the coming weeks.
American Pacific Borate & Lithium enhances borate project DFS with low-capex initial phase
The company aims to start construction in the quarter four 2019

American Pacific Borate & Lithium Ltd (ASX:ABR) has finalised enhancements to the definitive feasibility study (DFS) for its 100%-owned Fort Cady Borate Project in Southern California.

This includes splitting the current first phase into A and B stages which are designed to benefit project financing and operational efficiencies.

 

Phase one-A will focus on sulphate of potash (SOP) and a small-scale commercial boric acid operation.

The B phase will build-out a larger boric acid operation supported by results from the first phase.

ABR expects the overall capital expenditure for phase one to increase by less than 10% but will deliver financing and technical benefits that far outweigh the additional cost.

READ: American Pacific Borate & Lithium highlights strong financials of ‘low-risk’ US project

Fort Cady is rare and large colemanite deposit and is the largest known contained borate occurrence in the world not owned by the two major borate producers Rio Tinto and Eti Maden.

The JORC-compliant resource at Fort Cady comprises 13.93 million tonnes of boric acid.

The definitive feasibility study completed last month outlined a steady-state production target of 410,000 tonnes a year of boric acid and 110,000 tonnes a year of SOP.

Pre-production capex with a 13% contingency amounts to US$138 million and the project has a net present value at 10% discount of US$1.25 billion.

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