http://www.juniorminingnetwork.com/junior-miner-news/news-releases/438-tsx-venture/ppi/9586-passport-potash-announces-positive-preliminary-economic-assessment-on-its-holbrook-basin-potash-project.html
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 13, 2013) - Passport Potash Inc. (TSX VENTURE:PPI)(OTCQX:PPRTF) ("Passport" or the "Company") is pleased to announce the receipt of a positive preliminary economic assessment on its Holbrook Basin potash project (the "PEA"), prepared in accordance with National Instrument 43-101 standards of disclosure for mineral properties. The independent PEA was prepared by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH ("ERCOSPLAN"), a consulting and engineering firm, specialized in the potash and salt industry, headquartered in Erfurt, Germany. The key findings of the report include the following:
| KEY FINANCIAL HIGHLIGHTS |
|
| Pre-tax NPV@12% |
$3.25 billion USD |
| Pre-tax IRR (30% income tax rate) |
31.59% |
| After-tax NPV@12% |
$2.19 billion USD |
| After-tax IRR (30% income tax rate) |
27.08% |
| Estimated Total Capital Expenditures |
$1.949 billion USD |
| Estimated Total Operating Expenditures (includes sustaining OPEX) |
$114/tonne KCl USD |
| Payback Period (from start of production) |
8 years |
| |
|
| ASSUMPTIONS |
|
| Discount Rate for Project Related Risks |
12% |
| Potash Price for 2013 (standard MOP) |
$430/tonne USD |
| Accuracy |
+/-35% |
| |
|
| KEY RESOURCE HIGHLIGHTS* |
|
| Measured Mineral Resources (including Passport and Hopi properties) |
34.77 MT |
| Average Measured KCl Grade |
14.38% |
| Indicated Mineral Resources (including Passport and Hopi properties) |
363.17 MT |
| Average Indicated KCl Grade |
14.68% |
| |
|
| KEY MINING PRODUCTION HIGHLIGHTS |
|
| Annual Production (60% minimum K2O) |
2.5 MT MOP |
| Life of Mine |
26 years |
| Mining Method |
Conventional Underground
Room & Pillar |
| Processing method |
Hot Leach |
| Plant Recovery Rate (KCl) |
89.8% |
| Estimated Employees (Mining, Production, Management) |
1,770 |
| |
|
* Mineral resources that are not mineral reserves do not have demonstrated economic viability.
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