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First Phosphate sees positive results from PEA on Lac lOrignal property

–News Direct–

First Phosphate Corp CEO John Passalacqua joined Steve Darling from Proactive to share news about the positive results of the company's Preliminary Economic Assessment on the Lac lOrignal property in Quebec.

According to Passalacqua, the PEA indicates a viable case for developing the property through open-pit mining, with primary production of phosphate concentrate and secondary recovery of magnetite and ilmenite concentrates.

The projected mine life spans 14.2 years, during which the project would produce an annual average of 425,000 tonnes of beneficiated phosphate concentrate at over 40% P2O5 content, 280,000 tonnes of magnetite, and 97,000 tonnes of ilmenite. The financial outlook is highly promising, with a pre-tax internal rate of return of 21.7% and a pre-tax net present value of $795 million at a 5% discount rate, considering approximate 18-month trailing average phosphate prices and long-term consensus magnetite and ilmenite prices as of June 30, 2023. Additionally, the project is estimated to generate an after-tax cash flow of $567 million during the first five years, resulting in a 4.9-year payback period from the start of production.

The positive results from the PEA provide a solid foundation for First Phosphate Corp to move forward with the development of the Lac lOrignal Property. The company is now utilizing the report to plan out the next steps in advancing the project.

The economic viability and promising financial outlook of the project are significant milestones for First Phosphate Corp. As the company moves forward with the development of the property, it aims to capitalize on the potential of the phosphate, magnetite, and ilmenite resources, contributing to its growth and success in the industry.

Contact Details

Proactive Investors Canada

+1 604-688-8158

na-editorial@proactiveinvestors.com

View source version on newsdirect.com: https://newsdirect.com/news/first-phosphate-sees-positive-results-from-pea-on-lac-a-lorignal-property-258458523

First Phosphate Corp.

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COMTEX_437373958/2655/2023-07-26T12:43:23