VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/07/13 -- Great Quest Metals Ltd. (the "Company") (TSX VENTURE: GQ) is pleased to report it has filed on SEDAR the previously announced Preliminary Economic Assessment ("PEA") for its Tilemsi phosphate project. The study has been prepared in accordance with the National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). For further details, readers are advised to refer to the full PEA report available on SEDAR (www.sedar.com) and the Company's press release dated December 18, 2012.
The PEA is a scoping-level study on the development of the Tilemsi phosphate resource into a West African integrated phosphate fertilizer project. It is based on an initial inferred mineral resource of 50 million tonnes, grading at 24.3% P2O5, as reported on October 23, 2012. The study considers the mining of the Tilemsi phosphate deposit located in northeastern Mali, the construction of phosphate beneficiation and granulation plants and their associated infrastructure. Test work was completed to prove saleable products such as high grade phosphate raw material for NPK blending facilities and medium grade for low-cost direct application fertilizer. In addition, the study looked at the construction of four NPK blending plants in West Africa (see map below).
-- With a US$649 million NPV at 10% discount rate and 33% project IRR, the PEA strongly supports the potential viability of the Tilemsi Phosphate Project.-- The project is cash positive from the first year of operations, and accumulates more than US$2.6 billion over the life of project.-- Initial production is assumed to begin in 2016, with staged production ramp-up from 200,000 tonnes ("t") to 1 million tonnes ("Mt"), based on conservative expectations for market uptake, over 20 years Life-of-Mine.-- The development plans of the Company encompass the production of two granulated phosphate products: a "High Grade Hyperphosphate" (greater than 35% P2O5) for mixture into standard NPK blends, and a "Medium Grade Hyperphosphate" (greater than 27% P2O5) for simple direct application. A high quality NPK fertilizer produced by the Company's own NPK blending facilities is also considered in the study.-- The multi-phase, long-term marketing and production strategy focuses on agricultural markets in West Africa (eg. Mali, Ghana and Nigeria), specifically targets landlocked regions in order to displace high-cost imported fertilizers, and services emerging commercial farming projects in the region.
To view the map accompanying this press release, click on the following link: http://media3.marketwire.com/docs/gq26m.pdf
Mine Design Considerations
Mining has been scheduled to commence at approximately 200,000 tonnes per annum ("tpa"), increasing by 100,000 tonnes annually, to reach 500,000 tpa by Year 4. Production will increase in Year 8 to a steady rate of 1 million tpa, which will continue until Year 20. Mining will commence in the Tin Hina area and will operate for 13 years. It will continue in the Tarkint Est pits until Year 20.