Given the size of the resource estimate, the project is expected to have a mine life of approximately 14 years. There are significant resources in addition to currently defined mineral reserves which provide opportunity to extend the mine life.
In addition to the PFS, as previously announced, an additional review is being undertaken by Newspar, CFI's 50/50 joint venture, in order to establish a more precise understanding of the St. Lawrence Project's anticipated cost and scope. That review process is considering a range of mining, milling, and infrastructure options that may be applicable to the project. As a result, no final decision on the project's cost and scope has been made as yet, nor will it be made until this review process has concluded. Accordingly, the Company can provide no assurance at this time that the project will proceed.
Surface Exploration on Director Vein
CFI has carried out surface trenching of the Director Vein during the 2012 exploration program, and to date has uncovered fluorspar mineralization at eight locations. The trenches are located over an area that extends more than 1,050 m to the south of the old workings of the Director Vein, and indicate surface mineralization with widths varying from 3.4 m to 23 m, with grades ranging from 10.32% CaF2 over 3.4 m to 91.44% CaF2 over a vein width of 9.4 m. The exploration results from the Director Vein are described in the Company's press releases filed on SEDAR in the second and third quarter of 2012. Based on the positive results from the nine trenches the Company has commenced its winter 2013 drilling program on the southern extension of the Director Vein.
A NI-43-101 Technical Report will be filed on SEDAR (www.sedar.com) and the Company's website (http://www.canadafluorspar.com) within 45 days.
The PFS was prepared by Hrayr Agnerian, M.Sc.(A), P.Geo, (formerly with RPA and presently with Agnerian Consulting Ltd.), Holger Krutzelmann, P.Eng. and Normand Lecuyer, P. Eng. of RPA in conjunction with SNC-Lavalin. Cost updates were provided by CFI and SNC for the mine site infrastructure, some capital cost and environmental and mine closure costs. Each of these individuals is an independent qualified person for the purposes of NI 43-101, and has reviewed and verified the data disclosed in this news release.
About the Company
The Company is a specialty mineral resource company engaged in the development fluorspar deposits at its property located in St. Lawrence, Newfoundland, Canada, and is proposing, through Newspar, the Company's a 50/50 joint venture with Arkema, to reactivate the existing Blue Beach North and Tarefare underground fluorspar mines, by expanding the existing mill and constructing a new, environmentally-sound Tailings Management Facility.
For more information please see: www.canadafluorspar.com.
Cautionary Note and Forward-looking statements
This press release contains forward-looking statements which include, but are not limited to: statements regarding the results and projections contained in the preliminary feasibility study of the project at St. Lawrence, resource estimates, expected mine life, anticipated production, commencement of construction and production, projected pre-tax net present values and internal rate of returns, projected operating costs and capital costs, proposed mining techniques, required to construct and produce at expected levels, projected market prices of fluorspar, anticipated timing for completion of metallurgical testing, the commencement of the drilling program, current development and operating objectives and outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with mining development including: loss of market, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to generate sufficient cash flow to meet its current and future obligations, regulatory approvals affecting construction and mining operations. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities; the estimated timeline for the development of the project at St. Lawrence, the supply and demand for, and the level and volatility of the price of fluorspar, the assumptions on which resource estimates are based, the receipt of necessary permit, market competition, ongoing relations with employees and impacted communities, and general business and economic conditions. In addition, the operating and capital costs in the preliminary feasibility study were developed to be reasonable estimates within industry benchmarks. There is no certainty that the results of the preliminary feasibility study will ever be realized. Should one or more of the risks or uncertainties involved in forward-looking statements relating to the preliminary feasibility study materialize, or should the assumptions underlying the preliminary feasibility study prove incorrect, actual results of the preliminary feasibility study may vary materially from those anticipated, believed, estimated or expected. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements are qualified entirely by this cautionary statement and are given only as at the date of this press release. The Company disclaims any obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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.
Canada Fluorspar Inc.
President and CEO
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