Plains Creek Provides Update for the Development of the Farim Phosphate Project, Guinea Bissau, West Africa
VANCOUVER, Aug. 28, 2012 /PRNewswire/ - Plains Creek Phosphate Corporation ("Plains Creek" or the "Company") (TSX-V: PCP) is pleased to provide an update on the development of its Farim Phosphate Project located in Guinea Bissau, West Africa.
Preliminary Economic Assessment - Direct Shipping Option
The previously announced Preliminary Economic Assessment ("PEA") for the Direct Shipping Option ("DSO") Project will be filed on SEDAR on or before 15thSeptember 2012.
A presentation has been compiled on the 500,000 tonnes per annum phosphate rock DSO Project and is available on the Company's website - www.plainscreek.com.
Off take Agreements and Strategic Partners
The Company has been active in discussions with potential off-takers for the DSO phosphate rock and the phosphate rock concentrate product. There is a greater preference for the phosphate rock concentrate product from off-takers because of the higher P2O5 content and lower impurity levels (particularly iron and alumina oxides) that result from the beneficiation of the phosphate rock. In addition the phosphate rock would be subject to price discounts due to the lower P2O5 content and impurities compared to the phosphate rock concentrate product.
Plains Creek has also been engaged in discussions with strategic investors who would be prepared to contribute towards the corporate funding of the Company and the project level funding necessary to develop the Farim Phosphate Project.
One Million tonne per Annum Phosphate Rock Concentrate Feasibility Study
Based on the positive results from the PEA DSO and the better off-take demand and prices for the beneficiated phosphate rock concentrate product, the Company has decided to prepare a Feasibility Study for a one million tonne per annum phosphate rock concentrate project. This project combines the advantages of the DSO - namely lower capital investment, time to production, contract mining, higher grade run of mine phosphate, lower stripping ratios and the use of river barges to transport the phosphate rock concentrate product to the Rio Cacheu estuary for transshipment onto ocean going vessels and the better product specifications and prices obtained from beneficiation. This Feasibility Study is slated for completion by 30thSeptember 2012.
Two Million tonne per Annum Phosphate Rock Concentrate Bankable Feasibility Study
The Stage 2 beneficiated two million tonne per annum phosphate rock concentrate project slated to process the balance of the existing phosphate resource will be delayed to allow completion of the above one million tonne per annum phosphate rock concentrate project. This two million tonne per year phosphate rock concentrate project will be completed by 31stOctober 2012.
Summary
The three alternative production scenarios, namely: (1) the DSO product, (2) the 1 million tonne per annum, and (3) the 2 million tonne per annum phosphate rock concentrate product, which have been investigated above will provide the Company with three alternatives for the progressive development of the Farim Phosphate Project, depending on the phosphate market conditions, the economic and political climate in Guinea Bissau and the availability of capital and skilled manpower to develop the Farim Phosphate project.
About Plains Creek Phosphate Corporation:
Plains Creek Phosphate Corporation is a Canadian mining and exploration company focused on advancing the Farim Phosphate Project located in Guinea-Bissau, West Africa. The Farim Project currently comprises a high grade phosphate deposit consisting of one continuous flat lying phosphate bed with a NI 43-101 compliant Mineral Resource estimate that defines a Measured Resource of 64.6 Mt at an average grade of 29.11% P2O5, an Indicated Resource of 28.1 Mt at an average grade of 27.68 % P2O5 and an Inferred Resource of 18.3 Mt at an average grade of 28.66 % P2O5. A two-phased development is planned for the Farim Phosphate Project as an open pit mining operation. Phase One consists of either a Direct Shipping Option Project with an annual phosphate production of 0.5 Mt per annum or a 1 Mt per annum phosphate rock concentrate project and Phase Two which consists of the production of 2 Mt per annum of phosphate rock concentrate and includes a beneficiation plant and associated infrastructure, pipeline and port.
The Company's shares are listed on the TSX Venture Exchange under the trading symbol "PCP". For additional information, please visit us at www.plainscreek.com.
ON BEHALF OF THE BOARD
(Signed) "Carson Phillips"
Carson Phillips
Vice-President, Corporate Development and Director
