Replies to post #86 on Magindustries Corp (fka MAAFF)

[papa p]

its difficult to copy and paste from sedar but here is more info from 2014 ....just showing that the project was at an advanced stage.

MagIndustries Corp.: Update of the NI 43
-
101 Tech
nical Report for MagMineral's Mengo Permit
Area, Kouilou Region, Republic of Congo
TORONTO, ONTARIO
--
(Marketwired
-
•
July 2nd
, 2014)
-
MagIndustries Corp. ("MagIndustries" or the
"Company") (TSX:MAA) today announced that it has filed an update to its Nat
ional Instrument 43
-
101 Technical
Report entitled
Update of the NI 43
-
101 Technical Report for MagMineral's Mengo Permit Area, Kouilou
Region, Republic of Congo
(the "Technical Report") in respect of the property owned by its 90% owned
subsidiary MagMinera
ls Potasses Congo SA. ("MPC"), previously described in the Company’s press release of
November 14, 2013. The Technical Report relates to the geology and development of the Company's proposed
1.2 million tonnes K60 product per annum Mengo Potash Project in
the Republic of Congo (the "Project"). The
authors of the Technical Report are EurGeol Dr. Henry Rauche, EurGeol Dr. Sebastiaan van der Klauw, and EUR
ING Ralf Linsenbarth of ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH (collectively
"ERCOSPL
AN").
The update announced today arises because during the preparation of the original technical report incorrect
information was provided to ERCOSPLAN with respect to energy costs, a key input to calculating operating costs
and therefore a material facto
r in determining the economic merits of the Project. Specifically, energy costs were
overstated in the original technical report announced on November 14, 2013 because of a double counting of the
natural gas requirement for process heat and on
-
site co
-
gene
ration of electricity. On the basis of the data then
available operating costs before sustaining capital expenditures were estimated to be US$109.81 per tonne of
production. On the basis of the corrected data operating costs are estimated to be US$75.97 p
er tonne.
Estimated Operating Expenditures
As reported in the Company’s press release dated November 14, 2013, the annual operating expenditures
(“OPEX”) for full production had been previously estimated at US$131.8 million annually for the production of
1.2
mtpy of a K60 product. The corrected estimate of OPEX for full production is US$91.16 million annually for the
production of 1.2 mtpy of a K60 product. This equates to approximately US$76/tonne of KCl. These operating
costs include estimates for labou
r, maintenance, power and steam generation, consumables, diesel, product
transport to port and indirect OPEX. Sustaining capital expenditures have been estimated for the operation at
US$4.6 million annually or approximately US$3.83/tonne.
Assuming a nomina
l discount rate of 10%, the economic analysis based on the corrected OPEX estimate yielded
a pre
-
tax Net Present Value (NPV) of US$1.607 billion; an after
-
tax project NPV of US$1.303 billion with an
Internal Rate of Return (IRR)
of 24.4% before tax and 23.
5% after tax; and a payback period within 9 years of
project start
(or Year 8 of production)
, based on potash prices of US$380/tonne FOB. These metrics were
previously reported as
an NPV of US$1.263 billion before tax and US$1.002 billion after tax; and an
IRR of 21.6%