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American Pacific estimates US$687.9M value for Fort Cady borate-lithium project

American Pacific Borate & Lithium Ltd. completed an initial boric acid scoping study for its wholly owned Fort Cady borate-lithium project in Southern California.

At a price of US$900 per tonne for boric acid and US$700 per tonne for sulfate of potash, the company estimated a posttax, unlevered net present value, discounted at 10%, of US$687.9 million and a 39% internal rate of return.

The scoping study targeted steady state production of 246,000 tonnes per annum of boric acid and 54,000 tonnes per annum of SOP.

The pre-production CapEx target is US$98 million, including a 20% contingency, for an initial phase of 82,000 tonnes per annum of boric acid and 18,000 tonnes per annum of SOP.

C1 operating costs, including by-product credit, are estimated at US$193 per tonne.

The scoping study estimated a 25-year mine life based on a 68% indicated and 32% inferred mineral resource for boric acid production.

The Well Field development capital cost is estimated at US$11.8 million per annum, and sustaining cost is estimated at US$6.1 million per annum, in the base case scenario.

The second phase includes production of 245,000 tonnes per annum of boric acid and 54,000 tonnes per annum of SOP, with capital cost estimated at US$132.0 million.

EBITDA in the first full year of production from the first phase is estimated at US$156.4 million.