apatite and ilmenite in québec province: a world-class ... · igneous deposits in quebec province...

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Apatite and Ilmenite in Québec province:

A world-class potential

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Avertissement

Les ressources totales n’incluent que les catégories de ressources indiquées et mesurées.

Toutes les devises sont en $US sauf indication contraire.

Cette présentation contient des rapports prévisionnels. Tous les rapports, autres que les rapports faisant état de

faits historiques, inclus dans cette présentation, incluant sans limitation, les rapports concernant la minéralisation

et les réserves potentielles, les résultats d'exploration et les planifications et objectifs d'Arianne Phosphate Inc.,

sont des rapports prévisionnels qui impliquent divers risques et incertitudes. Il ne peut y avoir aucune assurance

que de tels rapports montrent avec précision quels seront les résultats réels et les événements futurs qui

pourraient différer matériellement de ceux prévus dans de tels rapports. Les facteurs importants qui pourraient

faire en sorte que les résultats actuels diffèrent sensiblement des attentes d’Arianne Phosphate Inc. sont

énumérés sous la rubrique « Facteurs de Risque » et dans les documents archivés périodiquement auprès du TSX

Venture et des autres autorités réglementaires.

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Industrial minerals- Characteristics

32015 © Arianne Phosphate Inc. Tous droits réservés

Characteristics of the exploitation of industrial minerals

Necessity to find a client (concentrate value is established by the client)

Necessity to integrate a closed market.

High quantity of rock to extract

High quantity of product to transport

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87% is used in the production of fertilizers

7% is used in animal feed

6% is used in human feed, metallurgy, water treatment,

toothpaste, cosmetics, ceramics and miscellaneous

Phosphorus: Essential to global food security

Thare are any substitute to phosphorus

87%

6%

7%Other Uses

Animal feed

Fertilizers

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Fertilizer market is mainly controled by:

Population growth

Change of diet in the emerging country

Used of agricultural land for bioethanols and biocarburants

Apatite concentrate demand increases of 2-3%, whether 4-6 Millions of tonnes/year

Apatite: A growing market

‹N°›62015 © Arianne Phosphate Inc. Tous droits réservés

Phosphate Rock: Price

In 2008, global food crisis result in a price spike of phosphate rock

50$/t 450$/t

2015/10 123$/t for Morocco BPL 70%

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Phosphate rock: Global source supply

April 20147

North American dependence on

imports will double in the next 5

years

Copyright© 2014 Arianne Phosphate Inc.

Annual world production: 220 Millions of tonnes which 85% are integrated (USGS, 2014).

30 Millions of tonnes are tradded on the market annually: 70% come from Middle East and North

Africa (Morocco, Syria, Egypt, Israel, Jordan, Tunisia and Algéria).

Major importers: USA

Canada

India

Western Europe

Latin America

SE Asia

Production capacity of USA will decrease of more than 25 Mt/year during the next 15 years.

In Canada, the last phosphate mine has closed in 2013.

Current supply is dependant on political stability in Middle East

and North Africa.

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Phosphate rocks: Geological environment

8

Modified from Jebrak et

Marcoux 2008

The phosphate rocks are found in three types of geological environment

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Phosphate Rocks: Igneous vs sedimentary deposits

Igneous deposits Sedimentary deposits

Ore grade 4-15% P2O5 10-30% P2O5

Mining and crushingMore difficult:

consolidated rocks

Easier because the rocks are

unconsolidated

Concentration

(ore treatment)

Traitement et séparation

faciles

La récupération peut être

>90%

Procédé moins efficace

Le récupération est de 65 à

85%

Concentrate grade 37-41% P2O5 Average of 29% P2O5

Concentrate qualityContains few or no

contaminants

Usually contains some

contaminants (heavy metals,

uranium, cadmium)

• ~10% of concentrate come

from igneous rocks

• Evolution of standards and

environnemental rules tends

to encourage fertilizers

production from igneous

rocks instead of sedimentary

rocks.


Ilmenite: Main uses

95% Titanium dioxide

5% Metal titanium 95% of the production is used in titanium dioxide

production: Paints, varnishes, plastics, papers.

5% is used in metal titanium production for industry:

Aerospace, aeronautic, military.

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Ilmenite: Global source supply

April 201411Copyright© 2014 Arianne Phosphate Inc.

Annual world production: 6,68 Millions of tonnes (USGS, 2014).

Major producers:

In Canada, only one active mine: Mine Tio (North of Havre St-Pierre, Qc).

16%

Australia

South Africa

China

Source: USGS, 201416%

15%

13%

7%

7%

6%

18%

Canada

Other

Vietnam

Norway

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Market is expected to decrease induced by the slowdown of

the chinese growth.


Ilmenite: World market

Two different market

Very volatile market. Dependent of military and

aerospace demands variation.

Metal titaniumTitanium dioxide

Source: Argex, 2015

$US/kg$US/tonne


Ilmenite: World Market

Ilmenite concentrate price in 2014: 165$/t

Source: USGS, 2014 and Energy

and metals consensus forecasts,

2014

Ilmenite concentrate price will continue to decrease during the next years due to a production surplus and a

slowdown of the chinese growth

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Ilmenite rocks: Geological environment

14

Modified from Jebrak et

Marcoux 2008

Ilmenite rocks are find in two types of geological environement

Sedimentary ilmenite deposits

come mainly from magmatics and

metamorphic rocks weathering.

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Ilmenite and Apatite of Quebec

Apatite:

• First phosphate deposits were discovered in Outaouais in 1829.

• From 1875 to 1950, several apatite deposits were mined across Quebec province.

• The golden age of the apatite mines is between 1875 and the early 1890’s when some giant

sedimentary deposit began to be mined in USA.

Ilmenite:

• Development of a new blast furnace melt technology to produce a titanium slag, during the 40’s,

result in an exploration boom for ilmenite deposit.


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Main deposits and active mine

Apatite:

• Mine Arnaud (1)

• Lac à Paul (2)

Ilmenite:

• Mine Tio (3)

• Black Rock (4)


Source: MERN

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Mine Arnaud project


Open-pit mine project, located

10km west of Sept-Îles,

Quebec, Canada.

Source: Mine Arnaud

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Igneous rocks of a layered ultramafic intrusion

Mine life: 30 years

Opening expected: 2018

Production: 1,2 Mt per year of an apatite at 39-40% P2O5

Secondary product: Titanium


Mine Arnaud project

Source: Mine Arnaud

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Lac à Paul – Arianne Phosphate


Open-pit mine located at 200 km north of

Saguenay in the region of Saguenay-Lac-St-Jean,

Québec, Canada.



Igneous rocks from the of Lac-Saint-Jean anorthosite complex

Reserves: 472 Mt at 6,88 % P2O5 (cut-off at 3,5% P2O5)

Production: 3 Mt per year of apatite concentrate at 38,6% P2O5 – Recovery rate of 90%

Mine life: 26 years

NPV (8% Before-tax): 1,9 G$

IRR (before-taxes): 21%

OPEX (at mine site): 80$/t

CAPEX: 1,2 G$

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Opening expected: 2018

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Zone Inferred Resources(1) Indicated and measured resources(1)

Paul + extensions

26 Mt @ 6,58% P2O5

(cut-off at 4% P2O5)702,2 Mt @ 7,16% P2O5

(cut-off at 4% P2O5)

Manouane 164 Mt @ 5,9% P2O5

(cut-off at 2,43% P2O5)

Nicole 78 Mt @ 5,34% P2O5


Traverse 17 Mt @ 5,98 % P2O5


TraMan Sud 146 Mt @ 5,30% P2O5


Zone 2 64 Mt @ 4,55% P2O5


(1)Cautionary Statements: Mineral Resources that are not Mineral Reserves do not have demonstratedeconomic viability. That it is uncertain if further exploration will result to upgrade this inferred resource atindicated and measured resource.

Resources presented here had been published in press releases dated from 18 of february 2015, 16 of july 2014, 15 of may 2014 and 8 of november 2011.



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Arianne’s concentrate quality


Production of a concentrate of high quality:

• High grade of phosphorus

• Low grade in uranium

• Very low grade in cadmium

* Source: European commission Joint Research Centre, Certified Reference Material BCR – 032, 2010

*

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Mine Tio – Rio Tinto


Open-pit mine located 43 km in the NE of Havre Saint Pierre

Only ilmenite mine in operation in Canada

Biggest deposit of massive ilmenite in the world

Reserves: 52 Mt of TiO2

Production of 3Mt of ilmenite concentrate (production temporary

stopped)

Production integrated to the metallurgical complex of Sorel-Tracy

Mine life (active since 1950): around 35 years more

Source: Rio Tinto Fer et Titane

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BlackRock Metals project


Project located close to the city of Chibougamau

Layered deposit of Lac Doré complex

Resources : 800 Mt of indicated and measured resources

Production: 1Mt per year of iron concentrate at 62-65% Fe

Production of ilmenite concentrate at 46-48% TiO2 during phase 3

Mine life: over 40 years

CAPEX: 1.2 -1.3 G$

Source: Métaux BlackRock, Mars 2015


Futur potential

Lac à PaulBlackRock

Mine Arnaud

Mine Tio

Source: MERN


Lac à PaulBlackRock

Mine Arnaud

Lac Tio

Grenville geological

province host many

anorthosites complexes

Futur potential

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P occurences


Majority of P occurences are identified

around the Lac Saint Jean anorthosite

complex and the LaBlache anorthosite

complex

SLSJ

La Blache

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Ti occurences


High number of occurrences show the many

exploration work that have been made since

the 40’s.

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Conclusion

Apatite:

Apatite market is growing.

Igneous deposits in Quebec province contains high quality apatite.

World population growth will result in an increase of the demand for this type of apatite in the futur.

The discovered and possible production launch of two major deposits stimulate apatite exploration in

Quebec province.

Geological province target in order to discover new deposit is the Grenville



Conclusion

Ilmenite:

Ilmenite market is currently stalled. However, it’s during this slowdown period that exploration

is important to prepare and positione for the future recovery of the market.

Geological province target for ilmenite exploration is Grenville province.

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Merci


apatite and ilmenite in québec province: a world-class ... · igneous deposits in quebec province...

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