Name of the Project
Fort Cady borate and lithium project.

Location
Southern California, US.

Client
American Pacific Borate and Lithium (ABR).

Project Description
An enhanced definitive feasibility study (DFS) on the Fort Cady project has proposed splitting Phase 1 of the project, which involves the delivery of about 82 000 t/y of boric acid and 36 000 t/y of sulphate of potash (SoP), into Phase 1A and Phase 1B to conserve costs. Phase 1A will target the production of 6 000 t/y of boric acid and 40 000 t/y of SoP, while the Phase 1B project will increase boric acid production to 90 000 t/y using learnings from the initial 6 000 t/y operation.

Phases 2 and 3 of the project remain the same as in the DFS. Phase 2 will increase pro­duction to 245 000 t/y of boric acid and 73 000 t/y of SoP, while Phase 3 will produce 408 000 t/y of boric acid and 109 000 t/y of SoP.

Based on the three-phase approach, the project has a mine life of about 21 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Phase 1A will have an estimated net present value (NPV), at a 10% discount rate, of $224.7-million and an internal rate of return (IRR) of 58.3%. The addition of Phase 1B will increase the NPV to $385.3-million, while the IRR will reach 36.4%.

Value
By splitting Phase 1 into two phases, pre­production costs for the project have been reduced from $138-million in the December DFS to $36.8-million for Phase 1A and $111.38-million for Phase 1B in the enhanced DFS. Phase 2 will cost $191.44-million and Phase 3$186.55-million.

The total cost of the project has increased from an estimated $516.2-million in the DFS to $526.21-million in the enhanced DFS.

Duration
Construction of Phase 1 is to start in the fourth quarter of 2019, subject to financing and permitting.

Latest Developments
ABR is aiming to start construction in the fourth quarter of this year.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
ABR, tel +1 442 292 2120.