Name of the Project
Fort Cady borate and lithium project.

Location
Southern California, US.

Project Owner/s
American Pacific Borate and Lithium (ABR).

Project Description
An enhanced definitive feasibility study (DFS) 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 Phase 1B will increase boric acid production to 90 000 t/y using the knowledge gained 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
At full production the project is expected to employ about 250 people.

Net Present Value/Internal Rate of Return
The enhanced DFS estimated a net present value, at an 8% discount rate, of $1.97-billion, compared with $1.43-billion in the DFS modified in January 2019 .

The enhanced DFS estimates an internal rate of return of 39.4%, compared with 40.5% in the modified DFS.

Capital Expenditure
The increased production will require a greater capital spend, with capital spend forecast at $737.9-million for the enlarged project, compared with the original cost of $526.2-million of the DFS modified January 2019 .

Phase 1A will cost $50.3-million.

Phase 1B is expected  to require a capital investment of $156-million.

Phase 2 is estimated at $268.3-million.

Phase 3 is estimated at $263.2-million.

Planned Start/End Date
American Pacific Borate is targeting initial production in the second half of 2021.

Latest Developments
American Pacific Borates has accelerated construction activities at its Fort Cady borate mine.

This follows the announcement on June 1 that A$77-million were raised to fully finance Phase 1A of the mine.

The company has also reported positive exchange-rate movements. In this regard, discussions are progressing with respect to a potential dual listing on the NYSE.

According to CEO Michael Schlumpberger, with Phase 1A now fully financed, the company’s focus is on accelerating substantive construction activities, with the first priority being essential site infrastructure necessary for the broader construction of the Fort Cady borate mine.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
American Pacific Borates, tel +61 8 6141 3145.