Name of the Project
Fort Cady borate mine project.

Location
South-eastern region of San Bernadino County, California, in the US.

Project Owner/s
American Pacific Borates.

Project Description
American Pacific Borates has updated the enhanced Fort Cady borate mine definitive feasibility study (DFS), released on April 16, 2020, to bring forward about 40 000 t of sulphate of potash (SoP) production to the 2023 calendar year.

The project envisages the production of boric acid through solution mining of an orebody that is about 450 m below the surface.

Potential Job Creation
The project is forecast to directly employ 250 people once in full production.

Net Present Value/Internal Rate of Return
The project’s net present value, at an 8% discount rate, has increased from $1.97-billion in the enhanced DFS to $2.02-billion in the updated enhanced DFS, and its internal rate of return from 39.4% to 40.6%.

Capital Expenditure
Capital expenditure has increased from $737.9-million in the enhanced DFS to $842.6-million in the updated enhanced DFS.

Planned Start/End Date
Initial production of boric acid remains on track for the third quarter of 2021.

Latest Developments
American Pacific Borates could potentially triple boron production at its Fort Cady operation on the back of increased head grade and a new mine plan.

Boric acid head grade assumptions at Fort Cady have increased from the 3.7% considered in the DFS, to 5.1%.

The extraction ratio has also increased from 70% to 80%; therefore, more of the orebody could be mined.

As a result of the higher grades, American Pacific has developed a new mine plan for Fort Cady, reducing the cutoff grade from 5% to 0%, which is expected to have a significant effect on the total quantum of boron and lithium to be produced from the orebody.

“Our new mine plan has confirmed an increase in boric acid head grade and the ability to mine the entire orebody, resulting in over 2.5 times the amount of boron production contemplated in the DFS," says CEO Henri Tausch.

“This is a stunning result, considering that we have further opportunity to increase this with modest success across our exploration target to the south and east of the existing orebody. Couple this with the recent 85% increase in the measured and indicated category for the resource, we enter our upcoming US listing with high confidence on delivering a very successful outcome for all shareholders.”

Key Contracts, Suppliers and Consultants
None stated.

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