Toronto, Ontario-IC Potash Corp. announced Jan. 5 the successful conclusion of the updated Preliminary Economic Assessment (PEA) of the company’s 100 percent-owned Ochoa Sulfate of Potash (SOP) Project located in southeast New Mexico, prepared by Gustavson Associates of Lakewood, Colo. “This independent report is a major achievement for IC Potash,” said Mr. Sidney Himmel. “The updated PEA attributes an estimated net present value to the Ochoa Project of US$1.4 Billion using a pre-tax discount rate of 10 percent, and $2.1 billion using a rate of 8 percent. The projected values are based on the estimated capital cost of $662 million and projected production cost of $164 per ton of SOP. The PEA provides robust economics for the Ochoa Project with operations producing 660,000 tons of SOP per year. Our mission is to develop a long-life, low cost mine, which will produce Sulfate of Potash, the premium quality potash of the world, and the PEA indicates that the company’s New Mexico Ochoa potash asset is positioned to become one of the world’s lowest cost producers of Sulphate of Potash.” Gustavson recommends continued development of the project, including the completion of a prefeasibility study, the commencement of environmental and permitting work, and the obtaining of a sufficient bulk sample of ore for pilot scale metallurgical testing and process optimization.
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