New feasibility study expands resource, mine life for Vulcan Minerals’ Great Atlantic salt project

Image from Vulcan Minerals.

Vulcan Minerals (TSXV: VUL) affiliated company Atlas Salt released the findings of a comprehensive feasibility study and an updated mineral resource estimate conducted by SLR Consulting (Canada) on the Great Atlantic salt project situated in western Newfoundland.

The company says the study represents a significant leap in economic viability compared to the preliminary economic assessment dated Jan. 31, 2023, including an annual production of 2.5 million tonnes salt (NaCl) over a 34-year mine life and a post-tax net present value (NPV) at an 8% discount rate reaching C$600 million and an internal rate of return (IRR) of 19%.

SLR Consulting also introduced an expansion case featuring a salt production scale of 4.0 million tonnes per year across a 47.5-year mine life and reported an NPV at 8% amounting to C$2.015 billion (pre-tax) and a pre-tax IRR of 28%.

The feasibility study includes the enlargement of indicated mineral resources and mineral reserves:

  • Indicated mineral resources of 383 million tonnes NaCl at 96.0%.
  • Inferred mineral resources of 868 million tonnes at 95.2% NaCl.
  • Probable mineral reserves of 88.1 million tonnes at 96.0% NaCl.

Patrick Laracy, president of Vulcan Minerals, said, “This independent feasibility study of the Great Atlantic salt project confirms its substantial value and positive economic attributes as a tier one asset.”

A new feasibility study gives the Vulcan Minerals’ Great Atlantic salt project a potential 47.5-year life of mine.