Great News Release
IC Potash aims to finalize Ochoa FS in December
2013-10-10 07:08 ET - News Release
Mr. Sidney Himmel reports
IC POTASH ISSUES OPERATIONAL UPDATE ON OCHOA SULPHATE OF POTASH PROJECT IN NEW MEXICO
IC Potash Corp. today issued an update on the company's operations, including the timing of the finalization of the feasibility study for the Ochoa sulphate-of-potash project in southeastern New Mexico.
Publication of feasibility study
ICP's staff of technical professionals is continuing to work with its team of more than 100 industry consultants on the completion of the feasibility study. The study is nearing completion and is expected to be finalized in December. The study is being completed by SNC-Lavalin Inc., Agapito Associates Inc. and Novopro Projects Inc. Pilot studies and the pilot plant testing have been carried out by Hazen Research Inc. and HPD Systems LLC, part of Veolia Water Solutions and Technology.
Sidney Himmel, president and chief executive officer of IC Potash, stated: "The company is focused on the mining of polyhalite, a potash mineral, and its processing into sulphate of potash, the world's premium-priced potash used in the agriculture of fruits and vegetables and in salt-sensitive soils. The completion of the study will mark the most significant milestone achieved by ICP. Upon completion, with the final economic data and definitive cost assessments, we will continue negotiations with various domestic and international institutions and strategic industry partners to fund the New Mexico Ochoa SOP project."
Pilot plant optimization tests
In early September, the company and HPD successfully completed the initial pilot plant testing in connection with the processing of polyhalite ore into SOP. The pilot test demonstrated the robust nature of the flow sheet and economic conversion of polyhalite to SOP. The results were very positive, being consistent with the effective and efficient processing of polyhalite ore into various grades of SOP, and will be incorporated into the study with respect to final equipment selection and sizing, and the computation of projected capital costs and operating costs. Pilot testing includes the crushing, grinding, washing and dewatering of mined ore; calcination, which is the controlled heating to remove entrapped water, thereby increasing ore solubility; leaching of the calcined ore; and the crystallization of SOP.
Jurisdictional determination on waters of the United States
Earlier this summer, the U.S. Army Corps of Engineers determined that the Ochoa project area is composed entirely of uplands and upland drainage; therefore, seeking federal permits relating to water will not be required. Consequently, the corps issued ICP a jurisdictional determination confirming that its planned polyhalite mining and processing operations will not require the corps' authorization to proceed with constructing the mine and processing plant, nor will it be subject to continuing monitoring once in commercial operations.
Water supply
In September, ICP was notified by the New Mexico Office of the State Engineer that the company has met the requirements of state statutes NMSA 17-12-25 through 17-12-28 and may appropriate water from the Capitan reef for mining and industrial use by the Ochoa project, so long as the company complies with the standard metering and reporting requirements as detailed in the confirmation letter. This letter gives the company full rights to utilize deep, non-potable water, culminating nearly three years of well drilling and well testing, modelling, water treatment test work and permitting. The water will be treated by reverse osmosis to reduce dissolved solids to the extent required for process water to be used in the leaching and crystallization processes required to produce SOP.
Draft environmental impact statement
On Friday, Aug. 9, 2013, the U.S. Department of the Interior Bureau of Land Management published the notice of availability of the draft environmental impact statement. On Aug. 27 and 28, the BLM hosted three public meetings in Carlsbad, Jal and Hobbs, N.M., to give interested stakeholders the opportunity to comment and make their opinions of the Ochoa project known. The comment period closed on Sept. 23, 2013. ICP anticipates that the permitting process will proceed as planned, culminating in the clearance of the final environmental impact statement in the first quarter of 2014.
Closing remarks
Concluding, Mr. Himmel added: "We firmly believe that the investment of time and resources devoted to developing our long-life asset in southeastern New Mexico will provide a strong foundation for future growth and deliver long-term value for our shareholders for decades to come. However, we still have more hard work ahead of us. While the company continues to enjoy sufficient liquidity to complete the feasibility study and several months of operations thereafter, we recognize that the financial market environment for project funding could remain challenging for junior mining companies for the next 12 to 18 months. Nonetheless, we stand ready to meet these challenges with the same commitment, skill and dedication that has served to differentiate IC Potash as a world-class company with extraordinary future promise."