Focus Delivers Pre-Feasibility Update for Bayovar 12 Focus Delivers Pre-Feasibility Update for Bayovar 12 Phosphate Project, Peru After-Tax NPV $458M • IRR 26.4% • Payback 3.9 Years • Mine Life 20 Years
May 16, 2016. Vancouver, BC Focus Ventures Ltd. (TSX-V. FCV; "FCV" or the "Company") is pleased to announce results for its National Instrument 43-101 Updated Pre-Feasibility Study ("Updated PFS") for its 70%-owned Bayovar 12 phosphate project in northern Peru. The Updated PFS was prepared by M3 Engineering & Technology Corp. ("M3") and Independent Mining Consultants Inc. ("IMC"), both based in Tucson, Arizona and is a change-in-scope study that replaces an earlier M3 Pre-Feasibility Study ("PFS") dated February 8, 2016. Key changes-in-scope include:
one large processing plant instead of the staged commissioning of two smaller ones
owner-operated instead of contractor-operated overburden stripping
doubling of pre-production overburden stripping
a simplified mine plan and production schedule
larger and more efficient loading and hauling equipment
a more logical and staged buildout of the tailings storage facility
These changes-in-scope increased capital cost, decreased operating cost and in turn significantly improved the financial performance of the project.
Simon Ridgway, Chairman and CEO of Focus, said, "In sedimentary phosphate deposits there are no starter pits. As a result, payback of capital is dependent upon achieving name plate process plant capacity and low operating costs early in the mine's life. With payback in 3.9 years and an after-tax NPV7.5 $458 million, the Updated PFS clearly demonstrates that large-scale open pit development at Bayovar 12 has the potential to deliver impressive cash margins over an initial 20 year mine life. It is Focus' goal to become the long-term supplier of choice for the direct application fertilizer market."
Except where otherwise noted, all currency amounts are stated in Q1-2016 United States dollars. All production volumes are stated on a 100% basis and all mined tonnages are stated on a dry basis. The Company will file the Updated PFS with Canadian securities regulators within 45 days of this release. It will be available at SEDAR and also on the Company's website.
The Company will host a Conference Call and Webcast on Tuesday, May 17, 2016 at 8am Pacific Time (11am Eastern, 4pm UK) to discuss the Updated PFS. Call-in details can be found at the end of this release.