Updated news... FOR IMMEDIATE RELEASE
CRYSTAL PEAK MINERALS INC.
AWARDS CONTRACTS TO CONSULTANTS
TO COMPLETE FEASIBILITY STUDY
Toronto, June 28, 2016 - Crystal Peak Minerals Inc. ("Crystal Peak" or the "Company") (TSXV: CPM, OTCQX: CPMMF) is pleased to announce that is has engaged CH2M Engineers Inc. ("CH2M"), Norwest Corporation ("Norwest"), and Novopro Projects ("Novopro") to complete a feasibility study and technical report ("FS" or the "Report") in accordance with National Instrument 43-101 standards ("NI 43-101") for its premium specialty fertilizer project on the Sevier Playa in southwestern Utah, U.S.A. (the "Sevier Playa Project").
As announced on March 16, 2016, findings from the fieldwork portion of the FS completed during Q1 2016 confirmed or exceeded many technical metrics used to develop the Company's Preliminary Feasibility Study ("PFS") completed in 2013. Based upon meeting these technical markers, the Board of Directors of the Company approved going forward with the remaining phases of the FS and permitting process.
"We are very pleased with the team we have put together to deliver our feasibility study," said Lance D'Ambrosio, Chief Executive Officer of Crystal Peak. "The fieldwork portion was very encouraging so we look forward to optimizing our project, delivering a great study, and creating real value for our shareholders."
CH2M will assume the role of lead FS consultant and will be responsible for coordinating the overall delivery of the FS. The Report will build on the results of the PFS and on the FS fieldwork already completed. It is intended to further define the Project to AACE Class 3 standards and to typical FS levels of confidence. The Report will incorporate engineering design for all facets of the project required to reach a minimum mine life of 30 years and target production of 300,000 tonnes per year of potassium sulphate, as well as the production of any associated minerals such as lithium compounds that may prove to be economic.
The FS scope of work is designed to support project financing and will be organized around three primary work areas:
- Playa: Mining plan including extraction trenches and wells, and the water recharge system
- Process facilities: Process ponds and product refinery from salt harvest to load out, warehouse, administration, and process yard facilities; and
- Infrastructure: Power, gas, water, communication, access roads, and load-out facility
The FS will include early work to evaluate opportunities for project optimization with the potential to significantly improve project economics. These options include evaluating associated minerals, optimizing the mine plan, and improving process design to defer capital costs and accelerate time-to-production.
CH2M is a global consulting firm with more than 22,000 employees in 170 offices worldwide. Norwest is an internationally recognized leader in providing consulting expertise to the energy, mining, and natural resources industries. CH2M and Norwest will be responsible for the design, engineering, and cost estimation of the Playa and Infrastructure areas. Both companies have supported Crystal Peak continuously since the inception of the project and will provide the expertise and continuity required for successful delivery of their scope areas.
Novopro will be responsible for evaporation pond and process plant design, engineering, and cost estimation. Novopro is a project development and implementation company servicing the mining and metallurgical industries. The company specializes in the potash sector and has industry-leading expertise in both KCl and K2SO4 potash processing. Novopro's recent experience includes the completion of a feasibility and implementation study for Yara International's Dallol potassium sulphate project in Ethiopia.
As announced previously, the Company has selected a lithium development team that includes Branson Hamilton, Dr. James W. Patten, Ph.D., and Stephen Styler, J.D. This team has substantial experience in mineral production, technology, and business development strategies. The lithium development team will seek to accelerate the evaluation of technical processes for lithium production and pursue business partnership and off-take agreements as the Company completes the FS and environmental permitting necessary to begin construction.
Capital and operating cost estimates produced during the FS will adhere to AACE Class 3 standards. An updated NI 43-101 Technical Report will to be filed at the conclusion of the FS.