APMC’s Millstream Potash Deposit, New Brunswick, Canada is in a resource rich area with a positive business climate, surrounded by other successful potash mines.
The most commonly used potash fertilizer is potassium chloride (“KCl”), also known as muriate of potash (“MOP”).
Highlights of the Millstream Deposit:
- Measured resource of 52.2 million tonnes of KCl with an NI 43-101 Resource Estimation Report.
- An economically feasible potash deposit with a social license, politically, within the community and from First Nations.
- 25 year mine life, of 2 million tonnes per year. Average KCl of 32.6%.
- Proforma EBITA of US$411 million per annum.
- Competitive advantages including reduced costs for rail transport to port at CAD$45 per tonne.
- Project is in an advanced state that includes many engineering studies.
- A calculated IRR of 31.42% with estimated CAPEX of US$1.83 billion.
Strengths of the Millstream Deposit (Summary from Ercosplan Report):
- Located near two PCS mines, verifying geological basis and economic viability.
- Location has excellent industrial infrastructure.
- Available capacity on rail and transportation lines.
- Opportunity to obtain cheap natural gas from Corridor Resources.
- Transportation distance to Port of Saint John is 70 kilometres.
- Port of Saint John has reduced sea transportation to Brazil.
- Advanced state of APMC, many studies and engineering work done on the Deposit.
- It is close to being a brownfield project.
- High level of public support: 80% for and only 7% opposed.
- Stable political situation, with low political risk.
What distinguishes the APMC Deposit from many others is that it is in an advanced state of exploration and there is substantial understanding regarding the high standard of mineralisation and ore bodies.
13 drill holes have been sunk to date. The calculated drill hole distance is approximately 2,800 metres for the entire potash deposit, of which, an area of 880 metres has so far been explored. Geophysical investigations on the structural geology of the deposit and the distribution of evaporite rocks have been carried out as follows:
- 2D seismic lines originally acquired by BP Canada in 1981 with a total length of 30.8 kilometres.
- 2D seismic lines originally acquired by Corridor Resources in 2001 with a total length of 8.5 kilometres.
- 3D seismic survey for an area of 3.9 km² in the north eastern part of the Deposit acquired by Tesla Exploration Partnership on behalf of APC in 2013.
- Two campaigns of gravimetric investigations (Bouguer Gravimetric Map) in 1981 for a total area of approximately 20 km² with more than 85 kilometres of gravimetric lines.
Location of the Millstream Deposit
The Millstream Deposit is located in a rural area of New Brunswick, one of Canada’s Atlantic provinces. With easy access by both road and rail, the deposit lies only 70 kilometres from the Port of Saint John. Situated on the Bay of Fundy, Port Saint John ships to locations around the globe through its deep water, ice-free harbour.