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SAGUENAY, QUEBEC — Arianne Phosphate (the “Company” or “Arianne”) (TSX VENTURE: DAN; OTC: DRRSF; FRANKFURT: JE9N), a development-stage phosphate mining company, advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, reported its financial results for the three-month and nine-month period ended September 30, 2020. All amounts are in Canadian dollars unless noted.
“Through the third quarter, Arianne continued to drive the optimization of its project as metallurgical tests have shown a path towards lower operating times and costs,” said Brian Ostroff, CEO of the Company. “Of significant interest as well, has been the rapid improvement in the pricing of many agricultural commodities. With many governments around the world fighting the economic effects of Covid-19 through extensive money-printing measures, much of this liquidity has made its way into commodities with, some grain prices now trading at levels not seen in many years. Resulting from this, we have also seen increasing demand for fertilizer and a subsequent price increase. With phosphate fertilizer prices up roughly 35% since the summer, this continues to increase the economics of our project and, with that, continued discussion with potential partners and financiers.”
Q3 2020 Financial and Operational Highlights
• In July 2020, the Company announced that it has received favorable results from recently conducted metallurgical tests performed at COREM Labs in Quebec City, Canada. In tests run earlier this year, Arianne weighed the benefits of using a different collector agent sourced from NordChem, a Canadian-based company that provides tailor-made chemicals to the mining industry. Results recently received from these tests demonstrated that Arianne could produce a phosphate concentrate averaging 40.25% P2O5 with recoveries ranging between 91.1% and 93.2% and, combined with the rapidity with which this collector acts, would also produce cost savings in the production of our high-purity concentrate.
• In August 2020, Arianne received further results from tests designed to optimize its metallurgical process and reduce its operating cost. The process was run at lower water temperatures to simulate the water temperatures available at site through most of the operating year. Using water at 4˚C, as opposed to the originally tested 20˚C, showed no adverse effect on the recoveries or quality of Arianne’s phosphate concentrate and thus, will allow Arianne to produce the same quality product while reducing the time and costs associated with heating.
Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in Q3 2020. In the third quarter ended September 30, 2020, the Company incurred net losses of $0.2 million (M) for the three-month period and $0.8M for the nine-month period. For the same period in 2019, the net loss incurred was $0.4M for the three-months period and $1.7M for the nine-month period in 2019.
Through the rest of 2020 and into the new year, Arianne will be focused on the ongoing advancement and development of its Lac à Paul project, namely:
• Complete partnership and financing arrangements;
• Continue to enhance the value of the project through project optimization;
• Continue our ongoing dialogue with Stakeholders.
Arianne’s Management Discussion and Analysis and condensed consolidated interim financial statements for the nine month period ended September 30, 2020 are available on the Company’s website and on SEDAR at www.sedar.com.
Jean-Sébastien David, P.Geo., Qualified Person by NI 43-101, has approved this release. Mr. David is also the Company’s Chief Operating Officer.
About Arianne Phosphate
Arianne Phosphate (“Arianne Phosphate Inc.”) (www.arianne-inc.com) is developing the Lac à Paul phosphate deposits located approximately 200 km north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits will produce a high-quality igneous apatite concentrate grading 39% P2O5 with little or no contaminants (Feasibility Study released in 2013). The Company has 123,198,348 shares outstanding.
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