TORONTO,
April 11, 2013 /CNW/ - EPM Mining
Ventures Inc. ("EPM" or the "Company") (TSXV: EPK) (OTCQX: EPKMF)
announced an update on its ongoing Preliminary Feasibility Study
("PFS") by CH2M HILL Engineers, Inc. ("CH2") and Agapito
Associates, Inc. ("AAI"), for the production of Sulfate of Potash
("SOP") from its Sevier Playa Project (the "Project") located in
southwestern Utah.
The estimated completion date of the PFS remains
mid-2013 which will provide the foundation for the Company's
Definitive Feasibility Study ("DFS), anticipated to be completed by
late-2013. The PFS will build upon the Preliminary Economic
Assessment filed in November 2012
that indicated SOP production of 300,000 metric tonnes ("MT") with
a 30-year mine life, an estimated Net Present Value of $629.7 million (after-tax, inflated, 8% discount
rate), and an estimated Internal Rate of Return of 24% (after tax,
inflated).
Lance D'Ambrosio, Chief Executive Officer of
EPM, said; "Significant work has been completed and we are very
satisfied with the progress we are making to advance our PFS and
environmental permitting. All efforts are moving along well, so we
remain on track and look forward to completing our studies on
schedule."
In support of the PFS, EPM completed an
eighteen-hole sonic drilling program designed to provide additional
hydrogeologic information and to finalize the data required to
convert its resources into reserves. The drilling program,
conducted between mid-February and late-March, was supervised by
CH2 and AAI, with support from Boart Longyear. Hydrology
testing began in early April and is currently being carried out by
CH2 and Colog.
CH2 has made significant progress in design,
engineering, and process work for the PFS in the following
areas:
- Geotechnical drilling in the proposed plant site area has been
completed;
- Nine additional hydrology wells have been added to the regional
hydrology network;
- Utility site surveys are underway;
- Process alternatives have been further refined based on a
thermodynamic model developed by equipment manufacturer Swenson
Technology, Inc., and test work is currently being organized to
validate the results of the model; and
- Bench scale evaporation testing is well advanced with Hazen
Research, Inc.
AAI continues to advance its work on the Sevier
Playa system (the "System") with the following progress on:
- Design and oversight of the hydrogeological and hydrophysical
field testing program;
- Development of hydrogeologic models for the System, with the
ultimate objective of transitioning resources to reserves;
- Review and characterization of drilling logs and physical and
chemical data;
- Evaluation of trench sidewall stability; and
- Initiation of capital expenditure trade-offs and evaluations
for mining on the playa.
EPM continues to examine potential optimizations
and improvements to the Project, with a view of further reducing
project risks, refining capital and operating costs, and
potentially allowing for an earlier plant commissioning date when
compared to the current Project configuration.
The Company's environmental permitting efforts
have continued in earnest and are on schedule. These efforts
have included progress on the mining plan with the U.S. Bureau of
Land Management ("BLM") and Utah
Division of Oil, Gas and Mining; the Environmental Impact Statement
with the BLM; the 404 permit with the Army Corps of Engineers; the
Air Approval Order with the Utah Division of Air Quality; and water
appropriation with the Utah State Engineer.
EPM is also pleased to provide an update on the
extensive analysis of its SOP market opportunity and distribution
strategies. Parthenon Group LLC ("Parthenon") continues its
progress on a Market Assessment and Strategy Study ("Market Study")
for use in the PFS and DFS. Besides the U.S., extensive research
efforts have been underway in Brazil, China, and India utilizing Parthenon's Mumbai and Shanghai offices. To date, Parthenon has
conducted significant primary and secondary research, including
numerous interviews with agronomists, farmers, distributors, and
industry experts, both in the U.S. and abroad, as it continues to
gather domestic and international demand, pricing, sales, and
distribution data. These efforts are on-track with the Market Study
anticipated to be completed in April.
About EPM Mining Ventures
EPM, through its wholly owned subsidiary Peak Minerals Inc.,
controls directly or through agreement, mineral leases on more than
124,000 acres on the Sevier Playa property in Millard County, Utah, EPM is targeting the
future development and production of Sulfate of Potash (SOP), a
premium priced fertilizer used with special crops and arid soils,
using an industry proven, cost-effective solar evaporation
process.
For more information on the Company, please
visit our web site at www.epmmining.com.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE EPM Mining Ventures Inc.