First Phosphate Corp. (CSE:PHOS) told investors it aims to complete the preliminary economic assessment (PEA) for Lac-à-l’Orignal in Quebec in 2023 so it can advance the flagship property to a feasibility study in 2024.
In a corporate update, the company said other milestones ahead for 2023 include the release of final results from the winter 2022 drill program at its Bégin-Lamarche property, followed by a summer drill program to reach National Instrument 43-101 readiness in 2024.
It also plans to commence a prospection and geological reconnaissance program on its blue sky properties at Alex, Brochet, Larouche and Perron, where strong phosphate indications have been found.
“The company remains focused on building shareholder value in the upstream through the development of our mineral assets in the Saguenay-Lac-St-Jean region of Quebec into producing phosphate mines that extract and concentrate phosphate-bearing igneous rock apatite,” First Phosphate said in the update.
“The anticipated primary recovery will be a (greater than) 40% pure phosphate concentrate ideal for the creation of large quantities of ESG-compliant PPA (purified phosphoric acid) for the LFP battery industry.”
First Phosphate noted that its phosphate mining assets cover an entire district of 1,500 km2 in the Saguenay-Lac-St-Jean Region of Quebec where 1% of the world’s rarest and purest igneous anorthosite phosphate rock can be found, giving it a core competitive advantage. It holds over 15 areas of very strong phosphate showings that range from exploration sites all the way to PEA development assets.
“Deploying proven, world-class phosphate processing technology from our partner, Prayon, we estimate that approximately 90% of our phosphate concentrate will be capable of being processed into ESG-compliant PPA for the production of LFP Cam for LFP batteries,” the company said.
“Other sedimentary phosphate mines in North America have depleting phosphate stock and can convert only a much lower percentage of their phosphate rock into PPA at economical scale.”
2023 achievements
Recapping some of its achievements so far for 2023, the company noted that it listed its shares on the Canadian Securities Exchange and the Frankfurt Stock Exchange, providing global visibility and liquidity to shareholders.
It also signed a Memorandum of Understanding with Belgium-based Prayon SA, a global leader in purified phosphoric acid production and technology.
First Phosphate also highlighted that it achieved a world-leading high-purity phosphate concentrate of 40.2% at a 91.4% recovery rate through metallurgical test work at the laboratories of SGS Canada Inc and achieved strong LFP-related secondary recoveries of ilmenite (titanium) and magnetite (iron).
This year, it also plans to work with SGS Quebec to demonstrate pilot scale separation of apatite from ilmenite and magnetite to create three distinct and marketable recoveries.
Additionally, it will work with Prayon to launch pilot-scale production of battery-grade PPA based on phosphate concentrate originating from First Phosphate mineral properties to meet client sample requests for locally produced North American PPA.
Contact the author at stephen.gunnion@proactiveinvestors.com