First Phosphate Corp. (CSE:PHOS, OTCQB:FRSPF) said it is in the midst of an internal prefeasibility analysis ahead of a formal feasibility study on its Bégin-Lamarche phosphate mine in Quebec.
The company recently completed its mineral resource estimate and preliminary economic assessment for the Bégin-Lamarche project.
The mine, with an estimated capital expenditure of $459 million, is expected to generate peak annual revenues of $362 million over a 23-year lifespan, with a pre-tax internal rate of return of 37.1%.
In December, the company finalized long-term agreements with offtake partners and is working with the Pekuakamiulnuatsh First Nation on potential financial participation in the project, it said in an update.
First Phosphate has also completed internal pre-feasibility and capital expenditure studies for a 190,000-tonne-per-year phosphoric acid facility, estimating construction costs at $175 million. The facility, using apatite concentrate from Bégin-Lamarche, could generate annual revenues of $284 million.
Small-scale production on the horizon
Additionally, First Phosphate is advancing its First Saguenay iron phosphate plant in La Baie, Quebec. The company expects small-scale production to begin in 2026, ramping up to 11,882 tonnes per year by 2028, with projected revenues of $53 million. Capital costs for the facility are estimated at $76 million, and financing discussions are ongoing.
First Phosphate is negotiating supply agreements with major lithium iron phosphate (LFP) battery industry players and has signed a collaboration agreement with GKN Hoeganaes, one of the world’s largest iron powder producers. GKN will supply up to 400,000 tonnes of iron powder to support large-scale iron phosphate precursor production.
New president
In leadership changes, Armand MacKenzie has been promoted to president, and David Dufour to senior vice president.
CEO John Passalacqua said MacKenzie will focus on Indigenous partnerships and financing, while Dufour will oversee operations and community relations.