Name of the Project
Fort Cady borate and lithium project.

Location
Southern California, US.

Project Owner/s
American Pacific Borate and Lithium (ABR).

Project Description
An enhanced definitive feasibility study (DFS) on the Fort Cady project has proposed splitting Phase 1 of the project, which involves the delivery of about 82 000 t/y of boric acid and 36 000 t/y of sulphate of potash (SoP), into Phase 1A and Phase 1B to conserve costs.

Phase 1A will target the production of 6 000 t/y of boric acid and 40 000 t/y of SoP, while Phase 1B will increase boric acid production to 90 000 t/y using the knowledge gained from the initial 6 000 t/y operation.

Phases 2 and 3 of the project remain the same as in the DFS. Phase 2 will increase pro­duction to 245 000 t/y of boric acid and 73 000 t/y of SoP, while Phase 3 will produce 408 000 t/y of boric acid and 109 000 t/y of SoP.

Based on the three-phase approach, the project has a mine life of about 21 years.

Potential Job Creation
Not stated.

All-in Sustaining Costs/All-in Costs
Not stated.

Net Present Value/Internal Rate of Return
Phase 1A will have an estimated net present value (NPV), at a 10% discount rate, of $224.7-million and an internal rate of return (IRR) of 58.3%. The addition of Phase 1B will increase the NPV to $385.3-million, while the IRR will reach 36.4%.

Capital Expenditure
By splitting Phase 1 into two phases, pre­production costs for the project have been reduced from $138-million in the December DFS to $36.8-million for Phase 1A and $111.38-million for Phase 1B in the enhanced DFS. Phase 2 and 3 will cost $191.44-million and $186.55-million respectively.

The total cost of the project has increased from an estimated $516.2-million in the DFS to $526.21-million in the enhanced DFS.

Planned Start/End Date
Construction of Phase 1 is to start in the fourth quarter of 2019, subject to financing and permitting.

Latest Developments
American Pacific has raised A$7.1-million through a share placement to fund construction activities at its Fort Cady borate mine.

The funds raised from the placement will go towards progressing construction-related activities at Fort Cady, where initial construction activities started at the end of January.

An enhanced DFS is due by the end of April this year, targeting an increase in SoP production for Phases 1B, 2 and 3.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
ABR, tel +1 442 292 2120.