BCI Minerals Limited (ASX: BCI) is pleased to report the key results of the optimisation work on its 100% owned Mardie Salt & Potash Project (Mardie or the Project), implemented following the Definitive Feasibility Study (DFS).
The 1 July 2020 DFS announcement stated: 'As optimisation potential to the DFS base case, BCI will consider relocation of crystallisers to the recently acquired tenement north of Mardie, which will allow for increased production.' This Optimised Feasibility Study (OFS) announcement should be read together with the 1 July 2020 ASX release as well as the cautionary statements on pages 3 and 4.
BCI's Managing Director, Alwyn Vorster, said: 'The positive optimisation outcomes further demonstrate potential for Mardie to become the first new large-scale expansion of salt production in Australia in over 20 years, the largest salt project in Australia and 3rd largest solar evaporation project in the world. Mardie has a compelling value proposition with an attractive market opportunity, green credentials and no insurmountable obstacles to development.'
BCI's Chairman, Brian O'Donnell, said: 'Completion of the positive optimisation work enhances Mardie's business case as BCI progresses confidently towards a final investment decision. We believe Mardie will be a multi-generational asset for northern Australia, delivering new multi-user export infrastructure, tax and royalty revenues, local jobs and contracts, and indigenous engagement.'
Based on the positive OFS results, the Board has endorsed BCI advancing the Project towards a final investment decision by mid-2021, subject to required approval and funding milestones being achieved by then.
IMPORTANT NOTICES
The Project aims to produce salt and SOP from a seawater resource, which is abundant, inexhaustible, readily accessible and has a known and consistent chemical composition. The JORC Code does not apply to a project of this nature and accordingly JORC Ore Reserves and Mineral Resources are not reported. The OFS is based on material assumptions as outlined throughout this announcement, including capital and operating cost estimates, production targets, forecast financial information, the availability of funding and the finalisation of tenure and approvals. BCI has concluded that all material assumptions are based on reasonable grounds and there is a reasonable basis for making the forward-looking statements included in this announcement. However, there is no certainty that they will prove correct or the outcomes will be achieved.
The overall capital cost estimate was compiled by GR Engineering Services Limited (GRES) and is based on the level of engineering and design completed during the OFS. The OFS estimate was developed in conjunction with direction from BCI regarding the Project scope and estimation methodology, and is consistent with the AACE International Class 3 to an accuracy of +/-10-15%. GRES is an experienced engineering consultancy and contracting company with extensive experience in study management and cost estimation. GRES consents to the inclusion of these estimates in this announcement in the form and context in which they appear.
The operating costs were prepared by BCI and reviewed by GRES for the adequacy and accuracy of inputs and calculated values and conform with a Class 3 estimate with an accuracy of +/-10-15%. The production rates reported in this announcement, and associated process design and mass balance were prepared by BCI. The production rates have been reviewed by GRES for consistency with the production ramp up logic provided by BCI.
Roskill Consulting Group Ltd (Roskill) has provided a report on the salt market to BCI (December 2020), from which information has been incorporated into this announcement including with respect to price forecasts. Roskill consents to the inclusion of this information in this announcement in the form and context in which it appears.
Argus Media Ltd (Argus) has provided a report on the SOP market to BCI (November 2020), from which information has been incorporated into this announcement including with respect to price forecasts. Argus consents to the inclusion of this information in this announcement in the form and context in which it appears.
Braemar ACM Shipbroking (Braemar) has provided a report on seaborne freight data to BCI (June 2020), from which information has been incorporated into this announcement.
FORWARD-LOOKING STATEMENTS
This announcement and its attachments contain forward-looking statements. These forward-looking statements are based on BCI's current expectations and beliefs concerning future events at the date of this announcement and are expressed in good faith. BCI believes it has reasonable grounds for making the forward-looking statements. However, forward-looking statements are subject to risks, uncertainties and other factors, a number of which are set out in Section 8 of this announcement, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Consequently, forward-looking statements should not be relied on as a guarantee of future performance. Other than as required by law, including the ASX Listing Rules, BCI does not undertake or assume any obligation to update or revise any forward-looking statement contained in this announcement or its attachments.
Contact:
Brad Milne
Tel: +61 8 6311 3400
Email: brad.milne@bciminerals.com.au
ABOUT BCI MINERALS
BCI Minerals Limited (ASX:BCI) is an Australian-based company that is developing a salt and potash business supported by iron ore royalty earnings. BCI is rapidly advancing its 100% owned Mardie Salt & Potash Project, a potential Tier 1 project located on the West Pilbara coast in the centre of Australia's key salt production region. Mardie aims to produce 5.35Mtpa of high-purity salt (>99.5% NaCl) and 140ktpa of sulphate of potash (SOP) (>52% K2O) via solar evaporation of seawater.1 Using an inexhaustible seawater resource and a production process driven mainly by natural solar and wind energy, Mardie is a sustainable opportunity to supply the salt and potash growth markets in Asia over many decades. There is potential to optimise and expand the project beyond currently planned production levels.
With a Final Investment Decision targeted in Q2 2021 and Main Construction start in Q4 2021, first salt sales can be achieved by Q3 2024 and first SOP sales by Q4 2025. BCI receives quarterly royalty earnings from Iron Valley, an iron ore mine located in the Central Pilbara region of Western Australia which is operated by Mineral Resources Limited (ASX:MIN). BCI's EBITDA from Iron Valley was $23.0M in FY20 and $17.1M for the H1 FY21.
BCI MINERALS LIMITED 
