Arianne Resources Reports on Third Quarter Fy2012
SAGUENAY, QUEBEC, Nov 27, 2012 (Menafn - MARKETWIRE via COMTEX) --Arianne Resources Inc. (the "Company" or "Arianne") (frankfurt:JE9N)DRRSF today filed its interim financialstatements for the quarter ended September 30, 2012.
During the third quarter, Arianne made significant progress in thedevelopment of its Lac-a-Paul phosphate project, including:
--The Pre-Feasibility Study Update (PFSU) was completed. The report
confirms that a 3 million t/yr phosphate concentrate mine production
scenario will have a 23.2% IRR and a 3.9 year capital payback on a pre-
tax basis. These results do not include resource estimates for the
additional mineralization identified by drilling programs completed
since the end of 2011. That drilling confirmed the increased strike
length of Paul Zone mineralization from 1.3 km to 2.7 km.
--Closed secured financing of 11 million with minimal dilution.
--The Company launched its Feasibility Study (FS) by contracting with
Cegertec WorleyParsons. Significant progress has been made, with the
completed FS expected in the second half of 2013.
--Metallurgical testing of Paul and Manouane Zone ores advanced
significantly. Jacobs Engineering has been contracted to validate all
previous metallurgical work and further optimize the design of the
proposed Lac-a-Paul facilities. Jacobs has received over 50 tons of ore
samples and is expected to complete bench scale testing by year end.
Completion of pilot scale testing and the final engineering report is
expected mid -2013.
--Significant advances in the Environmental Impact Assessment (EIA) were
made with the preliminary version of the EIA expected to be submitted in
the first half of 2013.
--A third round of meetings was held with local community members and
leaders of regional municipalities to inform them of progress with the
Project. This regional consultation process will continue in 2013.
"In launching our FS, Arianne has chosen to partner with global expertsin the phosphate mining industry to ensure a robust analysis thatvalidates the attractive metallurgical results seen to date andproves up the substantial phosphate reserves we believe exist on theLac-a-Paul property." commented Bernard Lapointe, Chief ExecutiveOfficer of the Company.
The net loss for the three-month period ended September 30, 2012 was1,585,171 compared to a net loss of 597,951 for the same period in2011. The higher loss is primarily due to accelerated development ofthe Lac-a-Paul project and higher expense for stock basedcompensation.
During Q3 2012, the Company spent 3,621,434 developing Lac-a-Paul ina variety of areas including technical reports, drilling and roadwork. The net loss for the quarter includes a share basedcompensation expense of 1,174,143 (compared to 365,750 in 2011) andrepresents the value of share purchase options issued over theperiod. This increase is mainly due to a grant of 1,025,000 optionsduring the quarter.
The net loss for the nine-month period ended September 30, 2012amounts to 2,672,918 compared to 614,763 for the same period in2011, due to the same factors noted above. For the nine-month periodended September 30 2012, the Company spent 6,659,929 developingLac-a-Paul primarily on technical reports, drilling and road work.Also a factor was significantly higher professional fees incurred forthe transition from GAAP to IFRS for the preparation of financialstatements for 2011.
The Company's Interim Financial Statements and accompanyingmanagement's discussion and analysis for the quarter ended September30, 2012 and its Annual Information Form for the year ended December31, 2011 are available on the Company's website and on SEDAR atwww.sedar.com. Unless otherwise noted, all figures in the newsrelease are reported in Canadian dollars.
The Board of Directors of the Company announces the grant of 250,000stock options to directors pursuant to its stock option plan andsubject to regulatory approval. The stock options are exercisable fora term of 10 years at an exercise price of 1.07 per share.
About Arianne Resources
Arianne Resources (www.arianne-inc.com) is developing the Lac a Paulphosphate-titanium deposits located approximately 200 km north of theSaguenay/Lac St. Jean area of Quebec, Canada. These deposits shouldproduce a high quality igneous apatite concentrate grading 39% P2O5with little or no contaminant. The Company has 68 million sharesoutstanding.
Follow Arianne on:
Resources Investing News: http://resourceinvestingnews.com/?s=Arianne
Neither TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.
Bernard Lapointe, CEO
Jim Cowley, President
SOURCE: Arianne Resources Inc.
Copyright 2012 Marketwire, Inc., All rights reserved.