Itafos Inc. announces the updated Preliminary Economic Assessment for its Arraias Phosphate Project in Tocantins, Brazil. The project includes four individual deposits with a total estimated resource of 2 Mt Measured and Indicated plus 3 Mt Inferred Mineral Resources. The estimated after-tax net present value is $70.7 million USD, with an internal rate of return of 85% and a payback period of around 2 years.
The PEA includes plans for continued production of direct application and partially acidulated products, as well as the production of single superphosphate. An estimated $8.0 million USD in capital expenditures will be required for beneficiation plant upgrades. The project aims to sell the SSP product in the Brazilian market by 2027.
The Arraias Project’s Mineral Resource estimate, completed by WSP, includes constraints based on potential mining and processing parameters. The current estimate is based on an effective date of November 14, 2025, and includes Mineral Resources for four deposits: Domingos, Cana Brava, Coite, and Near Mine. The estimates are in compliance with NI 43-101 and CIM Definition Standards.
Mining at the Arraias Project involves open-pit mining methods using excavators and trucks. The Life of Mine Plan includes ongoing mining at the Domingos deposit, with subsequent mining at Cana Brava, Coite, and Near Mine. The plan includes production of approximately 630,000 tonnes of DAPR, 760,000 tonnes of PAPR, and 2.3 Mt of SSP over a 14-year period.
The mineral processing facilities at the Arraias Project will treat breccia from the mineral deposit to produce phosphate concentrate. The process includes primary crushing, screening, grinding, cyclone classification, column flotation, concentrate handling, and tailings handling. The final product will be stored in a storage stockpile.
The Arraias Project’s capital costs primarily relate to beneficiation plant upgrades and tailings disposal. The total cost for retrofitting the beneficiation plant and implementing a dry stack tailings system is approximately $8.0 million USD. Additional annual sustaining capital of $3.5 million USD is allocated for ongoing costs.
The economic analysis of the Arraias Project includes projections for pre-tax and post-tax NPV, IRR, payback period, and sensitivity analyses. The project’s economics are sensitive to changes in product sales price, operating costs, and total capital cost. The preliminary economic assessment includes inferred mineral resources and does not represent mineral reserves.
Read more at GlobeNewswire: Itafos Completes Updated Preliminary Economic Assessment