VANCOUVER,
Dec. 3, 2012 /CNW/ - Plains Creek
Phosphate Corporation ("Plains Creek", the "Company")
(TSX‐V: PCP) is issuing this news release as a result of
comments received from the British Columbia Securities Commission
(the "BCSC") on the "Feasibility Study of the Direct
Shipping Option of the Farim Phosphate Project, Guinea-Bissau, An NI 43-101 Report" and the
"Feasibility of the Beneficiated Phosphate Rock Concentrate Option
of the Farim Phosphate Project, Guinea-Bissau, An NI 43-101 Report" (the
"Reports") by Michael Short,
BE. FIMMM, CEng, Richard Elmer,
CEng, MIMMM (CP), Dr. Martin Preene,
CEng, Dr. Marcelo C Godoy, MAusIMM (CP), Terry Kremmel, PE (MO and
NC), SME (CP), Hendrik J.H. Otto,
PrEng (SA) and Matthew Clark, P.E., CEng, PMP, on the Company's
Farim Phosphate Project, Guinea-Bissau, filed on SEDAR on November 23, 2012 and dated effective
November 2, 2012. The Reports were
announced in a news release of the Company dated October 9, 2012 and summarized in a news release
dated November 24, 2012 (the "News
Releases"). As the Reports are not currently compliant under
National Instrument 43-101 Standards of Disclosure for Mineral
Projects ("NI 43-101"), the News Releases, the resource
estimates, mining studies, and the resulting reserve estimates
disclosed thereunder should not be relied upon until the Company
files an updated technical report which is compliant under NI
43-101.
To address the concerns raised by the BCSC about
the Reports and the resource estimates, mining studies, and the
resulting reserve estimates contained therein for the Farim
deposit, and to satisfy requirements of NI 43-101, the Company will
prepare a single combined feasibility study technical report (the
"Combined Report") and will file the Combined Report
on SEDAR as soon as practicable on or before January 17, 2013. The Company will take the
following steps to make the Combined Report NI 43-101
compliant:
- amend the disclosure to show power costs separately from the
combined water and power costs, including disclosure of gross power
consumption and power cost individually and in more detail, using
standard industry measures, with explanations of the basis for
estimation;
- provide an after-tax economic analysis, with a detailed
analysis of applicable taxes and royalties and the basis for
assumption of those applicable taxes which provides reasonable
grounds for certainty; and
- provide clarification that product pricing has a level of
certainty supported by quotes, contracts, agreements or industry
information.
In addition, the BCSC has noted that the
Company's website is out-of-date and as a result it could be
misleading. Accordingly, the Company will be updating its website
to avoid such misleading information. In the meantime, the Company
cautions not to rely on the information on its website until it has
been updated in compliance with NI 43-101 and the Company has
issued a news release confirming the update. The Company expects to
complete this update as soon as practicable on or before
January 17, 2013.
About Plains Creek Phosphate
Corporation
Plains Creek Phosphate Corporation is a Canadian
mining and exploration company focused on advancing the Project in
Guinea‐Bissau, West Africa through
the company, GB Minerals AG. The Project currently comprises a
phosphate deposit consisting of one continuous flat lying phosphate
bed with a Mineral Resource estimate, disclosed in the Company's
Feasibility Studies on the Project in accordance with National
Instrument 43-101, which defines a Measured Resource of 64.6 MT at
an average grade of 29.11% P2O5, an Indicated
Resource of 28.1 Mt at an average grade of 27.68 %
P2O5, and an Inferred Resource of
18.3 Mt at an average grade of
28.66 % P2O5 and states total
proven and probable reserves of 33.0 Mt (dry) with an average
ROM P2O5 grade of 30.4%. The Measured
and Indicated Resource estimates stated above are inclusive of the
resources comprising the Proven and Probable Reserve estimates. The
Feasibility Studies are authored by the Qualified Persons listed
above, are filed on SEDAR and are publicly available under the
Company's profile at www.sedar.com. A two-phased development is
planned for the Project as an open pit mining operation. Phase One
consists of a 1.3 Mt per year phosphate rock product direct
shipping option project or a 1.0 Mt per year beneficiated phosphate
rock concentrate project and Phase Two consists of the production
of 2.0 Mt per year of phosphate rock concentrate and includes a
beneficiation plant and associated infrastructure, pipeline and
port. As indicated above, the supporting reports are under
amendment, and the Company will promptly disclose if any material
changes to a mining study or mineral reserves result from
amendments to its reports.
The Company's shares are listed on the TSX
Venture Exchange under the trading symbol "PCP". For additional
information, please visit us at www.plainscreek.com.
ON BEHALF OF THE BOARD
"Carson Phillips"
Carson Phillips
Vice‐President, Corporate Development and Director
Cautionary Statement
Statements in this release may be viewed as
forward‐looking statements. Such statements involve risks and
uncertainties that could cause actual results to differ materially
from those projected. There are no assurances the Company can
fulfill such forward‐statements and the Company undertakes no
obligation to update statements. Such forward looking statements
are only predictions; actual events or results may differ
materially as a result of risks facing the Company, some of which
are beyond the Company's control.
The reader should be cautioned that there are
risks that could affect the potential development of the Farim
Phosphate Project's (the "Project") mineral resources, which
include: the political instability in Africa and Guinea‐Bissau in particular, which
is where the Project is located; and that additional financing will
be required to ultimately develop the Project and the ability to
obtain such financing on favorable terms will be affected by
prevailing market conditions. A more detailed discussion of such
risks are outlined in the Company's Management's Discussion &
Analysis and the Reports, all of which are filed under the
Company's profile on SEDAR at www.sedar.com.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION
SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE
TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
SOURCE Plains Creek Phosphate Corp.