Newfoundland salt mining project Atlas Salt [TSXV:SALT] has been reviewed by BWB Consulting Services, which focused on Atlas’ recent Feasibility Study.
The review confirmed that the salt project ranks quite high, especially among its peer group in the junior mining sector. Indeed, key sections of the FS are considered to be extremely advanced and mature for a junior mining company.
The peer review highlighted opportunities for expansion and efficiency improvements, including the potential for expanding reserves.
“The reserves base is likely to be much larger over the long term – this is a tremendous opportunity,” it said. It further suggests contemplating the use of underground continuous processes from miners to crushers and adopting an Integrated Project Delivery model.
Atlas Salt conventional operations plan commended
The review commended the project’s conventional operations plan and healthy market and operating margins, reinforcing the project’s robust economic framework.
Brian Buss, President of BWB Consulting Services, added that “The Great Atlantic Salt Project aims to develop a world class salt deposit using low cost, low risk, and proven technologies. Building on the FS work completed previously, the experienced management team have developed a well thought out and mature Front End Engineering and Design (FEED) process and Project Execution Plan that will allow for significant derisking of the project before, during, and after the construction phase. This will provide a clear path towards a seamless transition into the production and operations phase.”
- BWA exploring mineral resources in Cameroon and Canada
- Andrada progressing well with its substantial lithium deposit
- Fission Uranium poised to start two-prong drill program on high priority Athabasca targets
A focus on sustainability
The project also received a Greenhouse Gas Emissions Inventory Report by Strategic Consulting Ltd. With Newfoundland and Labrador’s exceptionally low GHG intensity electricity of just 17 grams of carbon dioxide equivalent per Kilowatt-hour of energy (g CO2e/kWh), compared to the Canadian average of 110 g CO2e/kWh combined with integrating state-of-the-art battery electric technologies, Strategic Consulting estimated that the proposed operations will remain well below the GHG emission thresholds set by both provincial and federal guidelines, aligning with the best in the industry.
This latter report will also be important for the company, with the expectation within the Canadian mining industry that there will be more government and international focus on the sustainability of proposed mining projects going forwards.
Atlas Salt has been a long term Armchair Trader junior mining pick. Like huge swathes of the mining sector, it has suffered from a general sell-off of stock, prompted by macroeconomic circumstances.
Best in class ‘Salt Factory’ asset
Atlas Salt owns 100% of the Great Atlantic salt deposit, North America’s premier undeveloped salt project. An independent Feasibility Study released in August 2023 gave robust economics and demonstrates how this best-in-class asset is uniquely positioned to become a highly efficient, scalable, and environmentally friendly “Salt Factory” on the west coast of Newfoundland – a salt mine for the 21st century (the first new one in nearly THREE decades).
Located immediately beside important infrastructure including a deep water port, Great Atlantic is strategically positioned in the heart of the robust Eastern North America road salt market that relies heavily on overseas imports to meet annual demand.
Current Atlas President Rowland Howe developed Goderich into the largest underground salt mine in the world during his tenure as mine manager with NYSE-listed Compass Minerals International. An efficient salt mine like Goderich generates impressive free cash flow for generations. There’s every reason to believe that Great Atlantic, benefiting from new technologies, will be a globally recognized low cost producer for decades.
