Atlas Salt [TSXV:SALT] has drilled 305.5 metres of a massive salt deposit which sits in an eastern step-out at its Great Atlantic project. This is grading at 95.56% of sodium chloride. The drill hole is being hailed as "truly extraordinary" by CEO Roland Howe, both in terms of shallowness, thickness and grade profile. There is very high purity salt near the bottom of the drill hole.
Atlas Salt owns 100% of the Great Atlantic salt deposit strategically located in western Newfoundland in the middle of the robust eastern North America road salt market, a market which STILL amazingly imports expensive salt from South America for winter road gritting.
The project features a large homogeneous high-grade resource located immediately next to a deep-water port. Atlas is also the largest shareholder in Triple Point Resources as it pursues development of the Fischell’s Brook Salt Dome approximately 15 kilometres south of Great Atlantic in the heart of an emerging clean energy hub.
At the end of January Atlas Salt released a PEA which includes a pre-tax internal rate of return (IRR) of 22%; NPV of $909 million and payback in 4.2 years after commencement of operations. The base case is for a 2.5 million tonnes per year (Mtpa) production for a 30-year mine life with a mine and processing design to accommodate expansion up to 4 million tonnes per year and capable of extending the mine life beyond the 30-year standard production model.
The stock has already been one of the best-performing picks in The Armchair Trader's small cap venture portfolio.
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