Atlas Salt announced the results of a Feasibility Study (FS) and updated Mineral Resource estimate prepared by SLR Consulting (Canada) Ltd. (SLR) on its 100%-owned Great Atlantic Salt Project ("Great Atlantic", or the "Project") located in western Newfoundland, Canada. The FS represents a significant economic improvement over the Preliminary Economic Assessment (PEA), also completed by SLR, released by Atlas January 30, 2023. In addition, SLR has also provided an expansion case to 4.0 million tonnes per year (Mtpa) of road deicing salt over a 47.5-year mine life presented at a Preliminary Economic Assessment (PEA) level analysis. This demonstrates a robust upside production scenario with a pre-tax net present value (NPV) at 8% of $2.015 billion (CDN) and a pre-tax IRR of 28%. The expansion case is based on Probable Mineral Reserves, with the remainder being Inferred
Mineral Resources. Inferred Mineral Resources are considered too geologically speculative to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the production forecasts on which the expansion case is based will be realized. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (CIM (2014) definitions) were used for Mineral Resource classification. The updated Mineral Resource currently includes 383 Mt of Indicated Mineral Resources plus 868 Mt of Inferred Resources. Mining designs, development plans, and schedules have been prepared for a fully electric, mechanized room and pillar mining operation. It is envisaged that salt will be mined using continuous miners and hauled by truck to a lump breaker and conveyor system to move material to a crushing and screening plant located underground. The FS is based upon the initial production of 2.5 Mtpa of rock salt product with key mine infrastructure capacity to
expand to 4.0 Mtpa. A summary of Mineral Reserves, effective July 31, 2023. The QP is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Reserve estimate. The mine will be accessed through two declines driven to 240 Level (nominally 240 m below surface) where the process plant and related infrastructure will be located. One decline will provide fresh air into the mine and be used for vehicle access, while the other will exhaust air and contain an overhead conveyor to transport finished rock salt product to surface. Twin declines will be extended from the 240 Level to the first production level at 320
Level, continuing deeper into the mine as each new production level gets established. The primary mine-related infrastructure including maintenance shops, vehicle charging bays, and gear storages will be located on the 320 Level. Internal declines will be developed as necessary to sustain the initial production rate of 2.5 Mtpa over an initial 34-year mine life. A total of seven production levels supported with internal declines and level-specific infrastructure will be constructed to support mining activities on each level. Room and pillar production mining will be executed in four cuts of five meters height, resulting in a maximum room height of 20 m. Rooms will be 16 m wide, separated by 25 m square pillars.
All major equipment used in the mine will be battery electric or plugged electric, with minimal diesel-powered equipment in the mine. Processing of the salt will take place at a crushing and screening plant located within the underground mine. The rock salt produced will be suitable for use as a deicing product, conforming to specification ASTM-D632, with a
minimum NaCl grade of 95% and certain grading sizes. Excess fines produced during the crushing and screening process will be used within the mine for haulage way surfacing. There are no chemical processes or reagents involved in the production of rock salt, other than an anti-caking agent that is added to the product immediately before shipping. After rock salt has been processed, it will be transported to the surface via conveyor belts. On surface, a series of conveyor belts will transport the rock salt from the mine site to the port. The Great Atlantic operation will include both on and off-site infrastructure. On-site infrastructure has been configured to minimize the mine site surface footprint. Components of the on-site infrastructure include: Site terrace, Lined and covered temporary salt storage area used during initial excavations, Boxcut and decline access area, Surface buildings such as administration, warehouse, fuel bay, dry facility, maintenance shop, Salt storage building and associated material handling system, Electrical substation and distribution, Surface water management system, Gatehouse and fencing, Notably, a tailings management facility is not required for the Project, as all material that is processed will be sold as rock salt or remain in the mine as fines. Off-site infrastructure has been designed to take advantage of some of the existing facilities available in the immediate area, including the port, historical haul road, and a NL Power electrical substation. From PEA to FS, the design of elements for the off-site infrastructure have been improved based on discussions with stakeholders. Planned off-site infrastructure includes the following: Improved site access road alignment overland conveyor connecting the mine to the port, Retrofitting of the existing port facilities to handle rock salt, Addition of a new building and material handling system at the port to expand the capacity of covered material storage, High voltage transmission line connection to NL Power's substation located in the town, Sewer and water connection to town utilities. Environmental base line studies of the project area have been completed by GEMTEC Consulting Engineers and Scientists Limited (GEMTEC) throughout 2022 in preparation for the registration of the project under the environmental review process. Consultations with local community and affected groups are ongoing. Atlas has retained the services of an experienced communications consultant to assist and facilitate informed community
input into the project development. With the FS now concluded, Atlas intends to launch into the formal environmental assessment process. As part of the FS, Atlas and SLR have commissioned multiple independent assessments of marketing and logistics. These independent assessments have formed the basis of the assumptions used in the FS.