Atlas Salt Inc. announced the results of an independent Preliminary Economic Assessment and updated Mineral Resource estimate prepared by SLR Consulting (Canada) Ltd. on its 100%-owned Great Atlantic Salt Project located on the west coast of Newfoundland. Great Atlantic is the premier undeveloped salt deposit situated in the heart of a large regional U.S./Canadian road salt market facing a significant domestic production shortfall. The PEA considers developing Great Atlantic into an underground operating mine capable of producing 2.5 Mtpa of rock salt with key mine access and plant infrastructure designed for 4.0 Mtpa. Construction of the mine would occur over three years, with access to the deposit via twin declines. Extraction of rock salt would occur using the room and pillar method, with continuous mining equipment. Salt would be processed to a specific size and grade using a crushing and screening plant located within the mine, and then brought to surface via conveyor belts. An overland conveyor would transport the rock salt from the mine area to the existing Turf Point port for loading onto ships destined for Canadian and American markets, as well as serve the local Newfoundland market. The PEA is a step towards a Feasibility Study which is currently underway by SLR. Mineral Resources 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 187.2 Mt of Indicated material plus 999.4 Mt of Inferred material. Error! Reference source not found. provides a summary of the Great Atlantic Mineral Resource estimate prepared by SLR, with an effective date of January 6, 2023. The Mineral Resource estimate does not incorporate information from hole CC-9, with salt analysis pending, announced in an Atlas Salt news release dated January 11, 2023. Mining designs, development plans, and schedules have been prepared for a fully electric, mechanized room and pillar mining operation. 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 PEA is based upon the initial production of 2.5 Mtpa of rock salt product with mine infrastructure capacity to expand to 4.0 Mtpa. The mining designs contained in the PEA are based, in part, on Inferred Mineral Resources. Approximately 39% of the mine plan is based on Indicated Mineral Resources, 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 PEA is based will be realized. The mine will be accessed through two declines driven to 250 m below surface where the 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 250 Plant Level to the first production level at 300 m below surface, continuing to the lower levels as required. The primary mine related infrastructure including maintenance shops, vehicle charging bays, and gear storages will be located on the 300 Level. Internal declines will be developed as necessary to sustain the initial production rate of 2.5 Mtpa over an initial 30-year mine life. A total of six production levels supported with six 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 metres height, resulting in a maximum room height of 20 m. Rooms will be 16 m wide, separated by 25 m square pillars. The square pillars will be in a regular pattern and overlie one another from level to level. Each mining level will be separated by 20 m thick horizontal sill pillars. Al major equipment used in the mine will be battery electric or plugged electric, with minimal diesel-powered equipment in the mine. Processing: Processing of the salt will take place at a crushing and screening plant located within the 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%. 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.
Infrastructure 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: Temporary salt storage area Decline access area Surface buildings such as administration, warehouse, fuel bay, dry facility, maintenance shop Salt storage building Material handling systems Electrical substation and distribution Ventilation system for the mine, 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.