Atlas Salt (TSXV: SALT) is making slow but study progress towards completing a feasibility study for its Great Atlantic Salt Project. The study, which has been teased by the company for months, has seen a recent geotechnical drill program completed to collect further data.
The geotechnical drill program is said to have consisted of four holes that were geared towards providing data for an underground decline route and surface portal entry for mining the salt deposit. The goal is for the mine to be accessed via inclined ramps, rather than by vertical shafts.
The program saw the first hole drilled to a depth of 159 metres to collect data on the sedimentary section above the salt layer, while three shallow holes were drilled at the proposed entry point over 200 metres to determine the thickness of overburden and the geological properties of surficial till deposits.
“This latest work further supports Great Atlantic as a unique asset in the North American road salt market. Given the conservative assumptions in the Preliminary Economic Assessment, this data will assist in the process of optimizing the Feasibility Study,” commented company president Rowland Howe.
A timeline for the completion of the ongoing feasibility study being conducted by SLR Consulting was not provided. In early December the company had broadcasted that following the release of a preliminary economic assessment in mid-January 2023, a feasibility study would follow “in early 2023.” The process however still appears to be ongoing.
On January 30, Atlas Salt released a PEA that indicated the Great Atlantic Salt Project has a pre-tax internal rate of return of 22% and an NPV(8) of $909 million. Estimated payback for the project is 4.2 years, using a base case of 2.5 million tonnes per year of production with a 30 year mine life.
CEO Search
Following the release of the PEA, the company indicated that CEO Patrick Laracy had begun searching for a replacement in an effort to “maximize shareholder value.” With the process initiated in mid-February, the company expected to find a replacement in a few weeks time.
That process however is still ongoing, with the company stating today that the effort is being “aggressively led by a top tier Canadian recruitment agency.” The process is said to have narrowed down potential candidates to a short list, which is being reviewed for a final decision.
Laracy is expected to remain as Executive Chair once a replacement is finally installed.
Atlas Salt last traded at $1.19 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
One Response
I am not a happy camper with Atlas salt, I bought the stock @ 2.04 & was told about a month form now (JUne) that the stock would be up , but of course it is just talk or lies( I just read that in August it will close @ 1.34. & what about TRP,
we have been waiting since September 2022.