GB Minerals Ltd, a Canadian mining company listed in Toronto, has completed a new feasibility study, it announced on 14 September, on the Farim project in Guinea Bissau on which a low-cost operation of high grade phosphate is projected for a period of 25 years.

The study concludes a final product with a 34% concentration and final production of natural phosphate of 1.32 million tons per year.

The initial investment cost amounts to $193.8 million while the net cumulative cash flow after tax is estimated at $1.9 billion and the actual net value after tax of 10% at $437 million.

In the first seven years of production, the study indicates an average cost of $46 the ton of final phosphate concentrate, a gross annual operating profit of $110 million and $550 million contribution in terms of royalties and taxes to the government of Guinea Bissau.

According to Luis da Silva, CEO of GB Minerals, the study confirmed the fascinating character of this world class project which should start production after 19 months and create at capacity 770 jobs at full capacity.

“Discussions underway for the signature of off-take agreements as well as with lenders progress well”, he added, while reassuring the resilience of the Farim project even at a time of weak phosphate prices.

The Farim project encompasses 64.6 million tons of measured resources, containing 36% phosphate ore with a ratio of minor elements of less than 0.08, located in the north east of Guinea Bissau.