Passport Potash Announces Positive Preliminary Economic Assessment on its Holbro

Passport Potash Inc.

Passport offers investors the opportunity to benefit, not only from Passport’s entry into the U. S. and global markets, but also from the favorable trends in the potash market.

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Passport Potash Announces Positive Preliminary Economic Assessment on its Holbro

posted on Mar 13, 2013 07:32AM

http://www.juniorminingnetwork.com/junior-miner-news/news-releases/438-tsx-venture/ppi/9586-passport-potash-announces-positive-preliminary-economic-assessment-on-its-holbrook-basin-potash-project.html

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 13, 2013) - Passport Potash Inc. (TSX VENTURE:PPI)(OTCQX:PPRTF) ("Passport" or the "Company") is pleased to announce the receipt of a positive preliminary economic assessment on its Holbrook Basin potash project (the "PEA"), prepared in accordance with National Instrument 43-101 standards of disclosure for mineral properties. The independent PEA was prepared by ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH ("ERCOSPLAN"), a consulting and engineering firm, specialized in the potash and salt industry, headquartered in Erfurt, Germany. The key findings of the report include the following:

KEY FINANCIAL HIGHLIGHTS
Pre-tax NPV@12%	$3.25 billion USD
Pre-tax IRR (30% income tax rate)	31.59%
After-tax NPV@12%	$2.19 billion USD
After-tax IRR (30% income tax rate)	27.08%
Estimated Total Capital Expenditures	$1.949 billion USD
Estimated Total Operating Expenditures (includes sustaining OPEX)	$114/tonne KCl USD
Payback Period (from start of production)	8 years

ASSUMPTIONS
Discount Rate for Project Related Risks	12%
Potash Price for 2013 (standard MOP)	$430/tonne USD
Accuracy	+/-35%

KEY RESOURCE HIGHLIGHTS*
Measured Mineral Resources (including Passport and Hopi properties)	34.77 MT
Average Measured KCl Grade	14.38%
Indicated Mineral Resources (including Passport and Hopi properties)	363.17 MT
Average Indicated KCl Grade	14.68%

KEY MINING PRODUCTION HIGHLIGHTS
Annual Production (60% minimum K2O)	2.5 MT MOP
Life of Mine	26 years
Mining Method	Conventional Underground Room & Pillar
Processing method	Hot Leach
Plant Recovery Rate (KCl)	89.8%
Estimated Employees (Mining, Production, Management)	1,770

* Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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