par Atlas Salt (CVE:SALT)
Atlas Salt Announces Updated Feasibility Study with Enhanced Results for the Great Atlantic Salt Project; $920M Post-Tax NPV8 and 21.3% Post-Tax IRR
ST. GEORGE'S, NEWFOUNDLAND AND LABRADOR / ACCESS Newswire / September 30, 2025 / Atlas Salt Inc. ("Atlas Salt" or the "Company") (TSXV:SALT)(OTCQB:REMRF)(FRA:9D00) announces the results of its Updated Feasibility Study ("UFS") on the 100%-owned Great Atlantic Salt Project ("Great Atlantic" or the "Project") located in Western Newfoundland.
UFS Highlights
(all figures are in Canadian dollars and include annual escalation, unless otherwise noted)
Post-tax NPV 8 : $920 million, Post-tax IRR: 21.3%, Payback: 4.2 Years
Pre-tax NPV 8 : $1.68 billion, Pre-tax IRR : 27.1%
Pre-tax NPV 5 : $2.75 billion, Post-tax NPV 5 : $1.57 billion
Initial Capital Cost : $589 million
Life of Mine ("LOM") Sustaining Capital : $609 million
Average Annual LOM Operating Cashflow (EBITDA 1 ) in Operations : $325 million per annum ("pa")
Average Annual LOM Post-Tax Free Cashflow in Operation : $188 million pa
Total Undiscounted Post-Tax Cashflow (including Initial Capital Cost) : $3.93 billion
Average Annual Steady State Production LOM : 4.0 million tonnes of high-purity road salt
Mine Life : 24 years based on Proven and Probable Reserves
Average Operating Cost : $28.17 per tonne free on board ("FOB") mine site port
Production Rate : 4.0 million tonnes per annum ("Mtpa")
Port Capacity : Designed for scalable throughput up to 4.0 Mtpa
1 EBITDA is a non â International Financial Reporting Standards ("IFRS") financial measure and represents earnings before interest, income taxes, depreciation and amortization. It is not defined under IFRS and may not be comparable to similar measures presented by other companies. Management believes that this measure provides useful supplemental information to investors in evaluating the Project's operating performance and its ability to generate cash flows. EBITDA is closely approximated in this model by Operating Cashflow, defined as Net Revenues less cash operating costs.
Nolan Peterson, CEO and Director of Atlas Salt, stated : "The Updated Feasibility Study marks another significant milestone in Atlas Salt's journey, highlighting Great Atlantic's potential as the leading undeveloped salt project in North America. This study reinforces our vision to deliver a long-life, low-cost operation at scale. It is supported by technical and logistical enhancements from the 2023 Feasibility Study that further reduce risks and position us for future success.
The improvement in projected free cash flow is especially significant as it validates the strengthened economics of Great Atlantic and enhances lender confidence in financing this world-class development. With the previously announced regulatory approval of our Early Works Development Plan, Atlas Salt is strategically positioned to advance Great Atlantic and create substantial value for all stakeholders.
We extend our gratitude to our employees, partners, the town of St. George's and the broader Western Newfoundland community, and our dedicated shareholders for their ongoing support and commitment as we complete the UFS and move forward with our plans. Their belief in Atlas Salt drives our progress. With the foundation we have built, and the momentum of this updated feasibility study, we look forward with confidence to realizing Great Atlantic's potential to help shape the future of salt supply in North America."
Summary of Updated Feasibility Study
The UFS was prepared by SLR Consulting (Canada) Ltd. ("SLR"), with contributions from specialized engineering and technical partners including Shaft and Tunnel Consulting Services Ltd., Terrane Geoscience Inc., Sandvik Mining and Rock Solutions ("Sandvik"), and Tamarack Resources.
The Updated Feasibility Study builds on the 2023 Feasibility Study ("2023 FS"), incorporating optimizations in mine design, throughput, port logistics, and capital efficiency. The results confirm Great Atlantic as a large scale, high-purity, low-cost underground salt project strategically positioned to serve the North American market.
General Description of Operations and Process Plan
The capital and operating cost estimates in the Updated Feasibility Study have been prepared in accordance with the guidelines of the Association for the Advancement of Cost Engineering (AACE) for a Class 3 estimate. This level of estimate is typically based on feasibility-level engineering, vendor quotations, and discipline-level design sufficient to support a financing decision. The accuracy range for initial capital costs is considered to be within approximately -10% to +30%, while the accuracy for operating costs is estimated to be within approximately -10% to +20%. Costs are based on Q3 2025 data.
The estimates incorporate contingency allowances to reflect the current design, anticipated execution risks, and prevailing market conditions for labour, materials, and equipment. They are also benchmarked against comparable projects and historical data for underground salt operations.
Table 1 - Summary of UFS Economic Results and Assumptions 2
UFS Economic Model Results and Assumptions | Value |
2025 Salt Price Assumed ($/t) | $81.67 / t FOB port. |
Pre-Tax NPVâ & IRR ($/%) | $1.68 billion / 27.1 % |
Post-Tax NPVâ & IRR ($/%) | $920 million / 21.3% |
Undiscounted Post-Tax Cashflow (LOM) ($) | $3.93 billion |
Average LOM Operating Cashflow (EBITDA 1 ) ($/a) | $325 million |
Average LOM Post-Tax Cashflow ($/a) | $188 million |
Post-Tax Payback Period (from first production) | 4.2 years |
Initial Capital ($) | $589 million |
LOM Sustaining Capital ($) | $609 million |
Average LOM Operating Cost (FOB port) ($/t) | $28.17 / t |
Average Annual Steady-State Salt Production (Mtpa) | 4.0 Mt |
Life of Mine (LOM) (Years) | 24 years |
Total Tonnes Produced / Sold (LOM) (Mt) | 90.3 Mt |
Estimated Reserve Grade (% NaCl) | 95.9 % NaCl |
2 Unless otherwise noted, values are presented in Canadian dollars and expressed in real terms as of 2025. Certain figures (e.g., NPV, IRR, payback) are derived outputs of the discounted cash flow model rather than direct 2025-dollar inputs. The salt price assumption is stated in 2025 Canadian dollars FOB mine site port facility. Salt pricing was determined by an independent third-party marketing study. The port facility is assumed to be operated by a third-party contractor, with associated costs incorporated into the economic analysis.
Summary of Strategic & Technical Advancements in UFS
Optimized Production Plan - Incorporates updated geotechnical, ventilation, and infrastructure studies to support efficient construction and long-term operations.
EquipmentIntegration - Deployment of Sandvik continuous mining equipment to improve productivity and reduce unit operating costs.
Port& Logistics Improvements - Upgraded stockpile and shiploading configurations to support high-capacity, efficient loading.
EconomicResilience - Financial model reflects updated costs, pricing assumptions (including inflationary trends), and robust project economics.
RegulatoryAlignment - Incorporates all post-Environmental Assessment release conditions, ensuring compliance.
These changes collectively demonstrate improved project resilience and stronger cash flow generation and returns potential, while further de-risking execution.
Detailed Comparison to 2023 Feasibility Study
Atlas Salt has summarized the quantitative differences between the 2023 Feasibility Study ("2023 FS") and the Updated Feasibility Study ("UFS"). Unless otherwise noted, figures are presented as LOM totals or averages.
Table 2 - Detailed Comparison to 2023 Feasibility Study
Metric | 2023 FS | 2025 UFS | Variance (Abs.) | Variance (%) |
Production Rate (Mtpa) | 2.5 | 4.0 | +1.5 | +60% |
Mine Life (years) | 34 | 24 | (10) | (29.5%) |
Tonnes Produced / Sold (LOM, Mt) | 83.7 | 90.3 | +6.6 | +8% |
Salt Price (FOB port, $/t, LOM Average) | $124.86 | $118.49 | ($6.37) | (5%) 3 |
Operating Cost ($/t) | $27.49 | $22.00 | ($5.49) | (20%) 4 |
Pre-tax NPV8 ($M) | $1,017 | $1,683 | +$666 | +65% |
After-tax NPV8 ($M) | $553M | $920M | +367M | +66% |
Average LOM Operating Cashflow in Operation (EBITDA 1 ) $M/a | $211M | $315M | +$104M | +49% |
Average LOM Post-Tax Cashflow in Operation $M/a | $121M | $188M | +$67M | +55% |
Post-tax IRR (%) | 18.5% | 21.3% | +2.8% | +15% |
Initial Capital ($M) | $480M | $589M | +$109M | +23% |
Sustaining Capital (LOM, $M) | $600M | $609M | +$9M | +2% |
Payback Period (years) | 4.8 | 4.2 | (0.6) | (12%) |
Post-Tax NPV 8 / Initial CAPEX Ratio | 1.15 | 1.56 | +0.41 | +36% |
[3] From shorter overall mine life
[4] From shorter overall mine life and economies of scale
UFS Technical Summary
Project Location and Access
The Great Atlantic Salt Project is located near St. George's, Newfoundland, approximately 3 km from the Trans-Canada Highway and adjacent to deepwater port facilities on the west coast of Newfoundland. The location provides direct access to tidewater shipping routes serving Eastern Canada, the U.S. Northeast and Western Europe.
Geology and Mineral Resources
The Great Atlantic deposit is a flat-lying, laterally extensive, high-purity halite formation with minimal insoluble content. No changes were made to the Mineral Resource estimate completed in the 2023 FS. Table 3 provides a summary of the Mineral Resource estimate by SLR, with an effective date of September 30, 2025.
Table 3 - Mineral Resource Estimate - September 30, 2025
Category | Horizon | Tonnes (Mt) | Grade (% NaCl) | Contained NaCl (Mt) |
Indicated | 1-Salt | - | - | - |
2-Salt | 160 | 95.9 | 154 | |
3-Salt | 223 | 96.0 | 214 | |
Total | 383 | 96.0 | 368 |
Inferred | 1-Salt | 195 | 95.3 | 186 |
2-Salt | 288 | 95.3 | 274 | |
3-Salt | 385 | 95.0 | 366 | |
Total | 868 | 95.2 | 827 |
Notes:
CIM (2014) definitions were followed for Mineral Resources.
Mineral Resources are estimated without a reporting cut-off grade. Reasonable Prospects for Eventual Economic Extraction were instead demonstrated by reporting within Mineable "Stope" Optimised (MSO) shapes, with a minimum height of 5 m, minimum width of 20 m, length of 40 m, and minimum grade of 90% NaCl, with a 5 m minimum pillar width between shapes.
Bulk density is 2.16 t/m 3 .
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Mineral Resources are inclusive of Mineral Reserves.
Salt prices are not directly incorporated into the Mineral Resource MSO minimum target grades, however, the mean Mineral Resource grades exceed the 95.0% NaCl (± 0.5%) specification outlined in ASTM Designation D632-12 (2012).
Numbers may not add due to rounding.
The Updated Feasibility Study uses the same Mineral Resource estimate completed in the 2023 FS. There have been no changes to the Mineral Resource estimate between the 2023 FS and the UFS (2025). The Mineral Resource estimate has a new effective date of September 30, 2025.
Mineral Reserves
The Updated Feasibility Study is supported by the Mineral Reserve estimate summarized in Table 4. These Probable Reserves have been prepared in accordance with NI 43-101 and reflect appropriate modifying factors for mining, recovery, and economics at a feasibility study level. The Mineral Reserves have an effective date of September 30, 2025.
Table 4 - Summary of Mineral Reserves
Category | Horizon | Tonnes (Mt) | Grade (% NaCl) | Contained NaCl (Mt) |
Probable | 2-Salt | 39.3 | 95.9 | 37.6 |
3-Salt | 55.8 | 95.9 | 53.5 | |
Total | All | 95.0 | 95.9 | 91.1 |
Notes:
|
Table 5 compares the Probable Reserves from the 2023 FS with the current UFS.
Table 5 - Mineral Reserve Comparison
Category | Horizon | 2023 FS Reserves | 2025 UFS Reserves | Variance (Abs.) | Variance (%) |
Probable (Mt) | 2-Salt | 37.7 Mt @ 95.9% NaCl | 39.3 Mt @ 95.9% NaCl | 1.5 Mt | +4.1% |
3-Salt | 50.3 Mt @ 96.0% NaCl | 55.8 Mt @ 95.9% NaCl | 5.4 Mt | +10.8% | |
Total | 88.1 Mt @ 96.0% NaCl | 95.0 Mt @ 95.9% NaCl | 7.0 Mt | +7.9% |
The changes are principally related to different pillar and room dimensions, and minor variances in level spacing.
Mining Method and Design
Method : Room-and-pillar underground mining using continuous miners.
PillarConfiguration : Designed for long-term stability, with pillar dimensions and sequencing optimized for maximum extraction while ensuring ground control.
Development : Access via surface portal and conveyor decline system; mine layout configured for scalable expansion.
ProductionRate : 4.0 Mtpa steady-state by Year 4, with ramp-up commencing in Year 1.
Daily Production Rate: Approximately 11,500 tonnes per day at steady-state capacity.
Processing and Product Handling
Salt is crushed and screened underground to market specifications, conveyed to surface, and transported to the port via covered conveyor. No chemical processing or water usage in processing is required, other than the application of an anti-caking agent immediately prior to shipment offsite.
Infrastructure and Logistics
Port : Dedicated port storage and shiploading system designed for 4.0 Mtpa throughput at full operations.
Shiploading : Continuous conveyor-fed shiploader with optimized cycle times to minimize vessel demurrage.
Storage : Surface stockpile capacity of approximately 72 kt, equivalent to 6.5 days of average production.
Utilities : Connection to provincial power grid with dedicated substation;
Power: The Project is expected to require approximately 10 megawatts (MW) of connected load at steady-state operations, sourced from the provincial grid via a dedicated substation.
Accommodation: No camp facilities are included in the design, with the Project benefiting from proximity to established communities and existing regional infrastructure.
Operating Costs
The operating cost estimates were developed from first principles using a combination of vendor quotations, budgetary pricing from equipment suppliers, labour and power cost assumptions specific to Newfoundland, and benchmarking against comparable underground salt operations. Mining, processing, and port handling costs reflect the planned use of continuous miners, conveyor haulage, and high-capacity shiploading infrastructure. General and administrative (G&A) costs are based on staffing requirements and site services, while closure and bonding provisions reflect anticipated regulatory obligations. Costs are expressed on a LOM average basis and are considered accurate to within -10% to +20%, consistent with a feasibility-level estimate.
Table 6 - Operating Cost Summary Table
Item | Total Operating Cost ($M) | Unit Operating Cost ($/t) |
Mining | $1,354M | $15.00 |
Processing & Handling | $297M | $3.29 |
G&A | $335M | $3.71 |
Port Operations | $557M | $6.17 |
Total | $2,543M | $28.17 |
Capital Costs
The