QUEBEC - CONSOLIDATED THOMPSON-LUDMARK GOLD MINES of Toronto is raising $35 million for the continued development of its Bloom Lake iron ore deposit 400 km north of Sept-Iles. The money has come from an underwritten private placement of 12.75 million special warrants at a price of $2.75 per warrant. The deal is to close on June 9, 2006.
Last year, Consolidated Thompson released its 434-101 study of the Bloom Lake project, noting that it has an estimated measured resource of 488.5 million tonnes grading 29.9% total Fe plus indicated resources of 149.2 million tonnes grading 29.3% total Fe. The deposit is a Lake Superior-type, composed of banded sedimentary rocks composed principally of bands of iron oxides, magnetite and hematite within quartz (chert)-rich rock, with variable amounts of silicate, carbonate and sulphide lithofacies.
The preproduction costs until startup in the first quarter of 2008 are estimated to be US$120.4 million. Another US$39 million will be required in the following two years for working capital, additional tailings disposal capacity, infrastructure, a magnetite plant and rail sidings. A technical report and the November 2005 scoping study are posted at www.ConsolidatedThompson.com.
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