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IRON ORE DEVELOPMENT – Bloom Lake startup set for late 2008

QUEBEC - The final feasibility study delivered to Toronto-based CONSOLIDATED THOMPSON IRON MINES for its Bloom Lake...



QUEBEC – The final feasibility study delivered to Toronto-based CONSOLIDATED THOMPSON IRON MINES for its Bloom Lake iron ore project paints a rosy picture. The revised report examines a mine and mill with an output of 7.0 million t of 66.5% iron ore concentrate. Start-up is anticipated late in 2008.

The study outlined the details. Capital costs (excluding working capital) will be US$333 million. Annual cash flow will be US$150 million, and the project will pay for itself in less than two-and-a-half years. The project will generate a total undiscounted cash flow of US$2.754 billion over its 34-year lifetime. Total operating costs are estimated at US$17.76/t concentrate (US$1.55/t for mining, US$3.45/t for crushing and processing, US$8.48 for transportation, and US$1.06 for administration, etc.).

Bloom Lake has an average grade of roughly 30% Fe. Proven and probable reserves (at a 15% Fe cutoff) are 379.6 million t at 30.0% Fe, 7.7% magnetite, 2.3% CaO and 2.1% MgO. Measured and indicated resources total 637.7 million t at 29.76% Fe (with 10.43% magnetite, 2.33% CaO and 2.17% MgO). The inferred resource is 35.7 billion t grading 30.97% Fe (and 8.47% magnetite, 0.84% CaO and 0.82% MgO).

The Bloom Lake property is located 400 km north of Sept-Iles, Que., and 10 km north of QUEBEC CARTIER MININGs Mount Wright iron ore mine. See also www.ConsolidatedThompson.com.


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