IRON ORE: Feasibility unearths $3.2B NPV and 29.3% IRR for Kami

LABRADOR – The feasibility study for Vancouver-based Alderon Iron Ore Corp.'s Kamistiatusset (Kami) iron ore property near Wabush puts the net present value of the project at $3.244 million (8% discount) and the internal rate of return at 29.3%. The study was based on the Rose deposit that contains 1.09 billion measured and indicated tonnes grading 29.5% Fe.

The $1.27-billion Kami project would have a 30-year life producing concentrate that grades 65.2% Fe at a rate of 8.0 million t/y. A conventional open pit is to be established with a mill that includes grinding and screening followed by gravity and magnetic concentration. Alderon believes the plant could be commissioned beginning in late 2015 and begin generating revenue in early 2016. Concentrate will be railed to the port of Step-Iles.

The Alderon website is at AlderonIronOre.com.