DAILY NEWS Feb 7, 2013 4:14 PM - 0 comments

IRON ORE: Fire Lake PFS has $3.3 billion NPV and 30.9% IRR for West and East deposits

TEXT SIZE bigger text smaller text

QUEBEC – Champion Iron Mines of Toronto says the pre-feasibility study for the West and East deposits at its Consolidated Fire Lake North project points toward a net present value (8% discount) of $3.30 billion and a pre-tax internal rate of return of 30.9%. After a pre-production capital expenditure of $1.39 billion, the project has a payback period of 3.4 years. A mine life of 19.6 years is contemplated.

Start-up of the Fire Lake concentrator could come as early as Q1 2015 with normal production rates beginning the following quarter. The concentrator is designed with an output of 9.3 million t/y of iron concentrate grading 66% Fe. The optimized pit designs contain proven and possible reserves of 464.6 million tonnes grading 32.37% Fe at a 15% Fe cut-off.

Champion noted that project costs have escalated since the preliminary economic assessment was done in late 2011. Rail costs are up to $1.33 billion from $275.4 million. Concentrator and site costs have increased by $145.9 million to support increased production capacity of 10 million t/y and a dual voltage substation. Costs for the port at Pointe Noire are up $109.8 million because the storage location was moved. Environmental costs are up $83.4 million cut to underestimation in the PEA. Lastly, the PFS calls for purchasing mining equipment at a cost of $55.4 million rather than leasing it.

The Fire Lake North project is located 60 km southwest of Fermont and 250 km north of Port-Cartier. More information is available at ChampionIronMines.com.

Horizontal ruler
Horizontal Ruler

Post A Comment

Note: By submitting your comments you acknowledge that Canadian Mining Journal has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Your Name (this will appear with your post) *

Email Address (will not be published) *

Comments *

* mandatory fields