QUEBEC – Montreal’s Lamelee Iron Ore received “promising” results from the preliminary economic assessment for the Lac Lamelee South iron ore project 50 km south of Fermont. An operation of 5.0 million t/y and a mine life of 20 years was outlined.
The initial capital expenditure would be $816.7 million, and the total average operating cost would be $54.81 per tonne of concentrate. At an 8% discount rate, the pre-tax net present value would be $529.9 million, and the pre-tax internal rate of return would be 15.4%. The payback period is estimated at 5.8 years.
The Lac Lamelee South deposit contains 345.1 million inferred tonnes grading 29.49% Fe, using a cut-off of 15% Fe. Accounting for dilution and losses, the in-pit resource is 272.0 million tonnes at a grade of 29.7%.
A conventional truck and shovel open pit is planned with an owner operated fleet. That fleet would include 22 haul trucks, three hydraulic shovels, three production drills plus support and service equipment.
The likely concentrator flowsheet will consist of grinding followed by a gravity separation circuit of rougher spirals and then cleaning cyclones. Both a fine and coarse concentrates will be produced and combined ahead of pan filters.
More information is available at LameleeIron.com.