Canadian Mining Journal

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IRON ORE STUDY: Hopes Advance PEA estimated US$5.6B NPV

QUEBEC – The pre-feasibility study prepared by Micon International on the Hopes Advance iron ore project belonging to Oceanic Iron Ore Corp. of Vancouver is positive. The projected net present value of the project is US$5.6 billion and a...



QUEBEC – The pre-feasibility study prepared by Micon International on the Hopes Advance iron ore project belonging to Oceanic Iron Ore Corp. of Vancouver is positive. The projected net present value of the project is US$5.6 billion and a pre-tax levered internal rate of return of 23.2% using an iron ore price of US$100/tonne.

Production is expected to begin in 2017 at an annual rate of 10 million tonnes of concentrate. Operating cost will be only US$30/tonne. The life of the project is 31 years, with the production to be doubled after the first decade.

The initial capital cost, including indirect costs and contingency, will be US$2.85 billion, and the cost of the eventual expansion will be $1.61 billion. The Hopes Advance project is located in Nunavik, and the concentrate could be transported by ship.

Oceanic says its next steps will conclude pelletizing tests by the end of this year, finding a partner and project financing next year, producing a feasibility study in 2013, concluding the environmental impact assessment and permitting in 2014, and negotiating an impact and benefits agreement. Construction could start in 2014.

Detailed information from the PFS is included in the news release dated Sept. 9, 2012, and posted at OceanicIronOre.com.