NUNAVUT – Toronto-based Advanced Explorations says the feasibility study conducted on the C zone of the Roche Bay iron project on the east coast of the Melville Peninsula is positive. The report, prepared by Tetra Tech Wardrop, confirmed that the project has a net present value of US$642 million (pre-tax) and an internal rate of return of 16%..
The study examined an operation with an open pit producing 5.5 million t/y based on an indicated resource of 26.35% Fe. A concentrate containing at least 66% Fe will be made over the 15-year life of the C zone. The capital cost of the project will be US$1.2 billion plus a contingency, and the operating cost is expected to be US$49.13/tonne of concentrate over the life of the mine.
The indicated resource stands at 501.3 million tonnes averaging 26.35% Fe at a 20% Fe cut-off grade. Using the same cut-off, the project has an additional 65.9 million tonnes at 26.37% Fe in the inferred category.
John Gingerich, president and CEO of Advanced Explorations, said “The location of the project at tidewater and its consequent low infrastructure requirements promote future expansion and lower operational and construction risks, which compares favourably with many projects in Brazil, Australia and Canada.”
See the company’s website at Advanced-Explorations.com for the latest news about Roche Bay.