QUEBEC – Vancouver-based Oceanic Iron Ore Corp. has high hopes for its Hopes Advance iron ore property on the Ungava Peninsula All four of the scenarios it studied in the preliminary economic assessment were positive. The PEA examined a project that would produce 20 million t/y of 66.5% Fe concentrate at an operating cost of $24.58/tonne. The project could begin production in 2016 and have a life of at least 24 years, giving it a pre-tax net present value of $10.4 billion at an 8% discount rate.
Development of such a project would not be inexpensive. Oceanic expects it would cost $3.7 billion inclusive of a 25% contingency. Even if the project began production at 10 million t/y, the capital cost would be $2.4 billion.
The Hopes project would ship from tidewater to European or Asian markets.
The Hopes Advance area has a historical resource of 2.6 billion tonnes at 33% Fe. Oceanic hopes to delineate a billion tonnes of resources at a grade between 30% and 34% by the end of 2011. The company also has iron ore prospects at Roberts Lake and Morgan Lake, where total historic resources are 1.8 billion tonnes.
Oceanic (formerly Pacific Harbour Capital) acquired 3,000 claims on the Ungava Peninsula late last year from prospectors Peter Ferderber and John Patrick Sheridan. Additional information is available at www.OceanicIronOre.com.