NUNAVUT — Advanced Explorations of Toronto has completed a preliminary economic assessment of its Roche Bay magnetite project that puts the cost of development at US$1.1 billion. The property is located on the Melville Peninsula, and the report focuses on the C zone for which an inferred resource of 357.0 million tonnes grading 28.07% Fe has been estimated using a cutoff grade of 25% Fe.
The report, prepared by Golder Associates, postulates annual production of 1.0 million tonnes of 96% to 98% Fe direct-reduced iron (DRI) nuggets. Assuming that a tonne of nuggets can be sold for 70% of the 2008 peak price, the net present value (NPV) of the project is US$2.76 billion, and the pre-tax internal rate of return (IRR) would be 39.5%. Project payback would take only three years based on these assumptions. Processing, a deep-water port and ship loading facilities would be located at nearby Roche Bay.
Three years of baseline environmental studies have also been completed by EBA Engineering Consultants.
More details about the Roche Bay project are available at www.Advanced-Exploration.com.
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