ONTARIO – According to the preliminary economic assessment, the Eagle Island iron ore project has a net present value of $3.9 billion (with a 5% discount) or $2.2 billion (8%). That makes 100% owner Rockex Mining Corp. of Toronto "very pleased".
An initial investment of almost $1.6 billion is contemplated to develop an open pit in three phases. The mine will have a 20.7% internal rate of return and pay for itself in 4.2 years. Average operating costs per tonne of iron concentrate will be $36.63.
Mining will be a conventional truck and shovel operation with a 30-year life. The pit design includes 512 million tonnes of resources grading 28.9% Fe. Six million tonnes of concentrate will be produced annually using SAG and ball milling, gravity separation, additional grinding and low intensity magnetic separators. A storage and load out will be built at Sioux Lookout 100 km to the southwest.
Rockex says the Eagle Island deposit contains 1.29 million tonnes of indicated resources grading 28.39% Fe and 108 million tonnes of inferred resources at 31.03% Fe.
Rockex also holds sole interest in three other nearby iron properties, East Boules Bay, Doran Lake and Root Lake. Please see RockexMining.com for more information.
Comments
Jimmy
This is great news. Short pay back period – open pit. With all that is happening in NW ontario with power lines and road ways this project will get rolling quickly. Plus they have other properties with much more iron ore – a mineral always in demand going forward.