Champion Iron reports record quarterly production of 4 million tonnes at Bloom Lake

Champion Iron (TSX: CIA; ASX: CIA; OTCQX: CIAFF)reported a record-breaking output of 4 million wet tonnes of iron ore during the third quarter that ended Dec. 31, 2023, of its 2024 year, at Bloom Lake. The property is 13 km north of Fermont, Que.

Production at Bloom Lake exceeded its recently expanded nameplate capacity for 66.4% iron concentrate. Production was 17% higher than the previous quarter, and 36% more over the same period last year.

Sales also reached a record quarterly 3.2 million dry tonnes. The is up 12% from the previous quarter and 20% from the prior year period.

The Bloom Lake iron ore mine has proven and probable reserves of 716.2 million tonnes grading 28.6% iron. Measured and indicated resources are 1.25 billion tonnes grading 28.7% iron. No serious injuries and no major environmental incidents were reported in the quarter.

While the Bloom Lake mine and concentrator set new records, the railway operator fell short, resulting in the inability to ship all of the concentrate produced during the quarter. Rail service was interrupted for several days after heavy rains in late December. Consequently, stockpiles at the mine grew to 2.4 million wet tonnes.

Not only is Champion happy to have expanded Bloom Lake, but the company is also looking forward to its direct reduction pellet feed (DRPF) project for which the board of directors approved the final investment decision.

"This carbon neutral project, which remains on schedule to be completed in calendar H2/2025, positions the company and the region to contribute to the accelerating green steel transition, particularly considering the recent decisions by the governments of Quebec and Newfoundland and Labrador to include high-purity iron ore on their critical mineral lists,” said Champion CEO David Cataford.

“Our team also achieved another important milestone by announcing the details of the Kami project study which evaluated the construction of a 9.0 million wet t/y DR quality iron ore operation. The study enables the company to consider strategic partnerships prior to advancing the project, providing an opportunity to capitalize on the growing demand for green steel," he added.

The Kami iron ore project is located in the Labrador Trough in southwest Labrador. It examines a 25-year mine life with average annual direct reduction-quality iron ore concentrate of about 9 million wet t/y. Concentrate would grade above 67.5% iron. Capital expenses of $3.86 billion would create a project with a net present value of $541 million and internal rate of return of 9.8% after-tax, based on conservative iron ore prices. If prevailing iron prices are used, the project has an NPV of $2.20 billion and an IRR of 14.8% after-tax.

A fuller description of the Kami project is posted on www.ChampionIron.com.