QUEBEC - CONSOLIDATED THOMPSON IRON MINES of Toronto has signed a memorandum of understanding with a Chinese trading company, CBT, for the supply of iron ore concentrates from its Bloom Lake mine. The agreement covers the purchase of 5.0 million t of concentrates annually for an initial five-year term.
The Bloom Lake project deposit is located 10 km north of the Mount-Wright iron ore mine that belongs to QUEBEC CARTIER MINING.
Thompson is prepared to spend US$333 million on capital costs (excluding working capital) to build a mine and concentrator that will produce 7.0 million t of 66.5% Fe concentrate annually for 34 years. Total operating costs are estimated at US$19.76/t of concentrate.
A technical report of the Bloom Lake project is available at www.ConsolidatedThompson.com.