NEWFOUNDLAND - Calgary's NEW MILLENNIUM CAPITAL CORP. has been forced to update the pre-feasibility figures for its LabMag iron ore project in Labrador, near Shefferville, Quebec. The changes were needed because a US$181-million portion of the US$2.75-billion capital cost of the project was omitted from the original financial model.
The correct information follows: The LabMag project has proven and probable reserves of 3.5 billion tonnes. The total capital cost, including working capital, will be US$2.75 billion, unchanged from earlier estimates. The internal rate of return (IRR) will be 15.8%; the return of equity (ROE) will be 23.3%; and the net present value (NPV) is revised downwards to US$4.0 billion. The project is expected to create 810 direct jobs at a new mine, concentrator and pellet plant. Payback is estimated in five years after the start of commercial production, and the mine has a 65-year life.
New Millennium (www.NMLResources.com) holds an 80% interest in the LabMag project. The remaining 20% belongs to the Naskapi Nation of Kawawachikamach (NNK).