IRON ORE STUDY: PEA for Lac Otelnuk looks positive

QUEBEC - Adriana Resources of Toronto has revised the preliminary economic assessment (PEA) for its Lac Otelnuk iron ore project in Nunavik and says the outlook is positive. The study, using a US$100 per tonne FOB Sept-Iles, examined an...

QUEBEC - Adriana Resources of Toronto has revised the preliminary economic assessment (PEA) for its Lac Otelnuk iron ore project in Nunavik and says the outlook is positive. The study, using a US$100 per tonne FOB Sept-Iles, examined an operation that would produce 50 million t/y of 67% Fe iron pellets. The project has a net present value of $15.2 billion and an internal rate of return of 20%.

The project as contemplated includes mining and concentrating an average of 175 million tonnes of iron mineralization per year, pelletizing the concentrate, building an 815-km railway through Quebec and the necessary port capacity to accommodate Chinamax ore carriers.

The total capital cost of the project is estimated to be $12.9 billion with the mine complex being $7.9 billion, the railway $2.7 billion and the port estimated to be $600 million. The mine life is approximately 34 years and the projected cash cost per tonne of pellets FOB port is approximately $32/tonne potentially making this a low cost producer, according to Adriana.

Adriana has entered into a binding framework agreement with Wisco International Resources Development and Investment of China with respect to an investment in Adriana and the Lac Otelnuk project.

More information is available at www.AdrianaResources.com.

Comments

Your email address will not be published. Required fields are marked *

Aug 12 2021 - Aug 13 2021
Aug 17 2021 - Aug 18 2021
Aug 25 2021 - Aug 26 2021
Sep 07 2021 - Sep 09 2021