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.