TORONTO (miningweekly.com) – Canada's Baffinland Iron Mines is reviewing an option to haul ore by road, which could result in early stage iron-ore production from its Mary River project, in Nunavut, while the firm works on getting port and rail infrastructure in place.

Baffinland completed a definitive feasibility study in 2008 on a project to develop the Steensby Inlet port and rail project for an 18-million-ton a year operation.

The firm is looking at road haulage along the 99-km Milne Inlet tote road, and shipping using market vessels during a 90-day or so open water season in Milne Inlet, it said on Thursday.

"Achieving early stage production through this road haulage option would enhance value for Baffinland's shareholders, achieve cash flow during a period when iron-ore prices are forecast to continue to be high and strengthen our efforts to achieve the full development of the rail project," said vice-chairperson Daniella Dimitrov.

The company may mine and ship at a rate of between two and five million tons a year of lump and fine iron-ore, with an estimated optimised production rate of some three-million tons a year.

Production will probably be 75% high-quality iron-ore and 25% premium quality fine iron-ore.

Baffinland also plans to accelerate completion of its draft environmental-impact statement this year, and is aiming to complete the full environmental-assessment and permitting process by late 2012 or early 2013, the company said.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.