Name of the Project
Bloom Lake iron-ore project.

Location
Bloom Lake is located near Fermont, in north-eastern Quebec, Canada.

Client
Quebec Iron Ore (QIO), a subsidiary of Champion Iron.

Project Description
Bloom Lake has total proven and probable reserves of 411.71-million tonnes grading 30.01% iron; and measured and indicated resources of 911.6-million tonnes grading 25.6% iron.

A feasibility study completed on the project has shown that restarting iron-ore mining operations is financially viable and would be competitive in global iron-ore markets, with the potential to be one of the region’s leading long-life iron-ore mines.

Restarting operations is based on different operating assumptions, which include an upgrade to the concentrator plant and a mineral reserve and mining scenario updated for the current iron-ore market.

The operation comprises a conventional surface mining method –incorporating electric hydraulic shovels and mine trucks using an owner mining approach. All major mine equipment required for the restart of the mine is on site, as this equipment is among the assets bought by the company’s subsidiary, QIO.

Jobs to Be Created
The project is expected to employ about 450 people.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of C$1.68-billion and an internal rate of return of 43.9%, with a payback of 2.5 years.

Value
Initial capital expenditure, including the mine upgrade capital cost of $157.2-million, has been estimated at C$326.8-million.

Duration
Not state.

Latest Developments
Activities are ramping up at the Bloom Lake mine, with preparations well under way towards the ultimate goal of shipping the first fully laden train of iron-ore by the end of February, or early March.

The current focus is to upgrade the mill, using the spare parts on hand when the company’s subsidiary QIO acquired the then-shuttered Bloom Lake in April 2016.

A key focus has been to replace the mineral spirals that previous owner and operator Cliffs Natural Resources used. This is expected to help increase ore recoveries while helping to drive down operating costs. Where Cliffs’ cost was about $75/t freight on board China, the revamped Bloom Lake operation stands to benefit from costs in the range of $40/t.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Champion Iron VP corporate secretary (Canada) Jorge Estepa, tel +1 416 866 2200 or email jestepa@championiron.com.