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 at Bloom Lake 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 using an owner mining approach, using electric hydraulic shovels and mine trucks. 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, Quebec Iron Ore.

Jobs to Be Created
Not stated.

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
The Quebec government's Green Fund has granted QIO, C$5.2-million in financial assistance for two energy conversion projects at Bloom Lake.

The first project involves the replacement of a steam boiler using light fuel oil, with an electrode steam boiler in the plant's main boiler room. The new boiler will meet a significant portion of the demand for process steam, as well as midseason heating requirements.

Champion said the switch from fuel oil to electric heating will not only reduce the fuel consumption of the mine, but also reduce the mine's environmental footprint and operating costs.

The second project involves the installation of an overhead conveyor to transport iron-ore. The mined ore was historically transported to the crusher using trucks with a 240 t capacity. The ore was then transported on a conveyor to the storage site. The new overhead conveyor will significantly reduce the use of trucks, accordingly reducing QIO’s diesel consumption.

Significantly, the two energy conversion projects will reduce Bloom Lake’s greenhouse-gas emissions by 19 689.2 t equivalent carbon dioxide a year.

Financial assistance from the Green Fund falls within the framework of the Government of Quebec’s ‘EcoPerformance Programme under the 2013-2020 Action Plan on Climatic Change’.

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.