Name of the Project
Bloom Lake Phase II.

Location
The project is located near the town of Fermont, in north-east Quebec, Canada.

Project Owner/s
Champion Iron.

Project Description
The project has a total reserve of 807-million grading 29% iron.

A feasibility study has evaluated the combined Phase I and II mining plan, current concentrator plant at Phase I and completion of the Phase II concentrator plant. Results of the study recommend an expansion of Bloom Lake, resulting in a life-of-mine (LoM) production averaging 15-million tonnes a year of 66.2% iron-ore concentrate.

Based on the new optimised mine plan, the mining rate will also be increased to accelerate the supply of ore to the expanded facilities while maintaining a LoM of 20 years. The Phase II mine plan continues with a conventional surface mining method using an owner mining approach. Electric hydraulic shovels will be complemented with front-end loaders to allow for a flexible mine plan. Additional drilling and hauling capacity will be added as mine tonnages increase, starting in January 2021. The processing plant for the Phase II concentrator is based on the design of the currently operating Phase I, with minor changes to further improve performance. The recovery circuit is similar to the Phase I concentrator, with the addition of a stage of scavenger up current classifier to increase recovery and improve response to feed variations.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $C1.53-billion and an internal rate of return of 33.4%, with a payback of 2.4 years.

Capital Expenditure
Initial capital expenditure is estimated at C$589.8-million.

Planned Start/End Date
The project will take 21 months to complete.

Latest Developments
Champion has approved an initial budget of $68-million to advance the project for the remainder of 2019, which is expected to meet the timetable detailed in the feasibility study. This will be funded from cash on hand and existing debt facilities. Finalisation of additional funding sources for the project is expected to be completed before mid-2020.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Champion Iron, tel +1514316 4858 or email info@championironmines.com.