Name and Location
Labrador Trough rail line project, Canada.

Client
The government of Quebec and Lac Otelnuk Mining – a joint venture between Adriana Resources and WISCO International Resources Development & Investment – have formed a partnership, called La Société ferroviaire du Nord Québécois, société en commandite (SFNQ) with Champion Iron.

The SFNQ was formed after the Quebec government has tabled its 2014/15 Budget in June, as a partnership between government and industry and was assigned the responsibility of managing the implementation of the feasibility study for a new Labrador Trough rail line.

Project Description
The aim of the project is to develop a multi-user rail line from the Port of Sept-Îles to the Labrador Trough, a 1 600 km long geological belt rich in iron-ore deposits. The project is expected to be built in phases.

Among other major economic and wide-reaching social benefits, the new rail infrastructure, when developed, will enhance the Quebec-based mining industry’s ability to service world markets with competitive long-term tariffs.

Net Present Value/Internal Rate of Return
Not stated.

Value
Not stated.

Duration
Not stated.

Latest Developments
The Quebec government has set aside a maximum of C$20-million from its Plan Nord Fund to contribute to the feasibility study for the new Labrador Trough rail line. The study is to be overseen by the SFNQ will evaluate the technical and economic requirements of a new multi-user common carrier to service the Labrador Trough. The objective is to focus on a phased construction approach that will satisfy the needs of potential users.

The study could lead to one of the largest sustainable development projects in the world, with a government that is putting the necessary conditions in place to facilitate private-sector efforts to deliver the immense economic potential of northern Quebec, while respecting social and environmental considerations.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Champion Mining, Suzie Kim, tel +1 514.316.4858 ext 107 or email skim@championiron.com.
Lac Otelnuk Mining director – investor relations Connie Dos Santos, tel +1 416 363 2200 ext 223 or
email cdossantos@adrianaresources.com.