Name and Location
Rakkuri iron project, Kiruna, Sweden.

Client
Hannans Rewards.

Project Description
The Rakkurijoki deposit has a Joint Ore Reserves Committee-compliant inferred resource of 74.5-million tons at 39.7% iron, using a cutoff grade set at 20% iron.

A scoping study completed on the deposit has confirmed the development potential of the project. The study assessed the potential of mining, processing, railing and shipping an iron product to the market in Europe or the Middle East North African region.

The mine will be an openpit operation, which will be staged in three pushbacks. Mining will entail a top-down, bench-by-bench method.  The mine will require a magnetic separation beneficiation plant with reverse flotation for the rejection of phosphorus and sulphur. The minimum life of the Rakkurijoki deposit is 12 years, but has the potential to be significantly increased with the inclusion of the Rakkurijärvi deposit, located 2.5 km south-west of Rakkurijoki. The two deposits will collectively be referred to as the Rakkuri iron project. The Rakkurijoki deposit is located less than 1 km from a modern, government-owned, open-access heavy-gauge rail line. The line connects the Rakkurijoki deposit to two modern iron-ore export ports – the Port of Lule, in Sweden, and the Port of Narvik, in Norway. The Rakkuri project will supply an iron fines product to only one of the ports.

Value
Initial capital costs to the Port of Lule are estimated at $629-million, or $679-million to the Port of Narvik.

Duration
Not stated.

Latest Developments
A decision has been made to initiate a prefeasibility study (PFS) on the Rakkurijoki deposit and to expand the PFS to include the Rakkurijärvi deposit. The amalgamation of the two deposits may further enhance the economics of the Rakkuri project, with relatively minimal additional capital expenditure. The PFS is expected to be completed by the first quarter of 2014.

A search has also begun for a joint venture partner to fund the PFS.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Hannans Rewards, tel +61 8 9324 3388, fax +61 8 9324 3366 or email admin@hannansreward.com.