The commissioning of Phase II was achieved ahead of schedule and the Company is working to gradually increase the mine and plant’s capacity towards commercial production, which is anticipated to occur by the end of the calendar year 2022
Champion Iron completes first rail shipments from the Bloom Lake mine’s Phase II expansion. (Credit: Bishnu Sarangi from Pixabay)
Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) (“Champion” or the “Company”) is pleased to announce the completion of the first rail shipments containing 24,304 wet metric tonnes of high-grade 66.2% Fe iron ore concentrate from the Phase II expansion project (“Phase II”) at the Bloom Lake Mine (“Bloom Lake”). The commissioning of Phase II was achieved ahead of schedule and the Company is working to gradually increase the mine and plant’s capacity towards commercial production, which is anticipated to occur by the end of the calendar year 2022.
Champion’s CEO, Mr. David Cataford, said: “Today we celebrate the culmination of our collective efforts as the Phase II expansion project comes to life. The Phase II project is expected to be in operation for decades and will provide the Québec Côte-Nord region with over 400 additional permanent high-quality jobs. Completing the project ahead of schedule, while facing the challenges imposed by the COVID-19 pandemic, is a testament to the agility and operational excellence of our employees and partners. With our high-purity iron-ore products contributing towards emission reductions in the global steel industry, I am excited by the potential of the several organic growth projects we are currently evaluating.”
On June 20, 2019, the Company announced the positive results of the Phase II Feasibility Study (the “Feasibility Study”), prepared pursuant to National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and Joint Ore Reserves Committee (“JORC”) Code (2012 edition), which envisioned Bloom Lake’s increasing its overall capacity from 7.4 Mtpa to 15 Mtpa of 66.2% Fe iron ore concentrate. The Feasibility Study proposed to complete the construction of the Phase II concentrator plant, which was partially built by the mine’s former owner, and an optimized mine plan to accelerate the supply of ore to the expanded facilities while maintaining a life of mine (“LoM”) of 20 years. The Feasibility Study evaluated a total pre-production capital expenditures of $633.8 million, including deposits. The base case economic assumption utilized a conservative blended average gross realized price at 66.2% Fe CFR China of US$84.1/t for the LoM, resulting in strong economics, including an after tax net present value discounted at 8% and internal rate of return of $955.7 million and 33.4%, respectively.
Based on the Feasibility Study’s findings, the Company obtained the Board of Directors’ requisite approvals and procured the necessary financing to complete the Phase II project. Accordingly, the Company increased its credit facilities from US$200 million to US$400 million, which, together with the Company’s cash on hand and ongoing cash flows from operations, enabled to fully finance the project without additional equity issuances. As of March 31, 2022, cumulative investments of $625.2 million, including deposits, were deployed on the project.
Source: Company Press Release