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 total measured and indicated reserves of 895-million grading 29.3% iron. The reserves are estimated to be sufficient to support operations for more than 20 years.

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 high-grade 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 an LoM of 20 years. In addition to reserves at the Bloom Lake mine, Champion Iron also controls more than five-billion tonnes of resources south of current operations.

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, expected to begin in early 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
In addition to the current workforce of about 500 employees, the Phase II project is estimated to employ another 500 employees during the build period and 375 permanent positions once in production.

Net Present Value/Internal Rate of Return
Under the base case assumption of an average life-of-mine P65 price of $83.9/t, the project has a pretax net present value, at an 8% discount rate, of $C1.53-billion and an internal rate of return of 42.4%, with a payback of 2.4 years. Under this base case assumption, the combined value of Phase I and II  has a pretax net present value of $C3.76-billion, or about C$8.60/share.

Capital Expenditure
Champion Iron benefits from $1.2-billion already spent on the Phase II project by its predecessor. 

The completion of the project is estimated to require additional capital expenditure estimated at C$589.8-million, which includes a 15% contingency.

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

Latest Developments
Champion Iron has said that the company will start ramping up operations at its Bloom Lake mining complex, after the provincial government declared mining to be a "priority service".

The announcement means that the company will be allowed to resume normal operations, conditional on the implementation of guidelines aimed at containing the risks related to the Covid-19 pandemic.

Champion Iron was forced in March this year to ramp down operations at Bloom Lake as part of a province down initiative to contain the spread of the virus.

Key Contracts and Suppliers
None stated.

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