Name of the Project
Shymanivske iron-ore project.

Location
Ukraine.

Client
Black Iron.

Project Description
Black Iron released a positive feasibility study on Shymanivske in 2014. The study was based on the production of 9.9-million tonnes a year of high-grade 68% iron content concentrate.

The company has since completed an order of magnitude study. The study is not National Instrument (NI) 43-101-compliant and was completed to validate management’s belief that the project had maintained its economic viability amid the major changes that had occurred in the iron-ore process and Ukraine exchange rates. Based on the results of the order of magnitude study, Black Iron has decided to commission a new NI 43-101-compliant preliminary economic assessment (PEA).

The new PEA will be based on a scaled-down, yet expandable, design.

Instead of producing 9.9-million tonnes a year, as used in the 2014 feasibility study, the PEA will illustrate the economics of developing the project in several phases, starting with a four-million-tonne-a-year operation. Given the current market and political environment, management feels that the smaller, less-capital-intensive project will be better received by investors.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
To be determined.

Value
The current exchange rate is expected to materially reduce the projected upfront capital cost of the project, as a significant amount of the construction costs, including labour, concrete, steel and secondary equipment, such as conveyors, will be Ukraine-based.

Duration
Not stated.

Latest Developments
Black Iron expects to release the results of the PEA and file a technical report prepared in accordance with NI 43-101 in the fourth quarter of 2017.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Black Iron, tel +1 416 309 2138 or email info@blackiron.com.