Resource World Magazine

46 www.resourceworld.com a p r i l / m a y 2 0 1 5 www.precisiongeosurveys.com 604.484.9402 Magnetics - Radiometrics - Time Domain EM Specialists in high resolution airborne geophysics in mountainous terrain Century Iron Mines Corp. [FER-TSX] has released an independent Preliminary Economic Assessment for the Full Moon taconite project 80 km northwest of Schefferville, Québec. The Full Moon is part of the Sunny Lake properties in which Century has an 81.4% interest and WISCO International Resources Development & Investment Ltd. has 18.6% interest. The PEA envisages (at an exchange rate of US 80 cents to C $1.00) a 30-year, open pit, iron mining operation with a strip ratio of 0.1:1 (waste-to-ore). Indicated resources stand at 7.260 billion tonnes with inferred resources of 8.694 billion tonnes. The processing plant would recover both mag- netite and hematite to concentrate. The preferred option assumes production of 20 million tpy, high silica content concentrate (4.5% SiO 2 ) and approximately 66% iron. Transporting mineral product would be accomplished via a new rail line from the plant to Schefferville then over the existing rail lines to the Sept-Iles, new, multiuser port for shipping to China. Initial capital cost estimate (with an accuracy of plus/ minus 35%) is $7,207.3 million. This can be broken down as follows: mine pre- stripping 48.0 million; mine 242.3 million; concentrator-pellet plant 450.4 million; Infrastructure 859.8 million; rail 441.1 mil- lion; and indirect costs and contingencies 2,651.8 million. Product sales price is based on 62% Fe fines CFR China of US $95 per dry tonne and a shipping cost of $15 per wet tonne. After-tax NPV (at 8% discount) is $2,965 million with an IRR of 12.4%. Payback is 5.7 years. These figures are the preferred option (out of four development options). In another development, Century Iron reported independent feasibility results for the Joyce Lake DSO (direct ship- ping ore) Project near Schefferville at the Attikamagen property, Labrador. The Feasibility Study contemplated open-pit mining followed by dry crushing and screening to generate 65% of its product as sinter fines and 35% as lump. Mineral reserves, including high-grade proven + probable and low-grade proven + probable reserves, total 17.72 million tonnes grading 59.71% iron, plus 11.62% SiO 2 , 0.55% Al 2 O 3 and 0.76% manganese. Production is forecast up to 2.5 million tonnes annually of DSO products over seven years of mine life with the first 5.6 years averaging 61.4% iron directly from the pit and the remaining mine life from low-grade stockpiles averaging 53.3% iron. Mineral product transportation would be over a 43-km, dedicated haul road from the mine site to a new rail loop connected to the existing rail infrastruc- ture for product transport to Sept Iles for shipment to China. There is a right for WISCO Attikamagen to purchase up to 60% of commercial products at market value or on standard commercial terms. Total initial capex is $259.6 billion. NPV (8% discount) is $61.4 million with an after-tax IRR of 13.68%. Payback is 4.9 years. The average operating cost estimate (loaded at Port of Sept îles) is $58.25 per dry metric tonne. Century Iron Mines has also reported the first NI 43-101 resource estimate for the Black Bird DSO deposit 65 km northwest of Schefferville and about 50 km from the Joyce Lake Project. The Black Bird Project is also part of the Sunny Lake properties with ownership noted above. The 2014 drilling program defined a high-grade zone of hematite mineralization that lead to the preparation of the initial mineral resource estimate. Initial resources include 1.55 million tonnes of indicated resources averaging 59.93% total iron (TFe) and 8.6 million tonnes of inferred resources averaging 57.01% TFe. Both cat- egories of resources are at a cut-off grade of 50% TFe. Sandy Chim, President and CEO of Century, said, "The discovery of the Black Bird deposit represents the first DSO dis- covery in many years in Québec and the significant successful execution of our DSO strategy as the first part of a long- term vision for the company." The deposit is one of the DSO targets delineated and tested on a new DSO belt running from the Iron Arm area to Lac Le Fer, a zone outside of the traditional DSO mining locations. This new zone was dis- covered through systematic geophysical and geological surveys by Century over the last few years. We are pleased hav- ing completed this first mineral resource estimate on the Black Bird DSO deposit, which adds to the Joyce Lake DSO Project, enhancing the company's position to be a longer-term sustainable DSO producer." n CENTurY IroN MINES updates three iron ore projects MINING

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