The Feasibility Study outlines an operation producing 9.2 million tonnes per year of high-grade 68% iron ore concentrate, projecting a 45.9% internal rate of return ("IRR") and a U.S. $3.5 billion net present value ("NPV") at an 8% discount rate. The Project continues to have favourable economic potential across a range of discount rates. The operations outlined in this Feasibility Study are projected to generate over U.S. $1,136 million in average annual revenue over the life of mine. The total average operating costs over 16 years are estimated at U.S. $43.97 per tonne of high grade 68% iron ore concentrate.
The Feasibility Study was completed by WorleyParsons Canada Services Ltd. ("WorleyParsons"), Watts, Griffis and McOuat Limited ("WGM"), Consulting Geologists and Engineers of Toronto, and P&E Mining Consultants Inc. ("P&E"). Mr. Michael Kociumbas, P.Geo., and Mr. Rick Risto, P.Geo., both with independent firm WGM, are Qualified Persons as defined by NI 43-101. WGM has previously visited the site, collected independent core samples and reviewed the QA/QC data received to date. Mr. Puritch of P&E visited the Shymanivske site on February 27, 2012. Mr. Risto has reviewed and approved the underlying sampling, analytical and test data used for the estimate and Mr. Kociumbas is responsible for auditing the in-house mineral resource estimate as supplied by Black Iron. The estimate is classified as Measured, Indicated and Inferred mineral resources, consistent with the CIM definitions referred to in National Instrument 43-101. The complete Feasibility Study has been filed on SEDAR.
The contents of this press release have been prepared under the supervision of and reviewed and approved by Qualified Persons, as follows:
-- Rob Spiering, P.Eng., Project Manager, WorleyParsons QP for the Process Plant and Infrastructure;-- Michael Kociumbas, P.Geo. and Rick Risto, P.Geo., Watts, Griffis and McOuat Limited, QPs for mineral resources and QA/QC and data verification;-- Eugene Puritch, P.Eng., P&E Mining Consultants Inc., QP for the mine engineering aspects.
These persons are Qualified Persons as defined by NI 43-101, are independent of Black Iron, and have reviewed and approved the content of this press release. For further information, please see the technical report of the Company, which is available on SEDAR at www.sedar.com.
Additional information about the Project can be found in the technical report filed on SEDAR at www.sedar.com, entitled "Resource Estimate - Shymanivske Deposit in Ukraine," and dated January 31, 2011.
About Black Iron
Black Iron is an iron ore exploration and development company, advancing its 100 percent-owned Shymanivske project located in Kryviy Rih, Ukraine. This project contains an NI 43-101 compliant resource, with 645.8 Mt Measured and Indicated mineral resources, consisting of 355.1 Mt Measured mineral resources grading 32.0% Total iron and 19.5% Magnetic iron, and Indicated mineral resources of 290.7 Mt grading 31.1% Total iron and 17.9% Magnetic iron, using a cut-off grade of 10% Magnetic iron. Additionally, the project contains 188.3 Mt of Inferred mineral resources grading 30.1% Total iron and 18.4% Magnetic iron. The project is surrounded by five other operating mines, including ArcelorMittal's iron ore complex. The Company believes that existing infrastructure, including access to power, rail and port facilities, will allow for a quick development timeline to production. Further, the Company holds an exploration permit for the adjacent Zelenivske project, which it intends to further explore to determine its potential. Please visit the Company's website at www.blackiron.com, follow us on Facebook: BlackIronInc or Twitter: @BlackIronBKI or write us at email@example.com for more information.