Champion's President and CEO, Tom Larsen commented, "Completion of this Preliminary Feasibility Study is the result of our team's dedicated efforts over the past couple of years and we believe the results confirm the excellent project at our Consolidated Fire Lake North property. The delivery of the Preliminary Feasibility Study is another major milestone for Champion. Our progress in securing port access and material handling capacity at Sept-Iles, advanced negotiations for electric power to the project and permits to start the mine construction camp has resulted in material de-risking of the Fire Lake North Project." Mr. Larsen added, "The recent increase in the estimated mineral resources at Consolidated Fire Lake North to over 2.6 billion tonnes including the Oil Can deposits creates strong support for a potential increase in annual concentrate production to 20 million tonnes with a mine life greater than 20 years. The release of this study on CFLN and what we believe to be a potential world-class mine will accelerate our discussions with potential strategic partners."
Consolidated Fire Lake North Project Mineral Reserves
The iron process recovery of 82% yields an average production of 9.3 million tonnes per year ("Mtpa") of iron concentrate grading 66% total Iron ("FeT") during a 19.6 years mine life. The current optimized engineered pits yield reserves of 464.6 M tonnes grading 32.37% FeT at a 15% FeT cut-off grade with a weight recovery of 39.9%. The first five years of production will average 9.8 Mtpa of concentrate.
Table 1 underneath summarizes the reserves and stripping estimates for both the West and East pit.
---------------------------------------------------------------------------- West Pit East Pit --------------------------------------------------Consolidated Fe % Fe %Fire Lake North Tonnage Total Weight Tonnage Total WeightTable of Reserves (Mt) % Recovery (Mt) % Recovery----------------------------------------------------------------------------Proven Reserves 20.7 36.2 45.7 3.0 34.2 40.2----------------------------------------------------------------------------Probable Reserves 268.1 33.4 42.2 172.8 30.2 35.6----------------------------------------------------------------------------Total 288.8 33.6 42.4 175.8 30.3 35.6----------------------------------------------------------------------------Overburden 100.8 19.4----------------------------------------------------------------------------Waste Rock 616.8 490.7----------------------------------------------------------------------------Inferred Resources (waste) 29.9 15.9----------------------------------------------------------------------------Total of Waste Stripping 747.6 526.0----------------------------------------------------------------------------Stripping Ratio (Waste Striping/Ore) 2.6 3.0----------------------------------------------------------------------------Life of Mine 12.6 years 7.1 years-------------------------------------------------------------------------------------------------------------------------------------------------------- Both Pits Combined --------------------------------------------------Consolidated Fe %Fire Lake North Tonnage Total WeightTable of Reserves (Mt) % Recovery----------------------------------------------------------------------------Proven Reserves 23.7 36.0 45.0----------------------------------------------------------------------------Probable Reserves 440.9 32.2 39.6----------------------------------------------------------------------------Total 464.6 32.4 39.9----------------------------------------------------------------------------Overburden 120.2----------------------------------------------------------------------------Waste Rock 1,107.6----------------------------------------------------------------------------Inferred Resources (waste) 45.8----------------------------------------------------------------------------Total of Waste Stripping 1,273.5----------------------------------------------------------------------------Stripping Ratio (Waste Striping/Ore) 2.7----------------------------------------------------------------------------Life of Mine 19.6 years----------------------------------------------------------------------------
