Champion Iron Limited (ASX: CIA ǀ TSX: CIA) is an iron exploration and development company with offices in Montreal, Toronto and Australia, and is focused on developing its significant iron resources located in the Labrador Trough in the provinces of Québec, and Newfoundland and Labrador. Champion Iron holds a 100% interest in the Fermont Iron Holdings in close proximity to producing iron mines, existing transportation and power infrastructure.
Through its wholly owned subsidiary Champion Iron Mines Limited, the company’s Fermont Holdings consist of 8 iron-rich projects with a surface area of 707 km² that are proximal to electrical power, all-season roads, and railways that connect to year-round shipping terminals on the north shore of the Gulf of St. Lawrence. Champion’s total in-pit resources are comprised of 972 million tonnes of Measured and Indicated and 4,401 million tonnes of Inferred Mineral Resources providing a large resource base with potential to grow production.
On April 11, 2016, the Company, through its subsidiary, Quebec Iron Ore (QIO), acquired the Bloom Lake mine and related rail assets (“Bloom Lake”) from affiliates of Cliffs Natural Resources Inc. that were subject to restructuring proceedings under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”).
On February 7, 2013 Champion Iron Mines Limited issued the results of a Preliminary Feasibility Study on the Consolidated Fire Lake North (CFLN) Project, located in the center of the Fermont Iron Ore District. The study estimates CFLN Net Present Value (NPV) to be $3.3 billion at a discounted cash flow rate of 8%, with an Internal Rate of Return of 30.9% and a capital payback period of 3.4 years. Concentrate production would average 9.3 million tonnes of concentrate per year (Mtpa) grading 66% iron for the 20 year mine life; however, the first five years of production will average 9.8Mtpa of concentrate as the starter pit is located in softer and higher grade iron ore within the West Pit.
The high-grade concentrate is produced from high quality, coarse, specular hematite iron oxide ore, which liberates at a grind size of 850 microns and is considered clean of deleterious elements.
The company is also focused on its CFLN Feasibility Study with the objective of further reducing rail transportation costs, sustaining capital, and the overall mine life strip ratio. The company continues to further de-risk the project and optimize the economics by working with stakeholders in the Labrador Trough.