Iron Bear Resources (ASX:IBR) has reported a maiden Prefeasibility Study (PFS) for its Iron Bear Project in Canada, delivering a post-tax net present value of US$9 billion ($12.94 billion) and an internal rate of return of 15.2%.
The PFS outlines a maiden probable ore reserve of 3.3 billion tonnes (Bt) @ 29.1% iron (Fe), supporting 23 million tonnes per annum (Mtpa) of ‘high-grade’ iron ore production over a 44-year mine life.
The project targets 4.5Mtpa of blast furnace concentrate and 18.4Mtpa of direct reduction pellets, with product grades of 69.1% Fe and 71% fe respectively. The mine plan draws on less than 25% of the total 13.6Bt resource.
“The first iteration of the Prefeasibility Study for the Iron Bear project conclusively demonstrates the project’s financial attractiveness, scale, and sustainability,” Managing Director Paul Berend says.
“Our project targets a high-value and high-growth subsection of the iron ore market, specifically direct reduction pellets.”
The operation features a low 0.44 stripping ratio supporting efficient open pit mining. This includes access to existing rail infrastructure and the open-access port of Pointe-Noire.
Power supply comprises 100% renewable hydropower at US$0.0315/kWh from Churchill Falls.
Pre-production capital expenditure is estimated at US$4.2 billion. Iron Bear has secured funding through its development agreement with Vale.
The mining giant will contribute US$138 million to achieve decision to mine. It will also earn a 75% equity stake upon completion of phase two activities.
The PFS was completed to AACE Class 4 standard by consultants including Hatch, Snowden Optiro, TME Mine Consulting, IDOM Consulting, and Fortin Pipelines.
Iron Bear Resources expects the environmental and social impact assessment processes to take up to six years, representing the critical path for first production targeted for the early 2030s.
Write to JC Villarba at Mining.com.au
Images: Iron Bear Resources
