MONTRÉAL, May 3, 2022
/CNW Telbec/ - Champion Iron Limited (TSX: CIA) (ASX: CIA) (OTCQX:
CIAFF) ("Champion" or the "Company") is pleased to announce the
completion of the first rail shipments containing 24,304 wet metric tonnes of high-grade 66.2% Fe iron
ore concentrate from the Phase II expansion project ("Phase II") at
the Bloom Lake Mine ("Bloom Lake"). The commissioning of Phase II
was achieved ahead of schedule and the Company is working to
gradually increase the mine and plant's capacity towards commercial
production, which is anticipated to occur by the end of the
calendar year 2022.
Champion's CEO, Mr. David Cataford, said: "Today we
celebrate the culmination of our collective efforts as the Phase II
expansion project comes to life. The Phase II project is expected
to be in operation for decades and will provide the Québec
Côte-Nord region with over 400 additional permanent high-quality
jobs. Completing the project ahead of schedule, while facing the
challenges imposed by the COVID-19 pandemic, is a testament to the
agility and operational excellence of our employees and partners.
With our high-purity iron-ore products contributing towards
emission reductions in the global steel industry, I am excited by
the potential of the several organic growth projects we are
currently evaluating."
On June 20, 2019, the Company
announced the positive results of the Phase II Feasibility Study
(the "Feasibility Study"), prepared pursuant to National Instrument
43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101")
and Joint Ore Reserves Committee ("JORC") Code (2012 edition),
which envisioned Bloom Lake's increasing its overall capacity from
7.4 Mtpa to 15 Mtpa of 66.2% Fe iron ore concentrate. The
Feasibility Study proposed to complete the construction of the
Phase II concentrator plant, which was partially built by the
mine's former owner, and an optimized mine plan to accelerate the
supply of ore to the expanded facilities while maintaining a life
of mine ("LoM") of 20 years. The Feasibility Study evaluated a
total pre-production capital expenditures of $633.8 million, including deposits. The base case
economic assumption utilized a conservative blended average gross
realized price at 66.2% Fe CFR China of US$84.1/t for the LoM, resulting in strong
economics, including an after tax net present value discounted at
8% and internal rate of return of $955.7
million and 33.4%, respectively.
Based on the Feasibility Study's findings, the Company obtained
the Board of Directors' requisite approvals and procured the
necessary financing to complete the Phase II project. Accordingly,
the Company increased its credit facilities from US$200 million to US$400
million, which, together with the Company's cash on hand and
ongoing cash flows from operations, enabled to fully finance the
project without additional equity issuances. As of March 31, 2022, cumulative investments of
$625.2 million, including deposits,
were deployed on the project.
The Company is not aware of any new information or data that
materially affects the information included in the Feasibility
Study and confirms that all material assumptions and technical
parameters underpinning the estimates in the Feasibility Study
continue to apply and have not materially changed. The Feasibility
Study is available under the Company's filings at www.sedar.com, on
the ASX at www.asx.com.au or the Company's website at
www.championiron.com.
About Champion Iron
Limited
Champion Iron Limited, through its subsidiary Quebec Iron Ore
Inc., owns and operates the Bloom Lake Mining Complex, located on
the south end of the Labrador Trough, approximately 13 km north
of Fermont, Québec. Bloom Lake is an open-pit operation with
two concentrators that primarily source energy from renewable
hydroelectric power. The Bloom Lake Phase I and Phase II plants
have a combined nameplate capacity of 15 Mtpa and produce a
low contaminant high-grade 66.2% Fe iron ore concentrate with a
proven ability to produce a 67.5% Fe direct reduction quality
concentrate. Bloom Lake's high-grade and low contaminant iron ore
products have attracted a premium to the Platts IODEX 62% Fe iron
ore benchmark. The Company ships iron ore concentrate from Bloom
Lake by rail, to a ship loading port in Sept-Îles, Québec, and
sells its iron ore concentrate to customers globally, including
in China, Japan, the Middle
East, Europe, South
Korea, India and Canada. In addition to the Bloom
Lake Mining Complex, Champion owns a portfolio of exploration and
development projects in the Labrador Trough, including the
Kamistiatusset Project located a few kilometres south-east of Bloom
Lake, and the Consolidated Fire Lake North iron ore project,
located approximately 40 km south of Bloom Lake.
Forward-Looking
information
This press release includes certain information and statements
that may constitute "forward-looking statements" and
"forward-looking information" under applicable securities laws. All
statements other than statements of historical facts included in
this press release that address future events, developments or
performance that Champion expects to occur, including Management's
expectations regarding (i) the Company's Phase II expansion project
and its milestones, including commercial production timeline,
capacity increase, life of mine, future operation and potential for
job creation; (ii) the Company focus on growth opportunities and
projects; (iii) the Company's vision to provide market leading
high-quality iron ore products that offers a global solution to
reduce emissions in the steel making supply chain; and (vi) the LoM
of the Bloom Lake Mine. Forward-looking statements are statements
that are not historical facts and are generally, but not always,
identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "continues",
"forecasts", "projects", "predicts", "intends", "anticipates",
"aims", "targets" or "believes", or variations of, or the negatives
of, such words and phrases, or state that certain actions, events
or results "may", "could", "would", "should", "might" or "will" be
taken, occur or be achieved. Although Champion believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such forward-looking statements involve
known and unknown risks, uncertainties and other factors, most of
which are beyond the control of the Company, which may cause the
Company's actual results, performance or achievements to differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause the actual results to differ
materially from those expressed in forward-looking statements
include, without limitation: the results of feasibility studies;
changes in the assumptions used to prepare feasibility studies;
project delays; continued availability of capital and financing and
general economic, market or business conditions; general economic,
competitive, political and social uncertainties; future prices of
iron ore; future transportation costs, failure of plant, equipment
or processes to operate as anticipated; delays in obtaining
governmental approvals, necessary permitting or in the completion
of development or construction activities; the effects of
catastrophes and public health crises, including impact of COVID-19
on the global economy, the iron ore market and Champion's
operations, as well as those factors discussed in the section
entitled "Risk Factors" of the Company's 2021 Annual Information
Form and the Management's Discussion and Analysis for the
fiscal year ended March 31, 2021, all
of which are available on SEDAR at www.sedar.com, the ASX at
www.asx.com.au and the Company's website at www.championiron.com.
There can be no assurance that such information will prove to be
accurate as actual results and future events could differ
materially from those anticipated in such forward-looking
information. Accordingly, readers should not place undue reliance
on forward-looking information.
All of Champion's forward-looking information contained in this
press release is given as of the date hereof or such other date or
dates specified in such statements and is based upon the opinions
and estimates of Champion's Management and information available to
Management as at the date hereof. Champion disclaims any intention
or obligation to update or revise any of its forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by law. If the Company does update
one or more forward-looking statements, no inference should be
drawn that it will make additional updates with respect to those or
other forward-looking statements. Champion cautions that the
foregoing list of risks and uncertainties is not exhaustive.
Investors and others should carefully consider the above factors as
well as the uncertainties they represent and the risks they entail.
Inherent in forward-looking statements are risks, uncertainties and
other factors beyond the Company's ability to predict or
control.
Qualified Person and Data
Verification
Mr. Vincent Blanchet, P. Eng.,
Engineer at Quebec Iron Ore Inc., the Company's subsidiary and
operator of the Bloom Lake Mining Complex, is a "qualified person"
as defined by NI 43-101 and has reviewed and approved, or has
prepared, as applicable, the disclosure of the scientific and
technical information contained in this press release. Mr.
Blanchet's review and approval does not include statements as to
the Company's knowledge or awareness of new information or data or
any material changes to the material assumptions and technical
parameters underpinning the Feasibility Study. Mr. Blanchet is a
member of the Ordre des ingénieurs du Québec.
For additional information on Champion Iron Limited, please
visit our website at: www.championiron.com.
This press release has been authorized for release to the market
by the CEO of Champion Iron Limited, David
Cataford.
Unless otherwise specified, all dollar figures stated herein are
expressed in Canadian dollars.
SOURCE Champion Iron Limited