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Baffinland Initiates Early Stage Production Feasibility Study for Road Haulage

Tuesday, July 13th, 2010

Baffinland Iron Mines Corporation (TSX:BIM) announces that it has commissioned AMEC Americas Limited, an independent and internationally recognized engineering firm, to complete a definitive feasibility study (“DFS”) for a road haulage option that would result in early stage iron ore production while the Company continues to pursue the development of the Steensby Inlet Port and Rail Project (“Rail Project”). The Company completed a Rail Project DFS in 2008 for an 18 million tonne per annum operation.
The Road Haulage DFS will examine mining, road haulage along the existing 99 km Milne Inlet tote road and shipping using market vessels during the approximate 90-day (August through October) open water season in Milne Inlet. Shipping targets between 2 and 4 million tonnes will be evaluated with an expected optimized production rate of approximately 3 million tonnes per annum. Initial studies completed by the Company have limited production occurring as early as 2013 with full production occurring during the open water season in 2014. Results of the Road Haulage DFS are expected before the end of 2010.
Current 2010 iron prices are approximately US$150 per tonne for lump and US$120 per tonne of fine iron ore. Analysts expect the current market conditions for iron ore to continue for the next five to seven years. Output is expected to be similar to that identified in the Rail Project DFS with 75% high quality lump iron ore and 25% premium quality fine iron ore (sinter feed). Baffinland’s lump and fine iron ores are expected to grade greater than 66% iron over the first 10 years of production.
The Company has also accelerated the completion of its Draft Environmental Impact Statement by the end of 2010, covering the road haulage option and the Rail Project, working towards the completion of the full environmental assessment process in 2012.
(Ref 1455)

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