Alderon Files NI 43-101 Updated Feasibility Study Technical Report for the Kami Project on SEDAR
Press Release
MONTREAL, QUÉBEC, Alderon Iron Ore Corp. (TSX: IRON) (“Alderon” or the “Company”) announces the filing on SEDAR of its National Instrument 43-101 Technical Report entitled “Updated Feasibility Study of the Kamistiatusset (Kami) Iron Ore Property, Labrador”, dated effective September 26, 2018 (the “updated FS”). The updated FS is an update to the feasibility study on the Kami Iron Ore Project that was issued on January 16, 2013.
The updated FS was completed by BBA Inc. (“BBA”), located in Montreal, Québec. The updated FS once again demonstrates the strong economics of the Kami Project which will produce a premium-quality iron ore concentrate with higher Fe content and ultra-low impurities relative to the 62%-Fe grade benchmark. Coupled with the sustained demand for high-grade iron ores, the robust project economics form the foundation of Alderon’s relaunch of its project financing efforts.
The updated FS replaces the Company’s November 2017 PEA as the current technical report on the Kami Project.
The results of the updated FS are based on 100% ownership of the Kami Project. The Kami Project is held through The Kami LP, as to 75% by Alderon and 25% by HBIS Group Co. Ltd. (“HBIS”). The results of the updated FS disclosed in this news release are expressed in US Dollars and pre-tax (except where otherwise indicated).
Highlights of the updated September 2018 FS include:
| Net Present Value (“NPV”) at 8% discount rate | $ | 1,698 M |
| Internal Rate of Return (“IRR”) | 24.6% | |
| Projected Years to Payback | 4.0 years | |
| Total Estimated Capital Cost (excluding sustaining capital and closure costs) | $ | 982.41 M |
| Average Estimated Operating Costs (loaded in ship Port of Sept-Îles) | $/dmt | 30.72 |
| CFR Concentrate Sales Price Forecast – based on three year trailing average CFR benchmark price of $63.30/dmt @ 62% Fe, adjusted for Kami Fe grade, and HBIS and Glencore agreement terms | $/dmt | CFR $89.67 (FOB $73.17) |
| Estimated Mine Life | 23 years | |
| Final Product Iron Grade (%Fe) | 65.2% | |
| Proven and Probable Mineral Reserves (COG=15%, 28.8% Total Fe, 3.4% Dilution, 2.5% Ore Loss) | 517.2 Mt | |
| Annual Concentrate Production Rate (average life of mine, post ramp-up year) | 7.84 Mtpa |
Technical Report and Qualified Person
The Technical Report was prepared under the supervision of Mr. Angelo Grandillo, P.Eng, of BBA, a Qualified Person as defined by NI 43-101, with contributions from Mr. Jeffrey Cassoff, P.Eng, of BBA, Mr. James Powell of Gemtec, Mr. Peter Merry of Golder and Mr. Kociumbas. Mr. Grandillo is a Qualified Person as defined by NI 43-101 and is independent of Alderon. Mr. Grandillo has reviewed and approved the technical information contained in this news release, with the exception of the Mineral Reserve estimate which has been reviewed and approved by Mr. Jeffrey Cassoff, as noted above. Mr. Grandillo has verified all the data underlying the technical information disclosed in this news release.
For further information on the Kami Project please refer to the Technical Report entitled “Updated Feasibility Study of the Rose Deposit and Resource Estimate for the Mills Lake Deposit of the Kamistiatusset (Kami) Iron Ore Property, Labrador”, dated effective September 26, 2018, that is available on SEDAR at www.sedar.com.
About Alderon Iron Ore Corp.
Alderon is a leading iron ore development company in Canada. The Kami Project, owned 75% by Alderon and 25% by HBIS through The Kami Mine Limited Partnership, is located within Canada’s premier iron ore district, the Labrador Trough, and is surrounded by three producing iron ore mines. Its port handling facilities are located in Sept-Îles, the leading iron ore port in North America. HBIS is Alderon’s strategic partner in the development of the Kami Project and China’s second largest steel producer.
For more information on Alderon, please visit our website at www.alderonironore.com.
ALDERON IRON ORE CORP.
On behalf of the Board
“Tayfun Eldem”
President & CEO, Director
Alderon is part of the King & Bay group of companies. King & Bay is a merchant bank that specializes in identifying, funding, developing and supporting growth opportunities in the resource, aviation, and technology sectors.
For further information please call:
Mishka Gounden
1-604-681-8030 ext 289
info@alderonironore.com
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