Red Paramount Iron Completes Lac Virot DR-Grade Iron Concentrate Project Preliminary Economic Assessment
Press Release
February 20, 2025
High-grade iron ore project with robust economics in a top-tier mining jurisdiction of NL, Canada
Vancouver, British Columbia–(Newsfile Corp. – February 20, 2025) – Red Paramount Iron Ltd. (Red Paramount or the “Company”) is pleased to announce completion of a Preliminary Economic Assessment (“PEA”) for its Lac Virot Direct Reduction (DR)-Grade Iron Ore Project (the “Project”) in the Labrador Trough, Newfoundland and Labrador, Canada.
This PEA highlights a world-class iron ore project with substantial resources, low estimated production costs, and strategic access to infrastructure. The Project is positioned to supply high-quality DR-grade iron concentrate to the growing low-carbon steel industry.
• Key PEA Highlights:
- Mineral Resource Estimate: 495.2 million tonnes of inferred resources at 23.33% Fe, with potential for future resource expansion
- Strategic Minerals: high-purity iron ore is positioned to play a critical role as a new strategic mineral for green steel manufacturing to support global demand for decarbonized steel and Newfoundland and Labrador is well-positioned to maximize this opportunity to secure economic and social benefits for the province
- Projected Annual Production: Over 2.5 million tonnes per year of DR-grade iron concentrate
- High-Quality Product: Expected concentrate grade of 67.5% Fe with low impurities, making it an ideal feedstock for DR steelmaking
- Strategic Location: Proximity to the Quebec North Shore & Labrador Railway and the deepwater port at Sept-Îles, enabling efficient global export
- Low Operating Costs: Competitive cost structure leveraging existing infrastructure and hydroelectric power
- Sustainable Mining Approach: Designed to minimize environmental impact, with filtered tailings and water conservation measures integrated into the plan
- Attractive Economics: Strong internal rate of return (IRR) and net present value (NPV), reinforcing economic viability.
“The completion of this PEA is an important step forward for Red Paramount and the Lac Virot Project, we are committed to developing this project not only to support transition of steel industry to low carbon production but also in a way that benefits all stakeholders, especially local communities and First Nations.” said Farzad Nader, Chief Operating Officer of Red Paramount Iron Ltd.”
“Lac Virot is ideally located in one of the world’s most prolific iron ore regions, just 8 km from Labrador City and right next to the Iron Ore Company of Canada mine. This prime location gives us a unique advantage, allowing us to use existing infrastructure, keep costs down, and accelerate development process. With this strategic advantage, Lac Virot will play a role in supplying material for the steel industry’s transition to low-carbon production.
The demand for high-quality, low-impurity iron ore continues to grow, and this PEA highlights the project’s strong economic fundamentals, setting the stage for fast-track development. Looking ahead, we see significant potential with five additional exploration targets and opportunities for process efficiencies as we move toward a feasibility study. Continued drilling and optimization will be key to fully unlocking the value of this asset.”
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