Black Iron Releases Preliminary Economic Assessment

Black Iron Inc. (TSX:BKI,FWB:BIN)  announced the results of the Preliminary Economic Assessment completed on its Shymanivske iron ore project.

As quoted in the press release,

The PEA outlines an operation producing 7.3 million tonnes per year iron ore pellet plant feed, projecting a 42.1% internal rate of return (“IRR”) and a US$3.0 billion net present value (“NPV”) at an 8% discount rate. The PEA also outlines Black Iron’s option to produce pellets, of 65% iron, which generates a much higher NPV of US$4.1 billion, along with a reduced IRR of 35.2%, due to higher construction costs. Black Iron’s preliminary plan is to construct the mine and concentrator to produce pellet feed for start-up in late 2015 and use cash generated from operations to potentially construct a pellet plant or increase pellet feed production three to five years after start of production. Black Iron continues to advance the technical and metallurgical aspects of the Project and will commence a feasibility study once the PEA report is finalized.

Click here to read the Black Iron Inc. (TSX:BKI) press release.