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Cap-Ex Iron Ore Ltd. (TSXV:CEV,FWB:X0V,OTCQX:CPXVF) announced its Preliminary Economic Assessment for the Block 103 Property in western Labrador.
Cap-Ex Iron Ore Ltd. (TSXV:CEV,FWB:X0V,OTCQX:CPXVF) announced its Preliminary Economic Assessment for the Block 103 Property in western Labrador. Highlights of the PEA include: initial capital disbursement of CAD$4.185 billion for the construction; Capital costs of CAD$5.979 billion for the construction of the two production lines; commercial production for the first line commencing in 2018 and the second line commencing in 2019; and Pre-tax IRR of 19.3%.
As quoted in the press release:
Highlights of the PEA Study include:
- Initial Capital disbursement of CAD$4.185 billion for the construction (leading to the start-up) of the first production line and required infrastructure and Total Capital costs of CAD$5.979 billion for the construction of the two production lines. This includes CAD$2.275 billion for the Pellet Plant and excludes closure costs, sustaining capital and leased equipment and facilities.
- Commercial production for the first line commencing in 2018 and the second line commencing in 2019.
- Pellet production rate of 16.6 million tonnes per year of superior quality acid pellets from two production lines at a grade of 67.0% iron.
- Pre-tax IRR of 19.3%.
- NPV (discounted at 8%) of CAD$7.383 billion.
- Payback period of 7.0 years.
- Total Operating Costs (excluding royalties) of CAD$62.87 per pellet tonne freight on board at Port of Sept-Iles (averaged over the first thirty years of production).
- Assumes use of existing railway infrastructure, hydropower availability from Nalcor and current Port of Sept-Iles expansion infrastructure for shiploading services.
Cap-Ex Iron Ore CEO Graham Harris said:
We are exceptionally pleased with the results of our PEA, especially since we are basing it on only 25% of our currently defined mineral resource estimate. We are now able to continue developing the Block 103 Property and further our discussions with potential strategic partners.
Click here to read the Cap-Ex Iron Ore Ltd. (TSXV:CEV,FWB:X0V,OTCQX:CPXVF) press release
