Champion Iron Mines Preliminary Feasibility Study Indicates $3.3 Billion NPV and 30.9% IRR for Consolidated Fire Lake North Project

Champion Iron Mines Limited (TSX:CHM) announced results from the Preliminary Feasibility Study conducted at the West and East deposit of the Consolidated Fire Lake North Project. Based on an initial 20-year mine life, the study produced a Net Present Value of $3.295 billion using an 8% discount rate and a financial model with an Internal Rate of Return at 30.9%.

Summary of Preliminary Feasibility Study Results

NPV at 8% discount rate (Pre-tax)


3,295 million

IRR (Pre-tax)



Payback Period at 8% discount rate

3.4 years

Pre-production Capital Cost (excluding rail cost)


1,394 million

Rail capital contribution


213 million

Average Operating Cost (loaded at Port of Sept-Îles including rail capital and debt service costs)


44.05 per tonneof concentrate

FOB Concentrate Selling Price based on CFR China benchmark price at 62 % FeT adjusted for higher CFLN Fe grade @ $5.00 per percent and $20.00/t freight cost

Year 1-5


115.00 per tonne

Year 6-20


110.00 per tonne

Mine Life

19.6 years

Concentrate Grade (percent contained Fe)



Process Recovery (Iron)



Weight Recovery



Average Annual Concentrate Production

9.3 M Tonnes

In-pit Optimized Measured and Indicated Resources West and East Deposits, CFLN Project (COG of 15 %, 31.5% Total Iron)

691.3 M Tonnes

Engineered Optimized In-Pit Mineable Reserves West and East Deposits, CFLN Project (COG of 15 %, 32.4% Total Iron)

464.6 M Tonnes

Projected Concentrator Plant Start-up and Commissioning

Q1 2016

Projected Start of Nominal Production

Q2 2016

Champion’s President and CEO, Tom Larsen stated:

Completion of this Preliminary Feasibility Study is the result of our team’s dedicated efforts over the past couple of years and we believe the results confirm the excellent project at our Consolidated Fire Lake North property. The delivery of the Preliminary Feasibility Study is another major milestone for Champion. Our progress in securing port access and material handling capacity at Sept-Îles, advanced negotiations for electric power to the project and permits to start the mine construction camp has resulted in material de-risking of the Fire Lake North Project.

Click here to view the full press release. 

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