Century Global Commodities Corp (TSX:CNT), along with its 91.6%-owned Joyce Direct Iron Inc (JDI) subsidiary, have announced feasibility study (FS) results for the Joyce Lake Direct Shipping Iron Ore (DSO) project at the Attikamagen property in Labrador.
“I am pleased with the feasibility study results at an initial capital cost of C$270.4 million, generating after-tax NPV (net present value) of C$184.6 million and after-tax IRR (internal rate of return) of 20.01%, which provide the foundation for our further advancement of the development of the project,” Century Global Commodities CEO Sandy Chim said in a statement.
“The transportation innovation, together with discrete equipment leasing and a reduction in transportation equipment, has greatly enhanced the project’s financial performance,” Chim added.
READ: Century Global Commodities reports fiscal 1Q working capital of $10.2M
Century Global noted the feasibility study adopted the innovation of transporting DSO fines in summer while also drying and stockpiling DSO lump.
It added that the dried lump will be transported in winter, avoiding the customary take-or-pay penalties of a winter transportation shut-down.
Lump iron ore can be loaded directly into blast furnaces and is also easier to handle during transportation and can continue to be shipped during wet seasons (liquefaction can be an issue with the shipment of fines iron ore during wet weather), according to Mining.com.
The Joyce Lake DSO project comprises an open-pit mine with dry crushing and screening of ore generating a split of 65% sinter fines and 35% lump products with an average annual production of 2.5 million dry metric tonnes (dmt) of DSO products at an average grade of 59.9% iron, Century Global said.
As well, the company noted that the feasibility study estimates ore production of approximately seven years.
Century Global is primarily a resource exploration and development company with a large portfolio of multi-billion tonne iron ore projects in Canada, mostly discovered by its own exploration team. It has other non-ferrous metals properties under exploration as well as a well-established food distribution business in Hong Kong.
Contact Sean at sean@proactiveinvestors.com