Alderon Iron Ore Corp. (TSX:IRON)
("Alderon" or the “Company”) is pleased to
announce that it has engaged BBA, Inc. (“BBA”) to update the
Feasibility Study (“FS”) on the Rose Deposit of the Kamistiatusset
(“Kami”) Iron Ore Property in Western Labrador. This FS will
underpin Alderon’s renewed focus on project financing.
Alderon has retained BBA, headquartered in
Montreal, Quebec, to lead the study with input from other
engineering and consulting firms including Golder Associates, Duro
Felguera Mining and Handling, and GEMTEC Consulting Engineers and
Scientists (“GEMTEC”). The updated study will build on the previous
FS dated December 17, 2012, the most recent Preliminary Economic
Assessment (“PEA”) dated November 7, 2017, as well as the detailed
engineering carried out between 2013 and 2015. The flowsheet and
product characteristics will remain unchanged and focus will be on
tailings management facility, market analysis, capital and
operating expenditures and updated reserve estimates.
“This marks the beginning of another significant
milestone for Alderon as we prepare to update our bankable
feasibility study,” stated Tayfun Eldem, President and CEO of
Alderon, “this study will further demonstrate the robust economics
and strong fundamentals that the Kami Project possesses and will
bring us closer to advancing the project into production.”
Given the advanced state of the detailed
engineering and recent studies, the Company expects to release the
results of the FS and file a technical report prepared in
accordance with National Instrument (NI) 43-101 in Q4 2018.
Kami Project Updated Preliminary Economic
Assessment Highlights
- US$1,781 million Net Present Value (“NPV”) at 8% discount
rate
- 25.7% Internal Rate of Return (“IRR”) and 3.7 projected years
to payback
- US$999.4 million total estimated capital cost
- US$29.94/dmt average estimated operating costs (loaded in ship
Port of Sept-Îles)
The PEA Highlights are taken from the technical
report entitled “Update to the Re-Scoped Preliminary Economic
Assessment of the Kamistiatusset (Kami) Iron Ore Property,
Labrador”, dated effective November 7, 2017 (the “Updated PEA”).
The Updated PEA was prepared under the supervision of Mr. Angelo
Grandillo, P.Eng, of BBA, a Qualified Person as defined by NI
43-101, with contributions from GEMTEC and Watts, Griffis and
McOuat Limited (“WGM”). Mr. Grandillo is a Qualified Person as
defined by NI 43-101 and Mr. Grandillo is independent of Alderon.
Mr. Grandillo has reviewed and approved the technical information
contained in the PEA Highlights. For further information please
refer to the Updated PEA that is available on SEDAR at
www.sedar.com.
About Alderon Iron Ore
Corp.
Alderon is a leading iron ore development
company in Canada. The Kami Project, owned 75% by Alderon and 25%
by HBIS Group Co. Ltd. (formerly Hebei Iron & Steel Group Co.
Ltd.) (“HBIS”) through The Kami Mine Limited Partnership, is
located within Canada’s premier iron ore district, the Labrador
Trough, and is surrounded by two producing iron ore mines. Its port
handling facilities are located in Sept-Îles, the leading iron ore
port in North America. HBIS is Alderon’s strategic partner in the
development of the Kami Project and China’s second largest steel
producer.
The Kami Project will produce a superior,
premium iron ore product with very low levels of impurities and
high Fe content (65.2% Fe). The Platts Index assesses the price and
premiums for different iron ore products and now includes a 65%
premium product assessment with a significant price spread above
the base quality iron ore (62% Fe). The market demand for premium
iron ore product is higher than for base quality iron ore product
due to the advantages it offers to the steelmakers in meeting more
stringent emissions requirements. Premium product allows end users
to improve productivity, reduce costs and meet stringent
environmental standards.
For more information on Alderon, please visit our website at
www.alderonironore.com.
ALDERON IRON ORE CORP.On behalf
of the Board"Tayfun Eldem"Director &
CEO
Alderon is part of the King & Bay group of
companies. King & Bay is a merchant bank that specializes in
identifying, funding, developing and supporting growth
opportunities in the resource, aviation, and technology
sectors.
Cautionary Note Regarding
Forward-Looking Information
This press release contains "forward-looking
information" within the meaning of the U.S. Private Securities
Litigation Reform Act and Canadian securities laws concerning
anticipated developments and events that may occur in the future.
Forward-looking information contained in this press release
include, but are not limited to, statements with respect to (i) the
financing plan for the Kami Project; (ii) future demand for
production from the Kami Project; (iii) the next steps in the
development of the Kami Project; (iv) the market and future price
of iron ore and related products; and (v) the results of the
Updated PEA including statements about future production, future
operating and capital costs, the projected IRR, NPV, payback
period, construction timelines and production timelines for the
Kami Project.
In certain cases, forward-looking information
can be identified by the use of words such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved"
suggesting future outcomes, or other expectations, beliefs, plans,
objectives, assumptions, intentions or statements about future
events or performance. Forward-looking information contained in
this press release is based on certain factors and assumptions
regarding, among other things, receipt of governmental and other
approvals, the estimation of mineral resources, the realization of
resource estimates, iron ore and other metal prices, the timing and
amount of future development expenditures, the estimation of
initial and sustaining capital requirements, the estimation of
labour and operating costs, the availability of necessary financing
and materials to continue to explore and develop the Kami Project
in the short and long-term, the repayment of the secured note held
by Liberty Metals & Mining Holdings LLC that is due December
31, 2018 (the “Liberty Note”), the progress of exploration and
development activities, the ability of the Company to use the
multi-user terminal facility at the Port of Sept-Îles, the receipt
of necessary regulatory approvals, the estimation of insurance
coverage, assumptions with respect to currency fluctuations and
exchange rates, environmental risks, title disputes or claims, and
other similar matters. While the Company considers these
assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect.
Forward-looking information involves known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information. Such factors include risks inherent in the exploration
and development of mineral deposits, including risks relating to
changes in project parameters as plans continue to be redefined
including the possibility that mining operations may not commence
at the Kami Project, risks relating to variations in mineral
resources, grade or recovery rates resulting from current
exploration and development activities, risks relating to the
ability to access rail transportation, sources of power and port
facilities, risks relating to changes in iron ore prices and the
worldwide demand for and supply of iron ore and related products,
risks related to increased competition in the market for iron ore
and related products and in the mining industry generally, risks
related to current global financial conditions, uncertainties
inherent in the estimation of mineral resources, access and supply
risks, reliance on key personnel, operational risks inherent in the
conduct of mining activities, including the risk of accidents,
labour disputes, increases in capital and operating costs and the
risk of delays or increased costs that might be encountered during
the development process, regulatory risks, including risks relating
to the acquisition of the necessary licences and permits,
financing, capitalization and liquidity risks, including the risk
that the financing necessary to fund the exploration and
development activities at the Kami Project may not be available on
satisfactory terms, or at all, the risk that funds are not
available to repay the Liberty Note; risks related to disputes
concerning property titles and interest, risks related to disputes
with Aboriginal groups, risks related to insufficient capacity
being available for the Company to access the multi-user terminal
facility at the Port of Sept-Îles, environmental risks and the
additional risks identified in the “Risk Factors” section of the
Company’s Annual Information Form for the most recently completed
financial year, or other reports and filings with applicable
Canadian securities regulators. Accordingly, readers should not
place undue reliance on forward-looking information. The
forward-looking information is made as of the date of this press
release. Except as required by applicable securities laws, the
Company does not undertake any obligation to publicly update or
revise any forward-looking information.
For further information please call:
Mishka Gounden
1-604-681-8030 ext 289
info@alderonironore.com