Strategically Located Within Canada's Premier Iron Ore District
Alderon is a development company with an iron ore project located next to mining towns of Wabush and Labrador City in Western Labrador, Canada. The property is also surrounded by four producing mines and is within close proximity to a common carrier railway as well as a deep sea port which will provide year round access to the global market. The Kami Project was released from Provincial Environmental Assessment in January 2014 and Alderon plans on commencing construction later this year.
Alderon has a strategic partnership with Hebei Iron & Steel Group, China’s largest steel producer. Hebei holds a 25% interest in the Kami Project and for the purposes of developing it into an operating mine, a limited partnership was formed: The Kami Mine Limited Partnership.
The Kami Project currently contains an NI 43-101 Mineral Resource estimate of 1.1 billion tonnes Measured and Indicated at 29.6% iron and an additional 447.8 million tonnes Inferred at 29.5% iron. The mineral reserves for the Rose Deposit are 668.5 million tonnes Proven and Probable at 29.5% iron.
Based on the Feasibility Study, Alderon plans to commence commercial production at a rate of 8 million tonnes per year at a grade of 65.2% iron with a mine life of 30 years. The Feasibility Study also illustrated robust project economics including a pre-tax NPV8 of US$3.24 billion, a pre-tax IRR of 29.3%, a payback period of 3.8 years, capital costs of US$1.27 billion, and operating costs of US$42.17/tonne concentrate. For more information, please refer to the News Release dated January 9, 2013.
Worldwide demand for steel will keep iron ore prices high and Alderon is well positioned to benefit from the continued demand. The Alderon team is comprised of skilled professionals with significant iron ore expertise to advance Kami towards production.
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