Champion Iron shares rise after update boosts Bloom Lake resources by 40%

An update for Champion Iron‘s (TSX: CIA; ASX: CIA; US-OTC: CIAFF) Bloom Lake mine in northeast Quebec has increased measured and indicated resources by 40% and inferred resources by 360%, boosting company shares by more than 6% on Wednesday. 

The update to the 2019 feasibility study includes an optimized mine plan with an 18-year life based on the mineral reserves for the project just north of Fermont, according to a news release on Tuesday. 

At a cut-off grade of 15% iron, the 2023 resource and reserve estimate for Bloom Lake totals 1.25 billion tonnes with an average iron content of 28.7% in the measured and indicated categories, and inferred resources of 246.3 million tonnes with an average iron content of 26.6%.

The reserves for Bloom Lake are estimated at 716 million proven and probable tonnes at an average grade of 28.6% iron.

The life-of-mine average iron metallurgical recovery is 82%, with a plant feed grade of 28.6% iron and an average yearly production of 15.2 million wet metric tonnes of high purity iron ore concentrate at 66.2% iron.

Champion CEO David Cataford said the extended life of mine fits into global carbon reduction goals.

“The Labrador trough, including Bloom Lake, contains one of the largest and purest iron ore resources globally and offers a unique opportunity for local stakeholders to participate in reducing steel industry emissions, which represents nearly 10% of global emissions,” Cataford said.

The open-pit operation has two concentrators with a combined nameplate capacity of 15 million tonnes-per-year that produces a low contaminant, high-grade 66.2% iron ore concentrate, and can also produce a 67.5% iron direct reduction quality ore concentrate. 

Champion shares were up 6.2% to $5.17 apiece at mid-day in Toronto on Wednesday, valuing the company at $2.6 billion. Its shares traded in a 52-week window of $3.99 and $7.60.