Mining Intelligence and News
Canada

Lac Otelnuk Project

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Overview

Mine TypeOpen Pit
StatusCare and Maintenance
Commodities
  • Iron Ore
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock
SnapshotIn 2016 Lac Otelnuk Mining Ltd placed the project under care and maintenance

Owners

SourceSource
CompanyInterestOwnership
MetalQuest Mining Inc. 100 % Indirect
In late November 2022, MetalQuest Mining Inc. (formerly El Nino Ventures Inc.) acquired 100% of the Lac Otelnuk Iron Ore Project.

Contractors

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Deposit type

  • Banded iron formation

Summary:

The Trough, otherwise known as the Labrador Quebec Fold Belt, extends for more than 1,100 km along the eastern margin of the Superior Craton from Ungava Bay to Lake Pletipi, Quebec. The belt is about 100 km wide in its central part and narrows considerably to the north and south. Adriana’s Property is located north of the Grenville Front in the Churchill Province where the Trough rocks have been subject to greenschist or subgreenschist grade metamorphism and the principal iron formation unit is known as the Sokoman Formation. The lithological units of interest on the Property due to their iron content are members of the Sokoman.

The Lac Otelnuk deposits are composed of iron formations of the Lake Superior-type. This type of iron formation consists of banded sedimentary rocks composed principally of bands of magnetite and hematite within quartz (chert)-rich rock, with variable amounts of silicate, carbonate and sulphide lithofacies. Such iron formations have been the principal sources of iron throughout the world. Lithofacies that are not highly metamorphosed or altered by weathering are referred to as taconite and the Lac Otelnuk deposits are examples of this type.

Mineralization in the iron formation consists mainly of magnetite (Fe3O4) and hematite (Fe2O3), however, some iron also occurs in siderite and ferro-ankerite. Iron oxide bands containing concentrations of magnetite and/or hematite alternate with grey chert of jasper.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityUnitsLOM
Iron Ore kt 1,325,000
All production numbers are expressed as concentrate.

Operational metrics

Metrics
Annual production capacity 50 Mt of iron ore concentrate *
Annual milling rate 188.7 Mt of iron ore *
Stripping / waste ratio 0.28 *
Waste tonnes, LOM 1,374 Mt *
Ore tonnes mined, LOM 4,993 Mt *
Total tonnes mined, LOM 6,371 Mt *
* According to 2015 study.

Production Costs

CommodityUnitsEstimated
Total cash costs Iron Ore USD 31.1 / t *  USD
* According to 2015 study / presentation. Phase 2.

Project Costs

MetricsUnitsLOM Total
Total CapEx $M USD  ......  Subscribe
Total OpEx $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 10% $M USD  ......  Subscribe
Pre-tax NPV @ 8% $M USD  ......  Subscribe
After-tax NPV @ 10% $M USD  ......  Subscribe
After-tax NPV @ 8% $M USD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
Pre-tax payback period, years  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Required Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Feb 19, 2024

Total WorkforceYear
...... Subscription required 2015

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