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Canada

Hopes Advance Project

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Overview

Mine TypeOpen Pit
StagePreliminary Economic Assessment
Commodities
  • Iron Ore
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock

Owners

SourceSource
CompanyInterestOwnership
Oceanic Iron Ore Corp. 100 % Direct
The Company has a 100% interest, subject to a 2% net smelter returns royalty (“NSR”) in the Property.

Contractors

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Deposit type

  • Iron formation hosted

Summary:

The Hopes Advance area is unusual in that it is the only portion of the iron formation which strikes generally east-west. All other areas are dominated by strikes that range from north-northwest to north-south.

The bedding at Castle Mountain appears to form an open, upright anticline plunging shallowly to the southeast. However, fold closures in the otherwise relatively flat-lying rocks suggest complex folding and thrusting of the beds. Lean chert-magnetite iron formation is locally overlain by highergrade chert-magnetite-hematite iron formation. Historic bulk sample trenches apparently targeted this horizon. Beds in the chert-magnetite-hematite iron formation are up to several feet thick. The chert-magnetite-hematite iron formation is overlain by spotted chert-magnetite-silicate iron formation, which in turn is overlain by spotted chert-carbonate rock. Fibrous amphiboles were noted in the transition between the chert-magnetite-hematite-silicate iron formation and the overlying chert-carbonate rock.

At the Hopes Advance Castle Mountain iron formation is composed of a mixture of magnetite and hematite. Magnetite grains range in size from 60 µ to 125 µ in diameter. Locally, the iron formation appears to be higher grade and relatively coarser-grained than at the occurrences visited to the north.

At the Hopes Advance West Zone 4 iron deposit, the relative proportion of magnetite to hematite varies across and along strike in the chert-magnetite-hematite-silicate iron formation. Magnetite grains are approximately 50 µ to 75 µ in diameter and hematite grains are approximately 100 µ in length.

At the Hopes Advance West Zone 2 iron deposit, the grain size and grade of the chert magnetitesilicate iron formation appears to be similar to other deposits at Hopes Advance.

The iron mineralization in the Hopes Advance project area is of the Lake Superior Type (United States Geological Survey, 1995) and contains deposits that have characteristics of iron ores that require concentration to produce saleable products.

Hard ores are high grade, massive and composed of magnetite and hematite. Residual ores are typically composed of hematite and martite and may contain goethite and limonite. Residual ores have been upgraded by weathering processes that have concentrated iron by the removal of gangue minerals, principally quartz. Concentrating ores are typically composed of magnetite and or hematite and silicate minerals at relatively low grades (20-30% Fe) that require grinding to liberate magnetite and/or hematite from the silicate minerals. Magnetite is concentrated by magnetic methods and hematite is concentrated by gravity or flotation methods.

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

CommodityUnitsAvg. AnnualLOM
Iron Ore kt 10,000262,400
All production numbers are expressed as concentrate.

Operational metrics

Metrics
Annual mining rate 50 Mt *
Annual production capacity 10.1 Mt of iron ore concentrate *
Annual processing capacity 26.5 Mt *
Stripping / waste ratio 0.8 *
Waste tonnes, LOM 556.8 Mt *
Ore tonnes mined, LOM 684 Mt *
Total tonnes mined, LOM 1,241 Mt *
Tonnes milled, LOM 652.1 Mt *
* According to 2019 study.

Production Costs

CommodityUnitsAverage
Cash costs Iron Ore USD 29.8 / t *  
Assumed price Iron Ore USD 82.1 / t *  
* According to 2019 study / presentation.

Operating Costs

Currency2019
OP mining costs ($/t mined) USD 2.22 *  
OP mining costs ($/t milled) USD  ....  Subscribe
* According to 2019 study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Expansion CapEx $M USD  ......  Subscribe
Equipment leasing costs $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Closure costs $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
Total OpEx $M USD  ......  Subscribe
Total Taxes $M USD  ......  Subscribe
Royalty payments $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 @ 5% $M USD  ......  Subscribe
Pre-tax NPV @ 10% $M USD  ......  Subscribe
Pre-tax NPV @ 8% $M USD  ......  Subscribe
After-tax NPV @ 5% $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 Dec 19, 2019
....................... Subscription required ....................... Subscription required Subscription required Dec 19, 2019
....................... Subscription required ....................... Subscription required Subscription required Dec 30, 2023

Total WorkforceYear
...... Subscription required 2019

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