643M tonnes 33%-Fe and 2.5B lbs V2O5 (Vanadium pentaoxide, 0.20% in-situ) Resource
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556 Mt indicated
87 Mt inferred per
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43-101 #1 October 2010 & 43-101 #2 November 2011, both by SRK Consulting.
1.1B tonne 33%-Fe historic resource seems to be accurate when correlated with the two 43-101 resource reports. Ironstone intends to increase their 43-101 compliant resource to 1.1Bt 33% Fe with a drill program in Winter 2012.
$440 - $640M Annual EBITDA for iron.
The Deposit is one of the largest compliant vanadium resources in the world. Majority of other vanadium resources are controlled by Chinese (36%), Russians (25%) and South Afrikaners (35%). Russians have major holdings of Vanadium in South America. The stragetic metal strengthens steel alloys for military applications and common rebar used in concrete construction. The large location would be a benefit to the steel makers of the Western Hemisphere. USA imports almost 100% of its annual demand.
Lithium-Vanadium-Phosphate Batteries are being developed as a replacement for conventional lithium-cobalt-oxide batteries in electric cars as they are safer, are more efficient at producing power (up to 6x) and cheaper.
Vanadium Redox Batteries are well suited for use in large power storage applications have many advantages over typical lithium batteries. See company presentation. Projected sale Vanadium price: $8 - $12 /lb x ~35M lb/yr = $210-$380M Annual EBITDA.
- Production Target -
2.5Mt/yr of Hot Briquetted metallic Iron (>93% metallization, Phosphorous-free) (HBI) and
35M lbs-Vanadium (V) per year from
8.5Mt per year of ore for 75 year Mine Life.
25% Fe Cut-Off Grade
82% Metallurgical Recovery
111,000 kg of HBI smelted by a USA research corporation from ore of the claim block.
HBI is steel’s most versatile metallic, with applications in both blast furnaces (“BF”) and electric arc furnaces (“EAF”). HBI is a premium-priced product that has traditionally enjoyed a slight price premium over premium scrap grades due to lower residual content.
Long Range Sale Price Forecast by International Iron Metallics Association
$360-$400/t HBI (91-94% iron briquettes having a coffee can form)
$360-$400/t high grade scrap iron (98% Fe shredded and bundled)
$ 80-$110/t high grade iron ore 62%-67% Fe natural iron ore
C$317.00 per dry metric tonne-Fe Sale Price (Whittle pit shell)
C$ 2.64 per tonne - Overall Mining Cost
C$ 51.00 per tonne - Processing Cost
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C$263.36 per tonne - Net ($175 - $255 /t - Gross Margin)
Benefits from HBI Use in Electric Arc Furnaces
- HBI can be used as direct feed product for the EAF in either AC or DC furnaces (either long or short arc)
- Lower residual content than scrap
- Chemical composition is well defined and physical properties are known
- High apparent density and bulk density
- Higher bulk density than all scrap forms
- Rapidly penetrates the slag for rapid melting in the liquid steel
- Can be used in scrap preheating processes
- Can be stored outdoors in bulk, moved easily on conveyor belts, and is free-flowing from bins
- Can be charged in scrap buckets up to 40%
- Can be continuously charged up to 100%
- Increased Productivity
- Each 10% increase in burden metallization will increase iron production by ~8%
- Decreased coke rate
- Each 10% increase in burden metallization will decrease the coke rate by ~7% (100kg HBI/mTHM = -43kg coke/mTHM)
- Decreased CO2 Emissions
- 200kg HBI/mTHM = -14% CO2/mTHM
- HBI is easier to use than scrap in the materials handling system of the blast furnace due to consistent shape, structure
- Compatible with injected fuels and oxygen
- Consistent specifications
14,000m of cores from 200 drill holes in 2008 & 2011 assay programs
14,500m of cores from 350 drill holes in 1950 - 2000 historic records
43-101 Compliant Drill Programs
Claim Thickness of
Year Block Iron Bed Cost Success
2008 Creek 7.5 metres $1.5M 92%
2011 North 9.0 metres $5.1M 100%
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Next drill program to be 130 holes in 2012 in all 3 claim blocks est $4.8M cost to publish 43-101 #3 in Q3 2012.
Project still open for a stragetic investor - Est. Operational CapEx $1.1B -$1.4B.
$4.5m cash on hand as of October 31, 2011
3 Institutional resource investor partners have proceeded with private placements totalling $16.5M net December 2010 - January 2011
11,000 tonnes of iron ore was dug by hoe and ripper-tooth in first Quarter 2011 from a 9,000Ha pit excavated to 20m deep. On site pilot plant to produce briquettes that look like coffee cans of iron in 4th quarter of 2011. See photos in Nov 2011 company report.
Open Pit Mining with 3:1 Stripping ratio of easy glacial till at Creek claim block.
Schedule
Q2 2012: Vanadium recovery, completion of process development
Q3 2012: Preliminary Economic Assessment/Pre-Feasibility Report
Q3/Q4 2012: Initial Public Offering
Q3/Q4 2012: Scaled Demonstration Pilot Plant (engineering & development)
2013: Full Feasibility Report
2016: Permitting, Construction
2017-2018: Production target
1.1Bt 34%-Fe estimate by provincial Geological Survey and Steel Company in 1959 from the 3 Claim Blocks of Creek, North & South.
Iron Ore Project
145,364 Hectares with deposits of Iron, Vanadium & Gold
Exploration assay of mineralization still open to East, South and West.
480 air-kilometres northwest of regional city
Two connections to Heavy Rail 100km to the west, or 65km east National Railway. Approx 1,000km to all year port that accommodates the large ore ships with short distance from port to ocean and from western hemisphere to Asia.
Metallurgical Science
Ore is a sedimentary friable rock containing metallic grains.
Magnetic separation of iron grains from gangue.
Fe crystal growth around carbon particles in the presence of a catalyst (grain enrichment (GE)).
93% metallization by converting iron oxide to pure iron with a reductant.
Sodium leach vanadium pentoxide from gangue.
Recover gold by calcination.
Potential exists for a gold resource in excess of 5 million ounces. Further gold assay and analysis to continue during 2012. 2012 Q1 will test bulk leaching and gravity deportment.
Deleterious material (Analysis by SRK, see 43.101 #2)
24.37% SiO2 (Silica)
4.98% Al2O3 (Aluminum Tri-oxide)
1.37% P2O5 ((Phosporus Pentaoxide)
0.60% P (Phosporus, calc: P2O5 / 2.2914)
Please review November 2011 Resource Presentation by company
Company has a 100% Working Interest in the District.
Office location, website and contact information available after signing an agreement.
Mine friendly jurisdiction. (Get in now to create a life of mine agreement with government, before there is a tax increase?)
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