BKI Black Iron Inc

Black Iron Inc. ("Black Iron" or the "Company") (TSX:BKI) (FRANKFURT:BIN)
announces that it has filed a National Instrument 43-101 compliant technical
report dated January 24, 2014 titled "Feasibility Study of the Shymanivske Iron
Ore Deposit for Black Iron Inc." (the "Report") under the Company's profile on
SEDAR at www.sedar.com. The Report contains an updated comprehensive mine to
port breakdown of Black Iron's current Feasibility Study (the "Feasibility
Study") on the Shymanivske Iron Ore Property located in the Dnepropetrovsk
region of Kryviy Rih, Ukraine, the results of which were announced in a press
release dated January 23, 2014.


The Report Includes:



--  Detailed geological overview and mine plan 
--  Detailed processing flow description and overall site plan 
--  Results and Improvements from Pilot Plant test work 
--  Overview of connections to key infrastructure including rail, port and
    power 
--  Sensitivities of the project to changes in iron price, operating and
    capital cost in addition to financial metrics on a pre and after-tax
    basis 
--  Level two project development schedule 



There are no material differences between the results announced in the press
release dated January 23, 2014 and the final Feasibility Study.


The Table below summarizes the key elements of the Feasibility Study:



High-Grade 68% Concentrate (all currency is US$)                            
----------------------------------------------------------------------------
Measured and Indicated Resources (at 31.6% Total Fe)(i)               646 Mt
----------------------------------------------------------------------------
Proven and Probable Reserves (at 31.1% Total Fe)(i)                   449 Mt
----------------------------------------------------------------------------
Annual Production Rate (average life of mine, post ramp-up                  
 year)                                                                9.9 Mt
----------------------------------------------------------------------------
Estimated Mine Life (based on Proven and Probable Reserves                  
 only)                                                              14 years
----------------------------------------------------------------------------
Final Product Iron Grade (Fine Iron Ore Concentrate)                  68% Fe
----------------------------------------------------------------------------
Projected Plant Start-up and Commissioning                           Q4 2016
----------------------------------------------------------------------------
Projected Commencement of Revenue Generation                         Q1 2017
----------------------------------------------------------------------------
Long Term CFR Benchmark Iron Ore Concentrate Price Estimate                 
 (62% Fe)                                                             $95 /t
----------------------------------------------------------------------------
Total Estimated Capital Costs (excluding sustaining capital)  $1,097 million
----------------------------------------------------------------------------
Life of Mine FOB OPEX (Beneficiation, Mine, Transportation &                
 Loading)                                                          $44.54 /t
Mine Gate OPEX (Beneficiation & Mine)                              $29.64 /t
----------------------------------------------------------------------------
Average Annual Cash Flow (pre-tax)                              $630 million
Average Annual Cash Flow (after-tax)                            $536 million
----------------------------------------------------------------------------
NPV at 8% discount (pre-tax)                                    $3.3 billion
NPV at 8% discount (after-tax)                                  $2.6 billion
----------------------------------------------------------------------------
IRR (pre-tax)                                                          48.0%
IRR (after-tax)                                                        39.1%
----------------------------------------------------------------------------
Projected Years to Payback (at 8% Discount Rate, pre-tax)          2.0 years
Projected Years to Payback (at 8% Discount Rate, after-tax)        2.5 years
----------------------------------------------------------------------------
(i) See "About Black Iron" section at end of this press release             



The Feasibility Study outlines an operation producing 9.9 million tonnes per
year of high-grade 68% iron ore concentrate, projecting a 48% internal rate of
return ("IRR") and a U.S. $3.3 billion net present value ("NPV") at an 8%
discount rate. The Project continues to have favourable economic potential
across a range of discount rates. The operations outlined in this Feasibility
Study are projected to generate over U.S. $1,216 million in average annual
revenue over the life of mine. The total average operating costs over 14 years
are estimated at U.S. $44.54 per tonne of high grade 68% iron ore concentrate.


The Feasibility Study has been prepared in accordance with the guidelines of
National Instrument 43-101 by the independent firms of Lycopodium Minerals
Canada Ltd.; Soutex Mineral & Metallurgical Consultants; Watts, Griffis and
McOuat Limited; and P&E Mining Consultants Inc. The Feasibility Study has been
filed on SEDAR and is available on the Projects page of Black Iron's website at
www.blackiron.com.


About Black Iron 

Black Iron is an iron ore exploration and development company, advancing its 100
percent-owned Shymanivske project located in Kryviy Rih, Ukraine. This project
contains an NI 43-101 compliant resource, with 645.8 Mt Measured and Indicated
mineral resources, consisting of 355.1 Mt Measured mineral resources grading
32.0% Total iron and 19.5% Magnetic iron, and Indicated mineral resources of
290.7 Mt grading 31.1% Total iron and 17.9% Magnetic iron, using a cut-off grade
of 10% Magnetic iron. Additionally, the project contains 188.3 Mt of Inferred
mineral resources grading 30.1% Total iron and 18.4% Magnetic iron. The project
is surrounded by five other operating mines, including ArcelorMittal's iron ore
complex. The Company believes that existing infrastructure, including access to
power, rail and port facilities, will allow for a quick development timeline to
production. Further, the Company holds an exploration permit for the adjacent
Zelenivske project, which it intends to further explore to determine its
potential. Please visit the Company's website at www.blackiron.com or write us
at info@blackiron.com for more information.


The technical and scientific contents of this press release have been prepared
under the supervision of and have been reviewed and approved by Matt Simpson,
P.Eng, President and CEO of Black Iron Inc., who is a Qualified Person as
defined by NI 43-101. For further information, please see the technical report
of the Company, which is available on SEDAR at www.sedar.com.


Forward-Looking Information

This press release contains forward-looking information which may include, but
is not limited to, statements about the results of the Feasibility Study and the
development potential of the Company and its project; the timing and amount of
future exploration and development of the project; and the future financial or
operating performance of the Company and its projects. Often, but not always,
forward-looking information can be identified by the use of words such as
"plans", "expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "believes" or variations (including
negative variations) of such words and phrases, or by the use of words or
phrases that state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved. 


Forward-looking information is based on certain assumptions and analyses made by
the Company and based on known facts at the time. Forward-looking information
involves known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company and/or its
subsidiaries to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking information contained
in this press release, including, without limitation, those described in the
Company's public disclosure documents which may be found under the Company's
profile on SEDAR. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to differ materially
from those described in such forward-looking information, there may be other
factors that may cause actions, events or results to differ from those
anticipated, estimated or intended. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying such forward-looking
information prove incorrect, actual results, performance or achievements may
vary materially from those expressed or implied by the forward-looking
information contained in this press release. The forward-looking information
contained herein is made as of the date of this press release and the Company
disclaims any obligation to update or review such information or statements,
whether as a result of new information, future events or results or otherwise,
except as required by law.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Black Iron Inc.
Michael McAllister
Manager, Investor Relations
+1 (416) 309-2950
info@blackiron.com


Black Iron Inc.
Matt Simpson
President & Chief Executive Officer
+1 (416) 309-2138
info@blackiron.com
www.blackiron.com

Black Iron (TSX:BKI)
Historical Stock Chart
From Nov 2024 to Dec 2024

Black Iron (TSX:BKI)
Historical Stock Chart
From Dec 2023 to Dec 2024