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  • info@blackiron.com
  • Phone

    +1.416.309.2138
  • Email

    info@blackiron.com
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The Shymanivske iron ore deposit is strategically well-positioned in Ukraine between markets in Europe, Russia, Asia and the Middle East. It is located 330 kms southeast from Kiev in central Ukraine, in the heart of the KrivBass iron ore mining district. The Shymanivske deposit is located in the Southern part of the Krivbass, less then 2km from two open pit iron ore mines owned by ArcelorMittal and Metinvest/Evraz Steel, which are also primarily magnetite quartzite deposits. There are currently seven operating open pit mines in the district.
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  • The resource is defined by approximately 37,000 meters of historical drilling.
  • Potential for resource expansion from further drilling at depth.
  • National Instrument 43-101 compliant resource report and engineering studies completed.

Bankable Feasibility Study

  • Production

    9.9 million tonnes per year

  • Quality

    68% iron ore concentrate

  • Projections

    48% internal rate of return and a $3.3 billion USD net present value at an 8% discount rate.

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Black Iron Inc. has released the results of a Bankable Feasibility Study (“BFS”) completed on its Shymanivske Iron Ore Project located in Kryviy Rih, Ukraine. The BFS 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.

This BFS was an update to the previous report filed in December 2012 and includes results from pilot plant test work conducted throughout 2013, which resulted in an optimized process design and layout, along with revised infrastructure usage rates confirmed through several recently signed protocols of intent. The most significant changes implemented are: changing from dry cobbing to more efficient wet cobbing at a finer particle size resulting in an increase from 10% to 40% rejection of waste rock prior to grinding; elimination of the second grinding stage resulting in a 14% reduction in total operational running active power; reducing the plant footprint through a more optimal layout; and an 8% increase in iron ore concentrate production from 9.2 to 9.9 million tonnes per year with essentially no change in capital cost.

Financial metrics contained in the BFS report are shown on a pre and after tax basis and in both cases are inclusive of royalties.

The Project has favourable economic potential across a range of discount rates. The operations outlined in this BFS are projected to generate over U.S. $1,216 million in average annual revenue over the life of mine.

The life of mine strip ratio is estimated at 1.64:1. On the basis of the metallurgical test and beneficiation plant design work completed for this BFS, it is estimated that the 449 million tonnes of reserves will result in a project life of 14 years based on the average 9.9 million tonnes per year iron ore concentrate production rate. The Company believes that additional exploration and definition drilling work have the potential to expand the existing resource and upgrade the 188 Mt of Inferred mineral resources to the Measured and Indicated classification, potentially adding up to five years to the Project life. With successful exploration in the North end of Shymanivske and the addition of resources from the nearly adjacent Zelenivske Project, Black Iron expects to be able to support an even higher annual production rate through a potential second phase expansion, which would be expected to further increase the Project NPV.

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