August 30, 2012 (Investorideas.com Mining stocks newswire) eResearch Corp Reports: Century Iron Mines Corporation (TSX: FER) has announced the completion of an updated NI 43-101 compliant resource estimate for its Duncan Lake iron project in Quebec (joint-venture partner Augyva Mining Resources Inc.).
The new estimate has defined 1.05 billion tonnes of Measured and Indicated resources at a grade of 24.4% Fe, compared with the 2010 estimate of 31.3 million tonnes at 23.7% Fe. Inferred resources are 563 million tonnes at 24.7% Fe compared with the earlier 821 million tonnes at 24.6% Fe. A preliminary economic assessment (PEA) for Duncan Lake is underway, with completion expected around year-end.
Century Iron has interests in four iron ore projects in Canada (see the table below). The Duncan Lake project (1,613 Mt in total NI 43-101 estimated resources, grading 24%-25% Fe) is located in western Quebec, while three others (with no resource estimates to date) are located in the Labrador Trough region of Quebec/Newfoundland and Labrador. The Company owns the biggest collection of iron ore claims in Canada by area.
The Company has two strategic Chinese shareholders: WISCO (25%) and Minmetals (5%), which have off-take agreements for 70% of future production. Century Iron has around $60 million in cash, earmarked for exploration and acquisitions.
Century Iron's current strategy is to develop the DSO (Direct Shipping Ore) projects first (Joyce Lake, Lac Le Fer and Schefferville West), bring them into production starting from 2015, and use the proceeds to develop lower grade and more capital-intensive BIF (Banded Iron Formation) projects.
According to management, DSO targets have up to 7Mt each @ 60%+ Fe and thus would be mined for 3-4 years. Lower-grade material would be stockpiled at first and processed afterwards. The Company estimates that DSO targets have up to 50Mt of lower-grade (around 50%) material each.
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