The Full Moon Project, part of the Sunny Lake Joint Venture Property, hosts a Taconite iron deposit of approximately 7.3 billion tonnes of indicated resources and 8.7 billion tonnes of inferred resources. In April 2015, Century, through the WISCO Century Sunny Lake Iron Mines Limited joint venture, published the Full Moon Preliminary Economic Assessment on SEDAR.
Mineral Resource Statement
|Mineral Resource Statement (Dec 6, 2012)1|
|Domain||Volume (Mm3)||Mass (Mt)||SG||Fe||Al2O3||SiO2||P2O5||P²||MnO||Mn²||LOI|
April 14, 2015
Property Description and Ownership
Full Moon is one of two separate groups of claims that form the Sunny Lake Joint Venture Properties; the other group being Black Bird DSO Deposit. Full Moon is located 80 kilometres northwest of Schefferville, Québec. The property is underlain by Proterozoic sedimentary rocks of the Labrador Trough known to host world-class iron deposits of sedimentary origin.
The Full Moon property consists of 187 contiguous map-designated claims (9,153 hectares). The Lac Le Fer property consists of 208 contiguous map-designated claims (10,126 hectares). In total, the Sunny Lake property comprises approximately 395 mining claims covering approximately 19,279 hectares (as of October 2015).
The Sunny Lake Joint Venture Properties were previously 100% owned by Century. In November 2012, Century formed a joint venture with WISCO International for the Sunny Lake Joint Venture Properties under which, WISCO Canada Sunny Lake Resources Development & Investment Limited will make an aggregate investment valued at C$40 million into the Sunny Lake Joint Venture Properties, and will own 40% of the Sunny Lake Joint Venture Properties after completing the investment. At that point, Century will own a 60% interest.
Location, Access and Infrastructure
The Full Moon Project is only accessible by helicopter and/or float plane from Schefferville. A seasonally maintained gravel road ends at Lac du Drum about 40 kilometres from the project. Century maintains a temporary exploration camp in the area of the project.
The town of Schefferville is the nearest town to the project with established infrastructure. It is served by commercial flights from several cities and rail links connecting to the Port of Sept-Îles. Air Inuit offers daily flights to Sept-Îles and three flights per week to Montréal via Québec City. In the last decade, a number of new buildings, including medical clinics, a recreation centre, churches, and houses, have been built, both in the town and on the contiguous Matimekosh Reserve, largely to serve an expanding First Nations population.
The iron deposit is a relatively large iron deposit hosted in banded iron formations of the Proterozoic Sokoman Formation. The deposit is relatively flat, with sedimentary units dipping gently to the east at around 12 degrees. The iron mineralization is stratabound and sedimentary in origin. The Sokoman Formation was modelled based on geological information extracted from core drilling data. The area investigated by drilling covers an area measuring approximately 11 kilometres along strike, 4 kilometres across strike and from the surface to a depth of approximately 200-500 metres. The combined true thickness of the iron-bearing units often exceeds 200 metres. The sedimentary units are deformed, locally folded and the iron formations have been displaced and thickened by thrust faults that are sub-parallel to sedimentary strata and are difficult to recognize in core. The deposit is also segmented by a steeply dipping east-west trending cross fault.
Mineral Resource Estimate
The resource database available for geology and mineral resource modeling comprises core borehole information acquired by Century in 2011 and 2012. Surface geological mapping supplements the exploration database. The borehole database comprises 147 core boreholes (30,932 metres) distributed on section lines spaced at 500 metres and borehole spacing on each section line of 400 metres. The assay database comprises 5,580 sample intervals from 147 boreholes and assayed for the common major elements. Assay results for some boreholes are incomplete and affect the grade estimates. Specific gravity was measured by Century using a standard weight in water/weight in air methodology on core samples from complete sample intervals.
SRK is satisfied that the exploration work carried out by Century was conducted in a manner consistent with industry best practices and that the exploration data and the drilling database are sufficiently reliable for the purpose of supporting Mineral Resource evaluation and disclosure pursuant to National Instrument 43-101.
The preliminary assessment includes inferred mineral resources that are considered too speculative geologically to apply the economic considerations that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. The mineral resource estimates discussed may be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio-economic, legal, political and other factors. There is insufficient information available to assess the extent to which the potential development of the mineral resources described may be affected by these risk factors.
Preliminary Economic Assessment
Cima+ completed a Preliminary Economic Assessment (“PEA”) for the Full Moon Project in early 2015. The PEA is based on production of 20 Mtpy of concentrate. The mining activities will be year-round, and the product will be transported by rail via a newly constructed railway extension from the Schefferville area to the mine site, which will tie-in with the existing railway system for further transport to Sept-Iles. The preferred option uses a process plant that recovers both magnetite and hematite, using a process that produces high silica content concentrate (approximately 66% Fe with 4.5% SiO2). The project plans a mix of local and fly-in/out employees, with a camp installed near the concentrator.
In-pit resources were estimated from the optimal economic pit that was defined using the operating cost and sales prices (defined below) and based on the October 2012 SRK resource model. The in-pit resources include indicated and inferred resource categories from the block model. Potentially at a planned production rate of 20 Mtpy of concentrate would result in a 290 year mine life. However, to conduct a reliable market study a nominal 30 year period was chosen. Other mining highlights include:
- Average annual production of 20 million tonnes of concentrate grading approximately 66% Fe, 4.5% SiO2
- Average life of mine stripping ratio of 0.1:1, mining for a nominal 30 years of operation
Two stages of crushing followed by a grinding stage is required to processes the ore to the optimal grain size. This is followed by a magnetite beneficiation process, which consists of a magnetic separation circuit and a flotation circuit. The final product is a high silica content concentrate.
Port Facilities and Concentrate Railing
Century plans to use the services of a common carrier to rail concentrate from the mine to the Port of Sept-Îles.
Initial Capital Cost Summary
Cima+ estimated the initial capital cost of the project:
|Indirects and Contingencies||2,651.8|
Estimated Operating Cost Summary
Cima+ estimated the following operating cost, with input from other parties. Total operating cost over the average life of the mine is estimated at C$49.85/tonne of concentrate loaded on board a ship in Sept-Îles:
|Operating Cost||C$/tonne concentrate|
|Rail and Port||27.88|
|General and Administration||2.66|