Barlow Metal released the preliminary economic assessment (PEA) for its wholly owned Iron Hills project about 130 km northwest of Amos in Quebec’s Abitibi region. The company has identified that the project sits on Abitibiwinni First Nation ancestral land, The company prepared the PEA to NI 43-101 mineral disclosure standards and CIM Best Practice Guidelines, working with independent engineering and geological firms DRA Americas Inc., Evomine Consulting Inc., SGS Canada Inc. Geological Services, GS2 Consultants Inc. and Geodoz conseil Inc.
Iron Hills sits at the centre of a three‑property iron ore package that covers more than 130 sq. km (13,000 hectares) and extends roughly 34 km along strike. Laboratory test work produced a 68.2% Fe concentrate with low levels of impurities. The Iron Hills project is planned as a conventional open-pit mine developed in a phased production accelerating time to revenue with the expansion in years 10-11 financed from free cash flow.
The company’s PEA revealed that the project yields an after-tax IRR of 17.3%. It delivers an after-tax NPV of C$1.0B at an 8% discount rate. The initial capital expenditure (CAPEX) totals C$771.7M. The after-tax payback period is 5.3 years. After-tax cumulative undiscounted cash flow amounts to C$6.0B. The operation has a 31-year life of mine (LOM) via open-pit mining. The project’s strip ratio is 0.14 tonne of waste per tonne of mineralization (Iron Ore) mined. The operation will produce Direct Reduction grade Pellet Feed (DRPF) iron ore concentrate.
Barlow Metals anticipates the proposed Pit d’Aragon will yield roughly 2.2 million dmt of DRPF concentrate per year during years 1–11, rising to about 4.3 million dmt per year from years 12–31, with grades above 67% Fe. With direct rail links, the company can ship production to the Great Lakes steelmaking region in Canada and the U.S., or export via ports in Saguenay, Montreal and Quebec City.
The company said it will continue to optimize the Iron Hills project, engage with the Abitibiwinni First Nation and other stakeholders, evaluate opportunities to upgrade its economics, advance permitting and consider strategic partnerships prior to considering a final investment decision.
More information is posted on www.BarlowMetal.ca.
