Black Iron Files Positive NI 43-101 Technical Report

Black Iron Files Positive NI 43-101 Technical Report Supporting Its
Bankable Feasibility Study for Its Shymanivske Project 
- Positive bankable feasibility study filed on SEDAR  
- No material differences between the results announced in press
release dated November 15, 2012 
- Bankable feasibility study outlines a plan to achieve 26% higher
annual production and 16% lower operating costs relative to the plan
presented in the preliminary economic assessment filed on December
17, 2011 
- Bankable feasibility contains a comprehensive mine to port
breakdown of the Shymanivske Iron Ore Project with 45.9% IRR, 2.2
year payback and US $3.5 billion NPV at 8% discount 
TORONTO, ONTARIO -- (Marketwire) -- 12/18/12 -- 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 December 17, 2012 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 a comprehensive mine to port breakdown of Black Iron's
Bankable Feasibility Study (the "Feasibility Study") on the
Shymanivske Iron Ore Property in the Dnepropetrovsk region of Kryvyi
Rih, Ukraine, the results of which were announced in a press release
dated November 15, 2012. 
The Report Includes: 


 
--  Detailed geological overview and mine plan 
--  Detailed processing flow description and overall site plan 
--  Overview of connections to key infrastructure including rail, port and
    power 
--  Sensitivities of the project to changes in iron price, operating and
    capital cost 
--  Level 2 project development schedule 

 
There are no material differences between the results announced in
the press release dated November 15, 2012 and the final Feasibility
Study. 
The Table below summarizes the key elements of the Feasibility Study: 


 
High-Grade 68% Concentrate (all currency is USD, pre-tax)                   
----------------------------------------------------------------------------
NPV at 8% discount rate                                     $   3.5 billion 
----------------------------------------------------------------------------
IRR                                          
                          45.9%
----------------------------------------------------------------------------
Total Estimated Capital Costs (excluding sustaining                         
 capital)                                                   $ 1,094 million 
----------------------------------------------------------------------------
Life of Mine FOB OPEX (Beneficiation, Mine &                                
 Transportation)                                            $      43.97 /t 
Mine Gate OPEX (Beneficiation & Mine)                       $      29.67 /t 
----------------------------------------------------------------------------
High-Grade 68% Concentrate Sales Price Forecast- based on                   
 long term CFR benchmark price of $95/T @ 62% iron                          
 adjusted for Black Iron's higher iron content and shorter                  
 shipping distance to end users                                             
  (Year 1, 2016)                                            $           125 
  (Year 2)                                                  $           117 
  (Year 3 onward; long-term)                                $           115 
----------------------------------------------------------------------------
Average Annual Cash Flow                                    $   593 million 
----------------------------------------------------------------------------
Estimated Mine Life                                                16 years 
----------------------------------------------------------------------------
Final Product Iron Grade (Fine Iron Ore Concentrate)                 68% Fe 
----------------------------------------------------------------------------
Measured and Indicated Resource (at 31.6% iron)                    645.8 Mt 
----------------------------------------------------------------------------
Proven and Probable Reserves (at 31.1% iron)                       448.2 Mt 
----------------------------------------------------------------------------
Annual Production Rate (average life of mine, post ramp-up                  
 year)                                                               9.2 Mt 
----------------------------------------------------------------------------
Projected Plant Start-up and Commissioning                         Q4, 2015 
----------------------------------------------------------------------------
Projected Commencement of Revenue Generation                        Q1,2016 
----------------------------------------------------------------------------
Projected Years to Payback (at 8% Discount Rate)                  2.2 years 
----------------------------------------------------------------------------

 
The Feasibility Study outlines an operation producing 9.2 million
tonnes per year of high-grade 68% iron ore concentrate, projecting a
45.9% internal rate of return ("IRR") and a U.S. $3.5 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. $1,136 million in average annual
revenue over the life of mine. The total average operating costs over
16 years are estimated at U.S. $43.97 per tonne of high grade 68%
iron ore concentrate. 
The Feasibility Study was completed by WorleyParsons Canada Services
Ltd. ("WorleyParsons"), Watts, Griffis and McOuat Limited ("WGM"),
Consulting Geologists and Engineers of Toronto, and P&E Mining
Consultants Inc. ("P&E"). Mr. Michael Kociumbas, P.Geo., and Mr. Rick
Risto, P.Geo., both with independent firm WGM, are Qualified Persons
as defined by NI 43-101. WGM has previously visited the site,
collected independent core samples and reviewed the QA/QC data
received to date. Mr. Puritch of P&E visited the Shymanivske site on
February 27, 2012. Mr. Risto has reviewed and approved the underlying
sampling, analytical and test data used for the estimate and Mr.
Kociumbas is responsible for auditing the in-house mineral resource
estimate as supplied by Black Iron. The estimate is classified as
Measured, Indicated and Inferred mineral resources, consistent with
the CIM definitions referred to in National Instrument 43-101. The
complete Feasibility Study has been filed on SEDAR. 
Qualified Persons  
The contents of this press release have been prepared under the
supervision of and reviewed and approved by Qualified Persons, as
follows: 


 
--  Rob Spiering, P.Eng., Project Manager, WorleyParsons QP for the Process
    Plant and Infrastructure; 
    
--  Michael Kociumbas, P.Geo. and Rick Risto, P.Geo., Watts, Griffis and
    McOuat Limited, QPs for mineral resources and QA/QC and data
    verification; 
    
--  Eugene Puritch, P.Eng., P&E Mining Consultants Inc., QP for the mine
    engineering aspects.

 
These persons are Qualified Persons as defined by NI 43-101, are
independent of Black Iron, and have reviewed and approved the content
of this press release. For further information, please see the
technical report of the Company, which is available on SEDAR at
www.sedar.com. 
Additional information about the Project can be found in the
technical report filed on SEDAR at www.sedar.com, entit
led "Resource
Estimate - Shymanivske Deposit in Ukraine," and dated January 31,
2011. 
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, follow us on Facebook: BlackIronInc or Twitter:
@BlackIronBKI or write us at info@blackiron.com for more information. 
Forward-Looking Information 
This press release contains forward-looking information.
Forward-looking information is based on what management believes to
be reasonable assumptions, opinions and estimates of the date such
statements are made based on information available to them at that
time, including those factors discussed in the section entitled "Risk
Factors" in the Company's annual information form for the year ended
December 31, 2011 (and dated March 26, 2012) or as may be identified
in the Company's public disclosure from time to time, as filed under
the Company's profile on SEDAR at www.sedar.com. Forward-looking
information may include, but is not limited to, statements with
respect to results of the Feasibility Study (as defined below) and
the mineral reserve and resource estimate, the future financial or
operating performance of the Company, its subsidiaries and its
projects, the development of and the anticipated timing with respect
to the Shymanivske project, the ability to obtain financing; and the
impact of concerns relating to permitting, regulation, governmental
and local community relations. Generally, forward looking information
can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Estimates underlying the results of the Feasibility Study
arise from engineering, geological and costing work of WorleyParsons
Canada Services Ltd. ("WorleyParsons"), Watts, Griffis and McOuat
Limited ("WGM"), Consulting Geologists and Engineers of Toronto, P&E
Mining Consultants Inc. ("P&E") and the Company. See the technical
report relating to the feasibility study for a description of all
relevant estimates, assumptions and parameters. 
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: general
business, economic, competitive, geopolitical and social
uncertainties; the actual results of current exploration activities;
other risks of the mining industry and the risks described in the
annual information form of the Company. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward looking information. The Company does not undertake to update
any forward-looking information, except in accordance with applicable
securities laws.  
No representation or warranty, express or implied, is made as to the
accuracy or completeness of the information set out herein, and
nothing contained herein is, or shall be relied upon, as a promise or
representation, whether as to the past or future.  
(i)Resource estimate compiled using historic Soviet data by Hugues de
Corta, who is an independent qualified person as defined by NI
43-101. Readers should not place undue reliance on historical
estimates.  
(i)The mineral resource estimate for the Shymanivske Project is based
on results from 185 historical drill holes totaling 37,316 meters and
60 Black Iron drill holes, which were drilled during the Company's
Twin Hole drill program and the Definition Drill program, totaling
16,518 meters and is effective as of September 2012. WGM, Consulting
Geologists and Engineers of Toronto, Canada, was retained to audit an
in-house mineral resource estimate completed by Black Iron. Mr.
Michael Kociumbas, P.Geo, Vice-President of WGM and Mr. Richard
Risto, P.Geo, Senior Geological Associate of WGM, were retained by
Black Iron as independent technical consultants and are Qualified
Persons as defined by NI 43-101 and are responsible for reviewing and
approving this mineral resource estimate. The BFS was prepared in
accordance with the guidelines of National Instrument 43-101 by the
independent firms of WorleyParsons Canada Services Ltd., WGM and P&E
Mining Consultants Inc.  
Rob Spiering, P.Eng., Project Manager, WorleyParsons; Michael
Kociumbas, P.Geo. and Rick Risto, P.Geo., Watts, Griffis and McOuat
Limited and Eugene Puritch, P.Eng., P&E Mining Consultants Inc., are
Qualified Persons as defined by NI 43-101, are independent of Black
Iron, and have reviewed and approved the content of this press
release. For further information, please see the technical report of
the Company, which is available on SEDAR at www.sedar.com. 
Cautionary Note Regarding Mineral Resources and Mineral Reserves 
Mineral resources which are not mineral reserves do not have
demonstrated economic viability. 
Contacts:
Black Iron Inc.
Michael McAllister
Manager, Investor Relations
+1 (416) 309-2950 
Black Iron Inc.
Matt Simpson
President & Chief Executive Officer
+1 (416) 309-2138
info@blackiron.com
www.blackiron.com
 
 
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