Isua is located 150km Northeast of Nuuk and 100km from a proposed deep seawater port. Isua will produce a premium quality 70% Fe pellet feed concentrate with low impurities and benefits from its position in the warmer south-west corner of Greenland which allows for year round shipping.
In February 2011 London Mining released the results of a scoping study compiled by SNC Lavalin International Inc. (“SLII”), for the Isua iron ore project in Greenland. The scoping study considered a 15 year life mine with 15Mtpa open pit, processing plant, pipeline and a deep water port.
A bankable feasibility study (“BFS”) with AACE Class 3 estimates for a 15Mtpa operation considering a 10 year mine life based on the currently available amount of Indicated resources was completed in March 2012. A 15 year scenario was also evaluated to demonstrate the greater potential of the asset. The BFS supports the initial findings of the scoping study, provides a more accurate estimate of cost and provides the foundation to finance and construct a mine at Isua. The detailed results of the BFS for the next stage of the project are outlined below.
Highlights of the Bankable Feasibility Study
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Study date
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Scoping Study February 2011
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BFS March 2012
|
|
Annual production (Mtpa)
|
15
|
15
|
|
Mine life (years)
|
15
|
10 with possible extension to 15
|
|
Operating cost (USD/t concentrate)
|
30
|
46
|
|
Capital expenditure (USD billions)
|
2.05
|
2.35
|
|
Capital Intensity (USD/tpa)
|
136
|
157
|
Resources and mine life
As part of the BFS programme, 7,656m of drilling was completed during the summer of 2011 which forms the basis for an updated resource statement. Snowden now estimate a total resource for Isua of 1,107Mt grading 32.3% Fe. This improved result has increased the resource by 10% in resource tonnage from the March 2011 resource statement. The modest reduction in Fe grade to 32.6% is the result of the decision to report internally diluted head grades due to incorporation of waste bearing structures in the block model rather than consideration of a selective mining method.
The new resource represents a substantial 82% increase in Indicated resources from 209Mt to 380Mt which is sufficient to support a 10 year mine life. Potential to extend the mine life could be achieved though further drilling necessary to convert Inferred resources into the Indicated category.
Summary of Isua Mineral Resource at March 2012 reported at a 20% Fe cut-off grade and constrained inside an ultimate pit shell.
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Category
|
Tonnes (Mt)
|
Fe (%)
|
Al2O3 (%)
|
SiO2 (%)
|
S (%)
|
P (%)
|
|
Indicated
|
380
|
32.6
|
2.4
|
41.8
|
0.23
|
0.03
|
|
Inferred (1)
|
727
|
32.1
|
2.3
|
42.3
|
0.22
|
0.03
|
|
Total
|
1,107
|
32.3
|
2.4
|
42.2
|
0.22
|
0.03
|
(1) 83% or 607Mt of the inferred resources are extrapolated beyond the current drilling coverage.
The 2011 drilling campaign also confirmed additional mineral resource potential originally indentified by Rio Tinto in 1997. This area of mineralisation potential has been identified as a down dip extrapolation of the Isua banded iron formation (“BIF”) bearing the existing resource. Part of this mineralisation potential is comprised of an area of hematite BIF which has been interpreted at the top of the BIF unit. This appears to be underlain by more typical magnetite BIF.
Summary of the mineralisation potential at the Isua deposit at end December 2011.
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Potential mineralisation type
|
Potential tonnage range (Mt)
|
Potential Grade Range (Fe%)
|
|
Magnetite BIF
|
800 to 1200
|
30-33
|
|
Hematite BIF
|
150 to 300
|
>35
|
(2) Snowden considers this material to be an indication of Mineralisation Potential only and makes no guarantees that this material can or will be converted to a Mineral Resource or an Ore Reserve at any time in the future following the collection of additional data.
LONDON MINING 