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RETRANSMISSION: M3 Metals Reduces Cap-Ex by 85% on Iron Ore Project and Seeks Partner
Vancouver, British Columbia--(Newsfile Corp. - January 27, 2020) -   M3 Metals Corp. (TSX...
About this update from M3 Metals Corp.
[{"type":"text","content":"RETRANSMISSION: M3 Metals Reduces Cap-Ex by 85% on Iron Ore Project and Seeks PartnerVancouver, British Columbia--(Newsfile Corp. - January 27, 2020) -  M3 Metals Corp. (TSXV: MT) (FSE: X0VP) (\"M3 Metals\" or the \"Company\") is pleased to announce that it has completed a re-scoping study (the \"Study\") on it's 100 percent owned Block 103 Iron Ore Project (the \"Project\") located in Newfoundland and Labrador, Canada. The Study was successful in reducing the projected capital costs on the Project from approximately 6 Billion dollars to 840 million dollars CAD. This was achieved by implementing a phased capacity approach beginning with the \"base case\" 4 million tonne per year projected production of high-grade premium iron ore fines concentrate from the previously proposed 16 million tonnes per year and by modifying processing methods and introducing new efficiencies. The Study also presents a projected operating cost per tonne (Op-Ex) for the base case 4 million tonne per year high grade (projected average 67.6 percent total iron based on 2013 PEA) concentrate at 51 dollars CAD per tonne Freight on Board (\"FOB\") cost, excluding shipping costs. These numbers are calculated in Canadian dollars (\"CAD\") and should be converted accordingly when considering pricing of the commonly referenced 62 percent benchmark and premium prices that are commonly reported in United States dollars (\"USD\"). Previously, the Company has spent over $38 million advancing the project to the PEA stage (Preliminary Economic Assessment). As a result, the Company defined a total of 7.2 billion tonnes at 29.2% total iron with metallurgical test results showing a projected 69.5% iron concentrate, and low 0.4:1 strip ratio. The historic 2013 43-101 Technical Report defining the Block 103 resource is available on Sedar and on the Company's website. The new re-scoping study completed by Hatch Ltd. was mandated to consider alternative rescaled schemes that could make the Block 103 Project economically viable and more attractive for potential investment. The Study was completed in accordance with AACE International Class 5 cost estimate classification level and focuses on the costs associated with equipment and processing methods required to develop the Block 103 Iron Ore deposit. The Study focused on the reduction of capital required to start a lower-...