Grängesberg
"This is promising news for GRANGEX shareholders, the local and regional community, as well as the Swedish mining community, and in fact historical. Through the dedicated and successful process development, Dannemora can be transformed from low quality to a high-quality iron ore producer. The study shows that Dannemora mine has, subject to the environmental permitting process, good possibilities to enter the market in 2025 and be a high-quality iron ore producer with a very low carbon footprint, possibly with a potential future green premium. This just in time to be part of the accelerating sustainable transition of the European steel industry and meeting the market demand of green steel", says
Highlights of the report:
- The financial evaluation of the project carried out as part of the PFS has estimated pre-production capital expenditure of
US$ 131 M, (MSEK 1,179), sustainable investments during life of mine ofUS$ 52.1 M (MSEK 468,9), and closure costs ofUS$ 3,9 M (MSEK 34.9) giving a total capital expenditure during the life of mine ofUS$ 187 M (MSEK 1,683). An operating cost, FOB, ofUS$ 44.7 /dmt for production of 68% iron ore concentrate and based on a product price FOB ofUS$ 125 /dmt and9.00 SEK /US$ give the following financial results, pre-tax[1];-
Net Present Value at 8% discount rate;
US$ 319 million (MSEK 2,869) - Internal Rate of Return (IRR) 51 %
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Payback time less than 3 years, from production start.
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Net Present Value at 8% discount rate;
- The annual run-of-mine (ROM) rate has been calculated to 3 Mt resulting in a production of 1.1 Mt (equivalent dry weight) 68 % iron ore concentrate, meeting the requirements for direct reduction iron (DRI) and thus green steel production.
- A key conclusion of the PFS work is the possibility that the Dannemora mining project can be a high-grade iron ore producer with a very low carbon footprint by operating a fully electrified underground mining and beneficiation process while producing a high-grade magnetite concentrate with Green Steel credentials. Thus, have possibilities to become a preferred supplier in the emerging transition of the steel industry towards the production of green steel.
- An updated JORC 2012 compliant Mineral Resource Estimate of the mine amounts to 28.19 Mt, at 36.54% Fe, Measured and Indicated; and 5.82 Mt at 33.61% Fe, Inferred[2].
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The Probable Ore Reserves for
Dannemora Mine , on31st December 2021 , is estimated to be 25.36 Mt, with 33.44% Fe at a cut-off grade of 15%, gives a Life of Mine of approx. 9 years. - Furthermore, once in operation, the immediate area surrounding the mine has the potential for further development of additional mineral resources, as several of the mineralised bodies are open at depth. There is also a possible resource in the underground deposited tailings from the latest production period.
- The possibility of extending the life of the mine has been studied and a total of seven different areas in the mine have been identified as exploration targets. These exploration targets have been estimated at 20 to 35 Mt with iron content between 34 and 39%.
Competent Person (CP) for Mineral Resources and Ore Reserves:
Mr.
Qualified Person (QP) for Processing:
In terms of Processing,
The Executive summary of the Pre-feasibility study Is published on the company website.
[1] Pre-tax calculation chosen due to pending project finance structure
[2] For full details per category, see company website
CONTACT PERSON
This information is such information that Grängesberg
ABOUT GRANGEX, GRÄNGESBERG EXPLORATION HOLDING AB (publ)
Grängesberg
The Company's share (GRANGX) Is traded on NGM Nordic SME.
ISIN-code: SE0007789417
FISN-code: GRANGESBER/SH
Instrument-ID: 9XX
Legal Entity Identifier (LEI) number: 549300MZ7HL7X6AXMC13.
More information www.grangesbergexploration.se
https://news.cision.com/grangesberg-exploration-holding-ab/r/the-pre-feasibility-study-on-dannemora-confirms-viable-possibilities-for--green--iron-ore-production,c3488538
https://mb.cision.com/Main/15169/3488538/1522182.pdf
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