Quebec Iron ORE Restarts the Bloom Lake MINE with First Rail Shipment from Fermont
PRESS RELEASE
QUEBEC IRON ORE RESTARTS THE BLOOM LAKE MINE WITH FIRST RAIL
SHIPMENT FROM FERMONT
Montreal, Feb. 22, 2018 – Quebec Iron Ore Inc. (“QIO”), a Champion Iron Limited
(ASX:CIA)(TSX:CIA)(“Champion” or the “Comp any”) subsidiary, is pleased to announce that the first train
being loaded with 16,500 metric tonnes of high -grade 66% Fe iron concentrate from QIO’s Bloom Lake
Iron Ore Mine (“Bloom Lake”) will leave the mine site today, which is located near Fermont, Quebec.
The first train(see picturebelow) represents a tangible step towards realizing Bloom Lake’s potential to become a
major supplier ofhigh qualityiron ore to global markets.
The decision to restart production at Bloom Lake was
announced on November 15, 2017 , and operations
recommenced at the plant on February 16, ahead of
schedule and within budget. For the restart, a major
operational focus involved optimizing the separation circuit
to materially improve the ore recove ry rate , and the
concentrate transported today demonstrates that QIO has
been successful in achieving this important objective.
With a CAPEX of CAD326.8 million , including CAD157.2
million spent on upgrades ahead of the mine restart, Bloom Lake is a large-scale project which is set to
bring about a new era of prosperity to Quebec’s North Shore region. As detailed in the March 17, 2017
Bloom Lake Mine Feasibility Study (“Feasibility Study”), a copy of which is available under the Company’s
profile on SEDAR ( www.sedar.com), the Mineral Reserves for the mine are estimated at 411.7 million
tonnes and the mine is forecast to generate more than CAD 15.1 billion in revenue over the next 20 years,
underlining Bloom Lake’s potential to be one of the region’s leading long -life iron ore mines and a major
contributor to both the Quebec and Canadian economies.
“Significantly, the first train confirms we have been able to produce a high-grade iron concentrateof
exceptional quality, as outlined in the mine’s Feasibility Study. Furthermore, not only are we on schedule
and within budget, but with current iron ore prices of US$78 pmt for 62% Fe being substantially higher
than the estimates of US$56 pmt used in our planning , we are already ahead of forecast . This is an
outstanding result,” Executive Chairman and CEO of QIO and Champion, Michael O’Keeffe said.
As an indication of the potential economic impact of the project, QIO has already hired 400 mining
professionals and support services employees and contractors, with the ultimate target of employing more
than 450 men and women at Bloom Lake.
“The first train represents a major achievement for QIO, and was only possible with the commitment of all
stakeholders including the local community and the support of government. I would also like to recogni ze
the hard work of all staff and contractors now employed at Bloom Lake in helping to deliver this,” Mr
O’Keeffe added.
Bloom Lake has rail loop infrastructure on -site consisting of a 31.9km rail spur, and has access to end
markets via rail and port. In addition to owning 735 specialized railcars for the transportation of iron ore,
the QIO logistics strategy ensures long -term access to some of the world’s largest consumers of iron ore
for Bloom Lake’s high -quality product, with transportation agreements already in place with the Quebec
North Shore and Labrador Railway Company, Inc. (“QNS&L”) and the Société ferroviaire et portuaire de
Pointe-Noire (“SFPPN”).
Since acquiring Bloom Lake in April 2016, and successfully delivering a Feasibility Study in March 2017 ,
QIO secured the necessary funding by October 2017, with the participation of its Government of Quebec
partners. This enabled QIO to upgrade and optimize the facilities at both the mine a nd surrounding
infrastructure, as well as acquire a stake in SFPPN, the owner and manager of port and logistics assets at
Sept-Îles.
Ahead of the Bloom Lake restart, QIO was also successful in securing offtake partners and forming
mutually beneficial alli ances with the host community, including entering into an Impact and Benefits
Agreement with the Innu People of Uashat mak Mani-utenam.
The technical information in this news release was reviewed and approved by Mr. Hugues Longuépée, P.
Geo., Ph.D., a Qualified Person as defined under National Instrument 43-101.
About Quebec Iron Ore Inc.
Founded in 2016 by the mining development company Champion Iron Limited, Quebec Iron Ore Inc. is a
100% Quebec-based entity managed by experts from Quebec. The compan y was mandated to direct the
relaunch of the Bloom Lake Mine, a Champion Iron flagship project in Fermont, in northern Quebec.
About Champion Iron Limited
Champion is an iron development and exploration company, focused on developing its significant iron
resources in the south end of the Labrador Trough in the province of Québec. Following the acquisition of
its flagship asset, the Bloom Lake iron ore property, the Company implemented upgrades to the mine and
processing infrastructure and has partnered inprojects associated with improving access to global iron
markets, including rail and port infrastructure initiatives with government and other key industry and
community stakeholders. Champion’s management team includes professionals with mine development
and operations expertise, who also have vast experience from geotechnical work to green field
development, brown field management including logistics development and financing of all stages in the
mining industry.
For further information pl ease contact:
Michael O’Keeffe, Executive Chairman and CEO at Tel. +1 514 -316-4858
David Cataford, COO at Tel. +1 514-316-4858
For additional information on Champion Iron Limited, please visit our website at
www.championiron.com
Forward-Looking information
This news release includes certain information that may constitute “forward-looking information” under
applicable Canadian securities legislation. All statements, other than statements of historical facts,
included in this news release that address the expected restart date of Bloom Lake as well as future
activities, events, developments or financial performance constitute forward - looking information. The use
of any of the words “will”, “expect”, “anticipate”, “intend”, “believe”, “plan”, “potential”, “outlook”,
“forecast”, “estimate” and similar expressions are intended to identify forward -looking information.
Forward-looking information is necessarily based upon a number of estimates and assumptions that, while
considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which
may cause the actual results and future events to differ materially from those expressed or implied by such
forward-looking information, including the risks iden tified in Champion’s final short form prospectus
relating to a completed equity Offering, annual information form, management’s discussion and analysis
and other securities regulatory filings made by Champion on SEDAR (including under the heading “Risk
Factors” therein). 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 forward - looking
information. Accordingly, readers should not place undue reliance on forward -looking information. All of
Champion’s forward-looking information contained in this press release is given as of the date hereof and is
based upon the opinions and estimates of Champion’s management and information available to
management as at the date hereof. Champion disclaims any intention or obligation to update or revise any of
its forward-looking information, whether as a result of new information, future events or otherwise, except
as required by law.