Iron Bear Resources (ASX:IBR) reports USD 9.0B NPV8% in Iron Bear Project PFS
Iron Bear Resources has released its first Pre-Feasibility Study (PFS) for the Iron Bear Project, outlining a 23 Mtpa production target supported by a maiden Probable Ore Reserve of 3.3 Bt at 29.1% Fe.
The PFS outlines Blast Furnace concentrate and Direct Reduction pellet production over a 44 year Life Of Mine.
Highlights
Maiden Probable Ore Reserve of 3.3 Bt at 29.1% Fe supporting 23 Mtpa of high grade iron ore production for a 44 year Life Of Mine.
Mineral Resource Estimate of 13.6 Bt at 30.03% Fe, with the current mine plan drawing on less than 25% of the Mineral Resource Estimate.
Production target of 23 Mtpa comprising 4.5 Mtpa Blast Furnace concentrate and 18.4 Mtpa Direct Reduction pellets.
Post tax, unleveraged NPV8% of USD 9.0B, post tax IRR of 15.2% and pre production CAPEX of USD 4.2B.
Access to existing rail infrastructure and the open access Port of Pointe Noire, with products to be sold into Rotterdam (EU), Corpus Christi (US) or North Africa.
The PFS was completed to AACE Class 4 standards for the base case and reported scenarios, with the study including engineering work across the mine plan, process plant, power, rail, slurry line, port and pellet plants.
For the base case production scenario, 3 process trains are included, each rated at 8.3 Mtpa BF concentrate capacity, commissioned progressively across 3 stages over 13 years.
Production targets outlined in the PFS comprise 4.5 Mtpa of Blast Furnace concentrate grading 69.1% Fe and 18.4 Mtpa of Direct Reduction pellets
According to the company, Direct Reduction concentrate is produced via reverse flotation of BF concentrate at 88.7% recovery, upgrading to 71% Fe and 1.2% SiO₂+Al₂O₃ for conversion to Direct Reduction pellets.
The JORC compliant Maiden Probable Ore Reserve of 3.3 Bt at 29.1% Fe forms a subset of the company’s Mineral Resource Estimate of 13.6 Bt at 30.03% Fe.
The company stated that the operation will mine and process 3.4 Bt of mill feed with a stripping ratio of 0.44, including 95% of Probable Ore Reserves and 5% of Inferred Mineral Resource.
Logistics for the PFS include existing rail infrastructure to the Port of Pointe Noire. During Stage 1 operations, an existing port operator will manage material handling.
Once port infrastructure is constructed and commissioned for Stage 2 alongside the first pellet plant, material handling will transition to company operated facilities.
Iron Bear Managing Director Paul Berend said the PFS covered major project components including the mine plan, process plant, power, rail, slurry line, port and pellet plants.
“The first iteration of the Pre-Feasibility Study (PFS) for the Iron Bear project conclusively demonstrates the project’s financial attractiveness, scale, and sustainability.”
Before initiating the Bankable Feasibility Study (BFS), the company has planned a Project Value Improvement phase to evaluate opportunities including flowsheet optimisation, capital efficiency optimisation, power capital cost optimisation, pellet plant location alternatives, mine plan optimisation and project funding opportunities, with an updated Version 2 of the PFS expected following completion of these activities.
The company stated that the Iron Bear Project will require $138M USD to achieve Decision To Mine and complete activities outlined in the Development Plan.
Following Decision To Mine, the project will require pre production capital investment of approximately USD 4.2B. In February 2025, the company entered into a Development Agreement with Vale S.A. for funding of up to $USD 138M to achieve Decision To Mine.
The company has stated that the PFS assumptions remain subject to further refinement through additional exploration, technical studies and economic assessments.
Iron Bear has also noted that there is no certainty the material assumptions will prove to be correct or that the conclusions or outcomes presented in the PFS will be realised.