Overview
Nordic Iron ore has, since the start in 2008, established a portfolio consisting of a total of 19 exploration permits for iron ore deposits in Bergslagen, where mining has been taken place since the 14th century. Both Blötberget and the Håksberg field have been actively mined up until 1979, when the former owner SSAB, closed the mines. These were not exhausted at this time, but operations were shut down due to low iron ore prices and lack of efficiency and profitability.
Restarting the Ludvika mines
The company’s main project includes the deposits at Blötberget and Håksberg near Ludvika. The Väsman field is located between these deposits and can, potentially, represent an interesting prospect for expansion. Deposits are located along an approximately 25 km long vein of iron deposits that run from Blötberget in the south to the north section of the Håksberg field. For the first time in history, this vein is controlled by a single stakeholder (Nordic Iron Ore) through a total of nine exploration permits and two mining concessions.
During 2011, Nordic Iron Ore was awarded mining concessions for both Håksberg and Blötberget. The goal is, at the latest year 2015, to restart mining activities with an expected yearly production at full capacity of about 2.4 million tonnes of concentrated product. The production may be expanded significantly if prospecting shows that the Väsman field is workable. In addition, the company shall continuously prospect, evaluate and retain all other concessions for eventual future development and mining.
Assets
In total, the company currently holds 19 exploration permits, which together cover an area of 9,423 hectares. All presences, besides those covered by the Kölen, Väsman and parts of the Håksberg concessions are so called brown fields and have previously been worked in now abandoned mines.
In total, Nordic Iron Ore controls indicated mineral resources of 39 million tonnes (with an iron content between 36 and 43 percent) as well as inferred mineral resources of 22 million tonnes (with an iron content between 36 and 43 percent) according to NI 43-101 standard.
In addition, mining concessions for historically calculated mineral resources of a total of 13.6 million ton, with an iron content between 27.5-33 percent, as well as exploration targets of 81-92 million tonnes with an iron content between 20-38 percent. The historically calculated mineral resources do not follow NI 43-101 standard and are therefore not controlled by a independent Qualified Person.
LUDVIKA MINES
The development of Ludvika Mines will follow a set plan where several phases need to be completed before mining operations can be resumed at Blötberget and Håksberg.
Mining concession
During 2010 and 2011, the company has applied for mining concessions for Blötberget and Håksberg. The Mining Inspectorate of Sweden granted the concessions for the mineralisations in Blötberget and Håksberg in August and December 2011, respectively.
Environmental permits
The company has conducted environmental impact studies and plans plans to submit an environmental application to the Land and Environment Court during the first quarter of 2012. The environmental application will cover the mining areas of Blötberget and Håksberg as well as the planned concentrator. The processing period at the Land and Environment Court is expected, under normal circumstances, to be between 12 and 15 months.
Feasibility study
In the spring of 2012, the company intends to begin work on a feasibility study. A feasibility study is an in-depth and detailed plan based on the PEA, which will form the basis for investment and production decisions. Work on the study will be led by a steering committee with representatives from the company’s management and Board of Directors and be conducted in a project organisation consisting of employees and consultants. For the implementation of the study, additional core drilling is required the results of which will form the basis for a new calculation of mineral resources in accordance with the NI 43-101 standards.
Pending a favourable outcome from the study, a decision will be made to start mining, provided that both the necessary permits and funding are secured.
Test mining
The company intends to commence test mining in 2012 of representative mineralisations at both Blötberget and Håksberg. Permits for test mining have been granted by the County Administrative Board. The samples of mined ore will be used in various ore processing tests. The results from these will form the basis for the final processing configuration and design of the necessary equipment. A calculation of investment and operating expenses will then be made. The intention is that the concentrated final product can be used for trial deliveries for potential buyers. Trial deliveries are considered necessary in order to enter into supply contracts with potential customers on the planned production.
Investment decision
After an environmental permit has been obtained from the Land and Environment Court, and subject to the planned feasibility study being positive, and that funding has been secured, the company intends to take decisions on the capital expenditure needed to resume production and start shipping to customers.
