MONTRÉAL, June 6, 2023
/CNW/ - (SYDNEY, June 7, 2023) - Champion Iron Limited
(TSX: CIA) (ASX: CIA) (OTCQX: CIAFF) ("Champion" or the
"Company") is providing an update on the forest fires north of
Sept-Îles, Québec, impacting a railway the Company utilizes to
transport high-purity iron ore concentrate from its Bloom Lake mine
("Bloom Lake") to the port of Sept-Îles (the "Railway").
Forest fires emerged on May 28,
2023, (Montréal time) approximately 300 kilometres south of
Bloom Lake, resulting in interruptions of the Railway since
May 30, 2023. There are no
damages to Champion`s facilities and the Company is not aware of
any significant damages to the Railway or third-party
infrastructure, and accordingly, expects services to resume in the
near-term. While interruptions of the Railway and the main access
road may impact the supply chain required to maintain a complete
operational capacity at Bloom Lake, the Company benefits from
significant onsite iron ore concentrate stockpiling capacity,
mitigating the impact to its operations. Despite continuing
operations at Bloom Lake, the Company expects material delays
in sales of its iron ore produced due to the service interruption
of the Railway.
Champion's CEO, Mr. David Cataford, said: "We sincerely
thank all our staff, third-party infrastructure partners, all local
authorities and those involved for their efforts in managing
the ongoing situation. Such events highlight the importance of
local stakeholder collaboration to mitigate impacts to local
communities and the environment while safeguarding everyone`s
health and safety. Our thoughts are with the local residents,
including our Innu partners, who declared a state of emergency
resulting in the evacuation of thousands of residents in the
Sept-Îles region and in other regions in the province of
Québec."
About Champion Iron
Limited
Champion, through its wholly-owned subsidiary Quebec Iron Ore
Inc., owns and operates the Bloom Lake Mining Complex, located on
the south end of the Labrador Trough, approximately 13 km north of
Fermont, Québec. Bloom Lake is an
open-pit operation with two concentrators that primarily source
energy from renewable hydroelectric power. The two concentrators
have a combined nameplate capacity of 15 Mtpa and produce a low
contaminant high-grade 66.2% Fe iron ore concentrate with a proven
ability to produce a 67.5% Fe direct reduction quality concentrate.
In January 2023, the Company
announced the positive findings of a feasibility study evaluating
upgrading half of the Bloom Lake mine capacity to a direct
reduction quality pellet feed iron ore and approved an initial
budget to advance the project. Bloom Lake's high-grade and low
contaminant iron ore products have attracted a premium to the
Platts IODEX 62% Fe iron ore benchmark. The Company ships iron ore
concentrate from Bloom Lake by rail, to a ship loading port in
Sept-Îles, Québec, and has sold its iron ore concentrate to
customers globally, including in China, Japan,
the Middle East, Europe, South
Korea, India and
Canada. In addition to Bloom Lake,
Champion owns a portfolio of exploration and development projects
in the Labrador Trough, including the Kamistiatusset Project,
located a few kilometres south-east of Bloom Lake, and the
Consolidated Fire Lake North iron ore project, located
approximately 40 km south of Bloom Lake.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain information and statements that
may constitute "forward-looking information" under applicable
Canadian securities laws. Forward-looking statements are statements
that are not historical facts and are generally, but not always,
identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "continues",
"forecasts", "projects", "predicts", "intends", "anticipates",
"aims" "targets", or "believes", or variations of, or the negatives
of, such words and phrases or state that certain actions, events or
results "may", "could", "would", "should", "might" or "will" be
taken, occur or be achieved. Inherent in forward-looking statements
are risks, uncertainties and other factors beyond the Company's
ability to predict or control.
Specific Forward-Looking Statements
All statements other than statements of historical facts included
in this press release that address future events, developments or
performance that Champion expects to occur are forward-looking
statements. Forward-looking statements include, among other
things, the impact of forest fires on Champion's business,
operations or assets, including the impact on Bloom Lake's
production, governmental authorities' responses thereto and the
timing for the Railway services and operations of third party
infrastructures to resume.
Risks
Although Champion believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such forward-looking statements involve known and unknown risks,
uncertainties and other factors, most of which are beyond the
control of the Company, which may cause the Company's actual
results, performance or achievements to differ materially from
those expressed or implied by such forward-looking statements.
Factors that could cause the actual results to differ materially
from those expressed in forward-looking statements include the
impact on the Company's business, operations or assets, the climate
and impact of weather conditions on the forest fires, the
intensification of the forest fires, the ability to control forest
fires and the impact on forest fires on the Company's business,
operations, assets or personnel, on third party infrastructure,
including the Railway and the communities where the Company works,
and include those factors discussed in the section entitled "Risk
Factors" of the Company's 2023 Annual Report, Annual Information
Form and MD&A for the financial year ended March 31, 2023, which are available on SEDAR at
www.sedar.com, the ASX at www.asx.com.au and the Company's website
at www.championiron.com. 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.
Additional Updates
All of Champion's forward-looking information contained in this
press release is given as of the date hereof or such other date or
dates specified in forward-looking statements 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 the
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.
If the Company does update one or more forward-looking statements,
no inference should be drawn that it will make additional updates
with respect to those or other forward-looking statements. Champion
cautions that the foregoing list of risks and uncertainties is not
exhaustive. Readers should carefully consider the above factors as
well as the uncertainties they represent and the risks they
entail.
For additional information on Champion Iron Limited, please
visit our website at: www.championiron.com.
This press release has been authorized for release to the market
by the CEO of Champion Iron Limited, David
Cataford.
SOURCE Champion Iron Limited