Oceanic Iron Ore Highlights Hopes Advance Project Potential

Oceanic Iron Ore, a company focused on the development of iron ore projects in Ungava Bay, Québec, Canada, has provided an overview of its assets, highlighting the potential of its flagship Hopes Advance Project.

The Hopes Advance Project, located in the Labrador Trough, is 100% owned by Oceanic Iron Ore. It boasts a significant resource base, with a NI 43-101 Measured & Indicated resource of approximately 1.36 billion tonnes, featuring a head grade of 32.1% Fe. This project is situated at tidewater, eliminating the need for a railroad to transport the iron ore to market, which is expected to significantly reduce capital expenses and operating costs.

Ungava Bay, where the projects are located, is situated at 62°N latitude, the same distance from the equator as Anchorage, Alaska. In June, the sun sets around midnight, and in the winter, the region experiences only five hours of daylight. The bay is 260 km wide at its mouth, and the surrounding area is rich in seasonal commercial activities, including halibut fishing, Inuit seafood harvesting, eco-tourism, and mineral exploration.

Oceanic Iron Ore holds a total land package of 1,568 km², comprising 3,703 mineral claims across three properties: Hopes Advance, Roberts Lake, and Morgan Lake. These projects span 300 kilometres of iron formation near tidewater, positioning the company in a Tier 1 mining jurisdiction known for its political stability, well-regulated environment, and long history of mineral development.

While Roberts Lake and Morgan Lake have defined historical resources that are not included in the current economic assessment, the company is currently focusing on Hopes Advance, a premier high-quality, low-cost iron ore project with robust economics. According to the 2019 Preliminary Economic Assessment (PEA), using a Freight on Board (FOB) price of US$82/tonne, the Hopes Advance project is projected to have a post-tax Net Present Value (NPV8) of US$1.4 billion, with an Internal Rate of Return (IRR) of 17%.

At the current consensus long-term FOB price assumption of US$101/tonne, the Hopes Advance project is expected to have a post-tax NPV8 of US$2.3 billion and an IRR of 22%. The study projects Life of Mine (LOM) operating costs of US$30/tonne, and the company is close to tidewater, which means it does not require rail infrastructure. This proximity to tidewater also means the company will not be dependent on third-party-owned infrastructure, such as energy and ports. Oceanic Iron Ore is optimistic about the potential for a life-of-mine extension well beyond 28 years, with metallurgy demonstrating high weight and iron recoveries. Bench-scale and pilot plant testing indicate a high-quality product with 4.5% silica, low levels of other impurities, and a 66.6% iron grade.

Oceanic Iron Ore has signed letters of intent with the Québec government and the Inuit Community, expressing confidence that the Hopes Advance project will appeal to a variety of strategic partners. The company is now preparing to discuss the global demand drivers for iron ore in its next message.