Black Iron Inc (TSE:BKI) has once again outlined the favorable dynamics of its Shymanivske project in Ukraine, saying a recent study showed that the product expected to be produced will be well suited for iron-making.
The study was carried out by the China Iron and Steel Research Institute (CISRI), the People's Republic's premier iron and steel research institute, it said.
Blast furnaces in the Asia Pacific region typically use 70% sinter, 15% lump ores and 15% pellets as raw materials to make iron.
The results of the China study showed that the firm's product could supply a wide range of markets.
CISRI found that because of its superior chemistry the product was suitable for combining with coarse iron ore fines as part of an overall sinter feed blend.
It is worth noting that iron ore used as sinter feed accounts for over 60% of global iron ore demand (1.3 billion (bn) tonnes in 2016), while iron ore pellets account for about 15% of total global iron ore demand (0.3 bn tonnes in 2016) and growing.
Shymanivske contains a NI 43-101 compliant mineral resource estimated to be 646 Mt (million tonnes) measured and indicated resources, consisting of 355 Mt Measured mineral resources grading 31.6% total iron and 18.8% magnetic iron.
Indicated resources are 290 Mt grading 31.1% total iron and 17.9% magnetic iron, using a cut-off grade of 10% magnetic iron.
Additionally, the Shymanivske project contains 188 Mt (million tonnes) of Inferred mineral resources grading 30.1% total iron and 18.4% magnetic iron.
Earlier this month, the firm said a study had shown that the project was ranked in the lowest position of the business cost curve for pellet feed projects currently under development, while the project’s capital intensity ( construction capital divided by annual production) of only US$95 per tonne was ranked second lowest out of the projects in the extensive database of CRU Group, the agency that compiled the report.