Chibougamau, which holds a 2% GMR royalty on the Quebec iron ore project, said optimization work includes a Q3/2026 drill program, tailings design review and concentrate grade analysis.
Cerrado Gold Inc. has extended the completion date for the Bankable Feasibility Study at the Mont Sorcier high grade iron ore deposit in Quebec’s Chibougamau region, where Chibougamau Independent Mines Inc. holds a 2% GMR royalty. The review is aimed at incorporating optimization and trade-off opportunities identified during the BFS process that Cerrado said could materially improve project value. The work will focus on an enhanced mine plan to reduce the strip ratio, tailings dam construction, and a review of capital and operating costs amid regional inflation. Cerrado also plans to study whether producing a 65% grade iron concentrate, rather than the currently planned 67% grade product, would better balance pricing and project costs. A modest drill program is scheduled for Q3/2026 to upgrade additional resources and refine the mine plan. Cerrado said the most significant opportunity identified so far is in the overall mine plan, including converting a modest amount of currently inferred resources to measured resources in an area east of the planned pit. That material is expected to be shallower, which could reduce stripping and tailings management costs over the life of mine. The company said inflation is materially affecting current capital and operating cost estimates, prompting optimization work on life-of-mine tailings dam construction and other infrastructure to reduce project size and required construction material. On product mix, Cerrado said the premium for 67% iron ore concentrate over 65% concentrate may not be enough to justify the added capital and operating costs. It said the 65% product still commands a 20% premium to the 61-62% ion concentrate index, while 67% concentrate garners an approximately US$20/tonne premium to the 65% Index, subject to specific concentrate characteristics. Cerrado has not given an exact date for final completion of the Bankable Feasibility Study while it completes the drill program. It said the optimization and trade-off work is not expected to materially affect the timing of the Environmental and Social Impact Assessment (ESIA), which is expected to be filed in Q2/2027. Cerrado believes permits could be granted around year end 2028, which would suggest construction could begin in Q1/2029.