Champion Iron released a feasibility study for its Bloom Lake mine (pictured) that would see an expansion double the projects production. Photo courtesy of Quebec Iron Ore.

Champion Iron released the results of a feasibility study on its Bloom Lake Phase II expansion on Thursday, detailing a planto increase its overall capacity from 7.5 Mtpa to 15 Mtpa of 66.2 per cent iron ore concentrate.

The company estimates the expansion will cost $633.8 million. As detailed in its press release, Champion would put this towards implementing operational changes, such as adding electric hydraulic shovels to complement front end loaders. Additional drilling and hauling capacity would be added in 2021 as production increases.

“Based on conservative assumptions compared to current spot price, the Phase II Feasibility Study demonstrates that this expansion at Bloom Lake may drive additional value to shareholders and allow the company to continue on its recent growth trajectory,” wrote Champion CEO David Cataford. “In fact, we believe that very few iron ore projects offer the potential of 20+ years of production at industry-low operating costs, whilst being strategically located in close proximity to all necessary infrastructure and situated in what we consider to be a superior mining jurisdiction.”