Ukraine map

Receive Email Updates

Your Email *
Your Name

Enter the code shown above.

Black Iron Letter to Shareholders: Our Future Remains Promising!


TORONTO, ONTARIO--(Marketwired - July 9, 2013) - Black Iron Inc. (TSX:BKI)(FRANKFURT:BIN) -





Black Iron Inc. ("Black Iron" or the "Company") would like to express its appreciation to shareholders for their continued support of the Company. Positive strides continue to be made in the advancement of the Shymanivske Iron Ore Project ("Shymanivske" or the "Project") and we would like to take this opportunity to update you on what has been happening and why we continue to believe that our future remains promising!

Despite challenging times in the global capital markets, we have remained busy since releasing the results of our Bankable Feasibility Study ("BFS") in Q4 2012. Much has changed since we successfully completed our initial public offering on the Toronto Stock Exchange. We have strategically deployed the monies raised and have significantly advanced test work and engineering at Shymanivske. Now, more than ever, we believe the Project has the potential to become a world class iron ore producer. Here is just a quick summary of our recent notable achievements:

--  Bankable Feasibility Study. On December 18, 2012, we filed our National
    Instrument 43-101-compliant Bankable Feasibility Study entitled
    "Feasibility Study of the Shymanivske Iron Ore Deposit for Black Iron
    Inc." (the "Report"). The Report contains a comprehensive mine to port
    breakdown of our Project. In terms of economic robustness, the Report
    shows a 45.9% internal rate of return, 2.2 year payback and US$3.5
    billion net present value (all pre-tax), for a 9.2 million tonne per
    year high-grade 68% iron concentrate producer. The capital cost
    estimates for the Project were reported at $1.094 billion, or $119 per
    tonne of installed capacity, ranking it in the first quartile of
    development projects. A full copy of the Report may be found under the
    Company's profile on SEDAR.

--  Pilot Plant Test Work. We are currently conducting pilot plant test work
    with an emphasis on firming up the process flow sheet, equipment sizing
    and product specifications. While this test work is still ongoing, we
    believe we have found significant opportunities to achieve even better
    cobber (i.e. magnetic separation stage located between the primary
    crushing and grinding stages) rejection rates, which may lead to
    stronger Project economics. If these opportunities prove to be possible,
    they have the potential to either increase the Project throughput and
    reduce operating costs, or maintain current throughput rates and reduce
    capital costs. Either outcome has the potential to materially increase
    the Project IRR and NPV.

--  Pellet Testing Complete. We continue to investigate the opportunity to
    produce a high-grade pellet product. To this end, we have completed all
    basket and pot grade testing. We await the final results but all
    indications thus far support a positive conclusion on physical and
    pyromet characteristics. In terms of product grade, these blast furnace
    pellets would have an iron content of 65% with only 4% silica.

--  Direct Reduction Capability. We have also confirmed the ability to
    produce an ultra-high-grade, direct reduction concentrate product and
    direct reduction pellet. The direct reduction concentrate would have
    iron content greater than 69% with 1.3% silica. Direct reduction
    products sell at a premium to blast furnace material and would open up
    more end markets for our product.

We will continue to work on these advancements and look forward to reporting on the final conclusions over the balance of the year. We are also working on a number of initiatives that we believe will help generate additional interest in Black Iron. Specifically:

--  Advancing Infrastructure Contracts. One of the things that differentiate
    Black Iron from many of the other iron ore developers is our access to
    existing infrastructure with available capacity. We have been discussing
    our usage requirements with the various rail, port, power and municipal
    utilities providers and believe we will be in a position to enter into
    final-stage negotiation of use agreements in the near future. Securing
    these infrastructure contracts will further de-risk our Project

--  Strengthening Our Local Presence. A key part of building a world-class
    mining operation is the quality and depth of your team at site,
    particularly when operating in a foreign country. We have been working
    diligently to augment our already strong presence in Ukraine, but have
    come across a unique opportunity to potentially work with a major local
    company. We hope to execute on this opportunity in the near term, which
    could further differentiate us from other developers.

--  Off-Take Discussions Picking Up. The release of the BFS brought
    significantly more attention to our Project and its potential role as a
    supplier of high-grade iron ore products. We have had a number of
    positive discussions with prospective off-takers with a number of groups
    actively reviewing our data and testing our ore. Finding an off-take
    group, or groups, is a high priority at this stage as we see the off-
    taker as playing a vital role in our financing plan for the Project's

As a team, our top priority is the successful development of our iron ore assets. An extension of this priority is ensuring that our efforts are accurately reflected in our share price. We admit that we are disappointed with recent trading prices but we are working hard to develop the Company and to unlock value for shareholders. With the work we have completed since the BFS, the news flow that will follow our recent initiatives, and support from new and existing shareholders, we remain highly motivated to grow the Company and execute our strategic plan. As we progress, we will continue to update you through our website and press release. Our future remains promising!

Thank you again for your continued support.



Matt Simpson - President & CEO

George Mover - COO

Paul Bozoki - CFO

Aaron Wolfe - VP, Corporate Development

Nikolay Bayrak - VP, Gov't & Community Relations

Christine Gallo - Corporate Secretary

Michael McAllister - Manager, Investor Relations

About Black Iron

Black Iron is an iron ore exploration and development company, advancing its 100 percent-owned Shymanivske project located in Kryviy Rih, Ukraine. This project contains an NI 43-101 compliant resource, with 645.8 Mt Measured and Indicated mineral resources, consisting of 355.1 Mt Measured mineral resources grading 32.0% Total iron and 19.5% Magnetic iron, and Indicated mineral resources of 290.7 Mt grading 31.1% Total iron and 17.9% Magnetic iron, using a cut-off grade of 10% Magnetic iron. Additionally, the project contains 188.3 Mt of Inferred mineral resources grading 30.1% Total iron and 18.4% Magnetic iron. The project is surrounded by five other operating mines, including ArcelorMittal's iron ore complex. The Company believes that existing infrastructure, including access to power, rail and port facilities, will allow for a quick development timeline to production. Further, the Company holds an exploration permit for the adjacent Zelenivske project, which it intends to further explore to determine its potential. Please visit the Company's website at, follow us on Facebook: BlackIronInc or Twitter: @BlackIronBKI or write us at for more information.

The technical and scientific contents of this press release have been prepared under the supervision of and have been reviewed and approved by Matt Simpson, P.Eng., President and CEO of Black Iron Inc., who is a Qualified Person as defined by NI 43-101. For further information, please see the technical report of the Company, which is available on SEDAR at

Forward-Looking Information

This press release contains forward-looking information within the meaning set out in Canadian securities laws. Forward-looking information is based on what management believes to be reasonable assumptions, opinions and estimates of the date such statements are made based on information available to them at that time, including those factors discussed in the section entitled "Risk Factors" in the Company's annual information form for the year ended December 31, 2012 or as may be identified in the Company's public disclosure from time to time, as filed under the Company's profile on SEDAR at Forward-looking information may include, but is not limited to, statements with respect to results of the feasibility study dated December 17, 2012 (the "Feasibility Study", as filed under the Company's profile on SEDAR at and the mineral reserve and resource estimate, the future financial or operating performance of the Company, its subsidiaries and its projects, the development of and the anticipated timing with respect to the Shymanivske project, the ability to obtain financing; and the impact of concerns relating to permitting, regulation, governmental and local community relations. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Estimates underlying the results of the Feasibility Study arise from engineering, geological and costing work of WorleyParsons Canada Services Ltd. ("WorleyParsons"), Watts, Griffis and McOuat Limited ("WGM"), Consulting Geologists and Engineers of Toronto, P&E Mining Consultants Inc. ("P&E") and the Company. See the technical report relating to the Feasibility Study for a description of all relevant estimates, assumptions and parameters. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. 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 statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Black Iron Inc.
Michael McAllister
Manager, Investor Relations
+1 (416) 309-2950

Black Iron Inc.
Matt Simpson
President & Chief Executive Officer
+1 (416) 309-2138

Source: Black Iron Inc.