Iron Bear Resources Ltd (ASX:IBR) has released a pre-feasibility study for its Iron Bear project in Newfoundland and Labrador, Canada. The study confirms a maiden probable ore reserve of 3.3 billion tonnes at 29.1% iron, supporting a long-term production target of 23 million tonnes per annum over a 44-year mine life. The operation is designed to produce high-grade blast furnace concentrate and direct reduction pellets, with pre-production capital expenditure estimated at USD 4.2 billion.

The project is built on a massive mineral resource estimate of 13.6 billion tonnes, with current mining plans utilizing less than one-quarter of that total volume. Production is scheduled to ramp up over three stages across 13 years, leveraging a low 0.44 stripping ratio to support efficient open-pit mining. The company plans to use existing rail infrastructure to reach the port of Pointe-Noire, with its final products destined for markets in the United States, Europe, and North Africa.

Economic projections for the base case scenario indicate an unleveraged post-tax net present value of USD 9.0 billion, with an internal rate of return of 15.2%. These figures are underpinned by long-term price assumptions reflecting the high-grade nature of the iron ore output. The company highlights that its products contain ultra-low deleterious elements, meeting the stringent requirements for the global steel industry’s ongoing shift toward electric arc furnace and direct reduction technology.

Sustainability is central to the project design, which will rely exclusively on renewable hydropower. This energy source is expected to maintain carbon emissions at approximately 29 kilograms per tonne of sales, placing the operation among the lowest in the industry for emissions intensity. The project also benefits from a development agreement with Vale, which provides tier-one support for project advancement.

Looking ahead, the company has announced a project value improvement phase. This initiative will focus on optimizing the flowsheet design, enhancing capital efficiency, and further refining power costs and mine planning. These technical evaluations are scheduled to take place before the team progresses to a full bankable feasibility study. This upcoming work aims to solidify the project’s operational foundation while maximizing its long-term financial resilience. By targeting high-value, high-growth iron ore categories, the company is positioning the asset to meet the structural demand for cleaner steel-making feedstocks while navigating the evolving regulatory landscape in its target international markets.

Read the full announcement: Iron Bear Project PFS delivers outstanding results