Canadian Orebodies, a tiny junior, has a 500 million tonne rich (35%) iron ore deposit in the Belcher Islands. The Haig Inlet project is advantageously located at tidewater, eliminating the need for costly rail lines.
Haig Inlet’s location is favourable relative to other iron projects in Nunavut, that have attracted large overseas investors. Baffinland Iron Mines and Advanced Explorations are both located in more remote locations with harsher climates. Haig Inlet has the advantages of having no permafrost or multi-year sea ice.
Right now Canadian Orebodies believes the best development option would be to barge the iron ore off Belcher Islands and build infrastructure (crusher, grinder, separator, concentrator, etc) and all-year port on Quebec coast, to take advantage of Quebec’s cheap hydro power.
Canadian Orebodies Inc. (ticker CO on TSX-V) is a junior natural resource exploration and development company, headquartered in Timmins, Ontario. Canadian Orebodies is currently focused on developing and de-risking its Haig Inlet Iron Ore Project on the Belcher Islands in Nunavut. The company has a market cap of $20M.
The Haig Inlet project has rich ore (35% iron) and great tidewater access going for it. Still, Canadian Orebodies is a tiny company and developing the property into a mine would require $2-5 B in investment. Before this ever happens a PEA and feasibility study would need to occur and investors with deep pockets brought on board. A decade from now Haig Inlet project could be underway.
Canada is a small fry in the world of iron ore producers, ranking 9th just behind the US. In 2011, Canada produced 37 M metric tonnes, about 1% of the world total. With 20 iron ore projects potentially being developed in the next decade Canada could well move up the ranks of iron ore producers.