Champion Iron disappointed by CN calling off railway FS

2013-02-14 09:07 ET - News Release

 

Mr. Tom Larsen reports

CHAMPION RESPONDS TO CN'S DECISION TO SUSPEND FEASIBILITY STUDY ON A PROPOSED RAIL LINE TO SERVE THE QUEBEC AND LABRADOR IRON ORE DISTRICTS

Further to the decision by the Canadian National Railway Co. released on Feb. 12, 2013, to suspend the multiuser railway feasibility study, Champion Iron Mines Ltd. had considered the CN proposal for an integrated rail line and terminal handling facility to service the entire Quebec/Labrador iron ore range to be one of its three rail transport options.

Prior to joining the CN feasibility study process, Champion commissioned Rail Cantech who successfully completed a feasibility study for a private rail line from the Company's Consolidated Fire Lake North Project to the Pointe Noire wharf at the Port of Sept-Iles where Champion has reserved sufficient loading and storage capacity. Champion will now re-focus its efforts on a proposed rail line southbound to Pointe Noire and reactivate discussions with relevant parties that can assist the Company in the construction, financing and operation of this more flexible and highly economic alternative.

SUCYN