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Black Iron research and analysis

Contributed by eResearch

By Bob Weir

Black Iron has retained WorleyParsons Services Canada Ltd. to prepare a Feasibility Study (FS) for the Company’s Shymanivske iron ore project in Kryviy Rih in central Ukraine.

The study, which is expected to be ready in Q4/2012, will build on the Preliminary Economic Assessment (PEA) that was published in mid-December 2011.

The main purpose of the study is to further refine the preferred mine-to-port flow sheet with accuracy on both operating and capital cost estimates of +/- 15%, in support of raising the capital required to bring the project into commercial operation.

WorleyParsons will be responsible for the FS and for an NI 43-101 Technical Report for the implementation of the project. This will include the development of the open-pit mining operation, the ore-processing facilities, rail-plus-port tie-ins, and supporting site infrastructure to produce initially about 7.5 MT per annum of final product.

THE COMPANY

Black Iron Inc. is an iron ore exploration and development company, with two 100%-owned projects - Shymanivske and Zelenivske - near Kryvyj Rih in central Ukraine. See map below.

Shymanivske has an iron ore mining extraction permit, good until 2024, over 2.56 square kilometres of land. The project is surrounded by other operating mines, including ArcelorMittal’s substantive iron ore complex.

Black Iron also has an exploration permit for the adjacent Zelenivske iron ore project (3.36 square kilometres of land) until 2014.

RECOMMENDATION AND TARGET PRICE

In our July 19, 2011 Initiating Report on Black Iron Inc., eResearch set a Speculative Buy rating with a 12- month Target Price of $1.80. The Rating and Target Price remain intact. The shares are suitable only for risktolerant investors.

eResearch Analysts:
Yuri Belinsky, B.A., M.A.
Bob Weir, B.Sc., B. Comm, CFA