In a subsequent project update on October 5, 2008, Consolidated Thompson reported that its current cash position of C$260 million would carry project construction through April 2009 and that additional financing requirements are expected to total C$100 million. Debt financing discussions were at an advanced stage, the company said, with indicative terms sheets expected by mid-October. The company currently has no debt.

Revised mine and mill capital expenditures for the expanded project are now estimated at C$486 million, and cash operating costs are estimated at US$24.18/mt of concentrate during the first five years of operation.

Final permitting on the 31-km rail spur that will service the project was also expected to be completed in October, and advanced discussions were being held concerning the financing, construction and operation of the line.

A construction camp has been completed and work is on-going on mine development, mill construction, and at the tailing storage facility. Haul road preparation, mining of waste (which is providing aggregate for construction), excavation for the primary crusher and pouring of concrete foundations for mill buildings are nearing completion, while erection of structural steel for the concentrator has commenced.

The Bloom Lake property is located in Normanville township, 400 km north of Sept-Îles and about 10 km north of ArcelorMittal’s Mount-Wright iron ore mining operation. In-pit proven and probable reserves total 579.6 million mt, grading 30% total iron at a strip ratio of 0.97:1 waste-to-ore.