Given the economics Champion's board has approved an initial budget of C$68 million to advance the project during the remainder of 2019, with the company expecting to secure additional funding sources for the project before mid-2020.
Champion started the current quarter with C$153 million cash on hand.
Late last month it unveiled a $185 million share offering and a commitment from ScotiaBank for a fully underwritten US$200 million credit facility, with the funding initiatives revealed as Champion said it was to acquire the 36.8% balance of Bloom Lake it didn't own for C$211 million.
The expansion now on a development footing will double output to an average of 15 million tonnes per annum of 66.2% iron in concentrate.
The news from Champion comes in another good week for iron ore producers, with Credit Suisse suggesting ongoing tightness in the market means its forecasts of US$110/t in the third quarter and $95/t in the fourth quarter "may be too low".
Champion's feasibility work is based on "$83.9/t P65 iron ore price CFR China".
Shares in Champion were trading at A$3.19 this week, capitalising the company at nearly $1.4 billion.
The stock has tripled in market value since December.