A New DSO Iron Ore Producer in Labrador

Labrador Iron Mines (?LIM?) Schefferville Projects consist of 20 major DSO deposits lying along a 120 km strike length in both the provinces of Newfoundland and Labrador and in Quebec. The town of Schefferville, Quebec lies close to the middle of this 120 km strike. LIM?s various properties comprise twenty different iron ore deposits which were part of the original Iron Ore Company of Canada (?IOC?) direct shipping Schefferville operations conducted from 1954 to 1982 and formed part of the 250 million tons of historical reserves and resources previously identified by IOC. LIM intends to develop all these resources in five separate stages. The first four stages will see the various deposits treated in three beneficiation plants, to be built adjacent to several of the deposits that comprise the Central, South Central and North Central Zones. The final stage is not yet planned but will likely involve a fourth plant. A Feasibility Study has not been completed on any of these Projects. LIM plans the development and mining of the various deposits in separate Stages. It should be noted that only the James and Redmond deposits have been permitted. All other deposits require environmental assessment and permitting. Only the James and Redmond deposits have been subject to detailed mine design. The Houston deposit has had preliminary mine design carried out. All other deposits will require detailed mine design when further geological data is collected and compiled. Detailed metallurgical testwork has been carried out on blue ore from James, Houston, Redmond and Knob deposits and to a more limited extent on yellow and red ores from these deposits. Only limited review work has been carried out on the high-silica blue ores. All of this work will be needed to be complete to confirm the final process routes. Additionally some metallurgical work will be required to be conducted on each of the other deposits to characterize their metallurgical response and to confirm expected recovery levels. Detailed mine design and metallurgical testwork has been carried out on those deposits that will form the basis of production for the initial years but further exploration, testwork and design is required for all the remaining resources. The first plant at Silver Yards and mine construction at James are now complete and initial production is expected in the spring of 2011. Metallurgical testing of the first stage deposits has established that the ore can be successfully upgraded to marketable standards. Based on the current testwork, a program of plant enhancement on the Silver Yards plant is now planned with the objective to increase both the plant throughput and recovery. Production of direct shipping lump ore and sinter fines is forecast at around 1.5 million tonnes in 2011 and, based on current and historical resources, growing to approximately 5 million tonnes in 2015 and thereafter. Production from the first four stages is expected to continue at about this rate through to about 2028.