Toronto, Ontario-based mining company Labrador Iron Mines Holdings Limited (LIM) reported Monday that during the quarter and six months ended September 30, 2010 the company invested $2,014,537 and $3,294,549, respectively, in its mineral properties, and also invested $3,401,634 and $10,204,731, respectively, in property, plant and equipment. The substantial increase in investment in property, plant and equipment was due to the significant investment in processing equipment and rail spur line and to procurement and commencement of construction of the processing plant for LIM's direct shipping iron ore project in western Labrador.
For the quarter ended September 30, 2010 LIM reported a net loss of $897,421 compared to a net loss of $530,273 during the same period in the prior year. For the six months ended September 30, 2010 the company reported a loss of $1,512,110 compared to a loss of $816,997 for the same period in the prior year.
Mine site preparation at the company's James Mine has commenced with the development of the mine haul road and clearing and grubbing of the entire mining site almost complete, and exposing the ore body. Development of the first production bench in the mine is expected to follow shortly.
As a result of recent progress, the company believes it is on track to substantially complete construction of its processing plant and accommodation camp by the end of calendar 2010 and to commence production activities in April 2011. LIM is currently targeting production of about 2 million metric tons (mt) of iron ore in calendar 2011, which assumes completion of construction, plant commissioning and a satisfactory start up of mining operations in the second quarter of calendar 2011.