Quebec, Canada-based Labrador Iron Mines Holdings Limited (LIM) Thursday reported new resource estimates, prepared in accordance with NI 43-101, for its 100 percent owned Houston deposit located close to the town of Schefferville.
The new resource estimates for Houston, combined with the previously announced resource estimates for the James and Redmond deposits brings the total Measured and Indicated (NI 43-101 compliant) resource for LIM's Stage 1 deposits to 25.71 million tonnes at a grade of 58.5 percent Fe.
LIM's resource estimates for the Houston deposit total 14.68 million tonnes at a grade of 59.3 percent iron in the Measured and Indicated categories and 1.5 million tonnes of resources have been classified in the Inferred category. A further 0.831 million tonnes of manganiferous iron resources have been classified in the Measured and Indicated categories.
The resource estimates for the Houston deposit are based on 4,181 metres of drilling in 63 holes, 554 metres of trenching and 1,449 samples carried out by LIM, in addition to 4,418 metres of drilling in 84 holes, 6,900 metres of trenching and 3,571 samples previously carried out by IOC and are shown in the following tables.
The new estimates show a significant increase in tonnage over the historical resources (not NI 43-101 compliant), previously estimated by the Iron Ore Company of Canada (IOC) prior to 1982.
New Resource Estimate Houston Deposit |
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(at 50 percent Fe cut-off) |
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Category |
New resource |
Grade ( percent Fe) |
Historical resource |
Measured |
8.029 |
59.7 |
|
Indicated |
6.656 |
58.8 |
|
Total M+I |
14.684 |
59.3 |
9.114 |
Inferred |
1.498 |
57.0 |
|
Manganiferous |
0.831 |
54.3 |
|
"The new resource estimates for Houston have indicated a substantial increase in tonnage over the historic estimates for this deposit," said John F. Kearney, Chairman and CEO of Labrador Iron Mines said, "This is of particular significance as the increase will extend the expected life of our Stage 1 project. The Houston deposit remains open to the northwest and southeast and to depth."
The resource estimates have been prepared under the supervision of Terence N. McKillen, P.Geo, in accordance with NI 43-101. The classification of resources was completed using results of drilling and trenching carried out by LIM during the 2006, 2008 and 2009 field seasons, which comprised twinning, in-fill and step-out drilling and trenching, as well as drill and trench data previously conducted by IOC. The resource estimates were prepared in-house by LIM and are therefore not independent.