TORONTO (miningweekly.com) – Canadian miner Labrador Iron Mines (LIM) on Monday announced a maiden inferred resource of 620-million tonnes grading 31.8% iron for its fully owned Elizabeth No 1 taconite project in western Labrador.

The project, which was located about 4 km west of LIM's currently producing James mine, alongside existing infrastructure, also held significant exploration upside potential of between 350-million and 600-million tonnes at the Elizabeth No 2 project, which was oriented in a parallel zone located immediately to the south-west of Elizabeth No 1.

LIM said its first foray into taconite exploration over the past two years had paid off, resulting in the first independent National Instrument 43-101-compliant inferred mineral resource estimate for the resource, which measured about 4 km long and was made up of magnetite- and hematite-dominant zones.

“There is significant potential for resource expansion, as the deposit remains open along strike to the north west and south east,” the company said in a statement.

In 2011 and 2012, LIM identified two parallel deposit areas at the Elizabeth project by conducting airborne and ground geophysics over the region. LIM's exploration drilling in 2012 was successful in defining an inferred mineral resource at Elizabeth No 1 by completing five, HQ-sized diamond drill holes totalling 1 728 m.

Airborne and ground geophysics have also highlighted the Gagnon taconite target, a few kilometres from the Elizabeth project, for further exploration.

"There is outstanding potential for additional opportunities situated in close proximity to our existing infrastructure. While LIM will remain primarily a producer of direct shipping iron-ore, the taconite targets represent a potential additional strategic value component on our extensive iron-ore assets in the Labrador Trough,” LIM president and COO Rod Cooper said.