Minerals development company London Mining has completed its prefeasibilty study (PFS) at Isua, in Greenland, determining that the project could be built for about $1,74-billion with a 23-year life-of-mine.

The project, with all the supporting facilities necessary, would be able to produce five-million tons a year of pellet feed. It was also shown that a 23-year life-of-mine project could be operated at an average yearly cost of $37/t.

A desk-top scoping study has also been completed, which shows that the economics of the Isua project would be greatly improved if 
the project was doubled to ten-million tons a year.

London Mining will now undertake a PFS on an enlarged operation, which it 
expects to complete during the second quarter 
of 2010.

An operation producing a high-grade, low-impurity, blast furnace pellet feed concentrate is being considered.

If this alternative configuration is selected, the operating cost could be reduced to $27/t,
with an estimated cost of $2,4-billion.

London Mining CEO Graeme Hossie says that the progress demonstrates the com-
pany’s ability to deliver on its stated milestones.

He also reports that the company has started 
with the development of its tailings plant at its flagship Maramapa project, in Sierra Leone.

The tailings will produce 1,5-million tons a year of iron-ore.

The company expects the mine to start up 
in early 2011, with the first shipment of iron-ore concentrate expected in the second quarter of 2011.

Further, Hossie says that the company is making progress with financing for Wadi Sawawin, in Saudi Arabia, and that further drilling could identify increased resources to extend mine life and production.

A bankable feasibility study (BFS) for the project has been completed and submitted to London Mining’s local partners, National Mining Company (NMC) and the Saudi 
government.

During the first quarter of 2010, London Mining continued with further drilling and resource verification in the expectation of the BFS being revised to a 20-year mine life at five-million tons a year capacity.

The company expects a final feasibility study and completion of an updated Joint Ore Reserve Committee-compliant resource to be in place by the end of the second quarter of 2010 and financing secured by the end of 2010.

This will allow for construction to start in 2011, with start-up expected in 2013.

London Mining and NMC are currently in discussions with the Saudi Binladin group 
regarding a joint venture to build, fund and operate the project.

Reorganisation of investment has given London Mining a 28% interest in DMC Consolidated. 
The company converted the $18,5-million loan and its $16,5-million investment in DMC Coal into 28% of the issued share capital of DMC in January this year.

“These milestones demonstrate progress across our projects, which are scalable, have deliverable logistics and can be rapidly developed,” Hossie concludes.

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