TORONTO (miningweekly.com) – Canada’s Labrador Iron Mines (LIM) on Wednesday reported that it expected to achieve its output guidance when the tenth shipment of iron-ore leaves the harbour, bringing the total output to 1.7-million wet metric tonnes (wmt) for its 2013 operating year.

Ship 9, the Myrtalia, departed from the port of Sept-Îles on November 22, carrying about 169 000 wmt of 58% iron sinter product. Ship 10, the Anangel Sailor, was scheduled to depart the port on Wednesday, carrying about 100 900 wmt of 62% iron lump product.

About 57 000 t of sinter and 40 000 t of lump iron-ore remain in the port, which could not be shipped in 2013 because of freezing conditions in the harbour.

LIM had now concluded its third operating season, as mining, processing and railing activities all wrapped up in November.

LIM said its exploration programme would continue through the winter months with five diamond and two reverse-circulation drill rigs on site. To date, LIM had drilled about 10 000 m, focusing mainly on the Howse, Houston and Gill deposits. The full 14 000 m programme was expected to be complete before year-end.

The company, billed as Canada’s youngest iron-ore miner, operates between April and November, with a planned winter closure from December to March.

Detailed planning for the upcoming 2014 operating season was now under way and operations would continue to be focused on its Stage 1 deposits, including the James mine and other smaller satellite deposits and stockpiles, all located within a 15 km radius of the Silver Yards processing plants.

An assessment of the remaining life of James mine had started to evaluate the economics of extraction in 2014 of the remaining ore in the bottom of the openpit and the down-dip depth extensions of some higher-grade sections.

Last month, LIM said it had slightly narrowed its quarter-on-quarter loss, as higher iron-ore prices were offset by lower grades from its James mine, and by higher ocean freight costs.

LIM was currently evaluating an interim plan to haul Houston ore to the Silver Yards process and rail loading facilities in 2014 as a first-stage, lower initial capital approach for developing the Houston deposit.

The Houston and adjacent Malcolm deposits were estimated to contain a combined 40.6-million tonnes grading 57.6% iron. When in full production, the Houston project could produce about 2.5-million tonnes a year of iron-ore.

However, the company would only develop the project subject to financing, and it was currently evaluating financing alternatives or offtake arrangements, and/or other potential strategic options, to fund the planned first phase and related transportation expenditures.

The company also revealed that it was seeking to pursue strategic initiatives aimed at permanent structural reductions in operating costs and revenue deductions.

In resuming its planned seasonal mining operations in the spring of 2014, LIM would incur regular winter stand-by costs from December to March, and seasonal start-up mining, processing, rail and transportation and site administration expenses for the months of April and May, before receiving payment for its first shipment, expected in June 2014.

This would require working capital of about $20-million to $30-million to fund these operating expenses.