Name of the Project
Houston iron-ore project.
Location
Labrador Trough region, in eastern Canada.
Project Owner/s
Resource extraction company Labrador Iron Mines Holdings (LIM) and its wholly owned subsidiary Schefferville Mines.
Project Description
A preliminary economic assessment (PEA) has supported LIM’s plan to resume iron-ore production from the next phase of its Houston project, with low restart capital and demonstrated robust economics.
The project comprises the Houston 1, Houston 2 and Houston 3 deposits, in Labrador and the adjacent Malcolm deposit, located just over the provincial border in Quebec.
The Houston 1 and Houston 2 deposits have been permitted and are considered ready for construction. The Houston 3 and Malcolm deposits are planned to come on stream in the second half of the 12-year projected mine life, following permitting.
The project is planned to produce two-million dry metric tonnes of direct shipping ore a year for a total production of 23.4-million dry metric tonnes of product at 62.2% iron over the life-of-mine (LoM). Production is based on an updated, current National Instrument 43-101 mineral resource estimate of 20.5-million tonnes grading 62.7% iron, 7% silicone dioxide, 0.47% manganese, 0.06% phosphorous and 0.62% aluminium oxide in the measured and indicated categories. Inferred resources are estimated at 14.3-million tonnes grading 59.4% iron, 13.7% silicone dioxide, 1.02% manganese, 0.07% phosphorous and 0.83% aluminium oxide. Planned production for the Houston 1 and 2 deposits is based primarily on measured and indicated resources.
Subject to further drilling and analysis, excellent additional exploration potential exists along strike and between the Houston and Malcolm deposits, which could potentially expand the project’s resource base and extend the LoM.
Operations will include conventional openpit truck-and-shovel activities and simple dry crushing and screening for processing.
Potential Job Creation
The project is expected to employ 297 people at its peak, with about 20% of the labour force sourced from local communities.
Net Present Value/Internal Rate of Return
In the base case, the project has an after-tax net present value, at an 8% discount rate, of C$109-million and an internal rate of return of 39%, with payback of 2.6 years.
Capital Expenditure
Initial capital expenditure is estimated at C$86.8-million, including engineering, procurement and construction management and contingency.
Planned Start/End Date
Not stated.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
Roscoe Postle Associates (PEA).
Contact Details for Project Information
LIM, tel +1647728 4117.