Labrador Iron Mines Holdings Limited (TSX:LIM) has reported a new resource estimate for its Denault deposit, located in Quebec, about 6 km northwest of the town of Schefferville.
The new measured and indicated resource estimate of 6.4 million tonnes is a significant increase over the previous historical estimate of 3.7 million tonnes and includes a new mineralized zone discovered during the 2010 exploration program.
Commenting on the resource estimate at the Denault deposit, John F. Kearney, Chairman and CEO of Labrador Iron Mines said, "This is a particularly encouraging result from Denault which is one of the properties in Quebec that was acquired by LIM in 2009. Our exploration programs have confirmed not only the reliability of the historical resource estimates but have identified previously unknown mineralization that has significantly increased the total resource at Denault."
Denault is part of a Mining Lease covering 2,816 hectares in the Province of Quebec in which LIM holds a 100% exclusive operating interest through its wholly-owned subsidiary Schefferville Mines Inc. ("SMI"). SMI also holds 257 Mining Titles covering 10,613 hectares in the Province of Quebec.
The Denault deposit is located about 10 km from LIM's new Silver Yards beneficiation plant and, subject to permitting, will be included in Stage One of LIM's planned DSO iron ore operations.
The new estimate, prepared in accordance with NI 43-101, has almost doubled the historical resource (not NI 43-101 compliant) previously estimated by the Iron Ore Company of Canada (IOC) prior to 1982. The Denault deposit includes a total measured and indicated resource of 6.38Mt @ 54.8% Fe and 8% SiO2. The new resource also includes manganiferous iron ore resources with Mn grades >3.5% totaling 1.7Mt @ 52.1% Fe, 6.8% Mn and 5.3% SiO2 in the measured and indicated categories.
Source: Labrador Iron Mines Holdings Limited