Fiscal year ends with strong cash position and no debt
TORONTO, June 30 /CNW/ - Labrador Iron Mines Holdings Limited (TSX: LIM)
announces that the 2009 field work season is underway at its Schefferville
iron ore project in Western Labrador. The program is focused on mine planning
for production start-up targeted for mid-2010.
2009 Field Program
The 2009 program which commenced on June 3, 2009 will comprise a total of
6,000 metres of drilling, including some infill drilling identified from the
2008 program and comprehensive drilling on other zones that were not
substantially drilled in 2008. In addition, a 3,000 metre trenching and
sampling program will be carried out in conjunction on these areas to
determine the width of the various mineralized zones.
The data will provide confirmation and update the historical resource
base previously estimated by Iron Ore Company of Canada. Based on the new data
generated during the 2009 program combined with the results from the 2008 work
program, a NI 43-101 compliant resource estimate will be compiled.
A second program of hydro-geological drilling and testing will be carried
out in 2009 to confirm expected flow rates and water quality from future
mining operations. This work will enable dewatering plans including perimeter
wells to be properly designed and installed in a timely manner.
Metallurgical testwork will continue during the summer aimed at improving
expected recovery levels from all size fractions of mined material while
maintaining the high iron and low impurity levels in the final product. This
work will be associated with the final design of the process flow-sheet and
selection of suitable items for the plant.
Upon completion of this testwork, together with the remaining exploration
and hydro-geological studies being carried out in 2009, the data will be
incorporated into the final engineering and cost study. This will allow for
orders to be placed with suppliers and contractors for infrastructure, mining
and beneficiation facilities in sufficient time to ensure they are available
to meet the mid-2010 commencement of production schedule.
On-going environmental baseline and field measurements related to both
the current and future application areas will be continued. In early March
2009, the Minister of Environment and Conservation requested some additional
information to supplement the Company's Environmental Impact Statement (EIS)
submitted to the Minister in December 2008. This additional information is now
being compiled and is expected to be submitted to the Minister shortly.
Following this submission there will be a 50 day period for public comment and
the Minister will then have up to a further 20 days to decide upon the
acceptability of the EIS. Upon release of project approval, the Company will
submit the applications for the necessary operating permits and licenses.
Assuming the relevant permits and licenses are issued during the third
quarter of the 2009 calendar year, the Company is currently planning, subject
to on-going reviews of future iron ore prices, to commence initial site
construction during the fall of 2009. This program will enable LIM to install
and test its major transport facilities ahead of commercial production in
Fiscal year end results
The Company also reports that it has filed its audited financial
statements and MD&A for the fiscal year ended March 31, 2009. The reports are
available under the Company's profile at www.sedar.com and on its website at
At March 31, 2009, the Company had cash and cash equivalents of $35.2
million. Working capital was a healthy $34.7 million with no borrowings or
The estimated capital cost to put the first phase of the Schefferville
Project into production has not yet been determined pending acceptance of the
EIS and receipt of project approval, completion of the engineering study and a
final production decision on the scale of operations to be conducted from 2010
onwards. The Company believes it has sufficient funding to undertake its
planned exploration and development programs during the year and place the
first phase of its Schefferville Area direct shipping iron ore project in
Western Labrador into production.
Mr. Terence McKillen, Executive Vice President for the Company and a
Qualified Person under NI 43-101 has approved the technical content of this
About Labrador Iron Mines Holdings Limited
Labrador Iron Mines Holdings Limited was established to develop direct
shipping iron ore deposits on properties in which it holds interests in the
Labrador Trough, Canada's main iron ore producing region, in the province of
Newfoundland and Labrador near Schefferville, Quebec. The Company's properties
are part of the historic Schefferville area iron ore district from which over
150 million tons of direct shipping iron ore was previously mined by the Iron
Ore Company of Canada from 1954 to 1982. Labrador Iron Mines is working to
reactivate direct shipping iron ore operations in the region with plans to
commence production in the second quarter of 2010.
Some of the statements contained herein may be forward-looking statements
which involve known and unknown risks and uncertainties. Without limitation,
statements regarding potential mineralization and resources, exploration
results, and future plans and objectives of the Company are forward looking
statements that involve various degrees of risk. The following are important
factors that could cause the Company's actual results to differ materially
from those expressed or implied by such forward looking statements: changes in
the world wide price of mineral commodities, general market conditions, the
uncertainty of future profitability and access to additional capital, risks
inherent in mineral exploration and risks associated with development,
construction and mining operations, delays in obtaining or failures to obtain
required governmental, environmental or other project approvals. Caution
should be exercised on placing undue reliance on forward looking information.
For further information:
For further information: please view the Company's website at
www.labradorironmines.ca or contact: Donna Yoshimatsu, Vice-President,
Investor Relations, Tel: (647) 728-4119, E-mail: