The James deposit is a northeast dipping elongated iron enrichment deposit striking 330° along its main axis which appears to be structurally and stratigraphically controlled. The stratigraphic units recorded in the James Mine area go from the Denault Formation to the Menihek Formation. The main volume of the ore is developed in the Middle Iron Formation (MIF), and lower portion of the Upper Iron Formation (UIF) both part of the Sokoman Formation.

The iron mineralization consists of thin layers (<10 cms thick) of fine to medium grained steel blue hematite intercalated with minor cherty silica bands <5 cms thick dipping 30° to 45° to the northeast. The James Mineralization has been affected by strong alteration, which removed most of the cementing silica making the mineralization with a sandy friable texture.

The James property comprises three areas of mineral enrichment: the main deposit, a manganese occurrence and a minor and isolated Fe occurrence located ~150 m south of the main deposit. Most of the resources come from the main deposit, which are of direct shipping quality. The main deposit has a total length of approximately 880 m by 80 m wide and 100 m deep of direct shipping grade. It shows low grade in its central part defining two separated highgrade zones: the northern and southern zones.

Magnetic susceptibility of the iron in the James deposit measuring by using the KT-9 Kappameter in outcropping mineralization returned an average value of 1.2x10-3 SI units. The relatively low magnetic nature of mineralization found in the James deposit can be identified as magnetic lows due to the stronger magnetic nature of the surrounding rock.

Open pit mining methods using conventional truck and shovel operations are employed at LIM’s James Mine. The mining rate ranges from 20,000 tpd to 30,000 tpd. Most ore and waste is direct digging. Drilling and blasting is employed approximately 20% of the time. Mining is undertaken using contractor equipment and manpower on a cost-plus basis. Planning and grade control is LIM’s responsibility. Waste is trucked to dumps immediately adjacent to the open pits. Ore is trucked to the Silver Yards vicinity and stockpiled. Mining is typically seasonal, from April to November each year. Ore is generally divided into High Grade, Low Grade and Yellow Ore. High grade ores (>60% Fe) are referred to as Direct Rail Ores (“DRO”). Low grade ores (>50% Fe<60%Fe) are referred to as Plant Feed (“PF”). Yellow ore is blended into the sinter fine product in minor proportions.

LIM employs two separate process streams for mined ore depending on the Fe head grade of the ore mined: a dry and a wet process stream.

The dry crushing and screening process is used to classify the higher grade ore. The wet process (crushing, scrubbing, screening, hydrosizing, magnetic separation and filtration) is used to upgrade the lower grade ore into saleable products.

The dry process is in operation from April to November. The wet process plant is in operation from May to October. The seasonal operation has been dictated by the freezing of finer iron ore products. No chemicals are used in either of the processes.