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Canada

Houston Project

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Overview

Mine TypeOpen Pit
StagePermitting
Commodities
  • Iron Ore
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock
SnapshotThe Houston Project consists of the Houston 1, 2 and 3 deposits located in Newfoundland and Labrador and the adjacent Malcolm deposit located just over the provincial border in Quebec.

The Houston 1 and 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 mine life, following permitting.

The Houston Project is an open pit direct shipping iron ore project, on which an updated, independent Preliminary Economic Assessment was completed in February 2021 and demonstrated production of 2 Mdmt of DSO per year.

Labrador Iron Mines Ltd. is seeking to advance development of the Houston Project through a number of initiatives, with the objective of completing, subject to financing, a Preliminary Feasibility Study (PFS). Completion of a PFS is considered an important step in arranging project financing and in negotiating an off-take agreement for the Houston Project.

Owners

SourceSource
CompanyInterestOwnership
Labrador Iron Mines Holdings Ltd. 52 % Indirect
Labrador Iron Mines Holdings Limited (LIMH) holds approximately 52% of the shares of Labrador Iron Mines Limited (LIM) and LIM's wholly-owned subsidiary Schefferville Mines Inc. (SMI).

LIM directly holds the group’s iron properties located in the province of Newfoundland and Labrador and SMI directly holds the group’s iron properties located in the province of Québec.

On March 17, 2023, LIMH entered into an amalgamation agreement with its majority owned subsidiary, LIM, whereby, the Company will acquire all of the shares of LIM that it does not currently own.

As of June 30, 2024, the LIMH is authorized to complete the amalgamation, but has not yet done so. The LIMH currently holds approximately 52% of LIM.

Contractors

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Deposit type

  • Banded iron formation

Summary:

The Houston Project is located within the Knob Lake Iron Range, which is located on the western margin of the Labrador Trough adjacent to Archean basement gneisses. The Labrador Trough, also known as the Labrador-Québec Fold Belt, extends for more than 1,000 km along the eastern margin of the Superior craton from Ungava Bay to Lake Pletipi, Québec. The belt is approximately 100 km wide in its central part and narrows considerably to the north and south. The Knob Lake Iron Range consists of tightly folded and faulted iron formation exposed along the height of land that forms the boundary between Québec and Labrador. At least 45 hematite-goethite iron deposits have been discovered within the Knob Lake Iron Range in an area 20 km wide that extends 100 km northwest of Astray Lake. The iron deposits occur in deformed segments of the iron formation, and iron mineralization of interest in individual deposits varies from one million to more than 50 Mt. The Houston and Malcolm property iron deposits are composed of iron formations of the Lake Superior type. The Lake Superior type iron formation consists of banded sedimentary rocks composed principally of bands of iron oxides, magnetite, and hematite within quartz (chert) rich rock, with variable amounts of silicate, carbonate, and sulphide lithofacies. The Sokoman Formation was formed as chemical sediment under varied conditions of oxidation-reduction potential (Eh) and hydrogen ion concentrations (pH) in varied depth of seawater. The resulting irregularly bedded, jasper bearing, granular, oolite, and locally conglomeratic sediments are typical of the predominant oxide facies of the Superior type iron formations, and the Labrador Trough is the largest example of this type. The earthy bedded iron deposits are a residually enriched type within the Sokoman iron formation that formed after two periods of intense folding and faulting, followed by the circulation of meteoric waters in the fractured rocks. The enrichment process was caused largely by leaching and the loss of silica, resulting in a strong increase in porosity. This produced a friable, granular, and earthy textured iron mineralization. The siderite and silica minerals were altered to hydrated oxides of goethite and limonite. The second stage of enrichment included the addition of secondary iron and manganese, which appear to have moved in solution and filled pore spaces with limonite goethite. Secondary manganese minerals, i.e., pyrolusite and manganite, form veinlets and vuggy pockets. The types of iron mineralization developed in the deposits are directly related to the original mineral facies. The predominant blue granular iron mineralization was formed from the oxide facies of the middle iron formation. The yellowish-brown iron mineralization, composed of limonite-goethite, formed from the carbonate-silicate facies, and the red painty hematite iron mineralization originated from mixed facies in the argillaceous slaty members. The overall ratio of blue to yellow to red iron mineralization in the Schefferville area deposits is approximately 70%:15%:15% but can vary widely within and between the deposits. The Houston Project focusses on iron mineralization that is amenable to potential production of lump and sinter products by dry sizing only . Historically, this mineralization was categorized by IOC based on chemical, mineralogical, and textural compositions summarized as follows: • The blue ores, which are composed mainly of the hematite and martite minerals, are generally coarse grained and friable. They are usually found in the middle section of the iron formation. • The yellow ores, which are made up of the limonite and goethite minerals, are located in the lower section of the iron formation in a unit referred to as the silicate carbonate iron formation (SCIF). • The red ore is predominantly a red earthy hematite. It forms the basal layer that underlies the lower section of the iron formation. Red ore is characterized by its clay and slate-like texture.

Reserves

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Mining Methods

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Comminution

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Processing

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Production

CommodityProductUnitsAvg. AnnualLOM
Iron Ore Lump M dmt 0.66.8
Iron Ore Fines M dmt 1.416
Iron Ore Lump & Fines M dmt 223

Operational metrics

Metrics
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Daily ore mining rate  ....  Subscribe
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Daily processing rate  ....  Subscribe
Daily processing capacity  ....  Subscribe
Annual ore mining rate  ....  Subscribe
Annual mining capacity  ....  Subscribe
Annual processing capacity  ....  Subscribe
Stripping / waste ratio  ....  Subscribe
Waste tonnes, LOM  ....  Subscribe
Ore tonnes mined, LOM  ....  Subscribe
Total tonnes mined, LOM  ....  Subscribe
* According to 2020 study.

Production Costs

CommodityUnitsAverage
Cash costs (sold) Iron Ore USD  ....  Subscribe
Assumed price Iron Ore USD  ....  Subscribe
* According to 2020 study / presentation.

Operating Costs

CurrencyAverage
OP mining costs ($/t mined) CAD  ....  Subscribe
Processing costs ($/t milled) CAD  ....  Subscribe
G&A ($/t milled) CAD  ....  Subscribe
Total operating costs ($/t milled) CAD  ....  Subscribe
* According to 2020 study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M CAD  ......  Subscribe
Sustaining CapEx $M CAD  ......  Subscribe
Closure costs $M CAD  ......  Subscribe
Total CapEx $M CAD  ......  Subscribe
OP OpEx $M CAD  ......  Subscribe
Processing OpEx $M CAD 74
Transportation (haulage) costs $M CAD 109
G&A costs $M CAD 245
Total OpEx $M CAD  ......  Subscribe
Mining Taxes $M CAD  ......  Subscribe
Royalty payments $M CAD  ......  Subscribe
Gross revenue (LOM) $M CAD  ......  Subscribe
Net revenue (LOM) $M CAD  ......  Subscribe
EBITDA (LOM) $M CAD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M CAD  ......  Subscribe
After-tax Cash Flow (LOM) $M CAD  ......  Subscribe
Pre-tax NPV @ 10% $M CAD  ......  Subscribe
Pre-tax NPV @ 8% $M CAD  ......  Subscribe
After-tax NPV @ 10% $M CAD  ......  Subscribe
After-tax NPV @ 8% $M CAD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Required Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNamePhoneProfileRef. Date
....................... Subscription required ....................... Subscription required ........... Subscription required Aug 29, 2024
....................... Subscription required ....................... Subscription required Subscription required Nov 21, 2024

Total WorkforceYear
...... Subscription required 2020

Aerial view:

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