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Canada

Houston Project

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Overview

Mine TypeOpen Pit
StagePreliminary Economic Assessment
Commodities
  • Iron Ore
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock

Owners

SourceSource
CompanyInterestOwnership
Labrador Iron Mines Holdings Ltd. 52 % Indirect
Labrador Iron Mines Limited (LIM) is majority owned (approximately 52%) by LIMH and Schefferville Mines Inc. (SMI) is a wholly owned subsidiary of LIM. 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. Houston Iron Royalties Limited (HIRL) holds the right to a 2% royalty on sales of iron ore from the Houston and Malcolm properties.

On March 17, 2023, Labrador Iron Mines Holdings Limited (OTC Pink: LBRMF) (the "Company" or "LIMH") entered into an amalgamation agreement with its majority owned subsidiary, Labrador Iron Mines Limited ("LIM"), whereby, the Company will acquire all of the shares of LIM that it does not currently own. The Company currently holds approximately 52% of LIM.

Contractors

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Deposit type

  • Banded iron formation

Summary:

The LIM 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 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 LIM’s more advanced deposits with 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

Crushers and Mills

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Processing

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Production

CommodityUnitsAvg. AnnualLOM
Iron Ore M dmt 223
All production numbers are expressed as lump & fines.

Operational metrics

Metrics
Daily mining rate  ....  Subscribe
Daily ore mining rate  ....  Subscribe
Daily processing rate  ....  Subscribe
Daily processing capacity  ....  Subscribe
Annual mining rate  ....  Subscribe
Annual ore mining rate  ....  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 TitleNamePhoneRef. Date
....................... Subscription required ....................... Subscription required ........... Subscription required Nov 13, 2023

Total WorkforceYear
...... Subscription required 2020

Aerial view:

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