Six Iron Ore Shipments (1,050,000 Tonnes) to Date in 2013
TORONTO, Sept. 19, 2013 /CNW/ - At its Annual Meeting of Shareholders ("AGM")
held in Toronto, Ontario on September 18, 2013, Labrador Iron Mines ("LIM" or
the "Company") (TSX: LIM) provided an operations update of its direct shipping
iron ore ("DSO") mines and projects in the Schefferville/Menihek area of the
Labrador Trough, with the following highlights:
-- LIM reported the completion of the Joint Venture Agreement with
Tata Steel Minerals Canada ("TSMC") for the exploration and
development of LIM's Howse Deposit.
-- For the fiscal second quarter ending September 30, 2013, LIM
expects to report the sale of four iron ore shipments (Ships 3
- 6) totalling approximately 700,000 wet metric tonnes ("wmt")
of 62% Fe lump and sinter product. Three iron ore shipments
were completed in July and August 2013 and the fourth shipment
(Ship 6) is awaiting loading at the Port of Sept-Îles.
-- LIM's four shipments during the quarter should benefit from
more favourable iron ore market conditions, where the average
iron ore price on the Platts Index has been above US$125 per
tonne (CFR China 62% Fe).
-- LIM's 2013 exploration program is budgeted at $8 million to
drill approximately 14,000 metres ("m") on a number of key
projects including the Howse, Gill and Houston Deposits.
Joint Venture with Tata Steel Minerals Canada
LIM reported that the previously-announced Joint Venture Agreement with TSMC
for the exploration and development of LIM's Howse Deposit has been completed.
LIM has sold a 51% participating interest in the Howse Property to Howse
Minerals Limited ("HML"), a wholly-owned subsidiary of TSMC, for a total cash
consideration of $30million.
As part of the Joint Venture, LIM is conducting a $5 million exploration
program on the Howse Property over the course of the 2013 calendar year. The
exploration program comprises a targeted 70 holes with up to 10,000 m of
drilling. The objective of the drill program is to convert the historical
resources, currently 28 million tonnes at a grade of 58% Fe (natural basis) to
National Instrument 43-101 ("NI 43-101") compliant mineral resources by spring
2014 and to collect metallurgical, geotechnical, hydrogeological, and
hydrology information to advance Howse towards production.
Following the completion of the Howse exploration program and the calculation
of a new NI43-101 resource, HML will contribute the next $23.5 million to
the Joint Venture and thereby increase its participating interest in the Howse
Deposit to 70%. It is currently planned to complete a feasibility study by
July 2014, with a target for commencement of mine development in 2015 and
commercial production in 2016.
Details of the Joint Venture Agreement with TSMC can be found in LIM's press
release dated September 18, 2013.
Iron Ore Sales
For the quarter ending September 30, 2013, LIM expects to report the sale of
four iron ore shipments (Ships 3 - 6) totalling approximately 700,000wmt of
62% Fe lump and sinter products, outlined as follows:
-- Ship 3, SamJohn Dream, departed the Port in mid-July carrying
approximately 186,500 wmt of sinter;
-- Ship 4, Hydra Warrior, departed the Port in early August
carrying approximately 175,000 wmt (combined cargo of 128,000
tonnes of sinter and 47,000 tonnes of lump);
-- Ship 5, Cape Althea, departed the Port at the end of August
carrying approximately 175,000 wmt of sinter; and,
-- Ship 6, Cape Northville, is currently docked at the Port
awaiting loading with approximately 165,000 wmt of sinter.
During the first quarter ended June 30, 2013, LIM completed its first two
shipments of iron ore totaling 328,000 dry tonnes (approximately 351,500 wmt),
which brings total shipments in 2013 to date to approximately 1,050,000 wmt.
LIM is working to complete four more shipments during the balance of the year
to achieve its target of 1.7 million tonnes of iron ore production in 2013.
In addition to the $5 million Howse exploration program, LIM has budgeted $3
million for exploration drilling mainly on the Gill and Houston Deposits.
Gill is located less than one kilometre north of Silver Yards and is expected
to provide ore feed to the process plant in future operating years. The Gill
Deposit currently has a historic resource of 4.1 million tonnes at a grade of
56% Fe (dry basis).
Drilling will also be carried out on the Houston Deposits, which will test for
potential extensions (Houston remains open along strike) and to collect
further metallurgical information.
A copy of LIM's AGM presentation can be found at:
MATTERS OF THE AGM
Election of Directors
All of the nominees for election as director: Messrs. JohnKearney,
WilliamHooley, Matthew Coon Come, EricCunningham, Gerry Gauthier, Richard
Lister and Danesh Varma, were unanimously re-elected as directors by a show of
hands, to serve until the next annual general meeting of shareholders or until
their successors are elected or appointed. The detailed results of the proxies
submitted for the vote on the election of directors are as follows:
|Director | Votes |% of Votes| Votes |% of Votes|
| | | | | |
| | For | For |Withheld| Withheld |
|John F. Kearney |41,376,609| 98.00% |844,103 | 2.00% |
|D. William Hooley|41,376,409| 98.00% |844,303 | 2.00% |
|Matthew Coon Come|41,988,442| 99.45% |232,270 | 0.55% |
|Eric Cunningham |41,976,156| 99.42% |244,556 | 0.58% |
|Gerry Gauthier |41,994,742| 99.46% |225,970 | 0.54% |
|Richard Lister |41,989,442| 99.45% |231,270 | 0.55% |
|Danesh Varma |41,376,929| 98.00% |843,783 | 2.00% |
Re-Appointment of Auditors
McGovern Hurley Cunningham LLP Chartered Accountants were re-appointed as the
Company's Auditors for the current year and the directors were authorized to
fix the remuneration of the Auditors.
The formal report on voting results with respect to all matters voted upon at
the AGM has been filed on SEDAR at www.sedar.com.
About Labrador Iron Mines Holdings Limited (LIM)
Labrador Iron Mines (LIM) is Canada's newest iron ore producer with a
portfolio of DSO iron ore operations and projects located in the prolific
Labrador Trough. Initial production commenced at the James Mine in June
2011, and through 2012, iron ore sales have totalled 2.0 million dry tonnes in
13 shipments into the Chinese spot market.
Now in its third year of operations, LIM is targeting the sale of 1.7 million
tonnes of iron ore products in 10shipments in 2013.
The James Mine is connected by a direct rail link to the Port of Sept-Îles,
Québec. The operation also benefits from established infrastructure including
the town, airport, hydro power and railway service. Starting with the James
Mine and leading to the development of the expanding Houston flagship project,
LIM's objective is to provide shareholders with long-term value with a plan to
increase production towards five million tonnes per year from its iron ore
deposits in Labrador and Quebec, all within 50 kilometres of the town of
LIM is currently the only independently-owned Canadian iron ore producer
listed on the Toronto Stock Exchange and trades under the symbol LIM.
The terms "iron ore" and "ore" in this document are used in a descriptive
sense and should not be considered as representing current economic viability.
The historical resources estimates in this Press Release are based on work
completed and estimates prepared by Iron Ore Company of Canada ("IOC") prior
to 1983, they are not current and were not prepared in accordance with
National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI
43-101"). The IOC classification reported all resources (measured, indicated
and inferred) within the total mineral resource. A qualified person has not
done sufficient work to classify the historical estimates as current mineral
reserves. These historical results provide an indication of the potential of
the properties and are relevant to ongoing exploration. However, the
historical estimates should not be relied upon.
Forward Looking Statement:
Some of the statements contained in this Press Release may be forward-looking
statements which involve known and unknown risks and uncertainties relating
to, but not limited to, the Company's expectations, intentions, plans and
beliefs. Forward-looking information can often be identified by
forward-looking words such as "anticipate", "believe", "expect", "goal",
"plan", "intend", "estimate", "may" and "will" or similar words suggesting
future outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions or statements about future events or performance.
Forward-looking information may include reserve and resource estimates,
estimates of future production, unit costs, costs of capital projects and
timing of commencement of operations, and is based on current expectations
that involve a number of business risks and uncertainties. Factors that could
cause actual results to differ materially from any forward-looking statement
include, but are not limited to, failure to establish estimated resources and
reserves, the grade and recovery of ore which is mined varying from estimates,
capital and operating costs varying significantly from estimates, delays in
obtaining or failures to obtain required governmental, environmental or other
project approvals, delays in the development of projects, changes in exchange
rates, fluctuations in commodity prices, inflation and other factors.
Forward-looking statements are subject to risks, uncertainties and other
factors that could cause actual results to differ materially from expected
results. There can be no assurance that the Company will be successful in
maintaining any agreement with any First Nations groups who may assert
aboriginal rights or may have a claim which affects the Company's properties
or may be impacted by the Schefferville Projects. Shareholders and
prospective investors should be aware that these statements are subject to
known and unknown risks, uncertainties and other factors that could cause
actual results to differ materially from those suggested by the
forward-looking statements. Shareholders and prospective investors are
cautioned not to place undue reliance on forward-looking information. By its
nature, forward-looking information involves numerous assumptions, inherent
risks and uncertainties, both general and specific, that contribute to the
possibility that the predictions, forecasts, projections and various future
events will not occur. The Company undertakes no obligation to update publicly
or otherwise revise any forward-looking information whether as a result of new
information, future events or other such factors which affect this
information, except as required by law.
SOURCE Labrador Iron Mines Holdings Limited
For further information, please visit LIM's website
atwww.labradorironmines.ca or contact:
John F. Kearney Chairman and Chief Executive Officer Tel: (647) 728-4105
Rodney Cooper President and Chief Operating Officer Tel: (647) 729-1287 Keren
Yun Vice President, Investor Relations and Communications Tel: (647) 725-0795
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