Labrador Iron Mines Holdings Ltd (LBRMF)

[Super Dan]

they said in the PEA 18 months contruction then after we will have to wait very long “The strong results of this independent PEA support LIM’s plan to resume iron ore production from it’s next phase
Houston Project, with low re-start capital and demonstrated robust economics, at a time when the global iron ore
markets are strong”, commented John Kearney, Chairman and Chief Executive Officer. “The PEA forecasts
the production of 2 million tonnes of high grade (62%), direct shipping iron ore, per year, for 12 years”.
“The Houston Project is considered ready for construction as the first stage deposits have already undergone
extensive regulatory review and permitting approval. With an 18 month construction period, the Houston Project
has very low technical risk, with only a short gravel road and rail siding as the principal construction components”,
noted John Kearney.
“As expected, the project economic results are most sensitive to the iron ore price and less sensitive to operating
and capital costs. The initial capital cost is low at US$65 million, and the initial capital intensity at only US$33 per
tonne of annual production is low by industry standards. The PEA used a 36-month trailing average iron ore price
of US$90/dmt, which is about 45% of the current market price. At current market prices the Houston project would
yield spectacular financial results”, added John Kearney.