labrador iron mines limited · 3 schefferville project labrador iron mines limited • labrador...

IRON ORE IN NORTHWESTERN LABRADOR

Labrador Iron Mines Limited

Bringing Sustainable Development to theSchefferville Area

December 2007

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SCHEFFERVILLE PROJECT LABRADOR IRON MINES LIMITED

This document contains certain forward-looking information which involves known andunknown risks and uncertainties. This forward looking information includes, or may be basedupon, estimates, forecasts, and statements as to management’s expectations with respect to,among other things, the size and quality of the company’s mineral resources, future trends forthe company, progress in development of mineral properties, the issue of permits, futureproduction and sales volumes, capital and mine production costs, transportation and shippingcosts, demand and market outlook for metals, future metal prices and treatment and refiningcharges, general market conditions, access to capital and the financial results of the company.Actual results may differ materially from those expressed or implied by forward lookingstatements. Historical estimates of resources and reserves may not comply in all respectswith the standards contained in National Instrument 43-101 “Standards of Disclosure forMineral Projects” of the Canadian Securities Administrators. Mineral resources that are notmineral reserves do not have demonstrated economic viability. Inferred mineral resources areconsidered too speculative geologically to have economic considerations applied to them thatwould enable them to be categorized as mineral reserves. There is no certainty that mineralresources will be converted into mineral reserves.

Cautionary Statement - Forward Looking Information:

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• Labrador Iron Mines Limited (“LIM”) is a natural resource company with theprimary business objective of exploring, developing and mining direct shippingiron ore projects in Canada

• The Schefferville Project is located in Northwestern Labrador, near Schefferville,in the heart of the Labrador Trough

– The Labrador Trough is a geological feature in the Quebec-Labrador Peninsula withsignificant potential for iron ore deposits and is home to three of Canada’s largest ironore mines comprising over 90% of Canadian iron ore production

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Schefferville Area

• Major producer of iron ore (Quebec and Labrador) for 28years (1954-1982) by IOCC

• ~150 million tons ore mined & shipped by IOCC

• LIM has mineral claims in Labrador containing an estimated100 million tons iron ore

• Contained in 8 separate deposits

• To be developed in 3 stages

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Plans• Develop small-scale, sustainable mining operation

• Produce direct shipping high grade iron ores

• Rail transportation of ore to Sept-îles by Tshieutin RailTransportation Inc. (TRTI)

• Onward shipment to European and Asian steel mills

• First Phase of production (James, Houston, Redmond & Knobdeposits)

• Initial production at 3.5 million tonnes/year

• Production increases to 6.5 million tonnes/year after Phase 3

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Schefferville Project

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Phase 1 Deposits

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James Deposit

Redmond Deposit

• Approximately 3-5 km southwest of the town of Schefferville

• Houston is 18 km from the town

• Accessible by existing roads – close to railway (2 km)

• Partially pre-stripped – ready for development

Phase 1: 4 deposits – 18 million tons – 5 year production schedule

Knob Lake Deposit Houston Deposit

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James Deposit:

Main

Road

Spur

line

rail bed

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RDP9 – Abandoned Railway Turnaround

RDP7 – Drill HoleRDP6 – Transmission Line Corridor

Tra

nsm

issio

nL

ine

Co

rrido

r

Main Road

Redmond Deposit:

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Phase 2: 2 Deposits 15-20 million tonsSchefferville

• 2 higher grade deposits

• 15-20 million tonnes

• Mining claims covering 400 hectaresapproximately 65 km southeast ofSchefferville

• Currently accessible by float plane andhelicopter

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N

Phase 3: – 2 deposits 50 million tons

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Exploration/Resource Verification

2006-07

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Menehek Hydro Plant

35km from the Project

TRTI Railway

Freight from Sept-Îles to Schefferville

Port Facilities at Sept-Îles

Ship loading with existing installations

Fuel Stations

Near all Processing Sites

Schefferville

Town Site and Airport

Electricity

Power Lines crossing property

Infrastructure

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• 560 km railroad connects Schefferville toport of Sept-Îles

− TRTI operates 200 km of rail betweenSchefferville and Ross Bay Junction

− QNS&L operates 360 km of rail from RossBay Junction and Lab City to Sept-Îles

• TRTI currently operates passenger andlight freight traffic between Scheffervilleand Sept-Îles

• Opportunity to improve rail service

• LIM has entered into a Memorandum ofUnderstanding (“MOU”) with TRTI toprovide rail transportation and other relatedinfrastructure services

− MOU includes storage and loading facilitiesservices at the port of Sept-Îles

Rail Transportation

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Community Advantages

The community was effectively excluded from the IOCC mine operations

LIM wishes to develop a sustainable & environmentally sensitive miningoperation in partnership with all stakeholders, to provide:

Economic development and new business opportunities

Facilitation of partnerships (aboriginal procurement policy)

Preferential employment (direct and contract) during constructionand + 20 years of planned operations (~ 80 - 100 places)

Development of rail (TRTI) and other transportation opportunities

Facilitating education and training for job opportunities

Protection & enhancement of society & heritage

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Development Proposal

• Explore and develop a number of small high grade iron ore deposits in theSchefferville area of Labrador

• Produce direct shipping iron ore products

• Use conventional open pit mining with crushing & washing of ore

• Only water will be used in the process - no chemicals

• Development will be respectful of the environment (properly planned andapproved mine closure & rehabilitation)

• Develop the use of existing rail transportation, shipping facilities & localinfrastructure

• Operations will be of a scale that is compatible and sustainable for thecommunities (small-scale compared to former IOCC mines – a“depanneur” rather than a “Wal-Mart”)

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Conceptual Mine Layout - James

N

500 metres

Sch

efferville

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-6 mm towashing

Option to crush LO to -6mm

+6 to -50 mm

ROM ore types

SF LO

Separation options, spiral, washer, cyclone, screen, washer or acombination, heavy media, sink float, other

Preliminary Flow Sheet

Fines toTailings

Conceptual Flow Sheet

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ManagementJohn Kearney, Chairman and Chief Executive Officer

• Mining executive with over 30 years experience in the industry - Chairman of several public resource companiesincluding Canadian Zinc Corp., Conquest Resources Limited, Scandinavian Minerals Limited, Sulliden Exploration Inc.and Anglesey Mining plc and Director of the Mining Association of Canada

• Formerly Chairman, CEO and director of Northgate Exploration Limited, Campbell Resources Inc. and Sonora GoldCorp.

• Holds degrees in Law and Economics from University College, Dublin and an MBA from Trinity College, Dublin

Bill Hooley, President, Chief Operating Officer and Director

• Professional mining engineer with 39 year experience worldwide including executive positions with several Europeanand Australian mining and service companies

• Currently Executive Director of Anglesey Mining plc and formerly Managing Director for Micon International Limited

Terence McKillen, Vice-President and Director

• Mining executive and professional geologist with 39 years experience and is currently President, CEO and Director ofConquest Resources Limited

• Formerly Vice President of Exploration of Northgate Exploration Limited and Campbell Resources Inc.

• Director of several public resource companies including Minco plc

Danesh Varma, Chief Financial Officer

• Qualified accountant in UK and Canada with over 20 years experience in the mining finance industry

• Currently CFO of Canadian Zinc Corporation and Conquest Resources Limited

• Previously employed with Brookfield Asset Management, Northgate Exploration Limited, Westfield Minerals Ltd. and TheDundee Bank

• Director of several resource companies including American Resource Corporation and Anglesey Mining plc

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Board of Directors

Richard Lister, Ph.D, Lead Director

• Over 40 years of experience in the mining, metallurgical and chemical industries

• Formerly President and CEO of Zemex Corporation, Vice Chairman of Dundee Bancorp Inc. and Chairman and Presidentof Campbell Resources Inc.

• Formerly a director of Timminco Limited and Tiberon Minerals

Matthew Coon Come, Director

• Board member of the Grand Council of the Cree (Eeyou Istchee) and the Cree Regional Authority

• Previously served as National Chief of the Assembly of First Nations, Grand Chief of the Grand Council of the Crees inQuebec and two terms as Chief of the Mistassini First Nation.

• Formerly a Director of Creeco, AirCreebec, Cree Regional Enterprise Company, Cree Construction Company, Chairmanof Cree Housing Corporation and James Bay Native Development Corporation

Eric Cunningham, Director

• Has worked as an independent mining consultant since 1996

• Currently director of Aurora Resources Inc.

• Formerly a director of Viceroy Exploration Ltd., General Manager and Director of Trillion Resources Inc., a joint owner ofthe Golden Kopje Mine in Zimbabwe, Manager of Wright Engineers and held various positions with Sherrit Gordon Mines

Gerry Gauthier, Director

• Mining engineer and is currently COO of Nevsun Resources Ltd and Director of Conquest Resources Limited

• Formerly Vice-President Mining of Glencairn Gold Corp., President and CEO of United Keno Hill Mines Limited, Presidentand COO of Santa Cruz Gold Inc, Senior Vice-President Operations Lac Minerals Limited and Manager Hemlo WilliamsMine

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Management

Joseph Lanzon, Government & Corporate Affairs• Has extensive experience in governmental affairs and in facilitating the development of community partnerships in the

natural resource sector.

• Mr. Lanzon has worked for the Federal Government of Canada, the NWT Government, House of Commons and theSenate of Canada

Dan O’Rourke, Community Affairs Advocate• Has extensive experience in economic development and employment in local communities

• Mr. O’Rourke has worked for the World Bank and is an economist with extensive experience in northern Canada andSouth America

Erick H. Chavez, Senior Geologist• Professional geologist with 15 years international exploration experience

• Mr. Chavez is a graduate of Universidad Nacional de San Agustin de Arequipa, Peru and holds a M.Sc. degree from theUniversity of Toronto

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For Further Information:

John KearneyChairman and Chief Executive Officer

Bill HooleyPresident, Chief Operating Officer and Director

Terence McKillenVice-President and Director

Registered Office:Suite 1002, 111 Richmond Street WestToronto, OntarioM5H 2G4

Tel: 416-362-6686Fax: 416-368-5344E-mail: [email protected]: www.labradorironmines.ca

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