Labrador Iron Mines

Holdings Limited

TSX: LIM

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Schefferville Area Properties

Location

Phase 1	- James
	- Redmond
	- Knob Lake
	- Houston
Phase 2	- Astray Lake
Phase 2	- Sawyer Lake
Phase 3	- Howse
Phase 3	- Kivivic No. 1 & 2

Geology

Deposit Types

Mineral Resources & Reserve Estimates

Transportation & Infrastructure

Mining & Processing

Iron Ore Products & Markets

James Deposit

The James deposit is located about 3 km south-southwest of Schefferville and approximately 1 km south of the Silver Yard marshalling area. The deposit is easily accessible by truck via a wide gravel road from Schefferville and an access road.

The property straddles the existing road to the Redmond property to the south, which continues to the Menihek hydro electric dam. A railway that was previously used during the IOC operations and power lines run parallel to the mine to the northwest.

The James mine comprises two deposits, North and South. The area has a total length of approximately 880 metres by 80 metres wide and 100 metres deep of direct shipping grade ore.

Exploration

As a result of the 2009 summer exploration program, a new NI 43-101 compliant resource estimate was prepared on the James deposit which showed a significant increase in tonnage over the historical resource (not NI 43-101 compliant), previously estimated by the Iron Ore Company of Canada (IOC) prior to 1982. The independent estimate prepared by SGS Geostat Ltd. for the James Deposit now stands at 8.1 million tonnes at an average grade of 57.7% Fe compared to a historic resource of 4.0 million tonnes.

The resource estimate for the James deposit was based on 990 metres of reverse circulation drilling in 16 holes and 515 metres of trenching carried out by LIM, in addition to 5,800 metres of drilling and 3,000 metres of trenching previously carried out by IOC. The mineral deposit resource estimates were calculated using the inverse distance squared method.

Also during 2009, a second program of hydro-geological drilling and testing was carried out in 2009 to confirm expected flow rates and water quality from future mining operations at the James deposit. This work comprised three large diameter pumping wells totaling 271 meters in depth together with a further nine monitoring wells totaling 696 meters in depth. Pumping tests were subsequently carried out on the wells and the results are currently being analyzed. This work will enable dewatering plans including any potential additional perimeter wells to be properly designed and installed in a timely manner.

In 2008, a total of 141 drill holes in 7,600m and 79 trenches in 3,400m was completed on the James property. LIM's 2008 drilling program resulted in a total of 3,500 samples submitted for analysis, the mineralized structures containing mainly hematite and blue ore.

James South blue (and Houston purple) ore samples were found to contain the highest Fe grades among the first phase deposits with simple crushing and screening. A very low amount of contaminant elements was present.

Geology

The James deposit is a northeast dipping elongated iron deposit with a direction of N330 degrees in its main axis and it appears to be structurally and stratigraphically controlled. The stratigraphic units recorded in the James area go from the Denault Formation to the Menihek Formation. The main volume of the mineralization is developed in the Middle Iron Formation (MIF) and lower portion of the Upper Iron Formation (UIF) both part of the Sokoman Formation.

The iron mineralization in the James deposit consists of thin layers (<10cms thick) of fine to medium grained steel blue hematite intercalated with minor cherty silica bands <5cms thick dipping 30 to 45 degrees to the northeast. The James mine mineralization has been affected by strong alteration which removed most of the cementing silica giving it a sandy friable texture.

The relatively low magnetic nature of mineralization found in James can be identified as magnetic lows due to the stronger magnetic nature of the surrounding rock units.