Labrador Iron Mines

The Redmond Mine is located about 15 km by road south of LIM's Silver Yards processing facility. Mining at Redmond commenced in July 2013 and a total of 205,000 tonnes of ore were mined during the 2013 operating season. No mining operations were undertaken in 2014.

The area is easily accessible by truck via an all-season gravel road from Schefferville and comprises two discrete deposits: Redmond 2B and Redmond 5. LIM's current mineral license for the Redmond deposits cover an area of 11.25 km².

The existing power line that supplies electricity to Schefferville and Kawawachikamach from the Menihek power plant runs by the middle of the property from south to north.

As at March 31, 2014, the Redmond deposits contained a NI 43-101 compliant mineral resource estimate of 2.1 million tonnes at a grade of 56.0% Fe. An additional 85,000 tonnes at a grade of 53.7% Fe is contained in the Inferred category.

Redmond Deposits Resources (as at March 31, 2014)

	Classification	Tonnes (x 1000)	Fe%	P%	Mn%	SiO₂%	Al₂O₃%
Redmond 2B	Indicated	518	59.1	0.13	0.4	5.8	2.25
Redmond 5	Indicated	1,576	55.0	0.04	0.8	11.8	0.73
Total Indicated		2,094	56.0	0.06	0.7	10.3	0.6
Redmond 2B	Inferred	25	57.2	0.13	0.7	5.9	4.1
Redmond 5	Inferred	60	52.3	0.06	1.7	11.3	1.0
Total Inferred		85	53.7	0.08	1.4	9.7	1.9

See Technical Report filed on SEDAR and refer to the Mineral Resources & Reserve Estimates page for a full explanation and disclosure on NI 43-101 compliant resources and historical resources.

Geology

The Redmond deposits are developed along a northwest trending syncline that extends south to the Redmond 1 deposit and north to the Wishart mine (both previously mined by IOC).

The Redmond 2B deposit occurs in a northwest trending synclinal feature. A northwest trending reverse fault that runs through the centre of the deposit appears to have thrust older rocks of the Wishart Formation over the younger Sokoman Formation. Smaller faults and folds occur on the limbs of the syncline. The ore occurs predominantly within the lower half of the Sokoman Iron Formation (including the Ruth Formation). Ore is mainly red with less yellow ore. The red ore occurs in the Ruth Formation. The yellow ore occurs in the SCIF (silicate carbonate iron formation). Some blue ore does occur and is possibly part of the MIF (middle iron formation) or a blue component of the SCIF/Ruth Formation.

The Redmond 5 deposit is separated into three blocks by two major reverse faults striking in a north westerly direction. The deposit occurs in the central block and consists of two second order synclines separated by an anticline. Three northeast dipping normal faults occur along the southwestern side of the deposit. A normal sequence from Wishart Quartzite, Ruth Formation, SCIF, MIF to UIF (Upper Iron Formation) occur in the deposit. Ore occurs predominantly in the lower part of the MIF, the SCIF and some in the Ruth Formation.