Labrador Iron Mines Holdings Ltd (TSX: LIM) said it has in five recent transactions acquired control over an additional 50 million tons of direct shipping iron ore (DSO) in the Province of Quebec, together with a large package of mineral claims in the Schefferville area which are considered prospective for exploration for iron ore and which also host a number of small high grade manganese deposits.
The properties are all located in the Schefferville area, mostly in Quebec, and are located in the same general vicinity as LIM's planned DSO iron ore operations in Western Labrador which are scheduled to commence production in mid-2010.
The manganese claims cover approximately 4,200 hectares located partly in Labrador and partly in Quebec, giving LIM a very large land package on which a number of manganese deposits have been identified. In addition these manganese properties also contain some historical DSO resources.
"Subject to future technical studies and environmental approvals, the addition of 50 million tons of DSO resource will enable LIM to increase its planned DSO production and potentially extend the mine life of its Schefferville iron ore project.
Development of the manganese properties should enable LIM to commence production of manganese concentrate as an additional feed material to our iron ore customers," said chairman John F Kearney.
London-listed Anglesey Mining PLC (LSE: AYM) holds a 50 percent stake in LIM.