It is the first development of LIM’s assets since production halted in 2014 because of the low iron ore price, said Anglesey.
Iron prices have started to recover over the past two years and with increased inquiries and expressions of interest from potential off-takers, LIM is now working to advance Stage 2 of its planned direct shipping ore mining operations, Anglesey added.
This will involve the development of its Houston deposits, located about 25 kilometres south of Schefferville.
In a statement, Anglesey chief executive, Bill Hooley, said: "As a director of both Anglesey and LIM, I am very pleased with the news that LIM is, after a number of years of low iron prices, now taking positive steps to move its Stage 2 operations forward.
"The recent sustained increases in worldwide iron ore prices and the market expectations of continuing price support based on global economic recovery bode well for the future of LIM’s projects and for Anglesey’s investment.”
LIM has engaged Roscoe Postle Associates to complete an independent PEA and a current technical report on the Houston deposit to be used for consideration of possible financing options to advance the project.
Including the Malcolm deposit, considered to be its northwest extension, the Houston deposits are estimated to contain a resource of 40mln tonnes grading 57.6% iron, said Anglesey.
LIM has identified a higher-grade component of this resource on which the initial mine plan will focus, it added.
For the past two years, the iron ore price has persistently exceeded US$100 per tonne (62% Fe/CFR China). This has been a function of both supply disruptions but also steady and increasing demand from China, which shows no signs of declining the junior pointed out.
"Going forward, a significant global economic recovery driven by Covid recovery stimulus programmes expected in 2021 should create strong demand for steel production and a supportive price floor for iron ore above US$100 per tonne," Anglesey added.