LIM is anticipating new mineral resource estimations on the James Deposit (including the James South Extension), Malcolm-1, Houston 1, 2 and 3 and on the historic crushed ore stockpiles. An initial mineral resource estimation will also be provided on the Elizabeth Lake Taconite. Refer to Figure 2 and Table 2 in the appendix for the location of these properties and total metres drilled in 2012.
The 2012 exploration program also successfully tested a system for geophysical down-hole bulk density determinations in the James and Houston orebodies, which promises to yield a valuable contribution to the resource estimation efforts in the future.
Malcolm-1 Drill Results
The Malcolm-1 area lies approximately 3 kilometres northwest from the Houston orebodies. Initial work on this property was carried out by LIM in 2011 and returned ore-type intersections in 14 of 18 holes drilled (see press release dated May 31, 2012). In 2012, RC drilling on the Malcolm-1 property consisted of 14 holes totalling 1,600 m and 11 of the 14 holes returned ore-type intersections. Figure 1 outlines the hole locations from the 2011 and 2012 drill programs, as well as the historical resource previously identified by the Iron Ore Company of Canada ("IOC"). The historical (non NI 43-101 compliant) mineral resource is 2.9 million tonnes grading 56.2@ Fe. A manganese resource was also identified by IOC, totalling 422,000 tonnes at a grade of 51.4% Fe. LIM expects to report a new NI 43-101 compliant mineral resource for the Malcolm-1 deposit by the end of its fiscal year.
Table 1 below summarizes the intercepts from the 2012 drill program. True thickness (ETT) is estimated using an average bedding dip of 45 degrees and vertical drilling dips for every RC hole.
Table 1: 2012 Malcolm-1 Drill Hole Intercepts
---------------------------------------------------------------------------- From To Length ETT Fe Mn P SiO2 Al2O3Hole_ID (m) (m) (m) (m) (%) (%) (%) (%) (%)----------------------------------------------------------------------------RC-M018-2012 3 21 18 13 58.8 1.9 0.06 3.3 0.5----------------------------------------------------------------------------RC-M019-2012 3 36 33 23 52.0 0.5 0.08 12.4 2.5---------------------------------------------------------------------------- 42 51 9 6 58.9 0.8 0.07 5.9 0.5----------------------------------------------------------------------------RC-M022-2012 21 33 12 8 50.1 0.0 0.01 27.8 0.0----------------------------------------------------------------------------RC-M023-2012 12 27 15 11 54.1 0.1 0.05 16.5 0.0----------------------------------------------------------------------------RC-M024-2012 24 30 6 4 50.6 1.3 0.09 15.8 0.1----------------------------------------------------------------------------RC-M025-2012 18 30 12 8 53.1 0.1 0.06 16.6 0.1----------------------------------------------------------------------------RC-M026-2012 42 75 33 23 56.2 0.5 0.06 12.1 0.2----------------------------------------------------------------------------RC-M027-2012 27 36 9 6 56.7 0.6 0.04 14.8 0.1----------------------------------------------------------------------------RC-M029-2012 33 54 21 15 50.1 0.2 0.06 26.0 0.4---------------------------------------------------------------------------- 99 108 9 6 52.2 4.9 0.04 17.5 0.0---------------------------------------------------------------------------- 120 129 9 6 52.3 4.0 0.17 13.8 0.8----------------------------------------------------------------------------RC-M030-2012 93 102 9 6 51.1 0.4 0.03 25.0 0.7----------------------------------------------------------------------------RC-M031-2012 147 156 9 6 51.0 3.1 0.12 10.5 2.7----------------------------------------------------------------------------
