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Labrador Iron Mines Resolves Access Issue At Schefferville Area Project; Project To Be Fast-Tracked - Quick Facts

(RTTNews) - Labrador Iron Mines Holdings Ltd. (LIM.TO) reported Friday that agreement was reached with the Quebec Innu people towards resolving access problems to its iron ore projects in Western Labrador and Quebec.

Labrador Mining said construction of its iron ore project in Western Labrador will now proceed on a fast track basis and LIM will proceed with negotiations with the Innu Matimekush-Lac John towards concluding an Impact Benefits Agreement. The company expects a beneficiation plant to be fully erected in about 12 weeks. Commercial activities are expected to commence in the spring of 2011.

The last two major operating permits, for the operation of the mine and the operation of the rail spur, are expected to be issued shortly by the Government of Newfoundland and Labrador following a consultation process with potentially affected First Nations. The company's Schefferville Area project involves the development of twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec.

The agreement is with regard to access from the town of Schefferville to adjacent mining properties. Labrador mining said the agreement was reached between representatives of the Quebec Innu, including Innu Matimekush - Lac John-Schefferville and Innu Takuaikan Uashat Mak Mani-Utenam Sept-Iles.

The meetings were attended by representatives of the Government of Newfoundland and Labrador and the Government of Quebec and representatives of the Federal Minister of Indian and Northern Affairs.

Labrador Mining together with New Millennium Capital Corp., committed to jointly support a number of local social activities, including some education, training, health and youth programs and, with Government participation, improvements to the community arena facility in Schefferville.

LIM.TO last traded on the Toronto Stock Exchange at C$4.90. Over the past year, the stock has traded in a range of C$1.45 - C$7.65.