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Sector: Mining - Metals and Minerals   :

News Release - September 19, 2014 5:40 PM ET 

Analyst provides insight on Lamelee Iron Ore as 6,000 m drill program is underway with plans to update resource near-term, and publish a bankable feasibility study by Q4/15

NEW YORK, NY, September 19, 2014 /Sector Newswire/ - Lamelee Iron Ore Ltd. (TSX-V: LIR) (Frankfurt: G11) is identified in a newly issued analysts report by Secutor Capital Management with compelling insight. Lamelee is a Canadian mining company advancing its 100% owned Lamelee South Iron Property in Québec, located at the south end of the Labrador Trough and complemented by good infrastructure. LIR.V has an experienced team with great track record, they successfully developed and brought to production the Bloom Lake Iron Mine in Québec (2005-2010).

The Analyst report may be found at http://www.sectornewswire.com/secutor-lir-09-2014.pdf online.

The qualified analyst has identified Lamelee Iron Ore Ltd. as a significant opportunity for astute investors that understand the commodity cycle. The property hosts a resource of 520 million tonnes grading 39.5% Fe2O3 (27.6% FeT) based on a cut-off grade of 22% Fe2O3, The initial May 2013 resource was based on 18,305 metres of drilling in 57 holes and 2 trenches, which were completed during 2011 and 2012. The previous owner drilled the mineralization on a 100 metre spacing and outlined a resource from surface to 540 metres depth. Two holes drilled to 650 metres intersected mineralization, and the deposit remains open to depth.
 
With only minimal drilling competed at Lamêlée, the deposit compares well in size and grade to other deposits in the Trough. At the nearby Bloom Lake mine, reserves total 1,015 million metric tons grading 28.5% Fe at a cut-off grade of 20%. At the nearby Lamêlée and Peppler Lake projects, resources total 598.5 million metric tons grading 28.6% FeT at a cut-off grade of 18%.
 
Targeting Production of 5 to 8 Mtpa of Concentrate. Lamêlée is pursuing the production of a high grade and low cost iron concentrate. The Company is targeting development of a plant with annual production capacity of 5 to 8 million tonnes of concentrate at an initial capex under $1 billion, including infrastructure required to support the project. The Company is anticipating production of a 65% Fe concentrate at an operating cost in the $65 per tonne range, loaded into a ship (FOB).
 
Lamêlée is in discussions with groups who could aid in financing additional scoping, exploration and the development of the project itself. As well, it will look at JV and outake agreements, and royalties as potential means of financing.
 
During the remainder of the year, Lamêlée will also proceed with additional drilling. A 6,000 metre drill program is underway to upgrade the resource to feasibility-level and to confirm the down dip extension of the mineralization.
 
Next year, the Company will work to advance environmental baseline studies and permitting, metallurgical test work, hydrogeology test work and geotechnical test work. Lamêlée is also planning to update the resource, and to publish a bankable feasibility study by Q4/15. Lamêlée has already begun environmental baseline studies for the project and will issue a government notice by the end of the year. Management anticipates that $8 million will be required to complete these activities, which will need to be funded through an equity raise or a cash infusion from a partner.

The Analyst report may be found at http://www.sectornewswire.com/secutor-lir-09-2014.pdf online.

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