Ann: Completion of Labrador Iron Acquisition, page-23

After a bit more research. Two neighbouring properties Kemag and Labmag did studies c 2013 prior to the iron ore price going to $50/tonne. These were a JV with Tata and New Millennium Iron. Both studies came up with 22Mtpa each and utilized a slurry pipe to the coast. Kemag came up with $8.5B CAPEX. God knows how much this has escalated. The %Fe was 69.74%. This project is saying 70% which will be one of the highest values of all producers. HIO puts the 70% premium at $US37 above a $US146/tonne 62% Fe rate. Kemag had a 22 year mine life on 2.4B tonnes. This was probably based solely on the expect lifespan of the slurry pipe (22 years at projected wear). The figures could stack up very well. It could very well prove to be a money pit as have been proven already with all the 2013 hopefuls in the immediate area. This needs a clear and concise route to total funding to be successful. To go the normal route of juniors will only get empty pockets.