Isua is located 150km Northeast of Nuuk and 100km from a proposed deep seawater port. Isua benefits from its position in the warmer south-west corner of Greenland with shipping possible year round. In March 2010 London Mining reported a total open pit resource of 951Mt at 36% Fe, which resulted inter alia in London Mining targeting 10Mtpa production.

In June 2010 London Mining announced the results of a prefeasibility study for its 100% owned Isua magnetite project in Greenland. The study considered a 21 year 10Mtpa high-grade concentrate operation and evaluated the use of a combination of local, European, North American and Chinese groups to complete construction.

Further to the results of the pre-feasibility study for 5Mtpa announced on 25 February 2010, SNC Lavalin completed a prefeasibility study for a 21 year operation with a production rate of 10Mtpa. The new study incorporated budgetary quotes from Sinosteel and China Communications Construction Company to deliver a total project capital cost of USD1.74Bn with an average operating unit cost per tonne of concentrate of USD27.13/t (accuracy +/-30%) if a combination of local, western and Chinese labour is utilised. The large proportion of fixed cost infrastructure items including port, access road and pipeline results in Isua achieving greatly reduced capital intensity if a 10Mtpa instead of a 5Mtpa operation is considered.  

London Mining now intends to seek partners to fund and develop the project. All necessary base line data collections, advanced field drilling programs, Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA) have been or will be undertaken to allow completion of a full feasibility study by the end of 2011 with construction estimated to start in 2012 with first production at the beginning of 2015. This timeline will be confirmed once financing has been secured and a construction partner selected.

Additional resource and environmental works have also been planned in this year including a further 12,000m of drilling for a combined cost of USD10m. Recent testwork has confirmed that the Isua ore can produce a concentrate with a specification of 70.2% Fe, 1.9% SiO2, 0.05% Al2O3 and 0.12+/-0.06%S. This product has potential for application as a premium blast furnace pellet feed for sale into the European and Chinese steel markets or as a direct reduced pellet feed for use in HYL type direct reduced iron production in the Middle East.

Isua open pit resource as at March 2010, reported at a 20 % Fe cut-off