London Mining said its expectation for resources at its Marampa iron ore project in Sierra Leone has increased threefold, and it will now invest to start mining there in the first quarter of 2011.
The total inferred resource at Marampa is now 392 million tons, the company said.
London Mining expects to start mining at a rate of 1.5 million tons a year, which could double in the first 12 months of production.
The company will spend $114m to build the mine and an extra $51m to increase production to three million tons a year.
London Mining posted a loss of $4.4m compared to a $4.1m loss for Q1 2009 due to an increase in administration expenses.