LIM signs Impact Benefit Agreement with the Innu from Uashat Mak Mani-Utenam

Posted on 17 Feb 12 by Anglesey Mining

Anglesey Mining plc’s 33% owned associate Labrador Iron Mines Holdings Limited (“LIM”) (TSX:LIM) and Innu Takuaikan Uashat Mak Mani-Utenam of Sept-Iles, Quebec, (“ITUM”) are pleased to announce that they have signed an Impact Benefits Agreement with regard to LIM’s Schefferville Area direct shipping iron ore mining projects in the Province of Newfoundland and Labrador and in the Province of Quebec.

The life-of-mine agreement, which follows the earlier Agreement in Principle signed in December 2010, was approved by resolution of the Innu Takuaikan Uashat Mak Mani-Utenam and signed by the Chief and Band Council. This new agreement recognizes that LIM and ITUM wish to work together to establish a long-term, mutually beneficial, cooperative and respectful positive relationship based on confidence, trust and certainty.

Under the IBA Agreement, LIM has agreed to the equitable participation of the Uashaunnuat in its Projects through employment, training, contract opportunities, social, and financial benefits, including environmental protection measures in the Papateu (Howell River) and Kautaitnat (Irony Mountain) areas to mitigate any impact of the Projects on Uashaunnuat families and traditional activities.

In consideration of benefits associated with the IBA, ITUM has given its consent to LIM’s iron ore Projects on the conditions expressed in the Agreement.

In a signing ceremony, held in the presence of members of the ITUM community, on Monday, February 13, 2012 in the Band Council offices in Sept-Iles, John Kearney, LIM’s Chairman & CEO commented:

“LIM recognizes that the activities of its iron ore Projects may have an impact upon members of the Uashat and Mani-Utenam communities, and particularly the Uashaunnuat families most directly affected, and their traditional lands, and wishes to develop a respectful relationship with ITUM, which will help mitigate these potential impacts. LIM acknowledges the cooperation and support received to date from ITUM and is committed to developing its iron ore Projects in an environmentally and socially responsible way that respects and, where necessary, addresses the environmental, cultural, economic and spiritual concerns of the Uashaunnuat”.

“LIM understands the importance of our iron ore mining Projects to the Innu from Uashat Mak Mani-Utenam and is committed to the maximization of associated benefits to ITUM — including education, training, employment, business opportunities, financial participation and economic development— and is committed to providing fair opportunities to the Uashaunnuat to participate in, and benefit from, LIM’s iron ore Projects, including our operations in the Sept-Iles port area,” added Mr. Kearney.

Innu Takuaikan Uashat Mak Mani-Utenam Chief Georges-Ernest Grégoire stated, “This is a significant step for the Innu Community of Uashat Mak Mani-Utenam towards the establishment of a long and meaningful partnership with Labrador Iron Mines, based on mutual respect and benefits.”

“This IBA, along with other agreements, signed by ITUM sends a signal to the mining industry operating in the Quebec-Labrador peninsula that our rights as Indigenous Peoples under the U.N. Declaration on the Rights of Indigenous Peoples and the Canadian Constitution cannot be ignored. Any form of mining development, including exploration work, respecting our natural resources or our traditional lands must benefit our communities and requires our consent.”

“This IBA agreement with Labrador Iron Mines will provide opportunities for our community, and particularly our youth, and will at the same time protect the environment and our traditional lands and cultural activities,” added Chief Grégoire.

LIM and ITUM have agreed to implement training programs with a view to encouraging and assisting ITUM members to receive the education and training required to maximize their opportunities for employment, retention and advancement on LIM’s iron ore projects.

LIM has also agreed to make annual contributions to an Aboriginal Traditional Activities Fund to be created for the benefit of the traditional activities of the Uashaunnuat and other Innu, including the Uashaunnuat families. The Fund may also be used for the benefit of the traditional activities of members of other First Nations in the vicinity of Schefferville.

It is intended that the Fund shall be used for the purposes of traditional, cultural and subsistence activities and the protection and preservation of aboriginal values and shall contribute to the aim of protecting the rights and interests of the Uashaunnuat, their lifestyle, their relationship with the land and their traditional activities.

The IBA signed with the Uashaunnuat is without prejudice to the territorial rights of the Uashaunnuat and the rights asserted by any other aboriginal group relating to the area of the Projects. LIM has previously entered into impact benefits agreements with the Innu Nation of Labrador, the Innu of Matimekush-Lac John (Schefferville) and the Naskapi Nation of Kawawachikamach, and recently signed a cooperation agreement with the NunatuKavut Community Council (Southern Inuit of Labrador).

About Takuaikan Uashat Mak Mani-Utenam:

The Uashaunnuat are a distinct society of the Innu Nation (Quebec and Labrador) and comprise the two communities of Uashat and Mani-Utenam and include the INNU BAND OF UASHAT MAK MANI-UTENAM, a traditional band and a band within the meaning of the Indian Act. ITUM is the band council of such band. The Uashaunnuat assert Indian title, aboriginal rights and treaty rights to certain lands located in Quebec and Labrador, including in the area of LIM’s Projects, and affirm that the Projects require their consent.

About Labrador Iron Mines Holdings Limited (LIM):

LIM is engaged in the production and development of its 100% owned Schefferville Area direct shipping iron ore (DSO) properties in the Labrador Trough of western Labrador and northeastern Quebec. LIM commenced production from the James Mine in June 2011 following the successful construction and commissioning of the mine and Silver Yards processing plant earlier in the year, and began shipping iron ore to China in the fall of 2011.

LIM contemplates mining in stages. The first phase of Stage 1 comprises the James Mine and the Silver Yard processing plant which is connected by a rail spur to the main Schefferville to Sept-Iles railway. Through a phased expansion program, LIM plans to grow its iron ore production through the subsequent development of adjacent deposits.

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing is primarily focused on its 33% interest in Labrador Iron Mines (TSX:LIM). In addition to any new projects that may be brought forward Anglesey owns 100% of Parys Mountain in North Wales with an historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0) 1492 541981;

Ian Cuthbertson, Finance Director +44 (0) 1248 361333;

Samantha Harrison / Shaun Whyte, Ambrian Partners Limited +44 (0) 2076 344700;

Emily Fenton / Jos Simson,

Tavistock Communications +44 (0) 20 7920 3155 / +44 (0) 7788 554035.

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Interim Management Statement and LIM Third Quarter Financial Results with 2012 Production Outlook

Posted on 15 Feb 12 by Anglesey Mining

Since the half yearly report issued in December 2011, operations in Labrador have continued to proceed satisfactorily; a copy of the LIM third quarter report is shown below. Two recent important developments included in that report are the announcement by the Canadian government regarding a new multi-user port facility at Sept Iles and the agreement between LIM and IOC in respect of  iron ore sales for 2012.

At Parys Mountain drilling of the potential shallow Engine Zone extension close to the Morris Shaft continues with a third hole commenced on 10 February. Assay results are expected in several weeks.

Labrador Iron Mines

Anglesey Mining plc’s 33% owned associate Labrador Iron Mines Holdings Limited (TSX: LIM) today filed its unaudited financial statements and Management Discussion and Analysis for the third quarter and nine months ended December 31, 2011.

During the third quarter ended December 31, 2011, LIM continued mining operations from its James Mine and treating material through its Silver Yards processing facility.  Transport of iron ore by rail to the Port of Sept-Iles accelerated during the quarter and LIM completed the sale of its first three shipments of iron ore. A stockpile of product is held at the Port awaiting shipment in the new fiscal year.

Highlights for the start-up operating period from June 1, 2011 to December 31, 2011:

  • 1.2 million tonnes of ore mined including 438,000 tonnes of DRO at an average grade of 64.9% iron
  • 570,000 tonnes of ore fed to the Silver Yards plant, yielding approximately 230,000 tonnes of lump and sinter fine product
  • 564,000 tonnes hauled to the Port of Sept-Iles, of which 386,000 tonnes were sold to IOC and shipped to China
  • Stockpile of approximately 178,000 tonnes of DRO remains at the Port for shipping in the 2012 season
  • Silver Yards Phase 2 plant expansion completed; Phase 3 construction underway to increase processing capacity and improve recoveries

These results are for the operating period beginning June 1, 2011 since mining operations commenced at the James Mine and commissioning of the Silver Yards processing plant was completed.  All references in this press release to tonnes are dry metric tonnes, unless otherwise indicated, and all references to years are calendar years, unless otherwise indicated.  The Schefferville Project is not yet considered to have reached commercial production.

Results of LIM Operations

During the third quarter, LIM received proceeds totalling C$26.6 million from the sale of its first two iron ore shipments from pre-commercial production.  The proceeds from the sale of the third shipment of iron ore are included in accounts receivable at quarter end.

Approximately C$30.7 million was expended in mineral property interests, the investment during the quarter relating mainly to development and operating expenditures on the James deposit. This compares with the corresponding quarter of the prior year of C$4.0 million which did not include any operating expenditures.

Also during the third quarter, LIM invested approximately C$14.6 million in property, plant and equipment, compared to approximately C$2.6 million invested in the same quarter of the prior year.  Of this total of C$14.6 million, approximately C$7.8 million was invested in capitalized stripping and dewatering the James deposit; approximately C$4.5 million was invested in the beneficiation plant, including the completion of Phase 2 and the commencement of Phase 3 of the Silver Yards processing plant; and approximately C$2.3 million was invested in transportation infrastructure and equipment.

For the quarter ended December 31, 2011, LIM reported a loss of C$1.7 million, or C$0.03 per share, compared to a loss of C$1.3 million, or C$0.03 per share, during the same quarter of the previous year.  The variance in the results of operations compared to the same quarter of the previous year relates largely to transportation related start-up costs of approximately C$0.5 million combined with an increase of C$0.3 million in depreciation due to an increase in property, plant and equipment in use, offset by a foreign exchange gain of C$0.3 million.

For the nine months ended December 31, 2011, LIM reported a loss of C$13.3 million, or C$0.25 per share, compared to a loss of C$3.4 million, or C$0.08 per share, during the same period of the previous year.  The variance in the results of operations relates largely to transportation related start-up costs of approximately C$9.6 million expensed during the first nine months of the current fiscal year and an increase of C$1.0 million of depreciation due to an increase in property, plant and equipment in use, offset by a C$0.7 million reduction in corporate administration and a foreign exchange gain of C$0.3 million.

Also during the nine months ended December 31, 2011, LIM invested approximately C$61.5 million in property, plant and equipment, compared to approximately C$11.0 million invested in the same period of the prior year.  Of this total of C$61.5 million, approximately C$17 million was invested in the Silver yards beneficiation plant, including, in part, the purchase, transportation and installation of Phase 2 and Phase 3 equipment; approximately C$24.8 million was invested in capitalized stripping and dewatering the James deposit; approximately C$18.2 million was invested in transportation infrastructure and equipment; and approximately C$1.5 million was invested in buildings and office equipment.

As at December 31, 2011, LIM had current assets of C$58.3 million, including inventories with a carrying value of C$15.5 million and accounts receivable and prepaid expenses of C$19 million and had working capital of C$25.6 million.  At December 31, 2011, LIM had a total of C$29.3 million in cash and cash equivalents, including C$21.8 million in unrestricted cash and cash equivalents and C$7.5 million in restricted cash.  LIM remains debt-free.

LIM Operations

In its start-up pre-commercial production period, LIM successfully demonstrated that mining activities and railing of lump ore to port could be extended into the winter months.

From June 2011 into early December 2011, mining operations at the James Mine reached an average rate of approximately 16,000 tonnes per day with a total of 1.2 million tonnes of ore and about 3 million tonnes of waste mined during the year.  Of the total production to the end of December, approximately 440,000 tonnes were direct rail ore, at an average grade of approximately 65% iron, of which approximately 340,000 tonnes had been railed directly to Sept-Iles without further processing.

The grade of the James ore encountered in the upper benches of the mine has been, on average, in excess of expectations, while the bulk density of the ore appears to be lower.  Indications to date are that the James deposits appear to be of higher grade but lower tonnage than predicted by geological resource models.  Mining is anticipated to resume in March 2012 with the commencement of a waste stripping program.

Following commissioning and start-up in June 2011, the Silver Yards processing plant gradually improved its performance and frequently achieved over 8,000 tonnes per day in September and October prior to its seasonal shutdown.  By the end of the 2011 operating season, approximately 570,000 tonnes of ore had been fed to the plant, yielding approximately 230,000 tonnes of lump and sinter fine products.  Ramp up of the plant was slower than planned, due primarily to a larger percentage of fine material than originally forecast which had tended to blind the fine screens in the plant and necessitated a reduced throughput rate.

The Phase 2 expansion of the Silver Yards plant was completed during the fall of 2011, designed specifically for fine material, and has resulted in an improved throughput and recovery rate that took effect later in the year.  A third phase of the plant designed to recover ultra-fine material is under construction as planned, and is expected to be operational by the end of June 2012.  This expansion is intended to increase plant throughput to 12,000 tonnes per day and improve weight recovery to above 75%.

Rail

To the end of December 2011, approximately 564,000 tonnes had been railed to the Port of Sept-Iles.  Railway operations were discontinued in mid-December.

LIM added a second train during the second fiscal quarter and had four locomotives in operation.  With the introduction of a second train and more railcars, the tonnage transported to the Port of Sept-Iles increased significantly during the third fiscal quarter. As previously reported, the buildup in rail shipments was slower than originally planned but continued to improve by the end of the 2011 operating season.

Iron Ore Sales

In 2011, approximately 386,000 tonnes of iron ore was sold to the Iron Ore Company of Canada (“IOC”), pursuant to a confidential sales contract, and delivered to Asian markets and sold by IOC’s marketing organization on the spot market.  The sale price for iron ore sold to IOC was based on the actual realized prices to Chinese customers, less participation for handling, loading, shipping and sales costs.  LIM believes that the benefits associated with the sales to IOC, together with the benefits of the utilization of larger Cape Size vessels, resulted in the most efficient shipping and sales arrangement in 2011.

On February 14, 2012, LIM announced that it had entered into a new agreement with IOC for the sale of all of LIM’s 2012 iron ore production.  This 2012 confidential sales contract with IOC is similar, in operational and financial terms, to LIM’s 2011 sales agreement with IOC.

LIM Exploration and Development

With the Houston and Malcolm deposits as the main focus, the 2011 exploration program was successfully completed and analytical results are continuing to be received.  Three drill rigs were in operation during the program as 11,500 metres of reverse circulation drilling was completed by the end of November.  In addition, 650 metres of trenching, 65 test pits and air-borne geophysics were also completed during the season.

LIM Outlook for 2012

Mining will continue at the James North and James South deposits in 2012, with planned total ore mined of between 2.5 to 3.0 million tonnes, together with approximately 3.5 million tonnes of waste.

Subject to final operating plan and budget approval, it is now expected that between 1.8 and 2.0 million tonnes of ore, including material from stockpiles, will be treated in 2012, expected to yield up to 1.5 million tonnes of saleable product.  In addition, it is expected that about 500,000 tonnes of direct rail ore from both the 2011 stockpile and from 2012 mining operations will also be available for shipment in 2012, for a total 2012 production target of approximately 2.0 million tonnes of iron ore.

Procurement and construction is well advanced for the Phase 3 expansion of the Silver Yards processing plant to increase its production capacity to about 2 million tonnes per year.  It is expected that the planned plant expansion will be in place by mid-2012.  The total revised Phase 3 project budgeted cost is approximately C$20 million, of which approximately C$15 million has yet to be expended.  In addition, a camp expansion, storage building walls on the Silver Yards plant, establishing grid power and various water management enhancements are anticipated during 2012 at an additional investment of approximately C$20 million.

A drilling and exploration budget of C$12 million is planned for 2012, including exploration drilling and sampling of C$7.5 million, together with a geotechnical and metallurgical drilling program of C$4.5 million.

Development of Stage 2 Houston Deposits

LIM is also evaluating the development of a new separate Stage 2 operation for the Houston deposits (South Central Zone) including in pit dry crushing and screening which could be operated year round.

LIM has submitted an application to the Government of Newfoundland and Labrador for the development of the Houston #1 and #2 deposits, including a haul road and railway siding.  LIM anticipates regulatory approval of this application in early 2012, followed by construction leading to commencement of production of ore in 2013.  Subject to permitting, it is expected that initial mine development at the Houston deposit will commence, including construction of a haulage road, a railway siding and pre-stripping of the ore in the summer and fall of 2012.  In addition, a dedicated processing plant, likely to be located at Redmond, will be evaluated in 2012 with a goal to submit permit applications in 2013.

As of March 2011, the Houston deposits have a combined measured and indicated resource of 22.1 million tonnes at an average grade of 57.3% Fe (Technical Report – Mineral Resource estimation of the Houston Property mineral deposit for Labrador Iron Mines Limited, prepared by SGS Canada Inc.- March 25, 2011).

LIM is in the process of preparing detailed mine plans and detailed capital and operating estimates for the development of the Houston deposits.  Development costs for the first phase of the Houston project are estimated to be up to approximately C$35 million, with all mine operating equipment supplied by the mining contractor.  Additional capital expenditures will be required in future years as the other Houston deposits are developed into production.  These estimates do not include the capital cost of a new dedicated processing plant, which is not planned for the Houston project in the immediate term.

Increased Rail Capacity

To enable increased railing capacity in 2012, two additional trains will be introduced, for a total of four trains consisting of 120 railcars each.  LIM will commence the 2012 railing season in April with three trains, and is expected to add a fourth train by the early summer.  To achieve this, and to provide an adequate allowance for repairs, LIM plans to have 555 railcars in service during 2012.  Included in this figure are 400 previously purchased railcars, 10 leased railcars, and 145 used railcars that were purchased in January 2012 and are expected to be in operation by early summer 2012.  LIM has established its Centre Ferro maintenance and repair facility in Sept-Iles and it is now operating on a full time basis to maintain the fleet of rail cars.

Proposed new Multi-User Deep Water Dock at Sept-Iles

The port handling arrangements for future years beyond 2012 remains subject to ongoing evaluation and finalization.  LIM has an agreement with the Sept-Iles Port Authority for the potential use of the Pointe aux Basques terminal for handling and ship loading of LIM’s iron ore in future years. On February 13, 2012, the Government of Canada announced that it will invest up to C$55 million and will contribute to the construction to a new multi-user deep water dock in the Port of Sept-Iles, equipped with two ship loaders as well as two conveyer lines, that meet with new loading standards in the iron ore industry. This project will make it possible to improve the performance, capacity and competitiveness of the port facilities. The new multi-user deep water dock is expected to be completed by March 31, 2014.

Iron Ore Price Outlook

There has been a period of great volatility in the iron ore market in recent months.  Forecasts for prices in 2012 and beyond remain somewhat mixed.  The economic situation in Europe will continue to have a significant effect, particularly if the German and French economies slow further and reduce European demand. Chinese growth continues though perhaps at a slower rate in 2012 than previously anticipated.  The supply-demand balance is not yet clear for 2012, though a number of analysts are forecasting a price in the USD$140 to USDC$150 range per tonne CFR China for the first half of the year, rising to the USD$150 to USD$160 per tonne CFR China range in the second half of the year for 62% Fe sinter product.  With the current level of price volatility observed in the market, established producers in the Labrador Trough have a lower risk profile than companies advancing projects at an earlier stage.

Parys Mountain

A further exploration programme commenced at Parys Mountain in December to target the potential sub-outcrop location of the Engine Zone mineralization.  The Engine Zone has been shown to be a major resource bearing structure around the bottom of the Morris Shaft at a depth of 300 to 400 metres.  During the last drilling programme in 2007 and 2008 the Engine Zone was traced upwards to a depth of about 200 metres.  The current programme is intended to identify the location of the Zone at even shallower depths.

The initial part of the current programme which included an Induced Polarisation geophysical survey and an associated Deep Overburden geochemical survey has now been completed and allowed the planned location of a series of relatively shallow drill holes to be determined.  Currently two diamond core holes have been completed for a total depth of 480 metres and a third is in progress to a planned depth of approximately 180 metres.  A fourth such hole is planned and when the results from all these holes have been reviewed the second stage of this current programme will be commenced.  It is anticipated that a total of around 2,000 metres will be drilled in both these stages.

Demonstrating the existence of the Engine Zone at these shallower depths with sufficient continuity would enhance the development of the nearby White Rock Zone as a relatively shallow decline based mining operation.  Planning permissions for such an operation and for an associated processing plant remain in place.  As the results from the current phase of drilling are received a review of the options available for the White Rock and potential shallow Engine Zone will be carried out.

A broader review of the various commercial options available for the project will be carried out within the next few months.  Parys Mountain is in a politically stable environment with planning permission for initial operations; first stage development with substantial local infrastructure is in place.  Given the expected growth in demand for base metal concentrates in the next few years, the board believes the Parys project represents a significant asset not properly represented in the share price, which itself is at a discount to the value of the Labrador asset alone.

About Labrador Iron Mines Holdings Limited (LIM)

LIM is engaged in the production and development of its 100% owned Schefferville Area direct shipping iron ore (DSO) properties in the Labrador Trough of western Labrador and northeastern Quebec.  LIM commenced production from the James Mine in June 2011 following the successful construction and commissioning of the mine and Silver Yards processing plant earlier in the year.

LIM contemplates mining in stages. The first phase of Stage 1 comprises the James Mine and the Silver Yard processing plant which is connected by a rail spur to the main Schefferville to Sept-Iles railway.   Through a phased expansion program, LIM plans to grow its iron ore production through the subsequent development of adjacent deposits.

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing is primarily focused on its 33% interest in Labrador Iron Mines (TSX:LIM). In addition to any new projects that may be brought forward the company owns 100% of Parys Mountain in North Wales with an historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0) 1492 541981;

Ian Cuthbertson, Finance Director +44 (0) 1248 361333;

Samantha Harrison / Shaun Whyte, Ambrian Partners Limited +44 (0) 2076 344700;

Emily Fenton / Jos Simson,

Tavistock Communications +44 (0) 20 7920 3155 / +44 (0) 7788 554035.

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LIM signs 2012 Iron Ore Sales Agreement with IOC

Posted on 15 Feb 12 by Anglesey Mining

Anglesey Mining plc’s 33% owned  associate Labrador Iron Mines Holdings Limited (TSX: LIM) is pleased to report that it has entered into an agreement with the Iron Ore Company of Canada (“IOC”) for the sale of all of LIM’s 2012 iron ore production.

In 2011, LIM entered into an iron ore sale agreement with IOC under which approximately 412,000 (wet) tonnes of iron ore was shipped to China and sold on the Chinese spot market.  A further approximately 178,000 tonnes remains in stockpile at the port of Sept-Iles awaiting shipping in the spring of 2012.

Under the 2012 confidential sales contract with IOC, the iron ore will be sold by IOC’s marketing organization on the spot market for delivery to Asian markets. LIM’s iron ore sales agreement with IOC enables utilization of Cape Size Ocean going ships, where current freight rates are lower than the alternative Panamax vessels.

Iron ore from LIM’s James Mine in northwest Western Labrador is transported by rail from its Silver Yards rail head, near Schefferville, via the TSH railway and the Quebec North Shore and Labrador (QNS&L) railway, to the Port of Sept-Iles where the ore is unloaded and stockpiled adjacent to LIM’s Point-aux-Basques dock facilities leased from the Port of Sept-Iles. Approximately 600,000 (wet) tonnes of LIM’s iron ore were transported by rail to the port of Sept-Iles during the second half of 2011.

In 2011, LIM entered into a life of mine, confidential rail transportation contract with QNS&L for the rail transportation of LIM’s products on the QNS&L railway. This contract provides for a confidential tariff, with capacity and volume commitments on the part of each party.

About IOC

IOC is Canada’s largest iron ore producer from its mines located in Western Labrador and is a leading global supplier of iron ore pellets and concentrates. IOC’s major shareholder and operator is the international mining group Rio Tinto which has activities in more than 40 countries throughout the world. IOC owns 100% of the Quebec North Shore and Labrador (“QNS&L”) railway and, at the port of Sept-Iles, owns established storage and ore handling facilities, including its ship dock capable of taking ocean going vessels up to 240,000 (dwt) tonnes.

About Labrador Iron Mines Holdings Limited

LIM is engaged in the production and development of its 100% owned Schefferville Area direct shipping iron ore (DSO) properties in the Labrador Trough of western Labrador and northeastern Quebec. Production commenced from the James Mine in June 2011 following the successful construction and commissioning of the mine and Silver Yards processing plant earlier in the year, and began shipping iron ore to China in the fall of 2011.

LIM contemplates mining in stages. The first phase of Stage 1 comprises the James Mine and the Silver Yard processing plant which is connected by a rail spur to the main Schefferville to Sept-Iles railway. Through a phased expansion program, LIM plans to grow its iron ore production through the subsequent development of adjacent deposits.

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing is primarily focused on its 33% interest in Labrador Iron Mines (TSX:LIM). In addition to any new projects that may be brought forward the company owns 100% of Parys Mountain in North Wales with an historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0) 1492 541981;

Ian Cuthbertson, Finance Director +44 (0) 1248 361333;

Samantha Harrison / Shaun Whyte, Ambrian Partners Limited +44 (0) 2076 344700;

Emily Fenton / Jos Simson,

Tavistock Communications +44 (0) 20 7920 3155 / +44 (0) 7788 554035.

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Holdings in company

Posted on 06 Feb 12 by Anglesey Mining

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached: Anglesey Mining plc

2. Reason for the Notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights      [ x ]

An acquisition or disposal of financial instruments which may result in the acquisition of shares already issued to which voting rights are attached    [  ]

An event changing the breakdown of voting rights [  ]

Other – change in reporting requirements to include qualifying financial instruments [  ]

3. Full name of person(s) subject to the notification obligation:

John H Burbank III / Passport Capital LLC / Blackwell Partners LLC / Passport Plus LLC / Passport Special Opportunities Master Fund LP / Passport Advisors LP / Passport Holdings LLC / Passport Materials Master Fund LP / Norges Bank (Central Bank of Norway)

4. Full name of shareholder(s) (if different from 3.):

Passport Special Opportunities Master Fund LP / Passport Materials Master Fund LP / Blackwell Partners LLC / Norges Bank (Central Bank of Norway)

5. Date of the transaction (and date on which the threshold is crossed or reached if different): 3 February 2012

6. Date on which issuer notified: 3 February 2012

7. Threshold(s) that is/are crossed or reached: 14%

8. Notified details:

A: Voting rights attached to shares

Class/type of shares: Ordinary 1p GB000320472

Situation previous to the Triggering transaction

Number of Shares: 17,232,036

Number of Voting Rights: 17,232,036

Resulting situation after the triggering transaction

Number of Shares – direct: 16,883,205

Number of Voting Rights – direct: 16,883,205

Number of shares – indirect: 0

Number of Voting Rights – indirect: 0

Percentage of Voting Rights – direct: 10.66%

Percentage of Voting Rights – indirect: 0

B: Financial Instruments:  N/A

C: Financial instruments with similar economic effects to Qualifying financial instruments

Type of financial instruments: Swap

Exercise price: n/a

Expiration date: 2 May 2013

Exercise/conversion period: n/a

Number of voting rights instrument refers to: 4,965,900

Percentage of Voting Rights: 3.13%

Delta:

Total (A+B+C)

Number of Voting Rights 21,849,105

Percentage of Voting Rights 13.79%

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable:

John H. Burbank III is the managing member of Passport Capital LLC.

Passport Plus, LLC is the general partner of Passport Special Opportunities Master Fund, LP.

Passport Holdings is the general partner of Passport Advisors LP.

Passport Capital LLC is the managing member of Passport Plus LLC and Passport Holdings LLC, and is the Investment Manager to Blackwell Partners LLC, Norges Bank (Central Bank of Norway),

Passport Special Opportunities Master Fund LP and Passport Materials Master Fund LP

The position is currently held as follows:

Blackwell Partners LLC (479,800 common shares /0.30%)

Norges Bank (Central Bank of Norway) (3,470,000 common shares /2.19%)

Passport Special Opportunities Master Fund LP (12,933,405 common shares /8.16%)

Passport Materials Master Fund LP (4,965,900 swaps/3.13%)

Proxy Voting

10. Name of the proxy holder:  N/A

11. Number of voting rights proxy holder will cease to hold:  N/A

12. Date on which proxy holder will cease
to hold voting rights:  N/A

13. Additional information:  None

Enquiries:

Ian Cuthbertson               (44) 1248 361333

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Holdings in company

Posted on 20 Jan 12 by Anglesey Mining

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached: Anglesey Mining plc

2. Reason for the Notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights      [ x ]

An acquisition or disposal of financial instruments which may result in the acquisition of shares already issued to which voting rights are attached    [  ]

An event changing the breakdown of voting rights [  ]

Other – change in reporting requirements to include qualifying financial instruments [  ]

3. Full name of person(s) subject to the notification obligation:

John H Burbank III / Passport Capital LLC / Blackwell Partners LLC / Passport Plus LLC / Passport Special Opportunities Master Fund LP / Passport Advisors LP / Passport Holdings LLC / Passport Materials Master Fund LP / Norges Bank (Central Bank of Norway)

4. Full name of shareholder(s) (if different from 3.):

Passport Special Opportunities Master Fund LP / Passport Materials Master Fund LP / Blackwell Partners LLC / Norges Bank (Central Bank of Norway)

5. Date of the transaction (and date on which the threshold is crossed or reached if different): 18 January 2012

6. Date on which issuer notified: 19 January 2012

7. Threshold(s) that is/are crossed or reached: 15%

8. Notified details:

A: Voting rights attached to shares

Class/type of shares: Ordinary 1p GB000320472

Situation previous to the Triggering transaction

Number of Shares: 19,242,329

Number of Voting Rights: 19,242,329

Resulting situation after the triggering transaction

Number of Shares – direct: 18,603,053

Number of Voting Rights – direct: 18,603,053

Number of shares – indirect: 0

Number of Voting Rights – indirect: 0

Percentage of Voting Rights – direct: 11.74%

Percentage of Voting Rights – indirect: 0

B: Financial Instruments:  N/A

C: Financial instruments with similar economic effects to Qualifying financial instruments

Type of financial instruments: Swap

Exercise price: n/a

Expiration date: 2 May 2013

Exercise/conversion period: n/a

Number of voting rights instrument refers to: 4,965,900

Percentage of Voting Rights: 3.13%

Delta:

Total (A+B+C)

Number of Voting Rights 23,568,953

Percentage of Voting Rights 14.88%

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable:

John H. Burbank III is the managing member of Passport Capital LLC.

Passport Plus, LLC is the general partner of Passport Special Opportunities Master Fund, LP.

Passport Holdings is the general partner of Passport Advisors.

Passport Capital LLC is the managing member of Passport Plus LLC and Passport Holdings LLC, and is the Investment Manager to Blackwell Partners LLC, Norges Bank (Central Bank of Norway),

Passport Special Opportunities Master Fund LP and Passport Materials Master Fund LP

The position is currently held as follows:

Blackwell Partners LLC (479,800 common shares /0.30%)

Norges Bank (Central Bank of Norway) (3,470,000 common shares /2.19%)

Passport Special Opportunities Master Fund LP (14,653,253 common shares /9.25%)

Passport Materials Master Fund LP (4,965,900 swaps/3.13%)

Proxy Voting

10. Name of the proxy holder:  N/A

11. Number of voting rights proxy holder will cease to hold:  N/A

12. Date on which proxy holder will cease to hold voting rights:  N/A

13. Additional information:  None

Enquiries:

Ian Cuthbertson               (44) 1248 361333

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LIM Reports Preliminary Operating Results for 2011

Posted on 13 Jan 12 by Anglesey Mining

Anglesey Mining’s 33% held associate Labrador Iron Mines Holdings Limited (TSX:LIM) is pleased to report preliminary unaudited operating results for the period to December 31, 2011 from its James direct shipping (DSO) iron ore project near Schefferville, Quebec.

These operating results reflect the period beginning June 1, 2011 with the commencement of mining operations at the James Mine and commissioning and start-up of the Silver Yards processing plant. This is considered to be a pre-production, start-up and testing period. Commercial production for the Schefferville Project is expected to be declared in 2012.

Operating Results by Quarter and Year to Date
Quarter ended
December 31, 2011		 Quarter ended
September 30, 2011		 YTD June 1 to
December 31, 2011
Tonnes Grade %
Fe		 Tonnes Grade %
Fe		 Tonnes Grade %
Fe
Total Ore Mined 483,629 60.9 612,596 60.2 1,205,609 60.7
Direct Railing Ore portion 226,372 64.8 177,863 65.3 438,441 64.9
Waste Mined 592,957 – 1,536,368 – 2,855,007 –
Ore Processed 171,842 59.0 382,013 57.4 572,052 58.4
Lump Ore Produced 20,572 63.7 57,179 64.8 79,407 63.6
Sinter Fines Produced 47,825 65.0 101,002 63.0 152,735 65.0
Total Product Railed 349,624 64.8 208,461 65.1 563,569 64.9
Tonnes Product Sold 385,898 64.9 – – 385,898 64.9
Port Product Inventory 177,669 64.9 170,740 63.3 177,669 64.9
Site Product Inventory 69,983 65.3 129,715 64.4 69,983 65.3
Site ROM Ore inventory 195,117 59.0 6,476 57.33 195,117 59.0

*ALL FIGURES ARE PRELIMINARY AND SUBJECT TO CONFIRMATION REPORTED IN DRY METRIC TONNES

To the end of December 2011, a total of approximately 1.2 million tonnes of ore was mined and trucked to the Silver Yards area ahead of processing or transport to Port. A total of 599,467 wet tonnes was hauled to the Port of Sept-Iles, of which 411,987 wet tonnes were sold to IOC and shipped to China.

During the operating period to December 31, 2011, a total of 440,000 tonnes of direct railing ore at an average grade of 64.9% Fe was mined, of which 340,000 tonnes was railed directly to Sept-Iles without further processing. Approximately 572,000 tonnes of ore was fed to the Silver Yards plant, yielding approximately 232,000 tonnes of lump and sinter fine products. The grade of ore mined in 2011 was higher than the average resource grade.

The Silver Yards processing plant improved in throughput and recovery later in the year, reaching a rate in excess of 8,000 tonnes per day at various times in September and October. Initially the ramp up of the plant was slower than planned due to a larger percentage of fine material in the screens that reduced the throughput rate. Much of this ultra-fine material was being passed through secondary screens resulting in a lower than expected level of iron recovery.

With the completion of the second phase expansion at the Silver Yards plant involving the installation of a hydrosizer, designed specifically for fine material, throughput and recovery rates improved considerably.

Further plant modification and installation of additional equipment at Silver Yards as part of the Phase 3 expansion program have progressed as planned. A third parallel line consisting of a second hydrosizer and WHIMS magnetic separator will be added to recover the finer material and enhance recoveries.

The Silver Yards plant was shut down for the season in early November as wet processing is not planned in winter conditions. The plant start-up for the 2012 operating season is planned for May or earlier subject to weather conditions.

Rail to Port

Iron ore from the James Mine was transported by rail from the Silver Yards plant site, via the Tshiuetin Rail Transportation Inc. (“TSH”) railway and the Quebec North Shore and Labrador (“QNS&L”) railway, to the Port of Sept-Iles. To the end of December 2011, 599,467 wet tonnes had been railed to Sept-Iles.

As previously reported, the buildup in rail shipments was slower than originally planned. A second train was added later in the year, which together with the introduction of more railcars significantly increased the tonnage transported to the Port of Sept-Iles from September to November.

Iron Ore Sales

LIM entered into an agreement with the Iron Ore Company of Canada (“IOC”) for the sale and shipping of all of LIM’s 2011 iron ore production. Under the confidential sales contract with IOC, the iron ore was delivered to Asian markets and resold by IOC’s marketing organization on the spot market.

In 2011 a total of approximately 411,987 wet tonnes (386,000 dry) was sold to IOC and shipped to China. In addition to these shipments, a further approximately 187,000 wet tonnes of iron ore is being held in inventory at the Port of Sept-Iles for shipping in 2012.

The first shipment of LIM iron ore sailed from the Port of Sept-Iles for China in early October, carrying a total of 167,167 wet tonnes of direct railing ore at an average grade of 64.9% Fe. This shipment was sold into the spot market at a gross price of about US$176 per tonne CFR China. The second shipment of LIM’s iron ore, carrying 172,743 wet tonnes of sinter fines at an average grade of 64.9% Fe, departed Sept-Iles in early November. This shipment was priced in a much weaker spot market in the range of $121 per tonne CFR China. A third partial shipment of about 72,000 wet tonnes sailed in mid-December and was priced in the market range of US$137 per tonne CFR China. The sale price for LIM iron ore sold to IOC was based on the actual realized prices to Chinese customers, less an allocation for handling, loading, shipping and sales costs.

All LIM’s iron ore produced in 2011 was sold to IOC and delivered to Asian markets and re-sold by IOC’s marketing organization on the spot market. The Company continues to review its options for marketing its iron ore production for 2012 and subsequent years and is evaluating the optimum route to achieve these sales, while still maintaining maximum flexibility and independence. Marketing discussions are continuing with potential customers, both in Europe and in Asia. The Company is also continuing discussions with a number of internationally recognized commodity traders with specialist knowledge of the iron and steel industry. The Company has not yet concluded any agreements for the sale of any iron ore beyond 2011, but expects to conclude shipping and sale arrangements prior to the start-up of operations in the spring.

Exploration

The 2011 exploration program was successfully completed in November. Three rigs were in operation drilling a total of about 12,000 metres on a number of deposits with Houston as the focus. Exploration support programs, including 650 metres of trenching, 65 test pits and air-borne geophysics, were also completed. The Company anticipates releasing an updated NI 43-101 resource estimate for its Houston deposit in the first quarter of calendar 2012.

Outlook for 2012

Detailed planning for 2012 is now underway, utilizing the operating experience gained in 2011, and it is expected that the Company’s plans for 2012 will be announced by the end of February.

Subject to the final operating plan and budget approval, it is expected that mining will continue at the James North and James South deposits, with planned total ore mined of between 2.5 to 3.0 million tonnes in calendar 2012. This is expected to yield up to 2.0 million tonnes of saleable product, including the 187,000 tonnes in stockpile at the Port which will be shipped in calendar 2012.

The first part of the Phase 3 expansion at the Silver Yards processing plant is underway. To date the civil construction portion of Phase 3 has been completed on schedule, with steel erection and commissioning to be completed by June 2012.

Project Development

In December 2011, LIM submitted a permit application for the Stage 2 Houston project to the Government of Newfoundland and Labrador. The goal, subject to environmental release, permitting and detailed engineering, is to prepare the Houston 1 and 2 deposits for production in 2013.

As part of this exercise, the Company is conducting a detailed evaluation of the various scenarios for the development of the Houston deposits. This includes the mining of some direct railing ore, together with the assessment of processing alternatives, which may involve either trucking ore to the Silver Yards plant or the eventual construction of a separate dedicated processing plant.

The terms “iron ore” and “ore” in this document are used in a descriptive sense and should not be construed as representing current economic viability. Dry metric tonnes are used in this release unless otherwise specified.

About Labrador Iron Mines Holdings Limited (LIM)

LIM is engaged in the production and development of its 100% owned Schefferville Area direct shipping iron ore (DSO) properties in the Labrador Trough of western Labrador and northeastern Quebec. The Company commenced production from the James Mine in June 2011 following the successful construction and commissioning of the mine and Silver Yards processing plant earlier in the year.

LIM contemplates mining in stages. The first phase of Stage 1 comprises the James Mine and the Silver Yard processing plant which is connected by a rail spur to the main Schefferville to Sept-Iles railway. Through a phased expansion program, LIM plans to grow its iron ore production through the subsequent development of adjacent deposits.

For further information, please view www.labradorironmines.ca.

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing holds a 33% interest in Labrador Iron Mines (TSX:LIM) and owns 100% of Parys Mountain in North Wales where there is an historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.

For further information:

Bill Hooley, Chief Executive                                                        01492 541981

Ian Cuthbertson, Finance Director                                               01248 361333

Ambrian Partners, Samantha Harrison/Klara Kaczmarek               020 7634 4700

Tavistock Communications, Emily Fenton/Jos Simson                  020 7920 3155

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Diamond drilling recommences at Parys Mountain

Posted on 11 Jan 12 by Anglesey Mining

  • Initial stage of four holes
  • Potentially a further six to eight holes depending on the initial results
  • Target is shallow extensions of the Engine zone close to the existing Morris Shaft
  • Results expected to contribute to a review of the mining and production options
  • Commercial options to enhance shareholder value will also be reviewed

Anglesey Mining plc is pleased to announce that it has recommenced diamond drilling at Parys Mountain in a programme designed to identify the extent of near surface locations of the Engine Zone mineralisation.

Parys Mountain which is 100% owned by Anglesey is a copper-zinc-lead project with historical resources currently in excess of 7 million tonnes at over 9% combined metal.

As previously announced on 2 December 2011 an Induced Polarisation (IP) geophysical survey and an associated Deep Overburden (DOB) geochemical survey were conducted during December. The results of these surveys have now been received and analysed and have provided good guidance for the location of holes for the on-going drilling programme.

The first hole in the initial stage of drilling has now commenced and is progressing satisfactorily.  This hole has a target depth of 220 to 250 metres.  The initial stage will consist of four holes totalling in excess of 800 metres of drilling and is expected to be completed in five to six weeks.  Subject to results obtained from these first holes it is planned to drill a further six to eight holes for an additional 1,200 metres of drilling.  These second stage shallower holes are likely to be located between the current holes and the target area identified from the IP and DOB surveys.

The drilling is targeting the potential sub-outcrop location of the Engine Zone mineralisation which has been shown to be a major resource bearing structure around the bottom of the Morris Shaft at some 300 to 400 metres below surface.  Previous exploration particularly during the last drilling programme at Parys Mountain in 2007 and 2008 traced the Engine Zone upwards to a depth of about 200 metres.

Providing the existence of the Engine Zone at these shallower depths can be defined in sufficient size and continuity it could enhance the development of the nearby White Rock zone as a relatively small decline based mining operation. Planning permissions for such an operation and for an associated processing plant remain in place.

As the results from the current phase of drilling are received a review of the mining and production options available for the White Rock and potential shallow Engine Zone resources will be carried out. This review will be designed to identify the optimum mining and processing routes available and to generate capital and operating cost estimates at a preliminary feasibility study level.

Additionally a broader review of the overall potential of the Parys Mountain area will be conducted and in conjunction with White Rock/shallow Engine Zone study will consider the various commercial options available to enhance the value of Parys Mountain for shareholders.

Subject to satisfactory and timely completion of both phases of the current drilling programme and receipt of analytical data it is expected that both these reviews will be completed during the second quarter of 2012.

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing holds a 33% interest in Labrador Iron Mines (TSX:LIM) and owns 100% of Parys Mountain in North Wales where there is an historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.

For further information:

Bill Hooley, Chief Executive                                                        01492 541981

Ian Cuthbertson, Finance Director                                               01248 361333

Ambrian Partners, Samantha Harrison/Klara Kaczmarek               020 7634 4700

Tavistock Communications, Emily Fenton/Jos Simson                  020 7920 3155

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Holdings in company

Posted on 02 Dec 11 by Anglesey Mining

Disclosure of Holdings

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached: Anglesey Mining plc

2. Reason for the Notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights      [ x ]

An acquisition or disposal of financial instruments which may result in the acquisition of shares already issued to which voting rights are attached    [  ]

An event changing the breakdown of voting rights [  ]

Other – change in reporting requirements to include qualifying financial instruments [  ]

3. Full name of person(s) subject to the notification obligation:

John H Burbank III / Passport Capital LLC / Blackwell Partners LLC / Passport Plus LLC / Passport Special Opportunities Master Fund LP / Passport Advisors LP / Passport Holdings LLC / Passport Materials Master Fund LP / Norges Bank (Central Bank of Norway)

4. Full name of shareholder(s) (if different from 3.):

Passport Special Opportunities Master Fund LP / Passport Materials Master Fund LP / Blackwell Partners LLC / Norges Bank (Central Bank of Norway)

5. Date of the transaction (and date on which the threshold is crossed or reached if different): 30 November 2011

6. Date on which issuer notified: 1 December 2011

7. Threshold(s) that is/are crossed or reached: 16%

8. Notified details:

A: Voting rights attached to shares

Class/type of shares: Ordinary 1p GB000320472

Situation previous to the Triggering transaction

Number of Shares: 20,398,319

Number of Voting Rights: 20,398,319

Resulting situation after the triggering transaction

Number of Shares – direct: 20,347,018

Number of Voting Rights – direct: 20,347,018

Number of shares – indirect: 0

Number of Voting Rights – indirect: 0

Percentage of Voting Rights – direct: 12.84%

Percentage of Voting Rights – indirect: 0

B: Financial Instruments:  N/A

C: Financial instruments with similar economic effects to Qualifying financial instruments

Type of financial instruments: Swap

Exercise price: n/a

Expiration date: 3 May 2013

Exercise/conversion period: n/a

Number of voting rights instrument refers to: 4,965,900

Percentage of Voting Rights: 3.13%

Delta: 3.13%

Total (A+B+C)

Number of Voting Rights 25,312,918

Percentage of Voting Rights 15.98%

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable:

John H. Burbank III is the managing member of Passport Capital LLC.

Passport Plus, LLC is the general partner of Passport Special Opportunities Master Fund, LP.

Passport Holdings is the general partner of Passport Advisors.

Passport Capital LLC is the managing member of Passport Plus LLC and Passport Holdings LLC, and is the Investment Manager to Blackwell Partners LLC, Norges Bank (Central Bank of Norway),

Passport Special Opportunities Master Fund LP and Passport Materials Master Fund LP

The position is currently held as follows:

Blackwell Partners LLC (479,000 common shares /0.30%)

Norges Bank (Central Bank of Norway) (3,470,000 common shares /2.19%)

Passport Special Opportunities Master Fund LP (16,397,218 common shares /10.35%)

Passport Materials Master Fund LP (4,965,900 swaps/3.13%)

Proxy Voting

10. Name of the proxy holder:  N/A

11. Number of voting rights proxy holder will cease to hold:  N/A

12. Date on which proxy holder will cease
to hold voting rights:  N/A

13. Additional information:  None

Enquiries:

Ian Cuthbertson               (44) 1248 361333

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Parys exploration activities underway – project review continues

Posted on 02 Dec 11 by Anglesey Mining
  • New phase of site exploration activities commenced at Parys Mountain
  • Review of development options for Parys project by Spring 2012

Anglesey Mining plc (AYM:LSE) is pleased to announce that it has commenced a new phase of site exploration activities at its Parys Mountain site on the island of Anglesey, North Wales. These activities are part of the first stage in a review of the development options available for the Parys Mountain project.

Parys Mountain in which Anglesey Mining holds a 100% interest is a copper-zinc-lead project with historical resources of 7 million tonnes at over 9% combined metal.

This first stage includes an Induced Polarisation (IP) geophysical survey and an associated Deep Overburden (DOB) geochemical survey.  This work is targeting the potential sub-outcrop location of the Engine Zone mineralisation.  The Engine Zone has been shown to be a major resource bearing structure in the area around the bottom of the Morris shaft at some 300 to 400 metres below surface.  It has been traced up-dip to a depth of about 200 metres and the present programme is aimed at determining its location closer to surface. This current work is expected to be completed within one week and the analysis and review of the resulting data will be available shortly thereafter.

The second stage will involve a diamond drilling program targeting the Engine Zone above the 200 metre level. The initial drilling programme will consist of 4 holes totalling around 800 metres of drilling, and depending upon results obtained, a further six to eight holes for an additional 1,200 metres of drilling could follow. This drilling program is expected to commence within a month.

The location of the Engine Zone at these shallower locations is likely to be close to the shallow White Rock zone which was identified during a drilling programme which took place between 2006 and 2008. If this zone extension can be identified then the economics of a relatively small decline-based mining operation on both the White Rock and shallow Engine Zones will be much enhanced. Consultants Micon International carried out a scoping study on the White Rock concept in 2007. Planning permission for a decline and mining in this vicinity and for the operation of a processing plant adjacent to the decline portal remains in place.

In parallel with the drilling programme a review of the current options available for the development of Parys Mountain will be carried out. This review will initially concentrate on near term alternatives including the shallow White Rock and Engine zones but could be expanded to include the entire resource base and exploration potential at Parys Mountain. The results from this review will be expected by spring 2012 and will provide sufficient information to enable the future development plan for the project to be determined. In addition these results will provide guidance on the best commercial route for such development and the extent of any third party technical and financial input that may be required.

Investor activities

Anglesey Mining plc will be exhibiting at this year’s Mines and Money Show at the Business Design Centre in Islington on Tuesday and Wednesday 6 and 7 December from 8.30am to 5.000pm. Any shareholders wishing to visit us on stand B9 will be welcome.

Investors or potential investors are also warmly invited to attend our One2One Investor Forum at the Chesterfield Mayfair Hotel in London on Thursday 8 December from 6pm where the chief executive Bill Hooley will be making a presentation. Please contact events@proactiveinvestors.com for further details of this event.

For further details:

Bill Hooley, Chief Executive                                               01492 541981

Ian Cuthbertson, Finance Director                                      01248 361333

Ambrian Partners, Samantha Harrison/Shaun Whyte             020 763 44700

Tavistock Communications, Emily Fenton/Jos Simson                       020 7920 3155

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Half yearly report 2011

Posted on 29 Nov 11 by Anglesey Mining

Chairman’s statement
and management report – November 2011

We are very pleased to be able to report further significant progress at the 33% owned Labrador Iron Mines (LIM) operations in the period since the last report to shareholders. Stripping and mining operations have proceeded well, the processing plant frequently exceeded its design throughput and the first shipment of iron ore left the port of Sept-Isles bound for China on 3 October 2011. The substantial group profit of £16.7 million for the period is largely due to the success of the investment in LIM.  Meanwhile at Parys Mountain we plan to start a drilling and geophysical programme in the immediate future as the first step in a fresh approach to this property.

Labrador Iron

The highlights at the Schefferville properties for the period ended 30 September 2011 were:

  • 723,000 tonnes of ore mined and trucked to Silver Yards during the half year
    including 212,000 tonnes of direct railable ore (DRO) at an average grade of 65% iron
  • James mining operations operated ahead of schedule
  • Silver Yards processing plant throughput exceeded 8,000 tonnes per day
  • A second phase processing plant expansion was completed increasing recoveries
    by the production of high quality sinter fines
  • A second train has increased the tonnage carried on the railway to Sept-Iles.

Details of production to date are shown in the following table:

Quarter ended 30 September 2011 Half year ended 30 September 2011
Tonnes Grade % Fe Tonnes Grade % Fe
Ore Mined 612,596 60.2 722,980 59.9
Including DRO 177,863 65.3 212,069 65.1
Waste Mined 1,536,368 2,262,050
Plant Feed 310,107 57.4 328,210 57.3
Lump Ore 52,179 64.8 60,435 64.7
Sinter Fines 112,951 63.0 119,587 63.0
Total Railed 208,461 65.1 213,945 65.1

The first ship carrying 167,167 wet tonnes of direct railable ore at a grade of 64.8% Fe departed from the port of Sept-Iles on 3 October 2011 bound for China and the second shipment departed on 2 November carrying 172,743 wet tonnes of sinter fines at a grade of 64.9% Fe, also destined for China. LIM expects a third similar sized shipment to depart at the end of November, and possibly another smaller shipment to depart in December.

James Mine Operations

Mining at the James Mine commenced in June 2011 and is continuing to operate well. To the end of September, a total of 723,000 tonnes of ore had been mined and trucked to the Silver Yards area ahead of processing or transport to the port.  The grade of the James ore in the upper benches of the mine continues to be generally in excess of expectations.  Of the total production to the end of September, some 212,000 tonnes was DRO at an average grade of around 65% iron of which 175,000 tonnes had been railed directly to Sept-Iles without further processing.

Ore mining operations at the James Mine will continue through the remainder of 2011 at an average rate of approximately 16,000 tonnes per day and, depending upon the weather, it is expected that a total of about 1.6 million tonnes will have been mined by the end of December with about 3 million tonnes of waste mined in the same period.  Ore mining operations are expected to continue during the winter months, but at a reduced rate.

Silver Yards processing

Following commissioning and start-up in June 2011 the Silver Yards processing plant gradually improved its performance and frequently achieved over 8,000 tonnes per day in September and October. The completion of a second phase expansion of the Silver Yards plant during the second quarter was designed specifically for fine material and has resulted in an improved throughput and recovery rate.

The Silver Yards plant was shut down for the season in early November as wet processing is not planned in winter conditions. Further plant modification and installation of additional equipment as part of the phase three expansion is continuing and is designed to increase Silver Yards’ production capacity to about 2 million tonnes per year. It is expected that the planned plant expansion will be in place by mid-2012.

It is also estimated that, subject to weather conditions, approximately 600,000 tonnes of saleable product will be railed to Sept-Iles for calendar 2011 and will all be sold to the Iron Ore Company of Canada (IOC). In addition to these shipments, it is expected that a further 600,000 tonnes of iron ore will be held in inventory at Silver Yards and be available for treatment and shipping in 2012, including about 200,000 tonnes of DRO.

LIM 2011 exploration programme

The 2011 LIM exploration program has progressed successfully and is now winding down.  Three rigs were in operation and by the end of September about 8,200 metres had been drilled on a number of deposits with the Houston deposit being the main focus. It is expected that about 11,500 metres of reverse circulation drilling will be completed before the onset of winter. Exploration support programs including 650 metres of trenching, 65 test pits and air-borne geophysics will also be completed during the current season.

LIM 2012 Outlook

Mining will continue at the James North and James South deposits in the year 2012, with a planned total ore mined of between 2.0 and 2.5 million tonnes, together with about 3.5 million tonnes of waste.

Subject to final operating plan and budget approval, it is now expected that between 1.8 and 2.0 million tonnes of ore, including material from stockpiles, will be treated in 2012 and this is expected to yield up to 1.5 million tonnes of saleable product. In addition, it is expected that about 500,000 tonnes of direct railable ore from both the 2011 stockpile and from 2012 mining operations will also be available in 2012, for a total production target of over 2.0 million tonnes of iron ore to be shipped and sold in 2012. A third train will be introduced in 2012 to enable this production of iron ore to be railed to the port of Sept-Iles.

LIM has signed a MOU with the Sept-Iles Port Authority for the use of the Pointe-aux-Basques terminal for handling and ship loading of LIM’s iron ore however these arrangements for 2012 and future years remain subject to evaluation and finalization.

Iron ore produced in 2011 is being sold to IOC and delivered to Asian markets and re-sold by IOC’s marketing organization on the spot market. LIM continues to review its options for marketing its iron ore production for 2012 and subsequent years and is evaluating the optimum route to achieve these sales, while still maintaining maximum flexibility and independence. LIM has not yet concluded any agreements for the sale of any iron ore beyond 2011.

Parys Mountain

Towards the end of the period a review of the Parys Mountain project commenced and a drilling programme to expand and assist this review is planned to commence in the immediate future; this will target areas close to the shaft which could form part of a small mine chiefly focussed in the White Rock area. This concept was the subject of a scoping study prepared by Micon Consultants in June 2007. The directors believe that the outlook for zinc and lead prices is positive over the next few years and that work to further develop the White Rock area as an early route to the full development of the project is justified.

Financial results

LIM’s fundraising of C$121 million in April 2011 resulted in the reduction of our stake in that company from 41% to 33%, and the operation of accounting standards means that this dilution is treated for accounting purposes as a ‘deemed disposal’ or partial sale; because of the low LIM cost base we have recorded a profit on this non-cash transaction of £19.6 million in the period (2010 – nil). After taking into account operating expenses and other items there was a net profit for the period of £16.7 million (2010 – loss – £0.76 million) despite a significant increase in administrative and start-up expenses attributable to LIM. The group’s UK administrative expenses excluding LIM increased to £213,422 from £161,955 in the comparable period of 2010. There are no seasonal effects in these results.

The group has no revenues from the operation of its properties. At the period end the cash resources of the group were £3.4 million (31 March 2011 – £3.7 million) and LIM had in excess of C$37.9 million or £23.5 million (31 March 2011 – C$7.5 million or £4.8 million).

Outlook

After a number of years in which the group has concentrated its efforts largely on LIM we are now expanding our review of Parys Mountain with the aim of forming a clear view on the best way to move its development forward. Whilst there is considerable financial uncertainty in the world, the price of copper which represents the major potential revenue from Parys Mountain, remains firm, and there is a continuing consensus that prices for zinc and lead, which are likely to provide revenues in the early years of the mine, is positive over the medium term.

LIM has taken a major step during the last six months as it has moved into production and is planning a major increase in the sale of iron ore products in 2012 and beyond. The price of iron ore, after a very steady summer, has become somewhat erratic as both miners and Chinese steel mills reassess their positions. The directors remain confident that LIM will perform well in 2012 and continue to provide a fundamental basis for the continuing well-being of the group.

John F Kearney

Chairman

28 November 2011

Condensed consolidated income statement

Notes Unaudited six months ended 30 September 2011 Unaudited six months ended 30 September 2010
All operations are continuing £ £
Revenue - -
Expenses (213,422) (161,955)
Share of loss of associate 11 (2,635,673) (407,016)
Gains on deemed disposals in associate 11 19,607,503 17,279
Investment income 20,566 5,394
Finance costs (56,059) (59,860)
Foreign exchange loss (67,700) (149,974)
Profit/(loss) before tax 16,655,215 (756,132)
Tax 9 - -
Profit/(loss) for the period 16,655,215 (756,132)
All attributable to equity holders of the company
Profit/(loss) per share 7
Basic – pence per share 10.5 p (0.5)p
Diluted – pence per share 9.9 p (0.5)p
Consolidated statement of comprehensive income
Profit/(loss) for the period 16,655,215 (756,132)
Other comprehensive income:
Exchange difference on
translation of foreign holding		 (595,891) (1,213,105)
Total comprehensive (loss)/income
for the period 		16,059,324 (1,969,237)
All attributable to equity holders of the company

A copy of the half yearly report in pdf format can be found on this website by clicking here.

For further information, please contact:

Bill Hooley, Chief Executive +44 (0) 1492 541981;

Ian Cuthbertson, Finance Director +44 (0) 1248 361333;

Samantha Harrison / Shaun Whyte, Ambrian Partners Limited +44 (0) 2076 344700;

Emily Fenton / Jos Simson,

Tavistock Communications +44 (0) 20 7920 3155 / +44 (0) 7788 554035.

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