Independent review of LIM’s Houston deposits increases resource estimate to over 22 million tonnes

Anglesey Mining’s 41% owned associate Labrador Iron Mines Holdings Limited (TSX: LIM) is pleased to report that an independent resource estimate of the Houston deposits has increased the Measured and Indicated resource estimate to in excess of 22 million tonnes, from the 19.5 million tonnes previously reported.

This independent review of the Houston deposits, part of LIM’s direct shipping iron ore projects in Western Labrador and North-Eastern Quebec near Schefferville, was carried out by Maxime Dupéré, P. Geo. of SGS Canada Inc (“SGS”) who is a Qualified Person and independent of LIM within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. The SGS Technical Report has been filed on SEDAR and can be viewed on the LIM website.

SGS conducted its review using the same data and block model as that utilized by LIM in its in-house report on the Houston resource estimate dated February 11th, 2011 (See LIM Press Release February 11th, 2011).  SGS used different interpolation and classification parameters, which resulted in a 13% increase in the total tonnage and a slightly lower (<1%) iron grade. The increase in tonnage was more significant in the Measured category.

A summary of the new resource estimate compared to that previously reported by LIM is shown in the table below. The detailed resource estimate is shown on the LIM website.

SGS (March 2011) LIM (February 2011)
Class Tonnes Fe Mn SiO2 Tonnes Fe Mn SiO2
x 1000 % % % T x 1000 % % %
Fe Ore
Measured 17,800 57.9 0.8 12.9 9,873 59.2 0.6 11.5
Indicated 3,340 55.7 0.9 16.7 8,710 57.7 0.8 13.6
Inferred 690 54.9 0.8 18.2 1,014 55.9 1.0 16.5
Mn Ore
Measured 900 53.6 5.0 10.6 566 54.2 5.7 9.0
Indicated 130 52.7 5.1 11.2 351 54.5 4.8 9.8
Inferred 10 52.4 4.3 11.8
Total
Measured 18,700 57.7 1.0 12.8 10,439 58.9 0.9 11.3
Indicated 3,470 55.6 1.1 16.5 9,060 57.6 1.0 13.5
Inferred 690 54.9 0.8 18.2 1,024 55.8 1.0 16.5
M & I 22,170 57.4 1.0 13.4 19,499 58.3 0.9 12.3

Commenting on this independent resource estimate at the Houston deposits, John F. Kearney, Chairman and CEO of Labrador Iron Mines said, “It is particularly encouraging that this independent review has confirmed a larger resource at what is becoming one of LIM’s major deposits.  This SGS review reinforces our plans to initiate detailed design and engineering studies to evaluate the options of a new processing plant to treat ore from the Houston deposits.”

The Houston deposits remain open along strike particularly to the southeast and SGS has made recommendations for further drilling to test these possible extensions.

About Labrador Iron Mines Holdings Limited (LIM)

LIM’s Schefferville Area project involves the development of twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec near Schefferville, Quebec. The Company’s properties are part of the historic Schefferville area iron ore district where mining of adjacent deposits was previously carried out by the Iron Ore Company of Canada from 1954 to 1982.

Labrador Iron Mines contemplates mining in stages, the first phase of Stage 1 comprising the James and Redmond deposits, which are located in close proximity to existing infrastructure, and for which all operating permits have been issued and plant construction and mine development is nearing completion.

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

About Anglesey Mining plc

Anglesey Mining with its LSE main board listing is primarily focused on its 41% 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.

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