Parys drilling continues – now in new area
Labrador receives Houston environmental approval
Anglesey Mining plc (Anglesey) is pleased to present the following update on project activities since the last report on 15 February 2012.
The diamond drilling programme to test the continuity of the Engine Zone between a depth of 200 metres and surface has now been successfully completed. The previous programme conducted in 2007 and 2008 had determined the position of the zone between the bottom of the Morris Shaft at some 300 metres deep as far upwards as 200 metres deep.
The first stage of this year’s program involved four holes totalling approximately 700 metres of drilling. The first two holes indicated the continuing upward presence of the zone in reasonable widths with significant mineralization at depths between 180 metres and 220 metres. The second two holes at shallower depths indicated continuing presence of the zone but with narrower widths.
As a result of this initial drilling a further short three hole programme was completed to follow the zone through to surface. These holes also located the zone but mineralization was fairly narrow or weakly developed.
The total program of seven holes comprised 860 metres of drilling. Samples from all seven holes have been sent for assay and results are expected within a few weeks.
Geologically it would appear that the Engine Zone is present in mineable widths from the bottom of the Morris Shaft up to around 180 metres deep but is unlikely to be easily mineable at shallower depths. The programme has therefore successfully determined the limits of the Engine Zone, and this will now be incorporated into development planning for possible mining in association with the nearby White Rock Zone.
Following a review of recent geological information and the resulting reassessment of opportunities at the Parys Mountain site, a further series of 2 or 3 holes has been planned. Drilling has commenced on the first of these holes where the target is mineralization of Engine zone type at a depth of 240 to 300 metres. The target is located below the old open pit site below and separated from all previous historical workings in the area about 900 metres away from the Morris Shaft; this area could be accessed by underground drifts from the shaft bottom.
This initial 2 to 3 hole programme is expected to be completed in around 8 weeks’ time and assuming satisfactory results could be immediately extended.
Labrador Iron Mines
Today Anglesey’s 26% owned associate, Labrador Iron Mines Holdings Limited (LIM), announced that it has received environmental approval and project release from the Government of Newfoundland and Labrador for its Houston iron ore mining project in Western Labrador. On 26 March 2012, the Minister of Environment and Conservation informed LIM that, in accordance with the Environmental Protection Act, the Houston 1 and 2 Deposits Mining Project is released from further environmental assessment, subject to a number of conditions.
LIM Chairman and Chief Executive Officer John Kearney commented, “Receiving Environmental approval from the Government of Newfoundland and Labrador for our Stage 2 Houston Project represents another major step in LIM’s development plans. We are pleased that our efforts in planning the proper development of the Houston Project, recognizing the requirements of sound environmental management and social responsibility, and addressing the regulations and policies of the Province of Newfoundland and Labrador, have been acknowledged and accepted by this release and approval”.
The Houston deposits are situated in Labrador about 15 km southeast of LIM’s currently operating James Mine and Silver Yards Processing Plant and approximately 20 km from Schefferville, Québec. The Houston deposits have a combined measured and indicated resource of 22.1 million tonnes at an average grade of 57.3% Fe.
This environmental release of the Houston Project will allow LIM to complete the applications for permits and regulatory approvals required for the construction of mine infrastructure and related facilities to enable the commencement of development and construction at the Houston deposits planned for summer of 2012.
Subject to permitting, it is expected that initial mine development at the Houston deposit, including construction of a haulage road, a railway siding and pre-stripping of the ore will commence in the summer and fall of 2012, leading to commencement of production of ore, including in-pit dry crushing and screening, in the second half of 2013.
Work at the Schefferville site has, as expected, been kept at a minimal level during the winter period. The work level will increase as the winter conditions at both Schefferville and at the port at Sept-Iles relent and activities are expected to accelerate through April and May.
During the winter the major activities have involved ensuring that infrastructure and operational equipment and services, and management and support manning have been put in place so that the target level of production of 2 million tonnes of saleable product during the current year can be readily achieved. This work specifically includes the increase and upgrading of the rail transportation facilities, the completion of the 2012 port agreements and the delivery of key components of the Phase 3 processing facilities at Silver yards and is well advanced and on schedule.
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 north-eastern 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 recorded its first sales of iron ore 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. Stage 2 comprises the development of the Houston deposits which has now completed environmental assessment and is moving to the permitting, development and construction phase.
About Anglesey Mining plc
Anglesey Mining with its LSE main board listing is primarily focused on its 26% 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 / Klara Kaczmarek,
Ambrian Partners Limited +44 (0)2076 344700;
Emily Fenton / Jos Simson,
Tavistock Communications +44 (0)20 7920 3155 / +44 (0) 7788 554035.