Drill programs continue to convert historical resources to current NI 43-101 resources
Anglesey Mining’s 26% owned associate Labrador Iron Mines Holdings Limited (“LIM”) (TSX: LIM) is pleased to report that its 2011 drilling programs continued to increase the size of the Houston deposits and that a new National Instrument (NI) 43-101 mineral resource estimate has been calculated for the Knob Lake deposit, both located in western Labrador.
In its 2011 exploration programs, LIM completed 8,216 metres (m) of reverse circulation (RC) drilling in 139 holes drilled on its projects in Labrador and 2,794 m of RC drilling in 51 holes drilled on properties in Quebec.
The full release is available on the LIM website at www.labradorironmines.ca.
Houston deposits increased in size
LIM reported that an updated independent mineral resource estimate of the Houston deposits has confirmed the Measured and Indicated resource estimate of 23 million tonnes at a grade of 57.2% Fe, compared to 22 million tonnes at a grade of 57.3% Fe previously reported and has increased the Inferred resource to 3.7 million tonnes at a grade of 56.5% Fe from the 690,000 tonnes at a grade of 54.9% Fe previously reported. The Houston deposits remain open along strike, particularly to the southeast, and further drilling is planned for 2012 to test for possible extensions and to upgrade the Inferred resource.
Commenting on the new resource estimate at the Houston deposits, John F. Kearney, LIM’s Chairman and CEO said, “It is particularly encouraging that this independent review has confirmed a larger resource at Houston, which is becoming LIM’s major project for the next five years. The increase in tonnage was more significant in the Inferred category and further drilling is planned this year to upgrade and further expand the Houston resource.”
New Knob Lake mineral resources estimate of 5.7 million tonnes
LIM is also pleased to report a new mineral resource estimate for its Knob Lake deposit of 5.7 million tonnes at an average grade of 54.2% Fe in the Measured and Indicated categories, which is a significant increase over the previous historical IOC estimate of 4.0 million tonnes at an average grade of 48.4% Fe in the Inferred category.
The Knob Lake deposit is located about 3 kilometres (“km”) from LIM’s Silver Yards process plant and, subject to permitting, may be included in Stage 1 of LIM’s direct shipping (DSO) iron ore operations at a later date.
The historical resources referred to in this press release are based on work completed and estimates prepared by IOC prior to 1983 and were not prepared in accordance with NI 43-101..
2012 Exploration Programs
Following on the success of the 2011 exploration programs, a 2012 budget of approximately CAD$8 million has been set to support LIM’s aggressive drilling efforts planned for the summer of 2012. Drill programs, principally at Houston 1, 2 and 3 and Malcolm 1, as well as a number of other deposits, will focus on generating further mineral resources and technical information required for detailed mine planning.
In addition to this drilling, a resource definition and bulk sampling program of historic stockpiles adjacent to former producing mine will be initiated with a view to providing supplemental plant feed to the Silver Yards processing plant. Exploration work aimed at evaluating historical manganese resources will also be carried out along with metallurgical testing with a view to ascertaining compatibility with the Silver Yards’ processing plant flow sheet.
In a new initiative to the main focus on DSO iron ore, LIM plans an initial core drill program on recently identified taconite iron mineralization on LIM’s mineral claims, which will be supported by geophysical programs. The Schefferville/Menihek area has a number of taconite deposits being explored/developed by other companies and these deposits, which usually average about 30% Fe, can often show very significant tonnages.
The LIM release has been prepared under the supervision of Terence N. McKillen, Executive Vice President and a Director of LIM and a Qualified Person within the meaning of NI 43-101. The current resource estimates disclosed herein have been prepared by Maxime Dupéré, P. Geo of SGS Canada Inc. who is an Independent Qualified Person within the meaning of NI 43-101.
About Labrador Iron Mines Holdings Limited (LIM)
Labrador Iron Mines (LIM) is Canada’s newest iron ore producer. It owns a portfolio of direct shipping (DSO) iron ore operations and projects located in the prolific Labrador Trough. Initial production commenced at our 100%-owned James Mine in June 2011 and we recorded the sale of 400,000 tonnes of iron ore in our first start-up season. The first full production season commenced on April 2, 2012, with a sales target of 2 million tonnes of iron ore for the 2012 year.
LIM is focused on a strategic and robust growth plan arising from our portfolio of 20 iron ore deposits in Labrador and Quebec, all within 50 kilometres of the town of Schefferville. The James Mine is connected by a direct rail link to the Port of Sept-Iles, Québec. The area also benefits from established infrastructure including the town, airport hydro power and railway service. Starting with the James Mine and leading to the development of the expanding Houston flagship project, its objective is to ramp up production and sales towards 5 million tonnes per year by 2015.
About Anglesey Mining plc
Anglesey holds 26% of Toronto-listed Labrador Iron Mines Holdings Limited (TSX: LIM) which is now producing iron ore from its James deposit, one of LIM’s twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec. Development of other deposits is underway and production of the high grade hematite iron ore is targeted to grow from 2Mt in 2012 to 5Mt in 2015.
Anglesey is also carrying out development and exploration work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where there is estimated to be a total 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