LIM completes 2012 exploration program

On track to complete resource estimates and
resource conversions by March 31, 2013

Anglesey Mining plc (“Anglesey”) is pleased to report that its 19.7% owned associate Labrador Iron Mines Holdings Limited (“LIM”) has announced the completion of its 2012 exploration field program totalling 14,000 metres (“m”) of diamond and reverse circulation (“RC”) drilling. This represents the largest exploration program ever completed by LIM. LIM’s field crew is now working on several of its Schefferville area iron ore projects in both Newfoundland and Labrador and Québec towards the completion of geological core logging and sampling in early 2013 and anticipates several new and updated National Instrument 43-101 (“NI 43-101”) compliant resource estimates on its deposits for completion by the end of its fiscal year.

Exploration Program Highlights

  • During the 2012 field season, LIM completed 14,000 m of diamond and RC drilling, a 40% increase over the planned 10,000 m.
  • LIM is on track to complete by March 31, 2013, updated resource estimates for two major deposits: i) the James Deposit (currently in production), including the James South Extension and, ii) the Houston deposits (currently 22.9 million tonnes of Measured and Indicated mineral resources – see press release dated May 31, 2012).
  • LIM is also on track to complete new and initial mineral resource estimates on the Malcolm deposit (nearby Houston), the historic crushed ore stockpiles in both Québec and Labrador and its first inferred mineral resource estimate on the Elizabeth Lake Taconite.
  • Drill results at Malcolm-1 returned ore-type intersections (grading >50% Iron (“Fe”)) in 11 of the 14 holes. Highlights include hole RC-M026, which intersected 21 m at 60.8% Fe and hole RC-M018, which intersected 18 m at 58.8% Fe.
  • During the 2012 exploration program, LIM also acquired geological information through the use of diamond drilling, which successfully recovered core samples for the first time. These samples will now provide better bulk density, geotechnical, metallurgical and hydrogeological interpretations required for detailed mine planning.

“In our 2012 drilling season, our exploration team demonstrated their experience and competence by successfully delivering the most ambitious program in LIM’s history” commented Rod Cooper, LIM’s President and COO. “As a result, we are on track to complete several new and updated resource estimates by the end of our fiscal year. Equally as important, the field information collected this year will not only contribute to the development and delineation of our resource base, but will also provide valuable technical information for strategic mine planning. Preparation work has now commenced for another ambitious exploration program in fiscal 2014, scheduled to commence in April 2013.”

2012 Exploration Work Program Details

LIM used two exploration drill contractors during the 2012 field season: Cabo Drilling Corp. carried out the RC drilling and Major Drilling Group International Inc. carried out the diamond drill work. In previous seasons, LIM used RC drilling exclusively. The 2012 exploration program was successful in generating core samples through the use of traditional diamond drilling, a significant technical achievement. LIM obtained a high level (85%+) of core recovery with the use of highly-skilled personnel and special drilling additives and more than 8,300 m of HQ3 core (61.1 mm diameter) were recovered by the end of the program in mid-November. Logging and core splitting is ongoing on site and the exploration team is expected to complete its sampling in early 2013 to allow the inclusion of all new data and assay results in the next series of mineral resource estimates.

LIM is anticipating new mineral resource estimations on the James Deposit (including the James South Extension), Malcolm-1, Houston 1, 2 and 3 and on the historic crushed ore stockpiles. An initial mineral resource estimation will also be provided on the Elizabeth Lake Taconite.

The 2012 exploration program also successfully tested a system for geophysical down-hole bulk density determinations in the James and Houston orebodies, which promises to yield a valuable contribution to the resource estimation efforts in the future.

Malcolm-1 Drill Results

The Malcolm-1 area lies approximately 3 kilometres northwest from the Houston orebodies.  Initial work on this property was carried out by LIM in 2011 and returned ore-type intersections in 14 of 18 holes drilled (see to press release dated May 31, 2012). In 2012, RC drilling on the Malcolm-1 property consisted of 14 holes totalling 1,600 m and 11 of the 14 holes returned ore-type intersections. Figure 1 outlines the hole locations from the 2011 and 2012 drill programs, as well as the historical resource previously identified by the Iron Ore Company of Canada (“IOC”). The historical (non NI 43-101 compliant) mineral resource is 2.9 million tonnes grading 56.2@ Fe. A manganese resource was also identified by IOC, totalling 422,000 tonnes at a grade of 51.4% Fe. LIM expects to report a new NI 43-101 compliant mineral resource for the Malcolm-1 deposit by the end of its fiscal year.

Table 1 below summarizes the intercepts from the 2012 drill program. True thickness (ETT) is estimated using an average bedding dip of 45 degrees and vertical drilling dips for every RC hole.

Table 1: 2012 Malcolm-1 Drill Hole Intercepts

Hole_ID From (m) To (m) Length (m) ETT
(m)
Fe (%) Mn (%) P (%) SiO2 (%) Al2O3 (%)
RC-M018-2012 3 21 18 13 58.8 1.9 0.06 3.3 0.5
RC-M019-2012 3 36 33 23 52.0 0.5 0.08 12.4 2.5
42 51 9 6 58.9 0.8 0.07 5.9 0.5
RC-M022-2012 21 33 12 8 50.1 0.0 0.01 27.8 0.0
RC-M023-2012 12 27 15 11 54.1 0.1 0.05 16.5 0.0
RC-M024-2012 24 30 6 4 50.6 1.3 0.09 15.8 0.1
RC-M025-2012 18 30 12 8 53.1 0.1 0.06 16.6 0.1
RC-M026-2012 42 75 33 23 56.2 0.5 0.06 12.1 0.2
RC-M027-2012 27 36 9 6 56.7 0.6 0.04 14.8 0.1
RC-M029-2012 33 54 21 15 50.1 0.2 0.06 26.0 0.4
99 108 9 6 52.2 4.9 0.04 17.5 0.0
120 129 9 6 52.3 4.0 0.17 13.8 0.8
RC-M030-2012 93 102 9 6 51.1 0.4 0.03 25.0 0.7
RC-M031-2012 147 156 9 6 51.0 3.1 0.12 10.5 2.7

Other Exploration Work Program Details

LIM was also able to increase the capacity of the mine site sample preparation facilities to allow a better turnaround time in the receipt of assays from off-site laboratories. Actlabs remained as independent managers of the site preparation laboratory and all reduced and pulverized exploration samples were airfreighted to its analytical laboratory in Ancaster, Ontario for multi-element X-ray fluorescent (XRF) assays including Actlabs internal Quality Assurance / Quality Control (QA/QC) procedures.

Ground Geophysical Surveys: Geosig Inc., a Quebec-based geophysical consulting firm carried out a series of ground magnetometer and gravity surveys over several main targets including the Gagnon and Elizabeth taconites and over the James, the Houston, the Malcolm-1 and the Howse direct shipping (DSO) iron ore deposits. The gravity survey covered 48 line-kilometres (line-km) and 1,130 gravity stations were collected.  The magnetic survey covered 31.4 line-km and 40,326 measurements were recovered. These surveys have confirmed the validity of airborne gravity anomalies, located the extensions of known ore bodies and suggested the presence of new exploration targets.

Table 2: 2012 Total Metres Drilled

A summary table for the 2012 exploration drill program is shown below:

Province Property Diamond Drilling RC Drilling Total Drilling
(m) (m) (m)
Newfoundland
& Labrador (NL)
James Mine + South 2,086 2,086
Houston 1-2-3 4,504 1,468 6,121
NL Stockpiles 2,552 2,552
Elizabeth Taconite 1,728 1,728
Quebec (QC) Malcolm 1 1,599 1,599
TOTAL 8,318 5,619 13,937

Experienced Technical Team

The exploration program has been carried out by LIM’s experienced geological team led by Chief Project Geologist Howard Vatcher, supported by Senior Resource Geologist Erick Chavez, Senior Field Geologist Tara Schrama, Senior Project Geologist Adewara Odewande, Project Geologist Shawn Duquet, all under executive supervision of Michel Cormier, Vice President, Exploration.

For further details of figures 1: Compilation surface plan of Malcolm-1 property and 2: Location Map for 2012 Exploration Program please visit LIM’s website at www.labradorironmines.ca

About Anglesey Mining plc

Anglesey holds 19.7% of Toronto-listed Labrador Iron Mines Holdings Limited (TSX:LIM) which is producing high grade hematite from its James pit, one of LIM’s twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec. Production is targeted to grow from 1.7mt in 2012 to 2mt in 2013.

Anglesey is also carrying out exploration and development work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where a JORC Code-compliant resource of 2.1mt at 6.9% combined base metals in the indicated category and 4.1mt at 5.0% combined in the inferred category was published in November 2012.

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: RFC Ambrian +44 (0)20 3440 6800;

Emily Fenton / Jos Simson:  Tavistock Communications +44 (0)20 7920 3155

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