Labrador Iron Mines completes third operating year

Anglesey Mining plc (“Anglesey”) is pleased to report that Labrador Iron Mines Holdings Limited (“LIM”) in which Anglesey holds a 15% interest today notified the successful completion of 10 shipments of iron ore totalling approximately 1.7 million wet metric tonnes (“wmt”) for its 2013 operating year.

Ship 9, the Myrtalia, departed from the Port of Sept-Îles on November 22, 2013, carrying approximately 169,000 wmt of 58% Fe sinter product. Ship 10, the Anangel Sailor, is scheduled to depart the Port on December 2 2013, carrying approximately 101,000 wmt of 62% lump product.

With the sale of two shipments completed in November and early December, LIM has achieved its production target of approximately 1.7 million wmt in 10 cape-size shipments for 2013. Inventory of approximately 97,000 tonnes of lump and sinter iron ore remain in the port which could not be loaded due to freezing conditions.

LIM has now concluded its third operating season, as mining, processing and railing activities all wrapped up in November. LIM’s exploration program will continue through the winter months with five diamond and two reverse circulation drill rigs on site. To date, LIM has drilled approximately 10,000 metres (“m”), focusing mainly on the Howse, Houston and Gill Deposits. The full 14,000-m program is anticipated to be completed before year end.

LIM’s mining operations are seasonal, with a planned winter closure from December to March. Detailed planning for the upcoming 2014 operating season is now underway and operations will continue to be focused on its Stage 1 deposits, including the James Mine and other smaller satellite deposits and stockpiles, all located within a 15-kilometre radius of the Silver Yards processing plants.  An assessment of the remaining life of James Mine has commenced to evaluate the economics of extraction in 2014 of the remaining ore in the bottom of the open pit and the down-dip depth extensions of some higher grade sections.

LIM is also currently evaluating an interim plan to haul Houston ore to the Silver Yards process and rail loading facilities in 2014 as a first stage, lower initial capital approach for development of the Houston deposit.  The Houston and the adjacent Malcolm deposits are estimated to together contain 40.6 million tonnes grading 57.6% Fe. When in full production, the Houston Project is expected to produce about 2.5 million tonnes of iron ore annually.

Development of the Houston Project is subject to the availability of financing. LIM is evaluating various financing alternatives or off-take arrangements, and/or other potential strategic options, to fund the planned first phase Houston development and related transportation expenditures. LIM is also seeking to pursue strategic initiatives aimed at permanent structural reductions in operating costs and revenue deductions.

In resuming its planned seasonal mining operations in the spring of 2014, LIM will incur regular winter stand-by costs from December 2013 to March 2014 and seasonal start-up mining, processing, rail and transportation and site administration expenses for the months of April and May 2014, before receipt of payment for its first shipment anticipated in June 2014, and will require working capital of approximately $20 million to $30 million to fund these operating expenses.

LIM’s full Press Release can be found on its website at www.labradorironmines.ca.

About Labrador Iron Mines Holdings Limited (LIM)

Labrador Iron Mines (LIM) is Canada’s newest iron ore producer with a portfolio of direct shipping (DSO) iron ore operations and projects located in the prolific Labrador Trough. Initial production commenced at the James Mine and Silver Yards plant in June 2011 and through to the end of its third operating year, LIM has sold 3.8 million wet tonnes in 23 shipments of iron ore into the Chinese spot market.

About Anglesey Mining plc

Anglesey holds 15.3% of Toronto-listed Labrador Iron Mines Holdings Limited which is producing high grade hematite from a number of direct shipping iron ore deposits in western Labrador and north-eastern Quebec.

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;

Danesh Varma, Finance Director +44 (0)207 6539881;

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

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

PrintFriendly
This entry was posted in Labrador. Bookmark the permalink.

Comments are closed.