23 October 2009

Labrador Iron Mines and New Millennium rationalize mineral property ownership

Anglesey Mining plc is pleased to report that its 50% owned associate company Labrador Iron Mines Holdings Limited (TSX: LIM) announced on 22 October that it has entered into an Agreement with New Millennium Capital Corp. (“NML”) to exchange certain of their respective mineral licences in Labrador. The exchange eliminates the fragmentation of the ownership of certain mining rights in the Schefferville area and will enable both parties to separately mine and optimise their respective direct shipping ore (DSO) deposits in as efficient a manner as possible.

The Agreement represents the exchange by each party of equal quantities of approximately 13 million tons of iron ore. These exchanges are based on historic estimates of gross quantities of iron ore (non NI 43-101 compliant) contained in the various DSO deposits. Under the Agreement, NML has agreed to transfer to LIM ten mineral licenses in Labrador and six adjacent claim blocks in Quebec, which claims adjoin or form part of LIM’s Phase One James, Houston, Redmond and Knob Lake deposits, and a small portion of LIM’s Phase Three Howse deposit. LIM has agreed to transfer to NML two mineral licenses in Labrador comprising part of LIM’s Phase Three Kivivic 2 and Kivivic 1 deposits, which claims adjoin NML’s Area 4 Kivivic and Goodwood deposits.

Under the Agreement the parties have agreed to work collaboratively to facilitate their respective extraction, processing and transportation activities by enabling each party to apply for all required surface rights. The parties have also agreed to finalize the layout or detailed technical descriptions of the surface rights that each requires to access the DSO deposits on their respective mineral claims, including any necessary roads, rail lines, processing and storage areas.

John F. Kearney, chairman, said “We are pleased to have entered into this mutually beneficial exchange agreement with New Millennium. The agreement rationalizes the ownership of various DSO deposits in the Schefferville area and will enable both companies to independently develop the DSO deposits in their respective areas of intended operations as efficiently as possible.”

The exchange now gives LIM sole ownership of all DSO deposits in its Phase One (Area 1) area, and in proximity to LIM’s planned processing facilities at Silver Yard, parts of which deposits had been previously held by NML. In exchange LIM has transferred to NML an equivalent tonnage of iron ore from LIM’s Phase Three area, in proximity to NML’s Kivivic and Goodwood Area 4 deposits where NML plans to concentrate its mining activities, and which LIM had planned to develop only in Phase Three towards the latter part of its overall project life.

About Anglesey Mining

Anglesey Mining plc is a UK based company listed on the London Stock Exchange with a 50% interest in a 90 million ton iron ore project in Labrador, Canada, which is under active development towards mining production in 2010. The company also holds the Parys Mountain base metals project with a historical resource of 7.7 million tonnes at 9.3% combined copper, lead and zinc in Anglesey, UK.

 

For further information:
Bill Hooley, Chief Executive            +(44) 1492 541981
Ian Cuthbertson, Finance Director   +(44) 1248 361333