16 February 2010 LSE:AYM
Anglesey Mining plc is pleased to report that its 50% owned associate company Labrador Iron Mines Holdings Limited (TSX: LIM) announces that it has received final environmental approval and project release from the Government of Newfoundland and Labrador for its Schefferville Area direct shipping iron ore project in Western Labrador.
On 12 February 2010 the Minister of Environment and Conservation informed LIM that, under authority of Section 67(3)(a) of the Environmental Protection Act, the Lieutenant- Governor in Council has released the Schefferville Area Iron Ore Mine from further environmental assessment, subject to a number of terms and conditions.
LIM Chairman and Chief Executive Officer John Kearney commented, "Receiving project release from the Government of Newfoundland and Labrador represents another major step in the Company's development and start-up plans and has come at a time when iron ore demand and pricing have regained their upward momentum. We would like to acknowledge the encouragement and support we have received for this project from the Province of Newfoundland and Labrador." The release may be inspected on the Environmental Assessment Bulletin on the website of the Department of Environment and Conservation at www.gov.nl.ca/env.
This project release will allow LIM to complete the permit and license application process and regulatory approvals required for the construction of mine infrastructure and production facilities to facilitate the commencement of iron ore production at the James and Redmond deposits planned for summer of this year. The lump and fines that LIM plans to produce will be the first direct shipping iron ore ("DSO") mined in Canada in almost three decades.
The Project will result in considerable socio-economic benefits accruing to the Province of Newfoundland and Labrador, creating employment and business opportunities and contributing substantially to the economy. LIM has entered into an Impact Benefit Agreement with the Innu Nation of Labrador and it is expected that approximately 25% of total employees on the project will be from Aboriginal First Nations.
Over the last quarter, LIM announced several key developments that have significantly advanced the Project towards the goal of production start-up in the summer of 2010.
Independent Metallurgical Tests by SGA of James lump ore and sinter fines confirmed grade, quality and suitability for steel markets. Metallurgical testing of James South lump ore and sinter fines by SGA research centre in Germany indicated the iron content of the lump ore at 66.98% and the fines at 67.23%, with other elements favourably low in both cases. SGA concluded that James South represents high quality lump ore and fines which will be well accepted in the European market.
The NI 43-101 compliant resource estimates for the James, Redmond 2B and Redmond 5 deposits comprising the first stage of targeted production now total 11.0 million tonnes of Indicated resource at a grade of 57.4% iron compared to 5.2 million tonnes of historical (non NI 43-101) resource. The new estimates prepared by SGS Geostat Ltd. reflect results of drilling and trenching undertaken by LIM in the 2006, 2008 and 2009 field seasons and show a significant increase in tonnage over the historical resources (not NI 43-101 compliant), estimated by the Iron Ore Company of Canada ("IOC") prior to 1982. The significance of the increase is highlighted by the potential to extend the expected life of stage 1 production.
The Department of Environment and Conservation completed its review of LIM's EIS, confirmed that it complies with the Environmental Protection Act and requires no further work under the Provincial environmental assessment process.
LIM signed a Rail Co-operation Agreement with New Millennium Capital Corp. ("NML") regarding the reconstruction of the "Timmins Extension" rail spur line. The line will run from the Tshiuetin Rail Transportation Inc. ("TSH") Railway main rail line near Schefferville, a distance of approximately 2.5 miles to LIM's planned processing centre at Silver Yards, and on a further approximately 13 miles to NML's planned processing centre at the Timmins mining area. The parties also agreed to collaborate to determine the most expedient means to refurbish the TSH Railway main line to standards required to transport the minerals extracted from the DSO deposits.
LIM entered into an agreement with NML to exchange certain mineral licences in Labrador. The exchange eliminates the fragmentation of ownership of certain mining rights in the Schefferville area and enables both companies to separately mine and optimize their respective DSO deposits. The exchange gave LIM sole ownership of all DSO deposits in its Stage 1 area in proximity to LIM's planned processing facilities at Silver Yard.
In a series of five transactions completed in December 2009, LIM acquired control over an additional 50 million tons of historical (non NI 43-101) DSO resource in the Province of Quebec, together with a large package of mineral claims in the Schefferville area considered prospective for exploration for iron ore and which also host a number of small high grade manganese deposits. The acquisition represents a very significant increase in LIM's resource base and complements LIM's planned DSO operations in Labrador, as well as providing an excellent portfolio of additional properties prospective for iron ore in the Province of Quebec.
The historical resources referred to in this document are based on work completed and estimates prepared by the Iron Ore Company of Canada prior to 1983 and were not prepared in accordance with National Instrument 43-101. The historical resource estimate is still considered relevant and reliable. LIM is not treating the historical resource estimate as a defined current resource verified by a Qualified Person.
Information of a scientific or technical nature contained in this release has been prepared by or under the supervision of Terence McKillen, P.Geo., Executive Vice President of the Corporation and a Qualified Person within the meaning of National Instrument 43-101 of the Canadian Securities Administrators.
Anglesey Mining plc is a UK based company listed on the London Stock Exchange with a 50% interest in a 150 million ton iron ore project in Labrador and Quebec, 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