5 May 2010 LSE:AYM
Anglesey Mining plc is pleased to announce that its 41% owned associate company Labrador Iron Mines Holdings Limited (TSX: LIM) has reported that it has begun construction on the new 4.5 km railway spur line in preparation for the commencement of operations at the Schefferville area iron ore project this summer.
The Construction Permit has been issued by the Minister of Transport and Works of the Province of Newfoundland and Labrador under the Rail Service Act, for the re-establishment of the railway spur line between the LIM processing site at Silver Yard and the existing Tshieutin Rail line which runs to the port of Sept- Iles. This enables LIM to immediately proceed with the installation of track panelling that has been assembled offsite over the past several months. The new rail spur line will be used to move to site the main components of the processing plant and the accommodation camp. The process and camp components have all been ordered and the majority have now been delivered. These will be installed when the mine construction and operating permits are received in the near future.
It is expected that the rail work will be completed within the next 30 days.
This Permit follows the receipt of approval from the Department of Environment and Conservation of the Environmental Protection Plan for the spur line reconstruction. Mining leases for the first stage James and Redmond deposits, surface use leases for the rail spur, Silver Yard beneficiation area, camp, and residue disposal, together with a number of other permits and licenses, have all now been issued by the Government of Newfoundland and Labrador.
A number of other permits, including the mine operating permit, are expected to be issued in the near future.
LIM's Schefferville area project involves the development of twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec near Schefferville, Quebec. These properties are part of the historic Schefferville area iron ore district where mining of adjacent deposits was previously carried out by the Iron Ore Company of Canada from 1954 to 1982. Labrador Iron Mines contemplates mining in four stages, the first phase of Stage 1 comprising the James and Redmond deposits, which are located in close proximity to existing infrastructure. LIM plans, subject to timely receipt of remaining permits, to commence iron ore production in mid-2010. For further information, please see www.labradorironmines.ca.
Anglesey Mining with its LSE main board listing is primarily focused on its 41% interest in LIM. In addition to any new projects that may be brought forward the company owns 100% of Parys Mountain in North Wales with an historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.
For further information contact:
Bill Hooley, Chief Executive +44 (0) 1492 541981
Ian Cuthbertson, Finance Director +44 (0) 1248 361333
Emily Fenton/Charlie Geller, Conduit PR +44 (0) 20 7429 6608 / +44 (0) 7788 554035