3 July 08
Encouraging progress
reports from Labrador and Parys Mountain
Anglesey Mining
plc (the company) is pleased to report today on excellent operational progress
in Labrador and also in respect of the Parys Mountain sale announced on 10
April 2008.
The
Schefferville report which follows has been extracted from an announcement made
in Toronto on 2 July 2008 which also dealt with the approval and publication of
the Labrador annual financial statements, which are available on SEDAR at
http://www.sedar.com. The company has a 50% ownership interest in the Labrador
operations.
Schefferville Project
Moving Forward
Labrador Iron
Mines (LIM) is focused on the development of direct shipping iron ore in the
Labrador Trough, in the Province of Newfoundland and Labrador, near
Schefferville, Quebec (the �Schefferville Project�).
Following the IPO, LIM commenced plans to complete a program of
verification drilling and bulk sampling on certain of the properties and the
calculation of a compliant mineral resource, leading to the undertaking of a
detailed engineering study of mining these hematite deposits to produce �direct
shipping� lump and sinter fine ore, which will require minimal processing, for
sale to European and Far Eastern steelmakers.
During the ensuing months, LIM expanded its management and
operating team with a number of senior appointments, initiated further
activities to advance the development stages of the Project and awarded various
contracts, including environmental baseline studies, detailed exploration
drilling, bulk sampling, resource estimation, metallurgical process testing,
rail and port studies and engineering design, all directed to move the
Schefferville Project forward towards initial production targeted for 2009.
SNC-Lavalin, in conjunction with Geostat and with participation
by the Labrador Innu Development Limited Partnership, has been awarded a
contract for a Resource and Engineering Study, including detailed engineering
design and specifications for major items of plant and infrastructure. This
will include metallurgical test-work aimed at the design of a process circuit
required to meet market specifications for the particular types of iron ore.
A major reverse circulation drilling contract has been let to
Cabo Drilling Corp. to provide data for a compliant resource estimate on the
various deposits, including a reserve estimate on the Phase One Properties, and
to assist with both short term mine planning and with longer term operational
planning. It is expected that this program will start in July 2008 and will be
supplemented by an exploration trenching program.
RSM Mining Services Inc. from Labrador City has commenced a
summer program to excavate an 8,000 tonnes ore bulk sample from the Phase One
deposits closest to Schefferville and to treat this material by crushing,
screening and washing to replicate the expected final product. Some of this
material will be used in the metallurgical testing program and the remainder
will be available for bulk samples and market testing by potential iron ore
buyers.
LIM has submitted the Project Registration Application for the
first phase of development of the Schefferville Project to the Department of
Environment and Conservation in the Province of Newfoundland and Labrador and
to the Canadian Environmental Assessment Agency (CEAA). The Project
Registration Documentation addresses production from the first phase of the
Schefferville Project, being the James North, James South and Redmond
properties. The development plan calls for the initial production of about
500,000 tonnes of iron ore in 2009 and building up to three million tonnes in
2011.
LIM has entered into a Memorandum of Understanding with the
Labrador Innu Association, representing the Sheshatshiu Innu First Nation and
the Mushuau Innu First Nation, respectively, living in the communities of
Sheshatshiu and Natuashish, Labrador reflecting the agreement of the parties
with respect to community support for the development of the Schefferville
Project and their joint commitment to negotiate and enter into a more detailed
impact and benefits agreement.
LIM plans the commencement of commercial production of iron ore
from the deposits located on the Schefferville Property at the earliest
opportunity and, subject to receipt of permits, is working to bring Phase One
of the Project into production in 2009.
Parys Mountain sale negotiations
The signature of a term sheet between the company and Western
Metals Limited of Perth, Western Australia was announced on 10 April 2008.
Since then significant progress has been made in documenting a comprehensive
and binding Sale and Purchase Agreement. Similar progress is reported by
Western Metals in respect of the due diligence exercise which they are
conducting. The company expects to be able to notify a date for the EGM which
will be required to gain shareholder approval for the transaction in the near
future.
Bill Hooley, Anglesey�s Chief Executive, commented: �Progress
on both these fronts is very encouraging and in line with our stated plans. We
have been able to recruit an excellent team in Canada for the Schefferville
project and this team is engaging efficiently with the development of the
production facilities. We are looking forward to a very active few months on
site at those iron ore deposits which are scheduled for early production.
We are also very encouraged by progress made by Western
Metals and by ourselves and our advisors in moving the sale of Parys Mountain
forward. We continue to believe that this route offers the best
opportunity for the company to realise value from Parys Mountain in an
acceptable time frame.
At today�s market and currency values, Anglesey�s
shareholding in Labrador Iron Mines Holdings Limited, the Toronto listed
company which operates the Schefferville Project, is worth 23.5 pence per
Anglesey share. This is in addition to the company�s other assets,
and we believe that that the market price of LIM should increase significantly
as it moves closer to production.�
For further information:
Bill Hooley, Chief Executive +(44) 1492 541981
Ian Cuthbertson, Finance Director +(44) 1248 361333
mail@angleseymining.co.uk
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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 2009. The company's Parys Mountain base metals project is in the process of
sale to Western Metals Limited, an ASX-listed company which proposes to spend
over �5 million on project development and feasibility.