Last checked at 11 Feb 2011 15:05
Anglesey Mining plc LSE:AYM
11 February 2011
New Mineralized Extension at LIM's Houston Deposits
Increases Houston Resource to 20 Million Tonnes
Anglesey Mining's 41% owned associate Labrador Iron Mines Holdings Limited is pleased to report a new resource estimate for its 100% owned Houston deposits located in western Labrador following the 2010 exploration drilling program. The new resource estimate of 19,499,000 million tonnes of measured and indicated resources represents a significant increase over previous estimates.
Commenting on the increased resource estimate at the Houston deposits, John F. Kearney, Chairman and CEO of Labrador Iron Mines said, "As a result of the exploration success and this significant increase, the Houston deposits are now of sufficient tonnage to merit evaluation of a stand-alone operation. We are now assessing the development of a new separate "South Central Zone", with its own dedicated processing plant, which, subject to environmental assessment, permitting and detailed engineering, could be brought into production in 2013 at a rate of 2 to 3 million tonnes per year. This would be in addition to LIM's existing processing plant at Silver Yards scheduled to start up in April and which with planned expansions will have a similar design capacity."
The Houston 1, 2 and 3 deposits comprise 12 mineral rights licenses representing 112 mineral claim units that cover approximately 2,800 hectares, situated 15 km south-east of LIM's James Mine and Silver Yards processing area and approximately 20 km from the town of Schefferville, Quebec. The Houston deposits form part of the Stage 1 planned production at LIM's Schefferville area direct shipping iron ore projects.
The new estimate, prepared in accordance with NI 43-101, represents an increase in tonnage of over 25% from the previous NI 43-101 estimate announced in April 2010 and more than double the historical resource (not NI 43-101 compliant) previously estimated by the Iron Ore Company of Canada (IOC) prior to 1982. The new resource also includes about one million tonnes of manganiferous ore (Mn) grading about 54.4% Fe and 5% manganese.
The Houston Deposits -Resource Summary - February 2011 (See attached table for details)
43-101 (February 2011) 43-101 (April 2010*) Historical 1982 Class Tonnes Fe Mn SiO2 Tonnes Fe Mn SiO2 Tonnes Fe Mn SiO2 x 1000 % % % x 1000 % % % x 1000 % % %Fe M+IND 18,582 58.7 0.7 12.2 14,684 59.3 0.6 11.3 9,114 57.4 - 7.1Ore INF 1,014 56.3 1.0 15.9 1,498 57.0 0.8 14.7 - - - -Mn M+IND 917 54.4 5.4 9.2 831 54.3 5.5 9.1 - - - -Ore INF 10 53.2 4.5 11.5 47 54.0 4.6 10.3 - - - - TOTAL M+IND 19,499 58.3 0.9 12.3 15,515 59.0 0.9 11.2 9,114 57.4 - 7.1 INF 1,024 55.8 1.0 16.5 1,545 56.9 0.9 14.5 - - - -
\* Technical report filed on Sedar on May 25 2010
The updated resource estimate for the Houston deposits is based on an additional 1,804 metres of drilling in 26 holes and 625 samples carried out by LIM in 2010. The majority of the additional resource has resulted from the drilling of a new mineralized zone located between the Houston 1 and 2 deposits, as well as in-fill drilling within the deposit outlines during 2010. The Houston deposits remain open along strike particularly to the southeast and further drilling is planned on Houston 3 during 2011.
The classification of resources was completed using the results of drilling and trenching carried out by LIM during the 2006 to 2010 field seasons, which comprised twinning, in-fill and step-out drilling and trenching, as well as drill and trench data previously obtained by IOC.
Block Modeling
LIM used Gemcom GEMS 6.4.2.1 software for the resource estimation. The ordinary kriging interpolation method was used to estimate the resources by block modeling with block sizes of 5x5x5 metres and block rotation of 45.6° which matches with the general strike of the deposit. LIM used the geological and ore models interpreted in plane and in sections. LIM used different search ellipses derived from 3D semi-variogram analyses for the classification of the resources.
Analyses
Analyses for all of the samples from the 2006 to 2010 drilling and trenching programs were carried out by SGS-Lakefield Laboratory and Activation Laboratories. The analytical method used was borate fusion whole rock X-Ray Fluorescence.
Qualified Person
The resource estimates and 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. A Technical Report will be filed on Sedar within the required time frame.
About Labrador Iron Mines Holdings Limited (LIM)
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. The Company's 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 stages, the first phase of Stage 1 comprising the James and Redmond deposits, which are located in close proximity to existing infrastructure, where construction is being completed and mine start-up is planned to commence in Spring 2011.
About Anglesey Mining plc
Anglesey Mining with its LSE main board listing is primarily focused on its 41% interest in Labrador Iron Mines . 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, please contact:
Bill Hooley, Chief Executive +44 (0) 1492 541981
Ian Cuthbertson, Finance Director +44 (0) 1248 361333
Emily Fenton / Charlie Geller,Tavistock Communications +44 (0) 20 7920 3155 / +44 (0) 7788 554035Table Attached to LIM Press Release Feb 11, 2011Houston Deposits - NI 43-101 Compliant Direct Shipping Resources - Feb 2011Measured and IndicatedArea Ore Type Tonnes Fe% Mn% SiO2% (x 1000)Houston 1 LNB-NB 4,970.6 61.1 0.7 8.8 HiSiO2 1,277.7 52.8 0.6 21.1 LMN-HMN 510.8 54.8 5.4 8.8 Total 6,759.1 59.0 1.0 11.1Houston 2N LNB-NB 55.2 60.2 0.6 11.6 HiSiO2 116.9 52.4 0.6 22.8 LMN-HMN 9.0 44.8 10.7 13.4 Total 181.1 54.4 1.1 18.9Houston 2S LNB-NB 5,989.0 60.3 0.7 10.1 HiSiO2 2,565.5 52.6 0.8 21.5 LMN-HMN 144.2 56.0 4.8 9.5 Total 8,698.7 58.0 0.8 13.4Houston 3 LNB-NB 3,013.6 59.4 0.9 10.0 HiSiO2 593.8 52.6 0.7 20.9 LMN-HMN 253.0 52.6 5.3 10.2 Total 3,860.4 57.9 1.2 11.7Total 19,499.3 58.3 0.9 12.3InferredHouston 1 LNB-NB 80.7 58.2 0.6 13.0 HiSiO2 86.9 52.4 0.5 20.4 LMN-HMN 4.2 54.7 4.2 10.6 Total 171.9 55.2 0.7 16.7Houston 2N LNB-NB - - - - HiSiO2 0.4 50.8 0.8 24.3 LMN-HMN - - - - Total 0.4 50.8 0.8 24.3Houston 2S LNB-NB 335.9 59.4 1.0 12.0 HiSiO2 298.1 52.5 1.3 21.2 LMN-HMN - - - - Total 634.0 56.2 1.1 16.3Houston 3 LNB-NB 107.6 58.3 1.0 12.4 HiSiO2 104.3 52.6 0.6 21.6 LMN-HMN 5.3 50.6 4.3 12.8 Total 217.2 55.3 0.9 16.8Total 1,023.5 55.8 1.0 16.5Ore Types Ore Colours T_Fe% T_Mn% SiO2% Al2O3%
NB (Non-bessemer) Blue, Red, Yellow >=55 =50
Blue >=50
HMN (High Manganiferous) Blue, Red, Yellow (Fe+Mn) >=50 >=6 =50 3.5-6
LIM resource definitions includes Hi-SiO2 ores (>=50% Fe
The original IOC ore definition was: >=50% Fe,
A variable specific gravity (density) was used for the modeled ore blocks using the following equation previously calculated by LIM based upon 229 specific gravity tests: SG = (2.3388 + Fe x 0.0258) x 0.9
Blue ores, which are composed mainly of the minerals hematite and martite, are generally coarse grained and friable. They are usually found in the middle section of the iron formation.
Yellow ores, which are made up of the minerals limonite and goethite, are located in the lower section of the iron formation in a unit referred to as the "silicate carbonate iron formation" or SCIF.
Red ore is predominantly a red earthy hematite. It forms the basal layer that underlies the lower section of the iron formation. Red ore is characterized by its clay and slate-like texture.
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