Last checked at 15 Nov 2010 11:23
15 November 2010 Anglesey Mining LSE:AYM
LIM Second Quarter and Half Year Results Update on project construction and development
Anglesey Mining plc's 41% owned associate Labrador Iron Mines (`LIM' or `the Company') is pleased to report that it has filed its unaudited financial statements and MD&A for the second quarter and six months ended September 30, 2010. The documents are available under the Company's profile at www.sedar.com and on its website at www.labradorironmines.ca.
During the quarter and six months ended September 30, 2010 LIM invested $2,014,537 and $3,294,549, respectively, in its mineral properties, and also invested $3,401,634 and $10,204,731, respectively, in property, plant and equipment. The substantial increase in investment in property, plant and equipment was due to the significant investment in processing equipment and rail spur line and to procurement and commencement of construction of the processing plant for LIM's direct shipping iron ore project in western Labrador.
For the quarter ended September 30, 2010 LIM reported a net loss of $897,421, or $0.02 per share, compared to a net loss of $530,273, or $0.02 per share, during the same period in the prior year. For the six months ended September 30, 2010 LIM reported a loss of $1,512,110, or $0.03 per share, compared to a loss of $816,997, or $0.02 per share, for the same period in the prior year.
At September 30, 2010, the Company had cash and cash equivalents in excess of $35.2 million. Working capital was $30.6 million, with no borrowings or bank debt.
Project Construction
Construction of the beneficiation plant and associated facilities has progressed well since early September. All the foundations required for erection of the plant have been poured and are complete. All the piers for the conveyors have been installed, including those leading to the radial stackers and to the secondary crusher, and a significant number of the conveyor structures are in place. The steel structure for the secondary screens tower has been completed and the chutes, stairs and flooring for the transfer tower are all installed.
All the major items of processing equipment have been installed, including the primary and secondary screens, tumblers and chutes. The dome roof structure is being assembled at site and is expected to be installed by the end of November. This will enable installation of the piping, electrical and other work to be carried out during periods of poor winter weather.
The accommodation camp at Bean Lake has also progressed rapidly. The installation of the kitchen-recreation complex is complete and a number of the accommodation units are in place. It is expected that the camp will be all complete before the end of November and available for use over the winter.
Mine site preparation at the James Mine has commenced with the development of the mine haul road and clearing and grubbing of the entire mining site almost complete, and exposing the ore body. Development of the first production bench in the Mine will follow shortly. Some small ore stock piles have been moved to Silver Yards and, together with the first ore mined from the bench development, will be stockpiled ahead of the primary crusher ready for feed to the processing plant at the commencement of production.
As a result of recent progress, the Company believes it is on track to substantially complete construction of the processing plant and accommodation camp by the end of calendar 2010 and to commence production activities in April 2011. The Company is currently targeting production of about 2 million tonnes of iron ore in calendar 2011, which assumes completion of construction, plant commissioning and a satisfactory start up of mining operations in the second quarter of calendar 2011.
Exploration
The 2010 exploration program has been completed with 4,500 metres of drilling and 1,400 metres of trenching having been achieved at the Denault, Ruth 8, and Houston properties. Drilling at Houston has indicated some extensions to the resource and these, together with Denault results, will be incorporated into revised resource estimates when assay results are received.
Political / First Nations Developments
In September 2010 LIM entered into an Impact Benefits Agreement ("IBA") with the Naskapi Nation of Kawawachikamach (the "Naskapi Nation") with respect to the development and operation of the Schefferville Project in Labrador. Discussions continue with the Innu Matimekush-Lac John and with the Innu Takuaikan Uashat Mak Mani-Utenam towards concluding Impact Benefits Agreements.
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.
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 four stages, the first phase of Stage 1 comprising the James and Redmond deposits, located in close proximity to existing infrastructure, for which all operating permits have been issued and where construction is now well underway.
About Anglesey Mining plc
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, please view Anglesey Mining's website at www. angleseymining.co.uk or 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) 207 429 6608 / +44 (0) 7788 554035
Cautionary Statements:
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of iron ore and steel, general market conditions, the uncertainty of future profitability and access to additional capital, risks inherent in mineral exploration and risks associated with development, construction and mining operations, delays in obtaining or failures to reach agreements with any potentially impacted aboriginal groups or to obtain required governmental, environmental or other project approvals. There can be no assurance that the Company will be successful in reaching any agreement with any First Nations groups who may assert aboriginal rights or may have a claim which affects the Company's properties or may be impacted by the Schefferville Area project. Caution should be exercised on placing undue reliance on forward looking information.
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