Last checked at 10 Aug 2012 12:15
Anglesey Mining plc LSE:AYM
10 August 2012
LIM - new rail and port feasibility study
* Labrador Iron Mines is to collaborate with Canadian National Railway Company in a Feasibility Study for a new multi-user rail line and port terminal facility * Rail line to serve iron ore companies in the Labrador Trough
Anglesey Mining's 26% owned associate Labrador Iron Mines Holdings Limited is pleased to announce its collaboration with the Canadian National Railway Company ("CN") and La Caisse de d©p´t et placement du Qu©bec, as well as a group of mining companies to work with CN on a feasibility study to develop a new, continuous multi-user rail line from the northern Labrador Trough to the Port of Sept-Žles. The feasibility study will also evaluate a new terminal handling facility to be located at the Port of Sept-Žles.
"CN is the largest carrier of iron ore in North America and we are pleased to work with a highly-regarded and established transportation company in this feasibility study" stated Rod Cooper, President and Chief Operating Officer. "The development of a new railway in the Labrador Trough is of great interest to LIM as it would provide optionality for long-term rail capacity, with the potential to provide greater efficiencies and optimization of rail access. In addition, a new terminal handling facility at the Port of Sept-Žles would complement the planned development of the new multi-user dock at the Port, in which LIM is also participating. We are excited to move ahead with these developments, as they represent important steps to enhance long-term rail and port access for LIM's iron ore."
To advance the project timeline, CN has coordinated the timely start of upfront applications for regulatory approvals and permitting requirements for the project. This will also allow for appropriate consultation with First Nations, local communities and other stakeholders.
As previously announced on July 18, 2012, LIM has agreed to participate with the Sept-Žles Port Authority in the development of its new multi-user dock facility at Pointe-Noire in the Port of Sept-Žles. Under the terms of the agreement with the Port Authority, LIM has reserved an annual capacity of 5 million tonnes of iron ore with a right to secure additional residual capacity.
About Labrador Iron Mines Holdings Limited
Labrador Iron Mines is Canada's newest iron ore producer. It owns a portfolio of direct shipping iron ore operations and projects located in the prolific Labrador Trough. The first full production season commenced in April 2012 with a sales target of 2 million tonnes of iron ore for the 2012 year.
LIM is focused on a strategic and robust growth plan arising from its portfolio of 20 iron ore deposits in Labrador and Quebec, all within 50 kilometres of the town of Schefferville. The James Mine is connected by a direct rail link to the Port of Sept-Iles, Qu©bec. The area also benefits from established infrastructure including the town, airport hydro power and railway service. Starting with the James Mine and leading to the development of the expanding Houston flagship project, the objective is to provide shareholders with long-term value as production and sales ramp up towards 5 million tonnes per year by 2015.
LIM is currently the only independently-owned Canadian iron ore producer listed on the Toronto Stock Exchange and trades under the symbol LIM.
About Anglesey Mining plc
Anglesey holds 26% of Toronto-listed Labrador Iron Mines Holdings Limited which is now producing iron ore from its James deposit, one of LIM's twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec.
Anglesey is also carrying out development and exploration work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where there is estimated to be a total 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;
Samantha Harrison / Klara Kaczmarek: RFC Ambrian +44 (0)2076 344700;
Emily Fenton / Jos Simson: Tavistock Communications +44 (0)20 7920 3155
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