Anglesey Mining Regulatory News (AYM)

29 Jul 2010 07:00

28 July 2010 LSE:AYM

LIM receives approvals to commence construction of mining facilities

Mine Development Plan approved by Labrador Government

Anglesey Mining plc is pleased to announce that its 41% owned associate company Labrador Iron Mines Holdings Limited has reported that on 27 July 2010 it received Certificates of Approval for the construction of its mining facilities from the Government of Newfoundland and Labrador.

The approvals provide for the construction of open pit mining and treatment facilities at the James North, James South, Redmond 2B and Redmond 5 deposits, and include the beneficiation facility, ore, waste rock and overburden stockpiles, settling ponds, access roads, accommodation camp and other associated works for LIM's Schefferville Area direct shipping iron ore project. The approvals also include authorization for the installation and operation of power generators at the James deposit, the Silver Yard beneficiation area and the accommodation camp.

LIM has also been advised by the Minister of Natural Resources that LIM's Development Plan for the Schefferville Area Iron Ore Mine (Western Labrador) has been approved pursuant to Section 6.(1) of the Mining Act.

LIM is still awaiting two operating permits, one for the operation of the mine, and the other for the operation of the new 4.5 km railway spur line which was completed in early June and which will be used for the mobilization of the equipment and plant that have been assembled offsite over the last several months and has been brought to railheads at Sept-Žles and at Labrador City awaiting delivery to site.

The issue of these approvals and permits by the Government of Newfoundland and Labrador has taken longer than anticipated and has resulted in delays in LIM's originally planned construction and production timelines for 2010.

Discussions with Innu of Quebec

Negotiations with the Quebec Innu, represented by the communities of Matimekush-Lac John (Schefferville) and Uashat Mak Mani-Utenam (Sept-Iles), towards the completion of Impact Benefit Agreements are continuing but agreements have not yet been reached. In June, the Innu Strategic Alliance erected a barrier to block normal access from the town of Schefferville in Quebec to mining properties in Labrador as part of a land claim campaign to protect their rights and other political issues. To date, LIM has respected the barrier pending the issue of permits and hopes that the ongoing discussions with both the Quebec Innu and with Government will result in satisfactory agreements whereby LIM's projects can be operated in a positive way for the benefit of all.

LIM has previously signed an Impact Benefit Agreement with the Innu Nation of Labrador. In addition, LIM signed a Memorandum of Understanding (MOU) with Matimekush in 2008 and with the Naskapi Nation of Kawawachikamach in the same year.

Subject to the receipt of all the remaining necessary operating permits, licenses and approvals without any further delay, LIM plans to proceed with site construction and commissioning of the mine and beneficiation facilities and hopes to achieve start up and some initial production before the seasonal shut down of operations at the end of November 2010. LIM is targeting full scale commercial production in April 2011 and plans production of 2 million tonnes of iron ore during that calendar year.

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. LIM'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, which are located in close proximity to existing infrastructure.

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 LIM's website at www.labradorironmines.ca or contact:

Bill Hooley, Chief Executive +44 (0) 1492 541981Ian Cuthbertson, Finance Director +44 (0) 1248 361333Emily Fenton/Charlie Geller, Conduit PR +44 (0) 20 7429 6608 / +44 (0) 7788 554035