Trading Statement - Labrador Rail Co-operation Agreement advances development of Schefferville


 
TIDMAYM 
 
28 October 2009 
 
Anglesey Mining plc         LSE:AYM 
 
Labrador Rail Co-operation Agreement advances development of Schefferville 
Project 
 
Anglesey Mining plc is pleased to report that its 50% owned associate company 
Labrador Iron Mines Holdings Limited (TSX: LIM) announced on 22 October that it 
has signed a Rail Co-operation Agreement with New Millennium Capital Corp. 
("NML") regarding the reconstruction of the "Timmins Extension" rail spur line 
which will run from the TSH Railroad main rail line near Schefferville 
approximately 2.5 miles to LIM's planned processing center at Silver Yards and 
on a further approximately 13 miles to NML's planned processing center at the 
Timmins mining area. 
 
The Rail Co-operation Agreement provides the framework under which both LIM and 
NML have agreed to co-operate in the development of the transportation 
facilities for their direct shipping iron ore (DSO) projects in the 
Schefferville area and which will enable each company to rebuild the necessary 
rail infrastructure in their respective operating areas, including the 
construction of passing tracks and sidings in common areas. 
 
"The Rail Co-operation Agreement with New Millennium represents a positive step 
forward which recognizes the common interests of both companies", said John F. 
Kearney, Chairman. "This Agreement will advance the development and construction 
of the rail facilities required to meet LIM's planned production start-up in mid 
2010." 
 
The Timmins Extension rail line will be laid on a 16 mile long existing rail bed 
that extends from Mile 353 on the TSH main line to the Timmins train turning 
circle. The Timmins Extension spur line, which passes from Labrador into Quebec 
and back into Labrador, was previously used for iron ore mining operations. The 
rails and ties were removed when the previous mining operations ceased in 1982 
but the rail bed itself remains in place. Reconstruction of the Timmins 
Extension will require only relaying new rails and ties and replacement of some 
ballast. 
 
Each of LIM and NML will enter into the requisite agreements with third parties 
to design and construct their respective portions of the Timmins Extension to 
standards required to transport the iron ore to be extracted from their DSO 
deposits. LIM intends to commence construction on the first 2.5 miles connecting 
to LIM's Silver Yards planned processing area immediately upon the issue of the 
necessary permits. The spur line to the Silver Yards processing area is included 
in LIM's Environmental Impact Assessment (EIS) which is currently under review 
by the Department of Environment and Conservation of the Province of 
Newfoundland and Labrador. 
 
Under the Rail Co-operation Agreement the parties jointly agree to apply to 
Government authorities for all required rights of way and/or surface rights and 
for the grant to each party of the rights on a specific portion of the Timmins 
Extension, along with rights of access to, construction on and use of such 
specific portions as are mutually granted by one party to the other party. 
The Parties have agreed to negotiate and enter into a Rail Operating Agreement 
which will provide the terms of access to and use of the Timmins Extension and 
the tariff to be paid by each party with respect to its use of the portion of 
rail line for which the other party holds the rights of way and have also agreed 
to collaborate to determine the most expedient means to refurbish the TSH 
Railway main line to standards required to carry out the transportation of 
minerals extracted from the DSO deposits. 
 
The 355 mile main rail line between Schefferville and Sept-Îles, which was 
originally constructed for the shipment of iron ore from the Schefferville area, 
has been in continuous operation for over fifty years. Tshiuetin Rail 
Transportation Inc ("TSH"), a consortium of three local Aboriginal First 
Nations, owns and operates the 129 mile main line track between Schefferville 
and Ross Bay Junction where it connects to the Iron Ore Company of Canada's 
Quebec North Shore and Labrador ("QNS&L") Railroad which runs the remaining 224 
miles to Sept-Îles. TSH currently operates passenger and light freight service 
between Schefferville and Sept-Îles twice per week. Some refurbishment of the 
rails, ties and culverts of the TSH main line track will need to be carried out 
to enable it to continuously carry large volumes of iron ore traffic. 
 
During 2008 LIM transported iron ore bulk samples by rail from Schefferville to 
Sept-Îles over both the TSH track and the track operated by QNS&L, which was the 
first iron ore shipped by rail from the Schefferville area in over twenty five 
years. 
 
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 2010. The company also holds the Parys Mountain base metals 
project with a historical resource of 7.7 million tonnes at 9.3% combined 
copper, lead and zinc in Anglesey, UK. 
 
       For further information: 
       Bill Hooley, Chief Executive            +(44) 1492 541981 
       Ian Cuthbertson, Finance Director       +(44) 1248 361333
Anglesey Mining (LSE:AYM)
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