Trading Statement - Increased resource estimates at James and Redmond iron ore deposits


 
TIDMAYM 
 
Anglesey Mining plc                 LSE:AYM 
 
12 November 2009 
 
New resource estimates for James and Redmond deposits 
show significant increase over historical resources 
 
Anglesey Mining plc is pleased to report that its 50% owned associate company 
Labrador Iron Mines Holdings Limited (TSX: LIM) has reported independent 
resource estimates, prepared in accordance with NI 43-101, for its 100% owned 
James, Redmond 2B and Redmond 5 deposits, which comprise the first stage of 
targeted production at LIM's direct shipping iron ore project located in Western 
Labrador, near the town of Schefferville, Quebec. 
 
These new estimates show a significant increase in tonnage over the historical 
resources (not NI 43-101 compliant), previously estimated by the Iron Ore 
Company of Canada (IOC) prior to 1982, as shown in the following table: 
 
New Indicated Resource Estimates vs Historical Resources 
           (at a cut off grade of 50% iron) 
 
    Deposit          New        Grade     Historical 
                   Resource    (% Fe)      Resource 
                   Million              Million Tonnes 
                    Tonnes 
    James            8.1        57.7          4.0 
    Redmond          2.9        56.4          1.2 
    Total            11.0       57.4          5.2 
 
The independent resource estimates were prepared by SGS Geostat Ltd., 
Blainville, Quebec, (Qualified Person Maxime Dupéré, P.Geo,) in accordance with 
NI 43-101.  The classification of resources was completed using the results of 
drilling and trenching carried out by LIM during the 2006, 2008 and 2009 field 
seasons, which comprised twinning, in-fill and step-out drilling and trenching, 
as well as drill and trench data previously conducted by IOC. 
 
Commenting on the James and Redmond resource estimates, John F. Kearney, 
Chairman, said, "The new resource estimates completed by SGS Geostat have 
indicated a substantial increase in tonnage over the historic estimates for 
these iron ore deposits. This is of particular significance as the increase will 
extend the expected life of our Phase One project, potentially extending it by 
up to two years." 
 
James Deposit 
 
The resource estimate for the James deposit is based on 990 metres of reverse 
circulation drilling in 16 holes and 515 metres of trenching carried out by LIM, 
in addition to 5,800 metres of drilling and 3,000 metres of trenching previously 
carried out by IOC. The mineral deposit resource estimates were calculated using 
the inverse distance squared method. 
 
The SGS Geostat resource estimates for the James deposit of 8.1 million tonnes 
at a grade of 57.7% iron in the Indicated category represent an increase of 100% 
over the historical resource of 4,006,000 tonnes. 
 
    Ore Type Classification         Tonnage    SG     %Fe   SiO2 
    NB-LNB   Indicated            5,802,000  3.71   59.60  11.05 
             Inferred                35,000  3.76   57.22  11.50 
    HiSiO2   Indicated            2,289,000  3.55   52.91  21.79 
             Inferred                76,000  3.52   51.87  23.72 
    Total    Indicated            8,091,000  3.66   57.71  14.09 
             Inferred               111,000  3.53   53.56  19.88 
 
Redmond Deposits 
 
The Redmond property comprises two discrete deposits known as Redmond 5 and 
Redmond 2B. The resource estimates of these properties were calculated using the 
inverse distance squared method. 
 
Redmond 5 
 
The resource is based on 964 metres of reverse circulation drilling in 20 holes 
and 461 metres of trenching carried out by LIM, in addition to 1,370 metres of 
drilling previously carried out by IOC. 
 
    Ore Type Classification         Tonnage   SG    %Fe    SiO2 
    NB-LNB   Indicated            1,793,000  3.4  55.55    9.26 
             Inferred                78,000  3.3  52.34   10.84 
    HiSiO2   Indicated              291,000  3.3  51.23   21.54 
             Inferred                     -    -      -       - 
    Total    Indicated            2,084,000  3.4  54.95   10.97 
             Inferred                78,000  3.3  52.34   10.84 
 
The SGS Geostat resource estimates for the Redmond 5 deposit, of 2.1 million 
tonnes at a grade of 54.9% iron in the Indicated category, represent an increase 
of 220% in mineral resources over the historical resource of 650,000 tonnes. 
 
Redmond 2B 
 
The resource is based on 1,100 metres of reverse circulation drilling in 21 
holes and 663 metres of trenching carried out by LIM. 
 
     Ore    Classification       Tonnage    SG    %Fe   SiO2 
     Type 
     NB-LNB Indicated            849,000  3.71  59.86   5.05 
            Inferred              30,000  3.76  57.27   5.87 
 
The SGS Geostat resource estimates for the Redmond 2B deposit, of 0.85 million 
tonnes at a grade of 59.8% iron in the Indicated category, represent an increase 
of 45% in mineral resources over the historical resource of 580,000 tonnes. 
 
Block Modeling 
 
The inverse squared distance method was used to estimate the resources by block 
modeling. SGS Geostat used a block model of 5m by 5m by 5m. The orientation of 
the blocks at James is 313.5°, at Redmond 2B is 310°, and at Redmond 5, 313°. 
SGS Geostat used BlkCad software designed by SGS Geostat, for the resource 
estimation of the mineral deposits. SGS Geostat used the orientations (azimuth 
and dip) of the geological interpretations and the ore limits interpreted in 
plane and in section to define a search window. SGS Geostat used different 
search window according to the shape and distribution of the mineralized 
envelopes in each specified mineral deposit. 
 
Analyses 
 
Analyses for all of the samples from the 2006, 2008 and 2009 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. 
 
Density 
 
A variable specific gravity (density) was used for the modeled ore types. SGS 
Geostat used the following equation: SG (in-situ) = (2.3388 + Fe x 0.0258) * 
0.9. The regression formula was calculated by LIM based upon 229 specific 
gravity tests and validated by SGS Geostat and is considered a conservative 
measure of density. 
 
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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