Trading Statement - Labrador acquires 50mt iron ore and initiates manganese development


 
TIDMAYM 
 
17 December 2009                    LSE:AYM 
 
Labrador Iron Mines acquires an additional 50 million tons of DSO iron ore in 
Quebec and initiates manganese development 
 
Anglesey Mining plc is pleased to report that its 50% owned associate company 
Labrador Iron Mines Holdings Limited (TSX: LIM) announces that in a series of 
five recent transactions it has acquired control over an additional 50 million 
tons of direct shipping iron ore (DSO) in the Province of Quebec, Canada 
together with a large package of mineral claims in the Schefferville area which 
are considered prospective for exploration for iron ore and which also host a 
number of small high grade manganese deposits. 
 
The properties are all located in the Schefferville area, mostly in Quebec, and 
are located in the same general vicinity as LIM's planned DSO iron ore 
operations in Western Labrador which are scheduled to commence production in mid 
2010. 
 
"The acquisition of these properties represents a very significant increase in 
the resource base available to LIM and will both complement LIM's planned DSO 
operations in Labrador as well as providing LIM with an excellent base and 
adjacent portfolio of properties within the Labrador Trough in the Province of 
Quebec," said John F. Kearney, Chairman. 
 
"Subject to future technical studies and environmental approvals, the addition 
of 50 million tons of DSO resource will enable LIM to increase its planned DSO 
production and potentially extend the mine life of its Schefferville Iron Ore 
Project. Development of the manganese properties should enable LIM to commence 
production of manganese concentrate as an additional feed material to our iron 
ore customers," added Mr. Kearney. 
 
Canaccord Financial Ltd. acted as Financial Advisor to LIM in connection with 
these transactions. 
 
Quebec Iron Ore Properties 
 
In the first transaction, through a new wholly owned subsidiary Schefferville 
Mines Inc ("SMI"), LIM has acquired from Hollinger North Shore Exploration Inc. 
("Hollinger"), subject to the approval of the Government of Quebec, a 100% 
exclusive operating interest in the remaining properties which are part of the 
original mining lease issued to Hollinger in 1953 under a Special Act of the 
Quebec Parliament enacted in 1946. 
 
The iron ore properties are part of the former operations identified and 
partially developed, under a sub-lease from Hollinger, by the Iron Ore Company 
of Canada in the Schefferville region between 1954 and 1982 and comprise 
interests in a number of separate deposits which collectively contain an 
estimated historical resource of approximately 50 million tons of direct 
shipping iron ore. Two of these iron ore properties, estimated to contain a 
combined historical resource of about 5 million tons of iron ore, are located 
close to existing infrastructure near the town of Schefferville and close to 
LIM's planned Phase One DSO mining operations in Western Labrador. 
 
Another two of the properties are estimated to contain a combined historical 
resource of approximately 10 million tons of iron ore and may form an expansion 
of LIM's Phase Three operations. 
 
Two more properties, estimated to contain a historical resource of approximately 
30 million and 5 million tons of iron ore, respectively, are located 
approximately 35 kilometres north of LIM's Kivivic Phase Three property and 
could potentially form the basis for a new fourth phase of operations. 
The 1953 Hollinger mining lease remains valid under its current term to 2013 and 
is renewable for a further twenty years to 2033. The lease covers an area of 
approximately 2,800 hectares and includes fourteen separate properties some of 
which contain all or parts of various known mineral deposits. SMI has the option 
to take a sublease of the properties subject to the approval of the Government 
of Quebec. 
 
Under its Operating Agreement with Hollinger SMI will be responsible for all 
capital and operating costs to bring the deposits into production and will be 
required to pay Hollinger a royalty of $2.00 per tonne of iron ore shipped from 
the Port of Sept Îles. The properties are subject to some outstanding litigation 
of various disputes, including claims for breach of contract by Hollinger. SMI 
has also agreed to assume responsibility for certain outstanding liens, 
judgments and other obligations of approximately $1.5 million. 
 
In a second transaction, SMI has acquired from Fonteneau Resources Inc. 
seventeen mining claims covering 800 hectares in the Province of Quebec, some of 
which adjoin the Hollinger land package, and are prospective for DSO. The 
properties are subject to a royalty of $2.00 per tonne of iron ore shipped from 
the Port of Sept Îles and LIM has made advance royalty payments totaling $2 
million which will be credited against any future royalty payments on certain of 
the properties. 
 
The historical resources referred to in this press release are based on work 
completed and estimates prepared by the Iron Ore Company of Canada prior to 1983 
and were not prepared in accordance with National Instrument 43-101. The 
historical resource estimate is still considered relevant and reliable. LIM is 
not treating the historical resource estimate as a defined current resource 
verified by a Qualified Person and this historical resource estimate should not 
be relied upon. 
 
Manganese Properties Acquired 
 
In two separate transactions, through its wholly owned subsidiaries Labrador 
Iron Mines Limited and Schefferville Mines Inc., LIM has acquired approximately 
4,200 hectares in mineral claims located partly in Labrador and partly in 
Quebec, giving LIM a very large land package on which a number of manganese 
deposits have been identified. In addition these manganese properties also 
contain some historical DSO resources. These claims were acquired from MRB & 
Associates and from Fonteneau Resources Inc. and are subject to a royalty of 3% 
of the FOB value of manganese ore and $2.00 per ton of iron ore shipped from the 
Port of Sept Îles. LIM has made payments totalling $200,000 for the acquisition 
of technical data and to cover 2009 assessment work. 
 
The principal manganese ("Mn") deposits found in the Schefferville area can be 
grouped into three types: manganiferous iron deposits which typically contain 
from 5-10% Mn; ferruginous manganese deposits which generally contain 10-35% Mn; 
and manganese deposits formed as a result of secondary enrichment which 
typically are high grade containing at least 35% Mn. 
 
A primary manganese content of greater than 5% Mn is considered to be 
potentially economic but other factors including amenability to beneficiation 
and presence of deleterious elements such as silica, aluminium, phosphorus and 
sulphur may affect this cut-off. 
 
These newly acquired claim holdings contain fourteen occurrences or deposits of 
manganese located within the Sokoman, Ruth and Wishart geological formations. 
Historic reports indicate these deposits have manganese content that ranges from 
5% to 55% Mn. It is expected that these deposits can be beneficiated to 
commercial grades of around 48% Mn by a similar washing and screening process to 
that planned for LIM's DSO deposits. 
 
The major users of manganese concentrate are steel producers, with Chinese 
demand being the prime price determinant. Prices for concentrate grading 48% Mn 
are currently in the US$260 per tonne range, having reached highs in excess of 
US$850 per tonne in 2008, and are forecast to increase to around US$350 per 
tonne by 2012. 
 
New Exploration Properties 
 
In the final transaction, SMI has entered into an Exploration and Development 
Agreement on certain other mining claims in Quebec totalling 2,500 hectares 
which are considered prospective for exploration for iron ore. These claims are 
located approximately 100 kilometres north of Schefferville, within the Labrador 
Trough, and are considered to have high regional exploration potential for iron 
ore. Limited historical information is available on these properties. 
 
Under the Exploration and Development Agreement SMI has agreed to make a payment 
of $250,000 on signing, with further payments of $250,000 payable on June 30, 
2010 and $500,000 payable on each of December 31, 2010, June 30, 2011 and 
December 31, 2011. SMI is obligated to maintain the properties in good standing 
through December 31, 2011 and to carry out minimum programs of reconnaissance 
and exploration on the properties. These claims will also be subject to a $2.00 
per tonne royalty payment. 
 
QUALIFIED PERSON AND CAUTIONARY STATEMENTS 
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 LIM and a Qualified Person within the meaning of National 
Instrument 43-101 of the Canadian Securities Administrators. 
The resources referred to in this press release are historical and have not been 
confirmed in accordance with the standards in National Instrument 43-101. The 
terms "iron ore" and "ore" in this press release are used in a descriptive sense 
and should not be construed as representing current economic viability. 
Historical mineral resources do not have demonstrated economic viability and 
there is no certainty that all or any part of a historical mineral resource will 
ever be upgraded to a current inferred or indicated mineral resource or to a 
mineral reserve. Inferred mineral resources are considered geologically too 
speculative to have economic considerations applied to them that would enable 
them to be categorized as mineral reserves. 
 
 
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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