Trading Statement - Labrador Iron Mines reports new resource estimates


 
TIDMAYM 
 
Anglesey Mining plc                 LSE:AYM              8 April 2010 
 
Labrador Iron Mines reports new Resource Estimates for Houston Deposit 
 
  ·    Significant increase in iron ore resources 
 
  ·    Project life extended 
 
  ·    Deposits open for further exploration 
 
Anglesey Mining plc is pleased to announce that its 41% owned associate company 
Labrador Iron Mines Holdings Limited (TSX: LIM) is pleased to report new 
resource estimates, prepared in accordance with NI 43-101, for its 100% owned 
Houston deposit located close to the town of Schefferville, which comprises part 
of LIM's Stage 1 direct shipping iron ore project located in western Labrador 
and north-eastern Quebec. 
 
The new resource estimates for Houston, combined with the previously announced 
resource estimates for the James and Redmond deposits (see LIM press release 
dated 12 November 2009), brings the total Measured and Indicated (NI 43-101 
compliant) resource for LIM's Stage 1 deposits to 25.71 million tonnes at a 
grade of 58.5% Fe. 
 
LIM's resource estimates for the Houston deposit total 14.68 million tonnes at a 
grade of 59.3% iron in the Measured and Indicated categories and 1.5 million 
tonnes of resources have been classified in the Inferred category. A further 
0.831 million tonnes of manganiferous iron resources have been classified in the 
Measured and Indicated categories. 
 
The 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. 
 
Houston Deposit - New Resource Estimate at 50% Fe cut-off 
Category        New resource  Grade (%     Historical 
                  (Million       Fe)        resource 
                   tonnes)                  (Million 
                                            tonnes) 
Measured            8.029       59.7 
Indicated           6.656       58.8 
Total M+I          14.684       59.3         9.114 
Inferred            1.498       57.0 
Manganiferous       0.831       54.3 
 
Commenting on the Houston resource estimates, John F. Kearney, Chairman and CEO 
of Labrador Iron Mines said, "The new resource estimates for Houston have 
indicated a substantial increase in tonnage over the historic estimates for this 
deposit. This is of particular significance as the increase will extend the 
expected life of our Stage 1 project. The Houston deposit remains open to the 
northwest and southeast and to depth." 
 
The resource estimates have been prepared under the supervision of Terence N. 
McKillen, P.Geo, in accordance with NI 43-101. The classification of resources 
was completed using 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. The resource estimates were prepared in-house by LIM and are 
therefore not independent. 
 
Houston Deposit 
 
The Houston deposit is located in Labrador, approximately 8kms east of LIM's 
Redmond deposit currently under development, and 5kms east of the main 
Schefferville-Sept-Iles rail line. 
 
The resource estimates for the Houston deposit are based on 4,181 metres of 
drilling in 63 holes, 554 metres of trenching and 1,449 samples carried out by 
LIM, in addition to 4,418 metres of drilling in 84 holes, 6,900 metres of 
trenching and 3,571 samples previously carried out by IOC and are shown in the 
following tables. 
 
Houston Deposit - NI 43-101 Compliant Iron Resources 
          (Direct Shipping Resource)(at 50% Fe cut-off) 
Type   Classification 
                        Tonnes    SG    Fe%     SiO2% 
                       (x1,000) 
NB-LNB Measured         6,700    3.52  61.12    8.58 
       Indicated        5,274    3.51  60.40    9.61 
       Inferred         1,004    3.48  59.17    11.43 
HSiO2  Measured         1,329    3.33  52.64    21.33 
       Indicated        1,382    3.33  52.71    21.08 
       Inferred          494     3.32  52.55    21.19 
Total  M + I            14,684   3.48  59.30    11.28 
       Inferred         1,498    3.43  56.99    14.65 
 
 
Houston Deposit - NI 43-101 Compliant Manganiferous Iron Resources 
Classification      Tonnes     Fe%   SiO2%   Mn% 
                   (x1,000) 
Measured             480       54.2   8.8    5.8 
Indicated            351       54.4   9.5    5.0 
Total                831       54.3   9.1    5.5 
 
     Cautionary Note 
     Mineral resources are not mineral reserves and have not demonstrated 
     economic viability. No dilution or recovery factors have been applied. 
     There is no guarantee that mineral resources will be converted into 
     mineable reserves. LIM has not completed an economic feasibility study on 
     the Houston deposit or the Labrador Project. The Houston deposit is not 
     part of LIM's Phase 1 Schefferville Area Iron Ore Project on which the 
     Environmental Assessment has been completed. 
 
     Block Modeling 
     LIM used Gemcom GEMS 6.2.3 software for the resource estimation. The 
     ordinary kriging interpolation method was used to estimate the resources by 
     block modeling with block sizes of 5x5x5 metres and block rotation of 45.6° 
     which corresponds to the general strike of the deposit. LIM used the 
     geological and ore models interpreted in plane and in sections. LIM used 
     different search ellipses derived from 3D semi-variogram analyses for the 
     classification of the resources. 
 
     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/or by 
     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. 
     LIM 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 which is considered a conservative measure of density. 
 
     Qualified Person 
     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 the Corporation and a Qualified Person within 
     the meaning of National Instrument 43-101 of the Canadian Securities 
     Administrators. 
 
About 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. The 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. LIM plans, subject to timely receipt of permits, to commence 
iron ore production in mid-2010. 
 
About 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 contact: 
Bill Hooley, Chief Executive +44 (0) 1492 541981 
Ian Cuthbertson, Finance Director  +44 (0) 1248 361333 
Emily Fenton/Charlie Geller, Conduit PR  +44 (0) 20 7429 6608 / 
                                        +44 (0) 7788 554035
Anglesey Mining (LSE:AYM)
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