Trading Statement - Labrador Iron reports results to 31 March 2010


 
TIDMAYM 
 
Anglesey Mining plc                LSE:AYM                      30 June 2010 
 
LIM reports fiscal 2010 year end financial results 
 
Strong balance sheet with $48.3 million in cash 
 
Anglesey Mining plc announces that its 41% owned associate company Labrador Iron 
Mines Holdings Limited (TSX: LIM) has reported its results for the fiscal year 
ended 31 March 2010. At 31 March 2010, LIM held $48.3 (GBP31.5) million in cash 
and cash equivalents with no debt and is in sound financial condition. Current 
liabilities, comprising accounts payable and accrued liabilities were $2.1 
(GBP1.4) million. 
 
LIM reported net income of $1.16 (GBP0.7) million or $0.03 per share compared to a 
loss of $0.35 (GBP0.2) million or $0.01 per share for the prior year. The net 
income resulted primarily from a future income tax recovery of $3.9 (GBP2.5) 
million due to a reduction in the Ontario tax rate that took effect in November 
2009. This was largely offset by corporate, management and administration 
expenses of $2.4 (GBP1.6) million. 
 
To 31 March 2010 approximately $30 (GBP20) million had been expended on the 
capital cost of the Schefferville Area Project, including exploration. 
 
Schefferville Area Project Update 
 
Rail Spur Line Completion 
The first major construction activity has been the laying of the planned 4.5 km 
railway spur line from the Sept-Iles - Schefferville main line to LIM's 
processing site at Silver Yards. Installation of the new track commenced in May 
2010 and has now been completed including ballast and tamping work. The new rail 
spur line will be used to move to site the main components of the processing 
plant and the accommodation camp. In due course the spur line will be further 
extended to facilitate future operations. LIM has submitted the required 
information to support an operating certificate for the use of the railroad and 
is awaiting the approval for its operation. 
 
Beneficiation Plant and Camp 
All of the items of the beneficiation plant have been ordered and manufacturing 
of the components has been largely completed. These items are now being brought 
to railheads at Sept-Iles and at Labrador City awaiting delivery to site. Some 
pre-assembly is taking place in Labrador City. Subject to receipt of outstanding 
permits and licences, final assembly on site should take place this summer to 
enable the beneficiation facilities to be commissioned during the fall of 2010. 
A contract has been signed with a Labrador City based contractor for the mining 
and beneficiation activities. Once the mine operating permit has been issued, 
the mining contractor will be mobilized to site to commence mining activities, 
including stockpiling of iron ore ahead of the crusher pad. 
 
Environmental and Permitting 
Numerous environmental permits have been received over recent weeks including 
the Mining Leases for the first stage James and Redmond deposits and Surface Use 
Leases over the Silver Yards beneficiation area, the camp, Redmond roads and 
pipeline. Final approvals from the Department of Fisheries and Oceans have been 
received, including the real time water monitoring program, and programs 
encompassing surface water quality sampling have been authorized and completed. 
The Environmental Protection Plan for Mine Construction and Operation, which was 
the final condition of the environmental assessment release, has been approved 
by the Minister of Environment and Conservation. The permits for the 2010 
exploration drilling season for Quebec and Labrador have also been received. 
LIM has submitted all required information in support of the Certificate of 
Approval for Mine Construction and Operation and for the Certificate of Approval 
for the Operation of the rail spur and is awaiting issue of these Certificates 
by the Government of Newfoundland and Labrador. The receipt of these permits has 
taken longer than anticipated, which has resulted in a delay in LIM's planned 
construction and production timeline. 
 
Negotiations with Quebec Innu 
LIM has recently been in negotiations towards an Impact Benefit Agreement with 
the Innu Community of Matimekush-Lac John (based in Schefferville, Quebec), one 
of four First Nations who claim Aboriginal rights in the general Schefferville 
area. In May 2010 LIM proposed a comprehensive package of jobs, contracts, 
social benefits, infrastructure grants and revenue sharing, which addressed all 
of the demands made by Matimekush. This proposal has not been accepted. The Innu 
Matimekush are currently in an election period, with the elections for Chief and 
Band Council to be held July 7, 2010. 
 
On 11 June 2010, the "Innu Strategic Alliance" (comprised of five Innu 
communities living in northeastern Quebec, including the communities of 
Matimekush and Uashat), as part of a campaign to have their ancestral rights in 
the territory called Nitassinan (which includes parts of northeastern Quebec and 
western Labrador) recognized by Government, set up a barricade at the edge of 
the town of Schefferville, in Quebec, to block access from the town to mining 
properties in the Schefferville area. 
 
In March 2008 LIM entered into a Memorandum of Understanding with the Innu 
Community of Matimekush-Lac John, wherein the parties agreed to negotiate an 
Impact Benefit Agreement and LIM agreed to use its best efforts to employ or 
contract with individuals and businesses of Matimekush. LIM has been in 
discussions and consultations with the Chief, Council and Elders of Matimekush 
continuously thereafter and up to date. Over the past four years LIM has worked 
well with the Quebec Innu and has employed many Innu members in its exploration 
and environmental activities, as well as contracting with Matimekush and Uashat 
businesses. 
 
In July 2008, LIM and Innu Nation of Labrador signed an Impact Benefit Agreement 
with respect to the development of LIM's iron ore project in western Labrador. 
The Labrador Innu, as represented by the Innu Nation are the only aboriginal 
party with a land claim that has been accepted by the Government of Newfoundland 
and Labrador. 
 
The Federal Minister of Indian and Northern Affairs has proposed creating a 
forum for talks between the Innu residing both in Quebec and Newfoundland and 
Labrador regarding their overlapping claims. The Minister indicated that Canada 
is willing to provide funding to both Innu parties to enter into exploratory 
talks and has appointed a special representative to act as facilitator in hopes 
of resolving these overlapping land claim issues. Canada is currently 
negotiating land and resource rights with the Innu of Labrador. 
LIM respects the legitimate aspirations of all First Nations but believes that 
negotiations on impact benefit agreements for mining projects should not be side 
tracked by larger land claim considerations, where LIM has no say or ability to 
provide solutions. LIM has indicated that it is ready to continue negotiations 
with the Quebec Innu and is currently in discussions with representatives of the 
Matimekush and Uashat and with the relevant governments. 
 
Outlook 
Upon receipt of all remaining necessary permits, licenses and approvals, LIM is 
planning to commence site construction of the mine and beneficiation facilities 
during the summer of 2010 and hopes to achieve start up and initial production 
before the seasonal shut down of operations at the end of November 2010. LIM 
plans to commence full scale production in April 2011 and expects 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. LIM plans to start up production in the fall of 2010, subject to 
timely receipt of remaining permits. 
For further information, please see www.labradorironmines.ca. 
 
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)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024