Trading Statement - Labrador Q1 results and update


 
TIDMAYM 
 
16 August 2010         Anglesey Mining plc            LSE:AYM 
 
LIM reports first quarter 2010 financial results and 
               update at its Schefferville iron ore projects 
 
Anglesey Mining plc's 41% owned associate Labrador Iron Mines Holdings Limited 
(TSX: LIM) has reported its first quarter financial results for the period 
ended 30 June 2010 and provided an update on developments at its wholly-owned 
Schefferville iron ore projects located in the western central part of the 
Labrador Trough. 
 
This press release should be read in conjunction with the LIM's unaudited 
financial statements and related management's discussion and analysis for the 
quarter ended 30 June 2010 which is available on the LIM website. 
 
LIM reported a loss for the quarter of $0.6 million ($0.01 per share), compared 
to a loss of $0.3 million ($0.01 per share), for the same period in the prior 
year. During the quarter LIM invested over $6.8 million in property, plant and 
equipment compared to $0.1 million during the same period last year, the 
increase attributed to the significant investment in processing equipment and 
rail spur line construction materials in preparation for the commencement of 
construction. 
 
With over $41 million in cash and cash equivalents and no debt as at 30 June 
2010, LIM is in sound financial condition and believes that it has sufficient 
funding to complete the commissioning of the first phase of its iron ore mining 
projects and to commence shipments of iron ore to begin generating operating 
cash flows. 
 
Progress on the Schefferville Projects 
 
Environmental and Permitting 
 
During the quarter ended 30 June 30 and subsequently to date, LIM has made 
significant progress in advancing its permitting activities with the Government 
of Newfoundland and Labrador. 
 
In June 2010, LIM received numerous permits and authorizations from the 
Government of Newfoundland and Labrador, including the mining leases for the 
first stage James and Redmond deposits and surface use leases over the Silver 
Yards beneficiation area, the accommodation camp, Redmond roads and pipeline. 
Final approvals were received from the Department of Fisheries and Oceans, the 
Department of Environment and Conservation's real time water monitoring 
program, and programs encompassing surface water quality sampling have been 
authorized and completed. 
 
in addition, the environmental protection plan for mine construction and 
operation, which was a final condition of the environmental assessment release, 
was approved by the Minister of Environment and Conservation and LIM's 
development plan for the Schefferville area iron ore mine (Western Labrador) 
was approved pursuant to Section 6.(1) of the Mining Act by the Department of 
Natural Resources. 
 
Subsequent to the quarter, in July 2010, LIM received certificates of approval 
for the construction of its James and Redmond Mines and associated mining 
facilities. LIM has also received approval of its rehabilitation and closure 
plan from the Department of Natural Resources. These approvals provide for the 
construction of open pit mining and treatment facilities at the James North, 
James South, Redmond 2B and Redmond 5 deposits, and include the beneficiation 
facility, ore, waste rock and overburden stockpiles, settling ponds, access 
roads, accommodation camp and other associated works. The approvals also 
include authorization for the installation and operation of power generators at 
the James deposit, the Silver Yards beneficiation area and the accommodation 
camp. 
 
LIM has not yet received the permits for the operation of the rail spur and 
operation of the mine as of the date hereof. The Government of Newfoundland and 
Labrador has engaged in consultation with potentially affected First Nations 
with regard to LIM's various permits and this consultation process is 
continuing. The receipt of permits has taken longer than anticipated, which has 
resulted in a delay in LIM's originally planned construction and production 
timeline. However, LIM expects the remaining permits and approvals to be issued 
in the near future. 
 
Project Construction 
 
All major items of the beneficiation plant and other infrastructure have now 
been procured and have been assembled at rail heads in Labrador City and 
Sept-Iles awaiting transport to site. Some preassembly work has taken place at 
Labrador City to reduce the construction time. 
 
A contract was signed in June 2010 for the installation of camp accommodation 
facilities. The new accommodation camp, which has been built offsite, will be 
brought to site and assembled. 
 
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. Water use approvals 
for the process water system have been approved by the Department of 
Environment and Conservation. 
 
Rail and Port - Transportation Infrastructure 
 
LIM received the construction permit for laying the new rail spur track at the 
beginning of May 2010 and construction of the rail spur was completed in early 
June. The new rail spur line will be used to move to site the main components 
of the processing plant and the accommodation camp and subsequently will be 
used to move iron ore from the Silver Yards to the Tshiuetin Rail 
Transportation Inc. ("TSH") main line for onward transport to the Port of 
Sept-Iles. 
 
Most recently, LIM has negotiated arrangements with TSH regarding inward 
transport of the beneficiation plant, accommodation camp and construction 
materials to Schefferville and Silver Yards and has negotiated freight rate 
terms for the transport of any ore produced in calendar 2010. 
 
A new railway loading ramp was constructed at Emeril Junction on the TSH main 
rail line in early August 2010 and will be used to load freight and materials 
delivered from Labrador City. 
 
Discussions with First Nations and Government 
 
Negotiations are continuing with the Quebec Innu towards the completion of 
impact benefit agreements although agreements have not yet been reached. To 
date and pending the issue of permits, LIM has respected the barrier set up by 
the Innu Strategic Alliance on 11 June 2010 restricting normal access from the 
town of Schefferville to mining properties in Labrador as part of their 
campaign to protect their rights and other political issues. The Government of 
Newfoundland and Labrador has engaged in consultation with potentially affected 
First Nations with regard to LIM's various permits and this consultation 
process is continuing. In addition, discussions are continuing with the 
Government of Quebec and with the Federal Government. Restriction of normal 
access to LIM's properties has impacted the development of LIM's projects. LIM 
hopes that the ongoing discussions with both the Quebec Innu and with 
Governments will result in satisfactory agreements whereby the barrier will be 
removed and LIM's projects can be operated in a positive way for the benefit of 
all. 
 
OUTLOOK 
 
LIM expects the remaining permits and approvals to be issued in the near 
future, and, assuming normal access to the properties can be achieved, LIM 
plans to undertake site construction of the mine and beneficiation facilities 
as soon as possible and hopes to achieve plant start-up before the seasonal 
shut down of operations at the end of November 2010. LIM is targeting full 
scale commercial production in April 2011 and plans production of 2 million 
tonnes of iron ore during that calendar year. 
 
 
Labrador Iron Mines Holdings Limited (LIM) 
 
LIM's Schefferville iron ore projects involve 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. 
 
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, please view LIM's website at www.labradorironmines.ca 
or 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 
 
END
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