Interim Management Statement


 
TIDMAYM 
 
27 August 2010         Anglesey Mining plc         LSE:AYM 
 
Interim Management Statement 
 
Anglesey Mining plc is a UK based company with a full London Stock Exchange 
listing which holds: 
 
  * 41% of Toronto-listed Labrador Iron Mines Holdings Limited (TSX:LIM) which 
    has a number of iron ore deposits in Labrador and Quebec. LIM is fully 
    funded and the deposits are under active development towards production in 
    2011. 
 
  * 100% of the Parys Mountain base metal deposit in North Wales, UK with a 
    total historical resource in excess of 7 million tonnes at over 9% combined 
    copper, lead and zinc. 
 
Update on Labrador activities 
 
During the quarter LIM invested over C$6.8 million (GBP4.1 million) in property, 
plant and equipment compared to C$0.1 million (GBP0.06 million) during the same 
period last year, the increase attributed to the significant investment in 
processing equipment and rail spur line construction in preparation for the 
commencement of construction. LIM reported a loss for the quarter of C$0.6 (GBP 
0.4) million, compared to a loss of $0.3 (GBP0.2) million for the same period in 
the prior year. 
 
With over $41 million in cash and cash equivalents and no debt, 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. 
 
Progress on the Schefferville Projects 
 
Environmental and Permitting 
 
LIM has made significant progress in advancing its permitting activities with 
the Government of Newfoundland and Labrador and has received numerous permits 
and authorizations, 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. It has also received 
Certificates of Approval for the construction of its James and Redmond Mines 
and associated mining facilities as well as approval of its Development Plan 
and 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. 
 
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. 
 
LIM has not yet received the permit for the operation of the rail spur and the 
Certificate of Approval for operation of the mine. 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 and a number of these have now been transported to Schefferville. 
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. 
 
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 
 
At the date of this report, negotiations are still continuing with the Quebec 
Innu towards the completion of Impacts benefit agreements although these have 
not yet been concluded. To date and pending the issue of permits, LIM has 
respected the barrier set up by the Innu Strategic Alliance on June 11, 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 is engaged in 
consultation with potentially affected First Nations with regard to LIM's 
various permits and this 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. 
 
Parys Mountain 
 
Activities at Parys Mountain in the period have been limited, however the 
potential for the project to be developed with a joint venture partner remains 
and further efforts are being made to develop contacts and move forward. 
 
Outlook 
 
LIM expects the remaining permits and approvals required 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. 
 
The Anglesey group has over GBP2 million in uncommitted cash and continues to 
review other potential mineral developments where it would be able to generate 
an opportunity to enhance shareholder value. 
 
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. 
 
For further information, please see LIM's website at 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. 
 
Contacts: 
 
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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