LIM mining & plant commissioning underway


 
TIDMAYM 
 
Anglesey Mining plc LSE:AYM 
 
27 May 2011 
 
LIM closes $11.25 million over-allotment option 
 
Mining and plant commissioning underway 
 
Anglesey Mining's 33% owned associate Labrador Iron Mines Holdings Limited 
("LIM" or the "Company") (TSX: LIM) is pleased to announce today that the 
underwriters of the recently completed $110,000,500 public offering of common 
shares (the "Offering") have exercised the over-allotment option (the "Option") 
granted in connection with Offering and have purchased an additional 900,000 
shares for gross proceeds of $11,250,000, bringing the total gross proceeds of 
the Offering to $121,250,500. 
 
Over-allotment Option exercised for $11.25 million 
 
The syndicate of underwriters, led by Canaccord Genuity Corp. and including BMO 
Nesbitt Burns Inc., Jennings Capital Inc., Haywood Securities Inc. and Scotia 
Capital Inc., elected to purchase 900,000 additional common shares of the 
Company at the Offering price of $12.50 per share. The Option was granted as 
part of the Offering which was closed on April 26, 2011. LIM has completed the 
issuance of shares pursuant to the exercise of the Option and has received 
gross proceeds of $11,250,000. 
 
Exercise of the Option has increased the aggregate gross proceeds of the 
Offering to $121,250,500. LIM intends to use the net proceeds from the Offering 
for upgrades to and expansion of the Silver Yards plant, for payments under 
rail transportation agreements, for exploration and development of the 
Company's mineral projects, and for general corporate and working capital 
purposes. 
 
Following completion of the Offering and giving effect to the exercise of the 
Option, LIM now has 53,855,791 common shares issued and outstanding. 
 
Mining and Plant Commissioning Underway 
 
James Mine 
 
Mining operations at LIM's Schefferville Area direct shipping iron ore project 
in Western Labrador commenced in April, 2011. Waste stripping of the first 
bench at the James North deposit is nearing completion and has exposed over 400 
metres of ore along strike. Over 1,100 grade control holes have been completed 
and assayed to date towards detailed information for mining grade control. 
Approximately 100,000 tonnes of iron ore has been stockpiled to date. 
 
Silver Yards Beneficiation Plant Commissioned 
 
Mechanical dry commissioning of the Silver Yards beneficiation plant is 
complete. The motor control centre is fully operational and the process logic 
control connected and commissioned. All instrumentation and controls will be 
fully operational by the end of May. Hot commissioning, with first ore being 
fed through the plant, is expected to commence in the first week of June. 
 
The plan for the initial phase of operations of the Silver Yards beneficiation 
plant consists of washing and screening the higher grade blue ore material, 
while the higher silica blue ore and the yellow ore will be stockpiled for 
later treatment. 
 
LIM plans to upgrade and expand the Silver Yards plant in subsequent phases to 
increase recoveries, treat lower grade and higher silica ores and to increase 
throughput and output. The Phase II expansion, consisting of the addition of a 
new lump ore secondary screen and a fines recovery system, is planned to be 
completed during the summer of 2011. 
 
Rail and Port 
 
An extension to LIM's rail spur line and other track work at Silver Yards has 
been completed. LIM has purchased a fleet of 400 previously used railcars of 
which the first consignment of 120 rail cars have been delivered to the Port of 
Sept-Iles where inspections and modifications are being carried out. 
 
The first two SD 40-3 locomotives have arrived at Sept-Iles and will shortly be 
positioned to Silver Yards. LIM has signed a rail services agreement with 
Western Labrador Rail Services (WLRS), a wholly owned subsidiary of Genesee & 
Wyoming Inc. WLRS will provide, operate and maintain up to five SD 40-3 
locomotives which will be used to haul LIM's iron ore from Silver Yards, over 
the TSH privately owned railway, to Emeril Junction. WLRS will also operate 
LIM's six kilometre railway which connects LIM's Silver Yards processing 
facility to the main Schefferville to Emeril Junction rail line. It is expected 
that rail shipments of iron ore from Silver Yards to the Port of Sept-Iles will 
commence in June. 
 
In furtherance of the agreement signed with the Port of Sept-Iles in February 
2010, LIM has signed a memorandum of understanding with the Port for the use of 
the Pointe aux Basques terminal for handling and ship loading of LIM's iron ore 
for the 2011 season. LIM has also signed an agreement with a port terminal 
operator for the unloading, stacking and ship loading of iron ore at Pointe aux 
Basques. 
 
Use of the Pointe aux Basques facilities will require train shunting and 
unloading in the adjacent rail yard and loading the iron ore onto barges or 
lakers and transhipping to larger vessels within the deeper waters of the bay. 
These port handling arrangements are currently under negotiation and are 
expected to be concluded in the near future. 
 
About Labrador Iron Mines Holdings Limited (LIM) 
 
LIM's Schefferville Area projects involve the development of twenty direct 
shipping iron ore deposits in western Labrador and north-eastern Quebec near 
Schefferville, Quebec. The Company'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 developing its Schefferville Area projects in 
stages. The first phase of Stage 1 comprises the James Deposit where mining has 
already commenced. Cold commissioning of the Silver Yards processing plant has 
been completed and it is expected that, following hot commissioning, the first 
ore will be fed to the plant in early June. 
 
About Anglesey Mining plc 
 
Anglesey Mining with its LSE main board listing is primarily focused on its 33% 
interest in Labrador Iron Mines (TSX: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 contact: 
 
Bill Hooley, Chief Executive +44 (0) 1492 541981 
 
Ian Cuthbertson, Finance Director +44 (0) 1248 361333 
 
Samantha Harrison / Shaun Whyte, 
 
Ambrian Partners Limited +44 (0) 2076 344700 
 
Emily Fenton / Charlie Geller, 
 
Tavistock Communications +44 (0) 20 7920 3155 / +44 (0) 7788 554035 
 
 
 
END
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