LIM reviews mine start-up at its AGM


 
TIDMAYM 
 
Anglesey Mining plc LSE:LYM 
 
22 September 2011 
 
LIM reviews Successful Mine Start-Up at Annual Meeting of Shareholders 
 
Schefferville Iron Ore Mine in Production 
 
Anglesey Mining's 33% owned associate Labrador Iron Mines Holdings Limited 
(TSX: LIM) reports that at the Annual Meeting of Shareholders, held at the TMX 
Broadcast Centre Gallery in Toronto on September 22, 2011, shareholders were 
presented with a review of the major developments over the past year at the 
Schefferville Area Iron Ore project that have led to the commencement of 
production and transport and sale of iron ore. 
 
"This past year since the last Annual General Meeting has been the most 
exciting in our history. LIM has moved from being an exploration and 
development company and now joins the very limited number of companies mining 
iron ore in Canada," remarked John Kearney, LIM's Chairman & Chief Executive. 
"We have made great progress and passed important milestones and we look 
forward to continuing growth in iron ore production over the coming years," 
added Mr. Kearney. 
 
Developments since September 2010 
 
* The James Mine has been developed and is now in full scale production. 
 
* The Silver Yards processing plant has been constructed and commissioned and 
is now running at design throughput and recovery levels. 
 
* Rail agreements have been negotiated and LIM's iron ore is been railed from 
Silver Yards to the Port of Sept-Iles. 
 
* An agreement was signed with the Iron Ore Company of Canada for the sale and 
shipping of all of LIM's 2011 iron ore production. 
 
It is expected that, to the end of September 2011: 
 
* a total of about 700,000 tonnes of ore will have been mined and some 
1,700,000 tonnes of waste and overburden will have been removed. 
 
* about 250,000 tonnes of high grade direct railing ore, included in the above 
total, have been mined of which almost 200,000 tonnes will have been sent to 
the Port of Sept-Iles. 
 
* approximately 400,000 tonnes of ore will have been processed through the 
Silver Yards plant, producing about 210,000 tonnes of lump and sinter fines 
product. 
 
Mining operations at the James Mine commenced in April 2011, full scale mining 
operations got underway in June 2011 and have since been gradually ramped up. 
The mining rate is now approximately 30,000 tonnes of ore and waste per day. 
LIM is very encouraged by the grade of James ore which has been in excess of 
expectations. Of the total production to the end of September, some 250,000 
tonnes of direct railable ore will have been mined at an average grade of 
around 65% iron which can be sent directly to Sept-Iles without further 
processing. 
 
The Silver Yards beneficiation plant has been completely constructed and 
commissioned in under one year and is now running at design throughput and 
recovery levels. The second stage expansion of the plant (installation of 
Hydrosizer and filter) has been completed and the third stage expansion, which 
should add about 1,000,000 tonnes to annual production capacity, is being 
planned and designed and should be constructed in 2012. 
 
Iron Ore Sale Agreement with IOC 
 
In August 2011, LIM has entered into an agreement with the Iron Ore Company of 
Canada ("IOC"), for the sale and shipping of all of LIM's calendar 2011 iron 
ore production. Under the confidential sales contract with IOC, the iron ore 
will be delivered to Asian markets and resold by IOC's marketing organization 
on the spot market. The sale price for iron ore sold to IOC will be based on 
the actual realized prices to Chinese customers, less an allocation for 
handling, loading, shipping and sales costs. 
 
The first ship carrying approximately 168,000 tonnes of iron ore mined and 
produced by Labrador Iron Mines, (the Salt Lake City), is scheduled to depart 
the Port of Sept-Iles on September 30, destined for China. 
 
IOC, Canada's largest iron ore producer, owns 100% of the QNS&L railway and, at 
the Port of Sept-Iles, owns established storage and ore handling facilities, 
including its ship dock capable of taking ocean going vessels up to 240,000 
(dwt) tonnes. LIM's agreement with IOC enables utilization of Cape Size Ocean 
going ships, where current freight rates are lower than for the alternative but 
smaller Panamax vessels, for the shipment of LIM's iron ore. 
 
LIM believes that the benefits associated with this arrangement, together with 
the benefits of the utilization of larger Cape Size Ocean going ships, will 
ensure that the maximum possible tonnage of LIM's 2011 iron ore production will 
be efficiently shipped and sold during the remainder of calendar 2011. LIM 
expects that three or perhaps four shiploads of iron ore will be shipped to 
China before the onset of winter. 
 
Rail Operations 
 
The first ore train loaded with direct shipping ore departed Silver Yards on 
June 29, 2011 and almost 200,000 tonnes of direct railing ore will have been 
shipped by rail to Sept-Iles by the end of September. 
 
Earlier this year LIM purchased a fleet of 400 previously used rail cars of 
which 260 have been delivered and commissioned into service. This process took 
longer than anticipated due to the modifications needed to meet local operating 
conditions. At the present time LIM is running two ore trains between Silver 
Yards and the Port of Sept-Iles and is working to add a third but shorter train 
within the next few weeks. 
 
The buildup in rail operations has not happened as efficiently as expected and 
this has led to shortfall in the tonnage of ore railed to date. LIM continues 
to work with the railway companies in an attempt to improve cycle times of the 
trains from mine to Port and back. The extent of such improvements, coupled 
with the onset of the winter period, will determine the volumes to be railed 
this year. It is now expected that the total tonnage to be delivered to the 
Port will be between 500,000 and 700,000 tonnes. 
 
2011 Outlook 
 
It is expected that a total of about 2,000,000 tonnes of ore will be mined from 
the James Mine during the current year. Forecast production and sales for the 
remainder of 2011 will to a large extent be dependent upon the weather and the 
time when winter conditions close in and curtail certain aspects of the 
operation. 
 
The total tonnage treated in the Plant for the year is expected to lie within 
the range of 500,000 to 800,000 tonnes. This will yield saleable products of 
between 300,000 and 500,000 tonnes of lump ore and sinter fines to be added to 
the 200,000 tonnes of direct railable product already railed to the Port. 
 
It is now expected that the total tonnage to be delivered to the Port will be 
between 500,000 and 700,000 tonnes. 
 
If other conditions remain as forecast a stockpile of approximately 1,000,000 
tonnes of ore will be built up in Silver Yards by year end and will be 
available for a rapid start to treatment, railing and sales in the spring of 
2012. 
 
The 2011 season is considered to be a short start-up and testing year and unit 
operating costs are expected to be higher than the anticipated life-of-mine 
average. LIM is in a strong financial position that will enable it to fund its 
working capital requirements for 2011 and to fund its ongoing exploration and 
expansion plans. 
 
Summer Exploration Program 
 
The summer 2011 drilling program in both Labrador and Quebec has advanced 
steadily with three reverse circulation drill rigs being utilized. The 
principal drilling areas are the deposits that will comprise Stage 1 subsequent 
to James and Redmond, including Knob Lake, Ruth Lake and Gill and the Stage 2 
deposits at Houston and Malcolm. 
 
By the end of September approximately 7,500 metres of the planned 14,000 metres 
program will have been completed. It is expected that new resource estimates on 
a number of these deposits will be completed before the end of 2011. 
 
Stage 2 Houston Deposit and Redmond Plant 
 
LIM continues to evaluate the development of a new separate Stage 2 operation 
for the Houston deposit including a dedicated processing plant to be located at 
Redmond which, subject to environmental assessment, permitting and detailed 
engineering, could be brought into production commencing in 2013 at an eventual 
rate of 2.5 to 3 million tonnes per year. This would be in addition to the 
existing processing plant at Silver Yards which, with planned enhancements and 
additions, will have a similar design capacity. 
 
First Nations Support 
 
LIM's relations with its aboriginal neighbours and partners continue very 
satisfactorily, with aboriginal employees representing a substantial percentage 
of the workforce. 
 
LIM had previously entered into an Impact Benefits Agreement with the Innu 
Nation of Labrador, which has been working satisfactorily since mid-2008. 
 
In September 2010 LIM signed an Impact Benefit Agreement with the Naskapi 
Nation of Kawawachikamach (near Schefferville), following a long period of 
co-operation since the initial MOU was signed with Naskapi in April 2008. 
 
In December 2010, LIM signed an Agreement in Principle with the Innu Takuaikan 
Uashat Mak Mani-Utenam (Sept-Iles), which stipulates the principal terms to be 
included in an IBA. Negotiations with the Innu Takuaikan Uashat Mak Mani-Utenam 
Quebec towards the completion of an IBA have been concluded, and it is expected 
that the agreement will be submitted to the community of Takuaikan Uashat Mak 
Mani-Utenam for ratification later in the year. 
 
In June 2011 LIM signed an Impact Benefits Agreement with the Nation Innu 
Matimekush-Lac John of Schefferville, Quebec. The life-of-mine Agreement was a 
significant step for LIM and for the Innu Community of Matimekush-Lac John, and 
paved the way for the development of LIM's iron ore project that is providing 
opportunities for the local community at Schefferville, while at the same time 
protecting Innu traditional and cultural activities. 
 
These Impact Benefits Agreements with the four local communities demonstrate 
LIM's commitment to work in a positive relationship with the aboriginal 
communities and to ensure that the members benefit through employment, 
training, business opportunities and financial participation in LIM's iron ore 
projects. 
 
Grant of Stock Options 
 
The Board of Directors of LIM has approved the grant of an additional 100,000 
options to new members of senior management at an exercise price of $6.80 per 
share, all with an expiry date of September 20, 2016, all vesting as to 
one-eighth thereof quarterly over a period of two years. 
 
About Labrador Iron Mines Holdings Limited (LIM) 
 
LIM's Schefferville Projects involve 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. For further 
information, please view www.labradorironmines.ca. 
 
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 / Jos Simson, Tavistock Communications 
 
+44 (0) 20 7920 3155 / +44 (0) 7788 554035. 
 
 
 
END
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