LIM preliminary operating results for 2011


 
TIDMAYM 
 
13 January 2012      LSE:AYM 
 
LIM Reports Preliminary Operating Results for 2011 
 
Anglesey Mining's 33% held associate Labrador Iron Mines Holdings Limited (TSX: 
LIM) is pleased to report preliminary unaudited operating results for the 
period to December 31, 2011 from its James direct shipping (DSO) iron ore 
project near Schefferville, Quebec. 
 
These operating results reflect the period beginning June 1, 2011 with the 
commencement of mining operations at the James Mine and commissioning and 
start-up of the Silver Yards processing plant. This is considered to be a 
pre-production, start-up and testing period. Commercial production for the 
Schefferville Project is expected to be declared in 2012. 
 
Operating Results by Quarter and Year to Date 
                          Quarter ended     Quarter ended     YTD June 1 to 
                          December 31, 2011 September 30,     December 31, 2011 
                                            2011 
                          Tonnes   Grade %  Tonnes    Grade % Tonnes    Grade % 
                                   Fe                 Fe                Fe 
Total Ore Mined           483,629  60.9     612,596   60.2    1,205,609 60.7 
 Direct Railing Ore       226,372  64.8     177,863   65.3    438,441   64.9 
 portion 
Waste Mined               592,957  --       1,536,368 --      2,855,007 -- 
Ore Processed             171,842  59.0     382,013   57.4    572,052   58.4 
 Lump Ore Produced        20,572   63.7     57,179    64.8    79,407    63.6 
 Sinter Fines Produced    47,825   65.0     101,002   63.0    152,735   65.0 
Total Product Railed      349,624  64.8     208,461   65.1    563,569   64.9 
Tonnes Product Sold       385,898  64.9     --        --      385,898   64.9 
Port Product Inventory    177,669  64.9     170,740   63.3    177,669   64.9 
Site Product Inventory    69,983   65.3     129,715   64.4    69,983    65.3 
Site ROM Ore inventory    195,117  59.0     6,476     57.33   195,117   59.0 
 
*ALL FIGURES ARE PRELIMINARY AND SUBJECT TO CONFIRMATION REPORTED IN DRY METRIC 
TONNES 
 
To the end of December 2011, a total of approximately 1.2 million tonnes of ore 
was mined and trucked to the Silver Yards area ahead of processing or transport 
to Port. A total of 599,467 wet tonnes was hauled to the Port of Sept-Iles, of 
which 411,987 wet tonnes were sold to IOC and shipped to China. 
 
During the operating period to December 31, 2011, a total of 440,000 tonnes of 
direct railing ore at an average grade of 64.9% Fe was mined, of which 340,000 
tonnes was railed directly to Sept-Iles without further processing. 
Approximately 572,000 tonnes of ore was fed to the Silver Yards plant, yielding 
approximately 232,000 tonnes of lump and sinter fine products. The grade of ore 
mined in 2011 was higher than the average resource grade. 
 
The Silver Yards processing plant improved in throughput and recovery later in 
the year, reaching a rate in excess of 8,000 tonnes per day at various times in 
September and October. Initially the ramp up of the plant was slower than 
planned due to a larger percentage of fine material in the screens that reduced 
the throughput rate. Much of this ultra-fine material was being passed through 
secondary screens resulting in a lower than expected level of iron recovery. 
 
With the completion of the second phase expansion at the Silver Yards plant 
involving the installation of a hydrosizer, designed specifically for fine 
material, throughput and recovery rates improved considerably. 
 
Further plant modification and installation of additional equipment at Silver 
Yards as part of the Phase 3 expansion program have progressed as planned. A 
third parallel line consisting of a second hydrosizer and WHIMS magnetic 
separator will be added to recover the finer material and enhance recoveries. 
 
The Silver Yards plant was shut down for the season in early November as wet 
processing is not planned in winter conditions. The plant start-up for the 2012 
operating season is planned for May or earlier subject to weather conditions. 
 
Rail to Port 
 
Iron ore from the James Mine was transported by rail from the Silver Yards 
plant site, via the Tshiuetin Rail Transportation Inc. ("TSH") railway and the 
Quebec North Shore and Labrador ("QNS&L") railway, to the Port of Sept-Iles. To 
the end of December 2011, 599,467 wet tonnes had been railed to Sept-Iles. 
 
As previously reported, the buildup in rail shipments was slower than 
originally planned. A second train was added later in the year, which together 
with the introduction of more railcars significantly increased the tonnage 
transported to the Port of Sept-Iles from September to November. 
 
Iron Ore Sales 
 
LIM entered into an agreement with the Iron Ore Company of Canada ("IOC") for 
the sale and shipping of all of LIM's 2011 iron ore production. Under the 
confidential sales contract with IOC, the iron ore was delivered to Asian 
markets and resold by IOC's marketing organization on the spot market. 
 
In 2011 a total of approximately 411,987 wet tonnes (386,000 dry) was sold to 
IOC and shipped to China. In addition to these shipments, a further 
approximately 187,000 wet tonnes of iron ore is being held in inventory at the 
Port of Sept-Iles for shipping in 2012. 
 
The first shipment of LIM iron ore sailed from the Port of Sept-Iles for China 
in early October, carrying a total of 167,167 wet tonnes of direct railing ore 
at an average grade of 64.9% Fe. This shipment was sold into the spot market at 
a gross price of about US$176 per tonne CFR China. The second shipment of LIM's 
iron ore, carrying 172,743 wet tonnes of sinter fines at an average grade of 
64.9% Fe, departed Sept-Iles in early November. This shipment was priced in a 
much weaker spot market in the range of $121 per tonne CFR China. A third 
partial shipment of about 72,000 wet tonnes sailed in mid-December and was 
priced in the market range of US$137 per tonne CFR China. The sale price for 
LIM iron ore sold to IOC was based on the actual realized prices to Chinese 
customers, less an allocation for handling, loading, shipping and sales costs. 
 
All LIM's iron ore produced in 2011 was sold to IOC and delivered to Asian 
markets and re-sold by IOC's marketing organization on the spot market. The 
Company continues to review its options for marketing its iron ore production 
for 2012 and subsequent years and is evaluating the optimum route to achieve 
these sales, while still maintaining maximum flexibility and independence. 
Marketing discussions are continuing with potential customers, both in Europe 
and in Asia. The Company is also continuing discussions with a number of 
internationally recognized commodity traders with specialist knowledge of the 
iron and steel industry. The Company has not yet concluded any agreements for 
the sale of any iron ore beyond 2011, but expects to conclude shipping and sale 
arrangements prior to the start-up of operations in the spring. 
 
Exploration 
 
The 2011 exploration program was successfully completed in November. Three rigs 
were in operation drilling a total of about 12,000 metres on a number of 
deposits with Houston as the focus. Exploration support programs, including 650 
metres of trenching, 65 test pits and air-borne geophysics, were also 
completed. The Company anticipates releasing an updated NI 43-101 resource 
estimate for its Houston deposit in the first quarter of calendar 2012. 
 
Outlook for 2012 
 
Detailed planning for 2012 is now underway, utilizing the operating experience 
gained in 2011, and it is expected that the Company's plans for 2012 will be 
announced by the end of February. 
 
Subject to the final operating plan and budget approval, it is expected that 
mining will continue at the James North and James South deposits, with planned 
total ore mined of between 2.5 to 3.0 million tonnes in calendar 2012. This is 
expected to yield up to 2.0 million tonnes of saleable product, including the 
187,000 tonnes in stockpile at the Port which will be shipped in calendar 2012. 
 
The first part of the Phase 3 expansion at the Silver Yards processing plant is 
underway. To date the civil construction portion of Phase 3 has been completed 
on schedule, with steel erection and commissioning to be completed by June 
2012. 
 
Project Development 
 
In December 2011, LIM submitted a permit application for the Stage 2 Houston 
project to the Government of Newfoundland and Labrador. The goal, subject to 
environmental release, permitting and detailed engineering, is to prepare the 
Houston 1 and 2 deposits for production in 2013. 
 
As part of this exercise, the Company is conducting a detailed evaluation of 
the various scenarios for the development of the Houston deposits. This 
includes the mining of some direct railing ore, together with the assessment of 
processing alternatives, which may involve either trucking ore to the Silver 
Yards plant or the eventual construction of a separate dedicated processing 
plant. 
 
The terms "iron ore" and "ore" in this document are used in a descriptive sense 
and should not be construed as representing current economic viability. Dry 
metric tonnes are used in this release unless otherwise specified. 
 
About Labrador Iron Mines Holdings Limited (LIM) 
 
LIM is engaged in the production and development of its 100% owned 
Schefferville Area direct shipping iron ore (DSO) properties in the Labrador 
Trough of western Labrador and northeastern Quebec. The Company commenced 
production from the James Mine in June 2011 following the successful 
construction and commissioning of the mine and Silver Yards processing plant 
earlier in the year. 
 
LIM contemplates mining in stages. The first phase of Stage 1 comprises the 
James Mine and the Silver Yard processing plant which is connected by a rail 
spur to the main Schefferville to Sept-Iles railway. Through a phased expansion 
program, LIM plans to grow its iron ore production through the subsequent 
development of adjacent deposits. 
 
For further information, please view www.labradorironmines.ca. 
 
About Anglesey Mining plc 
 
Anglesey Mining with its LSE main board listing holds a 33% interest in 
Labrador Iron Mines (TSX:LIM) and owns 100% of Parys Mountain in North Wales 
where there is an historical resource in excess of 7 million tonnes at over 9% 
combined copper, lead and zinc. 
 
For further information: 
Bill Hooley, Chief Executive        01492 541981 
Ian Cuthbertson, Finance Director   01248 361333 
Ambrian Partners, 
Samantha Harrison/Klara Kaczmarek   020 7634 4700 
Tavistock Communications, 
Emily Fenton/Jos Simson             020 7920 3155 
 
 
END
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