LIM first iron ore shipment and sale for 2012


 
TIDMAYM 
 
Anglesey Mining plc             LSE:AYM 
 
22 May 2012 
 
Labrador Iron Mines - 2012 first shipment and sale of iron ore 
 
Anglesey Mining's 26% owned associate Labrador Iron Mines Holdings Limited 
(TSX: LIM) provides an operations and status report for the first six weeks of 
the 2012 production season as follows: 
 
QUOTE 
 
After the successful re-start of full-scale mining operations at the James Mine 
on April 2, we are pleased to announce that LIM's first shipment and sale of 
iron ore has been recorded in 2012. 
 
Operational Highlights: 
 
  * The James Mine commenced its first full season of production on April 2 and 
    is on track to mine approximately 3.0 million tonnes of iron ore, with a 
    saleable production target of 2.0 million tonnes for 2012. 
 
  * The first shipment of iron ore containing approximately 170,000 wet tonnes 
    of direct rail ore (DRO) at a grade of 63.65% iron (Fe) departed the Port 
    of Sept-Îles on May 19. This is five months earlier than the first shipment 
    in 2011. Going forward, at least two shipments are anticipated each month 
    during the operating year, with the next shipment scheduled in early June. 
 
  * The Silver Yards Processing Facility re-started for the season on May 18 
    and the Phase 3 plant expansion, designed to increase production capacity 
    to approximately 2.0 million tonnes per year, is slated for completion in 
    the summer. 
 
  * By May 15, four train sets at 120 cars each (10,000 tonnes per train) were 
    in service, approximately one month ahead of the planned schedule. Four 
    train sets are expected to be in service for the balance of the 2012 
    season. 
 
  * Construction at the Houston Project commenced in May. Following the receipt 
    of initial permits, a contract has been awarded for tree clearing work to 
    be completed along the access road alignment. Development of the Houston 
    Project is proceeding according to plan, with an experienced team of 
    engineers and construction managers in place. 
 
  * As LIM enters an exciting phase of growth, operations and expansion, a 
    number of key appointments to strengthen the executive and mine management 
    teams have been made. 
 
"This has been an extremely positive start to 2012, as we have executed on key 
milestones that will ensure a successful operating season," stated Mr. John 
Kearney, Chairman and Chief Executive Officer. "With LIM's first shipment and 
sale of iron ore, we are off to a good start to meet our production target of 
two million tonnes this year." 
 
Mr. Rod Cooper, President and Chief Operating Officer, commented: "On the 
operations front, mining at James is progressing well and is now complemented 
with the start-up of the Silver Yards plant. As railway operations are critical 
to our success, we are very encouraged by the improvements evident in railway 
efficiency. We are also encouraged and excited with the development at Houston, 
as construction activities are now underway." 
 
"As we forge ahead with our 2012 season, the recent additions to both our 
executive and operational teams will ensure we have the organizational capacity 
to remain focused on delivering our goals and expanding our operations as we 
move forward with the growth and success of our company." 
 
Ramping up production at James 
 
The James Mine commenced its first full season of production on April 2, 2012 
and mining operations will continue until the end of November. Mining activity 
focused on waste removal from the pit in order to establish the required ore 
release for later in the quarter. At the end of April, the mine was operating 
at a rate of 17,000 tonnes per day (tpd) and will continue to ramp up to a 
planned mining rate of approximately 28,000 tpd. 
 
LIM's First Shipment and Sale of Iron Ore in 2012 
 
The first shipment carrying LIM iron ore departed the Port of Sept-Îles on May 
19, bound for China. This is significantly earlier than the 2011 season, when 
the first shipment was recorded in the month of October. The shipment contained 
170,000 wet tonnes of DRO at a grade of 63.65% Fe. This mixed-size cargo, with 
an estimated moisture content of 6.6%, was sold to the Iron Ore Company of 
Canada (IOC) based on a price of US$126.00 per dry metric tonne, CFR China 
(before ocean freight and IOC allocation). LIM expects the proceeds from the 
sale of this shipment to be received in mid-June. Moving forward, at least two 
shipments of iron ore are anticipated each month during the operating year, 
with the next shipment scheduled in early June. 
 
Iron ore sales are forecasted at 2.0 million tonnes in 2012, including lump 
iron ore, sinter fines and ultra fines products. Operating costs for products 
delivered to the Port of Sept-Îles are expected to be in the range of $60 to 
$65 per dry metric tonne, including mining, processing, general and 
administrative costs, railway costs and train unloading. 
 
Railway operations started with two train sets in April and successfully moved 
stockpiles at Silver Yards. Early movement of these stockpiles has allowed us 
to develop our "just-in-time" rail yard stockpile system, and will advance our 
sales by one month. A further stockpile of approximately 230,000 tonnes of DRO 
at a grade of about 63% Fe had been built up by May 19 and remains at the Port 
after the first shipment. 
 
Starting up the Silver Yards Processing Plant 
 
The Silver Yards processing plant re-started on May 17, 2012. Initial 
throughput is targeted at 8,000 tpd. The Phase 3 expansion program, which 
includes the installation of a second washing and screening plant and a new 
magnetic separator to enhance the recovery of fines material, continues to be 
on schedule and is expected to be completed in the summer. This expansion is 
expected to increase plant throughput to 12,000 tonnes per day, or an annual 
throughput of 2.0 million tonnes per year, and is also expected to improve 
weight recoveries to approximately 75% - 80%. 
 
Expanding Rail Capacity 
 
We have expanded our available railway capacity, from two operating trains in 
April to four operating trains by May 15, approximately one month ahead of the 
original schedule. The four trains will ensure the timely transportation of 
LIM's iron ore product to the Port of Sept-Îles and moves LIM closer to 
fulfilling its "a train a day" objective in 2012. During the month of April, 
LIM railed 108,000 wet tonnes of run-of-mine stockpile to the Port of 
Sept-Îles. 
 
Early Start at the Houston Project - Receipt of Initial Construction Permits 
 
The Houston Project will represent LIM's flagship operation in future years. 
The Houston Project consists of a series of adjacent open pit deposits with a 
NI 43-101 compliant resource containing approximately 22 million tonnes at a 
grade of 57.3% (see technical report dated March 25, 2011 filed on SEDAR). LIM 
received the environmental approval and project release for the Houston Project 
(Stage 1 and 2) from the Government of Newfoundland and Labrador in March 2012. 
 
We are now focused on fast-tracking the development of the Houston Project and 
with receipt of the initial permits, a contract has been awarded for the tree 
clearing work to be completed along the access road alignment. Subject to 
receipt of the remaining permits, commencement of full construction activities 
at Houston is planned for the summer of 2012. LIM expects initial production of 
Houston ore, including in-pit dry crushing and screening, will commence in the 
second half of 2013. 
 
Expanding Infrastructure 
 
LIM is committed to expanding its infrastructure to accommodate the rapid 
development at our operations. Currently, electric power at our Silver Yards 
plant and camp accommodation is being provided by diesel generators. Plans are 
currently underway to connect to the existing hydroelectric grid by the end of 
the third quarter of 2012, resulting in fuel savings for the remainder of the 
year and subsequent operating seasons. 
 
As a result of expanding activities at site, the camp accommodation is also 
undergoing a doubling of capacity, from 70 to 140 persons. Completion of the 
expansion is expected by the end of the summer. 
 
Exploration Program 
 
Following on the success of previous exploration programs, a 2012 budget of 
approximately CAD$8 million has been set to support LIM's aggressive drilling 
efforts. An exploration drill contractor has been selected to carry out this 
work in 2012. Drill programs at Houston as well as a number of other deposits 
will focus on generating further technical information required for more 
detailed mine planning. In addition to this drilling, a bulk sampling program 
of some historic stockpiles will be initiated with a view to providing 
supplemental plant feed. 
 
In a new initiative to the main focus on direct shipping (DSO) iron ore, LIM 
plans an initial core drill program on previously identified, lower grade 
taconite iron mineralization, which will be supported by geophysical programs. 
In addition, metallurgical test work aimed at evaluating historical manganese 
resources will be carried out with a view to ascertaining compatibility with 
the Silver Yards processing plant flow sheet. 
 
UNQUOTE 
 
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 north-eastern 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. 
 
LIM 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, and recorded its first sales of iron ore 
in the fall of 2011. 
 
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. 
 
Stage 2 comprises the development of the Houston deposits, which has now 
completed environmental assessment and is moving to the permitting, development 
and construction phase. 
 
About Anglesey Mining plc 
 
Anglesey holds 26% of Toronto-listed Labrador Iron Mines Holdings Limited (TSX: 
LIM) which is now producing iron ore from its James deposit, one of LIM's 
twenty direct shipping iron ore deposits in western Labrador and north-eastern 
Quebec. Development of other deposits is underway and production of the high 
grade hematite iron ore is targeted to grow from 2Mt in 2012 to 5Mt in 2015. 
 
Anglesey is also carrying out development and exploration work at its 100% 
owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where there is 
estimated to be a total 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 / Klara Kaczmarek, 
 
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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