New Millennium Iron Corp. ("NML" or the "Corporation") announced today
that it has extended the current contract with George Downing Estate
Drilling Ltd of Grenville-sur-la-Rouge (the "Contractor") to add a third
drill and include drilling of the taconite exploration targets at Lac
Ritchie and Perault Lake (see news release NR 11-18). The drill is in the
process of mobilization. The collection of the KMag Bulk sample is
progressing well and the Contractor is expected to move its equipment from
the KMag deposit to Lac Ritchie before the end of July. NML estimates
undertaking about 5,000 meters of drilling in those two targets.
Based on the results of the Airborne Magnetic survey undertaken in
2010, NML selected two of the several promising targets for further
exploration (refer to the attached Figure 1). Following the evaluation of
drill results, NML intends to undertake a scoping study with the objective
of providing an estimate of NI43-101 compliant resources.
Dean Journeaux, NML's President and CEO, said: "Now that our first two
projects are firmly on development and production paths we feel that it is
opportune to further explore and demonstrate the potential of our vast
landholdings. Although our Taconite Project holds the largest undeveloped
iron ore deposits of its type in Canada, it comprises only about ten
percent of the Millennium Iron Range (MIR) taconite belt (Figure 1). Based
on our Geophysicist Consultant's analysis the Millennium Iron Range has the
potential to hold resources to rival the KMag and LabMag deposits. Our
goal is to be in a position by mid-2012 to consider development of another
project to take advantage of the robust iron ore market and especially the
continuing booming demand from Asia."
This iron formation is flat lying (dipping 10 to 15 towards the
northeast (NE) and is very similar to the KMag deposit in its geological
setting. The aeromagnetic anomaly is comparable to the KMag deposit
anomaly. The KMag deposit and its associated magnetic anomaly extend over
an area of 13.5 km and contain 2.1 billion tonnes of Proven and Probable
reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured
and Indicated resources at an average grade of 31.3 % Fe and 1.0 billion
tonnes of Inferred resources at an average grade of 31.2% Fe (see news
release 09-01 dated January 16, 2009). The Lac Ritchie area is about 11.5
km long and 2.3 km wide with an area of 26.45 km, almost twice the size of
KMag.
The drilling will be conducted in two phases. The first phase of
drilling will be along the strike of the iron formation with widely spaced
holes to obtain the stratigraphic, mineralogical and grade information. The
second phase of the program is in-fill drilling. The drilling will be
between sections drilled during the first phase and will cover the width of
the taconite formation. An estimated total of 2,500 m will be drilled to
evaluate the anomaly area with the objective of providing an estimate of NI
43-101 compliant resources
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Tata Steel has exercised its exclusive option to participate in the
DSO Project and has a commitment to take the resulting production (see news
release 10-16 dated September 14, 2010). Tata Steel also has exercised its
exclusive right to negotiate and settle a proposed transaction in respect
of the LabMag Project and the KMag Project (see news release 11-09 dated
March 6, 2011).
The Millennium Iron Range currently hosts two advanced projects:
LabMag contains 3.5 billion tonnes of Proven and Probable reserves at a
grade of 29.6% Fe plus 1.0 billion tonnes of Measured and Indicated
resources at an average grade of 29.5% Fe and 1.2 billion tonnes of
Inferred resources at an average grade of 29.3% Fe (see news release 06-13
dated July 5 2006 and news release 07-11 dated July 17, 2007); KMag
contains 2.1 billion tonnes of Proven and Probable reserves at an average
grade of 31.3% Fe, 0.3 billion tonnes of Measured and Indicated resources
at an average grade of 31.3 % Fe and 1.0 billion tonnes of Inferred
resources at an average grade of 31.2% Fe (see news release 09-01 dated
January 16, 2009).
NML's DSO project contains 64.1 million tonnes of Proven and Probable
Mineral Reserves at an average grade of 58.8% Fe, 8.1 million tonnes of
Measured and Indicated Mineral Resources at an average grade of 58.8% Fe,
7.2 million tonnes of Inferred Resources at an average grade of 56.8% Fe
and about 40.0 - 45.0 million tonnes of historical resources that are not
currently in compliance with NI 43-101 (see news release 09-03 dated
February 11, 2009, news release 09-05 dated March 4, 2009, news release
09-16 dated December 9, 2009 and news release 10-12 dated July 8, 2010). A
qualified person has not done sufficient work to classify the historical
estimate as current mineral resources and the historical estimate should
not be relied upon. |
