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Anglesey Mining - LIMs Mine construction nearing completion
21 December 2010 Anglesey Mining plc LSE:AYM
LIMs Mine Construction Nearing Completion
Plans for 2011 in preparation
Anglesey Minings 41% owned associate Labrador Iron Mines Holdings Limited
(TSX: LIM) is pleased to provide an update year-end report on progress at
its wholly-owned direct shipping (DSO) iron ore Project in western Labrador,
near the town of Schefferville.
Development activities at the mine have progressed substantially since early
September and construction is nearing completion.
Site operations have now
been largely suspended for the Christmas holiday period and will resume in
early January 2011.
James Mine ---Site Development
Considerable progress has been made at the James mine site.
Most of the
James North pit area has been stripped of overburden and cleared.
The
various ore and waste rock stockpile areas have been prepared, as have the
temporary and permanent ore storage pads.
The James mine settling ponds have
been constructed to enable pit dewatering.
The ore haul road from the James
Mine to the Silver Yards processing site has now been finished.
The mining contractor will return to site in mid January to continue with
mine development.
During the first quarter of 2011, the first mining bench
will be developed in the north end of the James pit to prepare a mining face
in the higher grade blue ore, which will be the first ore to be processed.
Ore mined from this development, together with the stockpiles of ore from
previous bulk sampling programs, will be delivered to the plant ahead of the
primary crusher ready for processing.
Site clearing and grubbing at the
James South pit will also be completed during the winter months.
Two
additional dewatering wells will be drilled, to supplement the wells drilled
in 2009, with pump and piping installation and dewatering of the James pit
to commence in the spring.
Mining production operations, using a contractor, are planned to commence in
April 2011 and will continue for eight months until November, at an
anticipated mining rate starting at 6,000 tonnes of ore per day, increasing
to 10,000 tonnes of ore per day, using conventional open-pit mining methods
and eventually employing standard drilling and blasting operations.
Plant construction substantially completed
The entire beneficiation and processing plant is now all constructed and
erected in place, including the primary and secondary crushers, screens,
scrubbers, stackers and conveyers.
Other buildings include maintenance and
warehouse facilities and site offices.
All the civil and concrete work has
been finished and the plant piping is substantially complete.
The mega-dome
roof structure has been delivered to site and erection has been postponed
until January to enable the easier installation of some large pieces of
equipment.
Installation of the electrical cabling will be completed during
the first quarter of 2011.
LIMâs beneficiation plant has a design capacity to process 10,000 tonnes of
ore per day, with a planned initial processing rate of 6,000 tonnes per day,
increasing to 10,000 tonnes per day once commissioning is confirmed.
The
planned annual seasonal processing schedule will cover a period of seven to
eight months, approximately 212 to 240 days per year, from April to
November, depending on weather conditions.
Transportation and Marketing
Negotiations with the various rail transport companies and port operators
have continued but commercial and tariff agreements have not yet been
signed.
This will be a priority activity in early 2011.
Marketing discussions have continued with potential customers, both in
Europe and in Asia, and have indicated an encouraging level of interest in
LIMâs iron ore.
Chinese consumers are showing a growing interest in seeking
iron ore from Canada, driven by continued strong demand and a desire to
diversify from their traditional sources of supply.
LIM is continuously reviewing a number of options for marketing its planned
iron ore production and is evaluating the optimum route to achieve these
sales, while still maintaining maximum flexibility and independence.
LIM
expects to finalize its marketing arrangements early in 2011 to permit sales
of the initial ore production to be completed in a timely fashion.
 Positive Relations with First Nations
On December 17, 2010, LIM signed an Agreement in Principle with the Innu of
Uashat and Mani-Utenam which stipulates the principal terms to be included
in a Final Agreement regarding the impacts and benefits of LIMâs mining
projects to be concluded prior to March 1, 2011.
In September 2010 LIM entered into an Impact Benefits Agreement with the
Naskapi Nation of Kawawachikamach with respect to the development and
operation of that part of the Schefferville Project in Labrador.
LIM has previously in 2008 entered into an Impact and Benefit Agreement with
the Innu Nation of Labrador.
In early September 2010 an agreement was reached with the Innu
Matimekush-Lac John to remove the barriers that had been erected in June
2010 and which had restricted normal access from the town of Schefferville
to LIMâs properties in Western Labrador.
LIM is continuing its negotiations
with the Innu Matimekush-Lac John towards signing an Impact and Benefits
Agreement, and hopes to be able to conclude this IBA early in 2011.
Outlook for 2011
LIM believes that it is on track to commence mining and processing
activities in April 2011.
Subject to detailed mine planning, LIM currently
expects to mine in excess of 2 million tonnes of ore in 2011 which, assuming
satisfactory plant commissioning and smooth start-up, and based on projected
recoveries of between 70% and 80%, is expected to yield shipments of between
1.5 to 2 million tonnes of iron ore, prior to the seasonal shutdown of
operations at the end of November 2011.
About Labrador Iron Mines Holdings Limited (LIM)
LIMâs Schefferville Area project involves the development of twenty direct
shipping iron ore deposits in western Labrador and north-eastern Quebec near
Schefferville, Quebec.
LIMâs 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 mining in four stages, the first phase of
Stage 1 comprising the James and Redmond deposits, which are located in
close proximity to existing infrastructure, and for which all operating
permits have been issued and construction is being completed.
About Anglesey Mining plc
Anglesey Mining with its LSE main board listing is primarily focused on its
41% interest in 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.
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For further information, please view LIMs website at
www.labradorironmines.ca or contact:
Bill Hooley, Chief Executive +44 (0) 1492 541981
Ian Cuthbertson, Finance Director +44 (0) 1248 361333
Emily Fenton / Charlie Geller,
  Conduit PR +44 (0) 207 429 6608 / +44 (0) 7788 554035
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