New Millennium Iron Corp. Provides Update on TSMC's Direct Shipping Ore Project
CALGARY, ALBERTA -- (Marketwired) -- 01/20/14 -- New Millennium
Iron Corp. ("NML" or the "Corporation") (TSX: NML)(OTCQX: NWLNF)
today provided an update on 2013 operating and construction
activities as well as 2014 plans for the Direct Shipping Ore Project
("DSO" and "Project") owned by Tata Steel Minerals Canada Limited
("TSMC"), in which NML has a 20% interest.
TSMC continued with trial production in 2013. Rail haulage of the ore
from Schefferville to IOC's shipping terminal at the Port of
Sept-Iles began in July and continued until mid-November. The
Project's first ship with 77,000 tonnes for Tata Steel Europe
departed Sept-Iles on September 14 (see NR 13-24 dated September 17,
2013), marking the commencement of commercial sales. A second ship
with 166,000 tonnes of cargo departed Sept-Iles on November 10 bound
for China. Rail haulage is expected to resume in May 2014.
Construction progress to date is as follows:
-- Installation of the sizing station for the processing plant is complete.
-- Fabric covering of the dome that houses the plant itself is
-- Casting of larger foundations and slabs as well as erection of the
structural steel inside the dome have been substantially completed,
allowing for the start of installation of mechanical equipment.
-- Installation of process mechanical equipment has commenced.
-- The Timmins yard rail loop and track are complete.
-- Rail sections in Newfoundland and Labrador to Silver Yards are nearly
-- The construction of the Quebec portion of the track (KeRail) is
suspended until April 2014. All track materials and crushed ballast are
at the site.
TSMC's objective was to complete the installation of outside ancillary
facilities, such as the sizing station and focus work on the process
plant in the protected environment of the covered dome. However, for
cost and productivity reasons TSMC is readjusting the construction
plan during the winter period and activity is expected to accelerate
around March when the weather begins to improve.
Robert Patzelt, President and CEO of NML, said, "We are pleased that
TSMC has joined the ranks of iron ore suppliers with trial shipments
and gained experience with its production and logistics chain. NML's
shareholders can expect a more successful year in 2014 as TSMC ramps
up the dry crushing and screening operation beginning in May.
Completion of the rail link to Silver Yards should improve
mine-to-port train cycles and facilitate the scheduling of saleable
product shipments, as the process plant construction continues and
commissioning takes place by year-end. This state-of-the-art
processing complex, with high iron recoveries, operating year round
with product drying facilities is expected to be an efficient
operation producing high quality iron ore fines. NML can expect to
receive dividends once TSMC meets its financial obligations."
Plan for 2014
-- TSMC is planning to continue trial production by crushing and screening
products in 2014, and to install a dryer to reduce product moisture as
required to meet shipping regulations.
-- Link to TSH Railway, including the KeRail portion, is expected to be
operational by June 2014.
-- Construction of the processing plant and the product load out, storage
and train loading system will be a focus in summer and fall of 2014.
-- The processing plant is scheduled to be completed in Q4 2014 with
commissioning by year-end.
-- TSMC is currently reviewing the cost of completion for the project. The
development plan of the Howse joint venture is also being evaluated.
-- TSMC plans to export its ore through the new multi-user dock in Sept-
Iles in the long term. In the interim, TSMC has contracted with Iron Ore
Company of Canada for train-unloading, product storage, ship loading and
marketing through its established network.
About New Millennium
The Corporation controls the emerging Millennium Iron Range, located
in the Province of Newfoundland and Labrador and in the Province of
Quebec, which holds one of the world's largest undeveloped magnetic
iron ore deposits. In the same area, the Corporation and Tata Steel
Limited ("Tata Steel"), one of the largest steel producers in the
world, have advanced a Direct Shipping Ore ("DSO") Project to the
production stage, from which commercial sales will soon begin. Tata
Steel owns approximately 26.3% of New Millennium and is the
Corporation's largest shareholder and strategic partner.
Tata Steel 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). The DSO Project is
owned and operated by Tata Steel Minerals Canada Limited ("TSMC"),
which in turn is 80% owned by Tata Steel and 20% owned by NML. The
DSO Project contains 64.1 million tonnes of Proven and Probable
Mineral Reserves at an average grade of 58.8% Fe, 21.0 million tonnes
of Measured and Indicated Mineral Resources at an average grade of
59.2% Fe, 10.3 million tonnes of Inferred Resources at an average
grade of 58.3% Fe and about 25.0 - 30.0 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, news
release 10-12 dated July 8, 2010 and news release 12-14, dated May
31, 2012). A qualified person has not done sufficient work to
classify the historical estimate as current mineral resources or
mineral reserves, the Corporation is not treating the historical
estimate as current mineral resources or mineral reserves and the
historical estimate should not be relied upon.
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);
KeMag 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). Tata Steel also exercised
its exclusive right to negotiate and settle a proposed transaction in
respect of the LabMag Project and the KeMag Project (see news release
11-09 dated March 6, 2011).
The Millennium Iron Range now hosts other taconite deposits.
The first is the Lac Ritchie property located at the north end of the
Range. The initial 2011 drilling of 40 holes in this property
revealed Indicated Resources of 3.330 billion tonnes at an average
grade of 30.3% Fe, and Inferred Resources of 1.437 billion tonnes at
an average grade of 30.9% Fe (see news release NR 12-11, dated April
Two other taconite deposits are located south of the LabMag deposit
in the Millennium Iron Range. The initial 2012 drilling of 23 holes
in the Sheps Lake property and of 50 holes in the Perault Lake
property revealed Indicated Resources of 3.580 billion tonnes at an
average grade of 31.22%, and Inferred Resources of 795 million tonnes
at an average grade of 30.56% (see news release NR 13-04, dated
February 11, 2013).
The Howells Lake - Howells River North deposit is located between the
LabMag and KeMag deposits, and evidences mineral continuity in the
Range. The 2011 and 2012 drilling of 11 holes in the Howells River
North property and of 45 holes in the Howells Lake property, revealed
Indicated Resources of 7.631 billion tonnes at an average grade of
30.39% Fe, and Inferred Resources of 3.310 billion tonnes at an
average grade of 29.83% Fe (see news release NR 13-15, dated May 23,
The Corporation's mission is to add shareholder value through the
responsible and expeditious development of the Millennium Iron Range
and other mineral projects to create a new large source of raw
materials for the world's iron and steel industries.
For further information, please visit www.NMLiron.com,
www.tatasteel.com, www.tatasteelcanada.com, and
Dean Journeaux, Eng., and Thiagarajan Balakrishnan, P. Geo., are the
Qualified Persons as defined in National Instrument 43-101 who have
reviewed and verified the scientific and technical mining disclosure
contained in this news release.
This document may contain "forward-looking statements" within the
meaning of Canadian securities legislation and the United States
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made as of the date of this document
and the Corporation does not intend, and does not assume any
obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future
performance and reflect management of the Corporation's expectations
or beliefs regarding future events and include, but are not limited
to, statements with respect to the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing
and amount of estimated future production, costs of production,
capital expenditures, success of mining operations, environmental
risks, unanticipated reclamation expenses, title disputes or claims
and limitations on insurance coverage. In certain cases,
forward-looking statements can be identified by the use of words such
as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and
phrases or statements that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative of these terms or comparable terminology.
By their very nature forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Corporation to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements.
Such factors include, among others, risks related to actual results
of current exploration activities; changes in project parameters as
plans continue to be refined; future prices of resources; possible
variations in ore reserves, grade or recovery rates; accidents,
labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion of
development or construction activities; as well as those factors
detailed from time to time in the Corporation's interim and annual
financial statements and management's discussion and analysis of
those statements, all of which are filed and available for review on
SEDAR at www.sedar.com.
Although the Corporation has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there
may be other factors that cause actions, events or results not to be
as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward looking statements.
New Millennium Iron Corp.
President & Chief Executive Officer
(514) 935-3204 ext. 370
New Millennium Iron Corp.
Vice-President, Investor Relations
and Corporate Affairs
(514) 935-3204 ext. 349
New Millennium Iron Corp.
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