Business
Re Joint Venture and Labrador Feasibility Study
Re Joint Venture and Labrador Feasibility Study.
About this update from Anglesey Mining Plc
[{"type":"text","content":"\n Anglesey Mining plc\n\n4 October 2006 LSE:AYM\n\nAnglesey Mining moves towards development of Labrador Iron Mines\n\n - Feasibility Study completed\n - Acquires direct interests in Labrador Properties\n\nAnglesey Mining Plc (\"Anglesey\") is pleased to announce that it has completed an\ninitial Feasibility Study on its iron ore properties in Labrador, Canada and has\nelected to continue with the development of the properties by committing to put\na mine into production at a rate, as projected by the Feasibility Study, of 2\nmillion tonnes a year by 2010, producing high quality direct shipping lump and\nsinter iron ore.\n\nDuring the last 12 months, Anglesey, through its wholly owned subsidiary,\nLabrador Iron Mines Limited (\"LIM\"), has conducted comprehensive investigations\nand analysis on the properties. These have included an exploration drilling\nprogramme, an environmental review and base line study, geological and mine\nmodelling, metallurgical test work, a rail transportation study and detailed\ncapital and operating cost estimates. The total expenditure through to the end\nof September 2006 has amounted to approximately £500,000.\n\nFeasibility Study completed\n\nThe Feasibility Study confirms that an economic operation is viable at the\nLabrador properties. The proposed project will involve the open pit mining from\none deposit initially at a rate of 5,000 tonnes per day, using a mining\ncontractor, over a period of 8 months per year, to be followed by a washing and\nscreening process, which will separate the mined material into lump and fine\nsinter ore, which will then be loaded on to rail cars for transportation to the\nport of Sept Iles for onward shipping, either to Europe or the Far East. First\nproduction is expected in 2008. The preliminary capital cost estimate is $US30\nmillion and projected operating costs are about $US22 per tonne. Currently 68%\nFe Lump Ore is priced at over $US60 per tonne FOB.\n\nRevised Agreement terms\n\nAnglesey also reports that the terms of the previously announced option\nagreement have been revised. Under the revised Agreements, Anglesey, through\nLIM, will hold an 80% interest (increased from 70% previously) in the Labrador\nJoint Venture which has been established to hold the properties and operate the\nproject. The interests previously held by Energold, a company controlled...