Baffinland Iron Mines Corporation
TSX : BIM

Baffinland Iron Mines Corporation

February 26, 2007 17:22 ET

Baffinland Reports Further Analytical Confirmation of its World Class Iron Ore Deposits

TORONTO, ONTARIO--(Marketwire - Feb. 26, 2007) -

Attention Business Editors:

Baffinland Iron Mines Corporation (TSX:BIM) ("Baffinland" or the "Company") today released further assay results for nine holes from the Company's 2006 exploration programs on its wholly-owned Mary River iron ore deposits, Baffin Island, Nunavut Territory, Canada. In addition, the company reports that it has received most of the test results from Studien Gesellschaft fur Eisenerz-Aufbereitung (SGA) in Germany from the metallurgical testwork on the core from the 2005 drill program. "This assay and metallurgical data further confirms the world class nature of Baffinland's Mary River Project", stated Gordon McCreary, President and CEO of Baffinland.

Metallurgy

Metallurgical testwork on the 2005 drill core is almost complete with some 113 of the 132 lump ore tests on composited samples now complete. In 2004, 75 lump tests were completed on the 2004 drill core and with the 2005 testwork Baffinland has effectively mapped the depths of Deposit No. 1 metallurgically. Samples were composited to reflect a potential mine plan, but also ensuring a minimum composite sample size of approximately 100 kilograms. This minimum sample size is required to allow all physical testwork to be completed.

The metallurgical mapping of the deposits will be enhanced by the continued comprehensive metallurgical testwork on the 2006 and 2007 drill core. Baffinland also proposes to mine a 250,000 tonne bulk sample over the winter of 2007.

Metallurgical results to date confirm the superior quality and high lump potential in Deposit No 1. Samples exhibit excellent physical characteristics, high iron tenor and are expected to behave very well in the blast furnace.

Dr Volker Ritz of SGA states "the testwork of the Mary River iron ore confirms the expected excellent behaviour of the iron ore in the blast furnace and it is one of the best and most comprehensively tested lump products I have ever worked on". Testwork continues on the remainder of the 2005 drill core. In addition to the lump tests, sinter testwork, analysis of screened size fractions and analytical testwork of the -6.3mm material is in progress. All of this testwork is an important part of determining potential sale products (lump, sinter fines) and ensuring that Baffinland ships a consistent and predictable product to its customers, the steel companies of the world.

Deposit No. 1

Five holes drilled at Deposit No. 1 are reported today. Drill hole MR1-06-104 was drilled directly into the axis of the fold of Deposit No 1 and encountered an exceptional 176.3 metres grading 68.9% iron.

Drill hole MR1-06-80 was drilled on the north limb on section with MR1-05-74, 77 & 78 and cut a total of 127.4 metres grading an average 63.2% iron. Approximately 75 metres south-southwest from MR1-06-80, drill hole MR1-06-95 cut a 74.4 metre zone grading 62% iron. An additional 500 metres southwest from MR1-06-95, drill hole MR1-06-93 cut a zone an impressive 94 metre zone grading 67.4% iron. Holes MR1-06-95 and MR1-06-104 both ended in mineralisation before reaching the footwall contact.

On the south limb of the fold, hole MR1-06-89 drilled vertical as a geotechnical hole hit three zones totalling 58.6 metres of 66.3% iron.

All of the holes at Deposit No. 1 are intended to improve confidence levels of resource categories to allow a reserve estimate to be completed in conjunction with the Definitive Feasibility Study.

Deposit No. 2

Deposit No. 2 was drilled over a strike length of approximately 500 metres in 2006. Four holes intersected specular hematite dominant high grade mineralization. This brings the total number of holes drilled at Deposit No. 2 to seven and work in 2007 will examine the economics of the deposit at a scoping study level.

Drill hole MR2-06-85 intersected a 13 metre zone of high grade mineralization of mixed hematite-magnetite mineralization grading 61.5% Fe within what was previously thought to be banded iron formation dominated interval of a lower tenor (45-50% Fe). This expands exploration potential for further targets west and south of Deposit No 2. Further down the hole, a 44.4 metre interval of specular hematite graded 66.2% Fe. Further east, hole MR2-06-88 cut a 28.4 metre intercept grading 66.2% Fe.

Drill hole MR2-06-99 cut four intervals that totalled 44.3 metres with an average grade of 61.8% Fe and Hole MR2-06-92 cut a 95.6 metre zone grading 62.0% Fe. Deleterious elements (phosphorous and sulphur) in Deposit No 2 are exceptionally low.

Conclusions

Drilling of Deposit No. 1 will continue in 2007 to refine and increase confidence levels to allow the company to estimate a reserve and develop its mine plan. Drilling at Deposit No.2 is sufficient for a Scoping Study to be prepared in parallel with the Definitive Feasibility Study at Deposit No. 1. This Scoping Study is designed to investigate the implications of subsequent expansion of the Mary River operation based on incremental production from the satellite deposits using much of the infrastructure established for the development of Deposit No. 1.

SGS Lakefield Research Limited performs assay and analytical work under a strict protocol designed for testing lump iron ores. Samples are then sent from Lakefield to Studien Gesellschaft fur Eisenerz-Aufbereitung (SGA) in Germany, where they are composited for detailed metallurgical testing to ISO standards for iron ore. Cross-sections and plan maps are being updated and will be posted shortly on the Baffinland website www.baffinland.com to assist in the interpretation of the data. The Qualified Person for the Mary River Project is Michael Zurowski, P. Eng.

About Baffinland

Baffinland is a mining exploration and development company focused on exploring and developing the iron ore deposits located on the Mary River Iron Ore Project in Northern Baffin Island, Nunavut.



Summary of Drill Hole Assays

(True width is approximately 75-80% of core length)

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Drill Hole TD From To Interval SiO2 Al2O3 Fe % P % S %
(m) (m) (m) (m) % %
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MR1-06-80 204.0 29.0 115.6 86.6 3.9 2.7 63.4 0.061 0.04
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124.9 165.7 40.8 4.4 3.0 62.8 0.032 0.16
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MR2-06-85 248.0 49.3 65.3 16.0 13.0 0.5 61.5 0.071 0.11
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140.0 184.4 44.4 3.0 1.4 66.2 0.025 0.01
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187.7 190.5 2.8 4.5 2.4 63.5 0.063 0.01
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MR2-06-88 230.7 166.6 195.0 28.4 2.6 1.2 66.2 0.064 0.02
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MR1-06-89 139.0 43.0 69.8 26.8 4.8 0.5 65.5 0.054 less
than
0.01
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74.0 93.8 19.8 4.7 0.9 65.5 0.148 0.14
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121.5 133.5 12.0 2.1 0.5 69.3 0.039 0.36
-------------------------------------------------------------------------

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MR2-06-92 167.0 35.0 130.6 95.6 7.5 1.9 62.0 0.019 less
than
0.01
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MR1-06-93 156.0 18.2 22.2 4.0 4.3 3.5 61.2 0.003 0.07
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28.2 122.2 94.0 1.3 1.2 67.4 0.010 0.03
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MR1-06-95 183.0 108.0 182.4 74.4 4.7 3.4 62.0 0.025 0.87
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MR2-05-99 168.0 30.5 33.6 3.1 2.9 1.9 65.5 0.027 less
than
0.01
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49.8 61.8 12.0 7.5 0.3 64.6 0.004 less
than
0.01
-------------------------------------------------------------------------
89.4 113.3 23.9 14.8 0.6 59.1 0.019 less
than
0.01
-------------------------------------------------------------------------
119.2 124.5 5.3 2.8 1.9 65.3 0.048 less
than
0.01
-------------------------------------------------------------------------

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MR1-06-104 212.0 35.7 212.0 176.3 0.6 0.7 68.9 0.011 0.03
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This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities and Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Baffinland Iron Mines Corporation, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statement. Important factors that could cause actual results to differ material from Baffinland's expectations are disclosed under the heading "Risk Factors" and elsewhere in Baffinland's documents filed from time to time with the Toronto Stock Exchange and other regulatory authorities.

Contact Information

  • Baffinland Iron Mines Corporation Gordon A. McCreary President and CEO (416) 814-3163 Email: info@baffinland.com Website: www.baffinland.com
    or
    The Equicom Group Andreas Curkovic Investor Relations (416) 815-0700 x 262