Baffinland Iron Mines Corporation
TSX : BIM

Baffinland Iron Mines Corporation

November 08, 2007 15:17 ET

Baffinland Reports Further Assay Results

TORONTO, ONTARIO--(Marketwire - Nov. 8, 2007) - Baffinland Iron Mines Corporation ("Baffinland" or the "Company") (TSX:BIM) released today further assay results for fourteen holes from the Company's 2007 advanced exploration program on its wholly-owned Mary River iron ore deposits, Baffin Island, Nunavut Territory, Canada. "The consistent high grade iron mineralization as seen in these drill holes continues to confirm and improve the confidence of the mineral resource at Deposit No. 1. The drilling has also has confirmed the continuity of Deposits No. 3 and No. 3A to a minimum two kilometre strike length, underscoring the potential of this truly world class iron ore district", stated Gordon McCreary, President and CEO of Baffinland.

Deposit No. 1

Nine of the holes were drilled to both provide better geomechanical and assay information of the upper levels of Deposit No. 1 and to better define the distribution of deleterious elements. Four holes were drilled at flat angles (-6 to -18 degrees). Holes MR1-07-118, located near the axis of the fold, and intersected 146 metres of 68.8% iron with exceptionally low deleterious elements. Hole MR1-07-112 was one of two holes of a fan drilled at the same setup also near the fold axis. It intersected a total of 127 metres of 67.7% iron in a continuous zone of high grade mineralization. The second hole on the fan is MR1-07-126 which was drilled more steeply at a 50 degree angle intersected 96.7 metres of 67.5% iron, ending prematurely in mineralization at 117 metres depth.

Holes MR1-07-124 and MR1-07-132 were drilled some 600 metres northeast of the fold axis beneath the proposed bulk sample pits. MR1-07-124 cut 72.1 metres of 65.2% iron, while MR1-07-132 intersected 73.8 metres of 69.3% iron. Significantly, both holes have exceptionally low levels of deleterious elements; the sulphur assays are an order of magnitude lower than was estimated from the block model generated in the scoping study.

Hole MR1-07-111 was drilled sub-parallel to the strike of the south limb of Deposit No. 1, obliquely for geomechanical information and encountered 5 zones of mineralization that total 144.4 metres grading 65.1% iron. Hole MR1-07-115 was also drilled into the south limb at a slightly oblique angle also for geomechanical information but encountered two zones of mineralization that total 168.0 metres grading 64.5% iron. Two additional holes were drilled into the axis of the fold from a fan at an approximate 50 metre lower elevation than hole MR1-07-112 above. MR1-07-113 cut two zones that total 152.8 metres grading 66.1% iron, while hole MR1-07-119 encountered 165.4 metres of 66.0% iron also in two zones.

Deposit No. 3

Five broadly spaced drill holes were drilled at Deposit No. 3 and successfully established that high grade iron mineralization is continuous for over two kilometres of strike length. Hole MR3-07-114, located 450 metres east from hole MR3-06-108 drilled in 2006, encountered an 84.0 metre intercept of 64.9% iron. MR3-07-116 drilled an additional 450 metres east along strike cut 23.0 metres of 66.7% iron and was abandoned in high grade mineralization due to drilling difficulties. Hole MR3-07-120 drilled on section intersected a 65.0 metre zone that grades 66.1% iron.

Moving an additional 450 metres along strike, two holes were drilled on section. Hole MR3-07-122 encountered a 64.3 metre intersection of 65.2% iron while MR3-07-125 intersected two zones of mineralization that total 32.3 metres grading 64.1% iron with the hole stopping prematurely in mineralization. Mineralization at Deposit No. 3 is more complex than previously interpreted and appears to boudinage, bifurcate and in part, as evidenced in MR3-07-125, is disrupted by an intrusion. A magnetic survey is planned to better define drill targets in 2008.

Conclusions

Approximately half of the approximately 9,338 metres of diamond drilling completed in 2007 was for resource delineation purposes while the balance was for geomechanical and geotechnical purposes. Baffinland expects to release one additional batch of assay results from the 2007 program when the remaining results are available. The completed drill holes announced today at Deposit No. 1 improved the confidence levels of both the iron content and the low levels of deleterious elements thereby further confirming the world class nature of these lump iron ore deposits. Drilling of Deposit No. 1 will continue in 2008 to refine and increase confidence levels to allow the company to develop its mine plan in conjunction with the detailed engineering work. Drilling at Deposit No. 3 has proved continuity of mineralization over a minimum two kilometre strike length. Additional drilling is planned and metallurgical testwork is in progress.

SGS Lakefield Research Limited performs assay and analytical work under a strict protocol designed for testing lump iron ores. All mineralized drill core from the 2007 drilling, once complete, will be sent from Lakefield to Studien Gesellschaft fnr Eisenerz-Aufbereitung (SGA) in Germany, where they are composited for detailed metallurgical testing to ISO standards for iron ore. Current work is in progress on the 2006 drill core and surface material. This work includes additional lump tests, sinter testwork, quality control analyses and additional physical testwork to further define handling characteristics of the high quality Mary River iron ores. Cross-sections and plan maps are being updated and will posted on the Baffinland website www.baffinland.com to assist in the interpretation of the data.

Baffinland is a Canadian publicly-traded junior mining company that is focused on its wholly-owned Mary River iron ore deposits located on Baffin Island, Nunavut Territory, Canada. Baffinland's shares trade on the Toronto Stock Exchange under the trading symbol BIM.

This press release contains certain information that may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to management's future outlook and anticipated events or results, and may include statements or information regarding the future plans or prospects of the Company. Without limitation, statements about the Company's plans to complete a magnetic survey, including the scheduled timing thereof and other related statements, statements about the planned release of additional assay results and related statements, statements about the continuation of drilling on Deposit No. 1 and statements about the Company's planned additional drilling and metallurgical testwork programs, are forward-looking information.

Forward-looking information is based on certain factors and assumptions regarding, among other things, expected mineral resources, iron ore prices, the timing and amount of future exploration expenditures, the estimation of additional capital requirements, the availability of necessary financing and materials, the receipt of necessary regulatory approvals, the feasibility of constructing and operating a direct-shipping iron ore mine at the Company's Mary River project and assumptions with respect to environmental risks, title disputes or claims, weather conditions and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Without limitation, in stating that the Company plans to, complete a magnetic survey, to release additional assay results, continue drilling on Deposit No. 1, and to complete additional drilling and metallurgical testwork programs, the Company has assumed, among other things, that iron ore prices will not change materially from the prices used in its current financial forecasts and that it will obtain the financing and regulatory approval and other authorizations required to enable the exploration, development and mining activities required in order to complete such activities.

Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks inherent in the exploration for and development of mineral deposits, risks relating to changes in iron ore prices and changes in the worldwide demand for and supply of iron ore, uncertainties inherent in the estimation of mineral reserves and resources, risks relating to the remoteness of the Mary River Property including access and supply risks, reliance on key personnel, construction and operational risks inherent in the conduct of mining activities, regulatory risks, including risks relating to the acquisition of necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing required to fund all currently planned exploration and related activities may not be available on satisfactory terms, or at all, environmental risks and insurance risks.

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.



Summary of Drill Hole Assays

---------------------------------------------------------------------------
Drill Hole TD From To Interval SiO2 % Al2O3 % Fe % P % S %
(m) (m) (m) (m)
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR1-07-111 401 50.5 86.5 36.0 1.8 0.6 67.5 0.066 0.01
---------------------------------------------------------------------------
94.0 106.2 12.2 2.9 0.9 67.7 0.009 0.11
---------------------------------------------------------------------------
142.2 178.4 36.2 5.9 0.7 65.6 0.038 0.33
---------------------------------------------------------------------------
194.4 224.4 30.0 4.3 0.5 66.9 0.003 0.69
---------------------------------------------------------------------------
246.4 276.4 30.0 3.3 2.0 58.7 0.089 1.10
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR1-07-112 201 33.0 99.0 66.0 0.9 1.1 67.2 0.010 0.06
---------------------------------------------------------------------------
99.0 102.0 3.0 No core recovered
---------------------------------------------------------------------------
102.0 163.0 61.0 0.4 0.4 68.3 0.011 0.09
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR1-07-113 248 14.0 111.4 97.4 3.9 1.6 64.5 0.040 0.02
---------------------------------------------------------------------------
192.6 248.0 55.4 0.6 0.6 68.9 0.018 0.01
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR3-07-114 320 218.5 302.5 84.0 2.2 1.6 64.9 0.026 less than
0.01
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR1-07-115 292 31.0 85.0 54.0 4.5 1.4 64.7 0.040 0.03
---------------------------------------------------------------------------
122.5 236.5 114.0 1.9 1.3 64.4 0.027 1.19
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR3-07-116 158 135.0 158.0 23.0 1.2 0.7 66.7 0.037 0.01
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR1-07-118 189 36.1 182.1 146.0 0.4 0.5 68.8 0.012 0.01
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR1-07-119 243 25.5 153.4 127.9 3.3 0.9 66.0 0.031 less than
0.01
---------------------------------------------------------------------------
205.5 243.0 37.5 0.6 0.9 65.8 0.016 less than
0.01
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR3-07-120 268 80.0 145.0 65.0 1.9 1.1 66.1 0.025 less than
0.01
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR3-07-122 272 66.2 130.5 64.3 2.7 1.7 65.2 0.093 0.02
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR1-07-124 90 17.9 90.0 72.1 2.5 2.1 65.2 0.010 0.01
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR3-07-125 216 177.0 188.7 11.7 6.2 4.7 59.6 0.100 0.08
---------------------------------------------------------------------------
195.4 216.0 20.6 1.8 0.8 66.7 0.077 0.01
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR1-07-126 117 20.3 117.0 96.7 0.9 1.0 67.5 0.013 0.02
---------------------------------------------------------------------------

---------------------------------------------------------------------------
MR1-07-132 83 9.2 83.0 73.8 0.5 0.5 69.3 0.010 less than
0.01
---------------------------------------------------------------------------

---------------------------------------------------------------------------


Contact Information

  • Baffinland Iron Mines Corporation
    Gordon A. McCreary
    President and Chief Executive Officer
    (416) 814-3163
    or
    Baffinland Iron Mines Corporation
    Michael T. Zurowski
    Executive Vice President
    (416) 814-3161
    Email: info@baffinland.com
    Website: www.baffinland.com