New Millennium Capital Corp.
TSX VENTURE : NML

New Millennium Capital Corp.

December 09, 2009 09:00 ET

New Millennium Capital Corp. Reports Increase of 20% in DSO Project Resource Estimate Also Provides Updates on Successful Completion of Pilot Plant Tests and Results of 2009 Drilling Campaign

CALGARY, ALBERTA--(Marketwire - Dec. 9, 2009) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

New Millennium Capital Corp. ("NML" or "the Corporation") (TSX VENTURE:NML) announced today the results of the Mineral Resource estimate from the 2009 drilling program at its 100% owned DSO Project ("Project") located near Schefferville, Quebec. The estimate of Mineral Resources was established by SGS Geostat Ltd ("Geostat") of Montreal, Quebec. The study was reviewed by others with expertise critical to some aspects of the Project.

The primary objective of the sonic drilling program was to convert additional historical resources to NI 43-101 compliant Mineral Resources. NML had earlier reported the results of its 2008 drilling (News Release 09-03, dated February 10, 2009). NML owns 22 DSO deposits located in different areas as shown in the attached map (Figure 1 & 2). In addition, NML has recently acquired additional resources, which have the potential of increasing NML's share of the historical resource base (not 43-101 compliant) by approximately another 10 million tonnes. NML does not own 100% of some of these deposits.

The Mineral Resources reported below are 100% owned by New Millennium. NML's current development model for the project involves commencement of development in Areas 2 and 3 and then a start of operations in Area 4. The 2009 drilling program was designed to convert sufficient historical resources in Area 4 to NI 43-101 compliant resources and reserves in order to expand its ore blending plan for the Feasibility Study.

Summary of Mineral Resource Estimate:

A summary of the Mineral Resource estimate, based on current drill results, are reported in Table 1. This demonstrates approximately 67.1 million tonnes of Measured and Indicated Mineral Resources at an average grade of 58.9% Fe on a dry basis plus an additional 7.15 million tonnes of Inferred Mineral Resources at 55.9% Fe.



Table 1
Summary of Resource Estimate based on 2008 and 2009 drilling
(Using cut-off grades of Fe+Mn greater than or equal to 50%, SiO2 less than
18% and Mn less than 3.5%)

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Resource Tonnes(millions) Tonnes(millions) % Fe % %
Classification 2008 Drilling 2008-9 Drilling SiO2 Mn
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Measured 22.4 22.4 59.8 6.0 0.13
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Indicated 33.6 44.7 58.4 9.3 0.5
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Total M+I 56.0 67.1 58.9 8.2 0.8
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Inferred 5.8 7.15 55.9 10.1 0.8
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Mr. Robert Martin, President & CEO of New Millennium stated, "We had a very productive drilling season, resulting in a welcome 20% increase in resources. With our newly acquired properties, we estimate that we will have between 30-40 million tonnes of additional historical resources (non NI 43-101 compliant). The excellent results obtained from pilot plant testing of the bulk sample at SGA in West Germany has further enhanced the attractiveness of our DSO project as a potential captive supplier of quality raw materials to Tata Steel's wholly owned UK and European subsidiary. I feel confident that with the current progress, we are well on our way towards reaching our production goal in Q2, 2011."

2009 Drilling Program:

The objective of the 2009 DSO drill program in Area 4 was to upgrade and expand the resource base. The drilling program started on July 25 and concluded on September 22, 2009. During this period 75 holes were drilled for a total length of 2,466.3 meters. A total of 742 samples were collected for analysis. Table 2 provides the details of drilling for the deposits in Area 4.



Table 2
Summary of DSO Drilling, 2009

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Area Deposit No. of Holes Total Meters Total Samples
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4 Kivivic 4 44 1555 460
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Sunny 1 31 914 282
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Total 75 2467 742
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Drilling plan and typical sections from Kivivic 4 and Sunny 1 are shown in Figures 3, 4 and 5 attached.

Mineral Resource Estimates by Deposit:

The Corporation engaged SGS Geostat ("Geostat") to model the iron ore deposits using the results from the 2008 and 2009 drill holes. The details of the resource estimates for the two deposits are provided in Table 3.



Table 3
Mineral Resource Estimate by Deposit
(Using cut-off grades of Fe+Mn greater than or equal to 50%, Mn less than
3.5% and SiO2 less than 18%)

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Deposit Tonnage % Fe % Mn % SiO2 Classification
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Kivivic 4 Measured
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7,540,000 58.26 0.25 10.84 Indicated
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599,000 59.11 0.12 12.73 Inferred
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7,540,000 58.26 0.25 10.84 Meas. + Ind.
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Sunny 1 Measured
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3,555,000 58.96 0.04 10.42 Indicated
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751,000 54.88 0.09 15.15 Inferred
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3,555,000 58.96 0.04 10.42 Meas. + Ind.
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Resource Estimation Methodology:

The methodology used to estimate the mineral resources of the DSO deposits is 3D block modeling with Inverse Square Distance interpolation. This estimation was limited to a mineralized envelope interpreted on vertical cross-sections and later meshed into solid shapes. Different lithologies were modeled and estimated separately. Two sources of drill holes were used to estimate the mineral resources: historical drilling from the previous owners available in the public domain and drill holes from the NML 2008 and 2009 drilling campaigns. Drill holes intersecting the mineralized envelopes were composited into 3-meter composites. Each composite was assigned a lithological unit based on the interpreted geology and corresponding 3D solid.

The classified mineral resources are the accumulation of the individual blocks inside the mineralized rock types and inside each classification zone. Only the blocks having a Fe grade above 50%, a Mn grade below 3.5% and a SiO2 grade below 18% are considered as mineralized.



Upgrading of Resources to Reserves

Table 4
Iron Ore Mineral Reserves: 2008 and 2009 Drilling

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Reserve Tonnage (Millions) Tonnage (Millions) % Fe % SiO2 % Mn
Classification 2008 Drilling 2008-2009 Drilling
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Proven 20.7 20.7 58.9 5.9 0.13
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Probable 31.8 42.8 58.3 9.2 0.67
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Total P+P 52.5 63.5 58.8 8.1 0.49
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The Mineral Reserves were established using the following parameters:

- In pit mining recovery of 100%.

- Cut-off grades as indicated above.

- Overall pit slope angle of 50 degrees in the hanging wall.

- Dilution accounted for in the bench compositing.

In addition to the 63.5 mt of proven and probable reserves, there are remaining Measured (1.7 mt) and Indicated (2.9 mt) Mineral resources, and Inferred Mineral Resources estimated at 7.15 million tonnes.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated mineral resource categories through further drilling, or into mineral reserves once economic considerations are applied.

Pilot Plant testing of bulk samples:

The purpose of the 2009 pilot plant testing program was to optimize the flowsheet selected during the pre-feasibility study and produce sufficient quantities of products for metallurgical evaluation by Tata Steel. Two composite samples were tested. The Area 3 composite was prepared using the materials collected in 2008. New samples were collected during the summer of 2009 to prepare the Area 4 composite. The composites represent average grades expected after blending as feed in the processing plant.

After washing, crushing and screening, samples were sent to Germany for pilot scale tests. The materials between 1.0 and 6.0 mm were processed in a jig at MBE Coal & Mineral Technologies. Jig products along with -1.00 materials were sent to Studien Gesellschaft (SGA) for piloting of different flowsheets and to produce sufficient quantities of product samples. The tests have demonstrated that high quality products, that could meet Tata Steel's requirements, can be produced with high recoveries. Metallurgical evaluations of the product samples will be performed by Tata Steel. Typical assays of the pilot plant products are as follows:



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Sinter fines Super fines
% %
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Fe 64.4 - 65.7 64.4 - 65.7
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SiO2 3.0 - 3.7 3.0 - 3.8
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Al2O3 0.4 - 1.0 0.5 - 0.9
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Mn 0.04 - 0.3 0.05 - 0.2
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Dean Journeaux, eng., Jean-Charles Bourassa, eng., and Rock Gagnon, eng. are the Qualified Persons as defined in NI 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release on behalf of NML.

About New Millennium

New Millennium controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation is also advancing to near term production its DSO (Direct Shipping Ore) Project. Tata Steel, the world's eighth largest steel corporation, owns 19.9% of New Millennium and is the Corporation's largest shareholder and strategic partner. Tata has an exclusive option to participate in the DSO Project, a commitment to take the resulting production, and an exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KeMag Project (see news release 08-17, October 1, 2008 and news release 09-11, June 30, 2009). 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, July 5, 2006 and 07-11, 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, January 15, 2009).

The Corporation's DSO project contains 63.5 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8% Fe, 3.6 million tonnes of measured and indicated Mineral Resources at an average grade of 58.9% Fe, 7.15 million tonnes of Inferred Resources at an average grade of 55.9% Fe and about 30.0 - 40.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03, February 11, 2009, news release 09-05, March 4, 2009 and news release 09-16, December 9, 2009). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources and the historical estimate should not be relied upon.

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.nmlresources.com, www.tatasteel.com and www.corusgroup.com.

Forward-Looking Statements

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.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/1209nml_figure1.pdf

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/1209nml_figure2.pdf

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To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/1209nml_figure4.pdf

To view Figure 5, please visit the following link: http://media3.marketwire.com/docs/1209nml_figure5.pdf

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