Baffinland Iron Mines Corporation

Baffinland Iron Mines Corporation

May 07, 2007 08:53 ET

Baffinland Announces Receipt of a Positive NIRB Screen Decision Regarding Its Proposed Bulk Sample Program

TORONTO, ONTARIO--(Marketwire - May 7, 2007) - Baffinland Iron Mines Corporation ("Baffinland" or the "Company")(TSX:BIM) today announces that the Nunavut Impact Review Board ("NIRB") has completed its screening of the Company's proposal to undertake a Bulk Sample Program ("Program"). NIRB has approved the Program to be processed without further review on a determination of no potential for significant ecosystem or socio-economic effects. The approval to proceed contains several conditions that the Company has interpreted as reasonable.

"The extraction and shipment of the proposed 250,000 tonnes of iron ore to be consumed by steel mills primarily in Europe, is a key step in Baffinland's strategy towards the development of a mining operation at our 100%-owned Mary River property, located in Nunavut Territory, Canada," states Gordon McCreary, President and CEO of Baffinland. "NIRB approval to proceed with the licensing of this Program is a major milestone". With NIRB approval for the Program received, Baffinland will continue to work with regulators towards the issuance of the various permits and licenses required.

Under this Program, Baffinland intends to ship the bulk sample to steel mills in the summer of 2008. This will involve the shipment of required equipment and supplies to Mary River in the summer of 2007. It is expected that iron ore will be mined from two small open pits developed at Deposit No. 1. The mined material will be blended to provide lump and fines that are expected to be representative of the proposed sale products from the first ten to fifteen years of commercial production from Deposit No. 1. The iron ore will be transported over an approximate 100 kilometre upgraded road to Milne Inlet from where it will be loaded and shipped to market over five voyages. The Program provides the opportunity to further validate the high quality geologic and metallurgical characteristics of the direct-shipping Mary River iron ore through its use at several operating steel mills.

Certain information included in this press release may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "believe", "plan", "scheduled", "intend", "estimate", "forecast", "predict", "potential", "continue", "anticipate" or other similar expressions concerning matters that are not historical facts. Without limitation, statements about the Company's planned bulk sample program and related statements are forward-looking information.

Forward-looking information is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources, the realization of mineral resource estimates, iron ore prices, the timing and amount of future exploration expenditures, the availability of necessary financing and materials, the receipt of necessary regulatory approvals and licenses, and assumptions with respect to environmental risks, 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 bulk sample program in 2008, and related statements, 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 in a timely manner the financing and regulatory approvals and other licenses and authorizations required to enable the exploration, development and mining activities necessary in order to complete such activities.

Forward-looking information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what management currently expects. 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, operational risks inherent in the conduct of mining activities, regulatory risks, including risks relating to the acquisition of the necessary licences and permits, financing and capitalization 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.

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Contact Information

  • Baffinland Iron Mines Corporation
    Gordon A. McCreary,
    President and Chief Executive Officer
    (416) 814-3163

    The Equicom Group
    Andreas Curkovic
    (416) 815-0700 ext. 262