Baffinland Iron Mines Corporation
TSX VENTURE : BIM

Baffinland Iron Mines Corporation

October 13, 2005 16:31 ET

Baffinland Provides Mary River Iron Ore Project Update

TORONTO, ONTARIO--(CCNMatthews - Oct. 13, 2005) - Baffinland Iron Mines Corporation (TSX VENTURE:BIM) ("Baffinland" or the "Company") is pleased to provide the following up-date regarding the Company's 2005 programs on its wholly-owned Mary River iron ore deposits, Baffin Island, Nunavut Territory, Canada. Over the next six months Baffinland expects to have a steady flow of technical data and other relevant information concerning the advancement of the Mary River Project. This technical information will include several batches of assay and metallurgical testwork results that will be primary inputs for a new resource calculation at Deposit No. 1. Once calculated, the new resource estimates will be a key component of a Scoping Study for the Mary River Project being prepared by Aker Kvaerner E&C ("Aker Kvaerner"), a division of Aker Kvaerner Canada Inc., scheduled for completion in the first quarter of 2006. A number of firms and individuals are providing important input in the areas of assaying, metallurgical testwork, resource modeling, land and marine transportation studies, potential port assessments, environmental baseline data collection, socio-economic assessment, traditional knowledge studies, market studies, capital cost estimates, operating cost estimates and economic analysis. This data and information will then be incorporated by Aker Kvaerner into the Scoping Study.

Diamond drilling in 2005 commenced in early June and continued until September 25th. A total of 8,073 metres were drilled in 33 holes in 2005 bringing the total diamond drilling on the Mary River deposits to over 14,200 metres in 78 holes, with all but one hole drilled at Deposit No. 1. Drilling in 2005 was solely focused on Deposit No. 1 as the economic viability of the Mary River Project will involve the initial mining of Deposit No. 1, the largest known deposit with the lowest strip ratio.

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. Baffinland expects to press release several batches of technical data over the next two months. In addition, as this data becomes available we will update the appropriate section of the Baffinland website at www.baffinland.com with appropriate drawings such as cross-sections, to assist in the interpretation of the data.

Our objective is to delineate a substantial resource to support a direct-shipping iron ore operation focused on European markets with an initial production rate of approximately 10 million tonnes per year. Justification for such an operation would require an approximate doubling of the tonnage of the resources delineated in the 1960's and the actual results of the 2004 drill program together with the encouraging visual results of the 2005 drilling suggest to Baffinland management that the Company is on track to more than accomplish this objective when a new resource calculation is completed for the Scoping Study.

In addition, Baffinland is pleased to announce that it has contracted the services of Derek Teevan to support and advise the Company in its sustainable development efforts, more specifically negotiation of multi-party stakeholder agreements, input into the governmental administrative portion of the environmental process and territorial-federal government liaison. Mr. Teevan has excellent relevant experience and understanding of both the governmental regulatory framework and the opportunities that the Mary River Project can bring to local communities in Nunavut. As part of the compensation for these services, the Company announces that it has granted stock options to Mr. Teevan to purchase up to 50,000 common shares in the capital of the Company at an exercise price of $1.50 per common share, being the closing price of the common shares on October 12, 2005, vesting over a period of 18 months and expiring October 12, 2010. The current number of issued and outstanding common shares is approximately 35,361,865. The options were granted pursuant to the Company's incentive stock option plan (the "Plan"), under which a maximum of 10% of the issued and outstanding common shares are reserved for issuance. Following the grant of such options, a further 1,375,187 common shares will be available for issuance under the Plan.

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 TSX Venture Exchange Inc. and other regulatory authorities.

THE TSX VENTURE EXCHANGE INC. HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE.

Contact Information

  • Baffinland Iron Mines Corporation
    Gordon A. McCreary
    President and CEO
    (416) 364-8820
    or
    Baffinland Iron Mines Corporation
    Michael T. Zurowski
    Executive Vice President and COO
    (416) 364-8820
    info@baffinland.com
    www.baffinland.com