Baffinland Iron Mines Corporation

Baffinland Iron Mines Corporation

September 28, 2010 21:21 ET

Baffinland Reports High Grade Assays from the Newly Discovered Deposits No. 6 and No. 7

TORONTO, ONTARIO--(Marketwire - Sept. 28, 2010) - Baffinland Iron Mines Corporation (TSX:BIM) ("Baffinland" or the "Company") announces high grade iron assay results from two new discoveries, Deposit No. 6 and Deposit No. 7. The deposits were discovered as part of regional exploration during the Company's 2010 advanced exploration program on its wholly-owned Mary River iron ore deposits, Baffin Island, Nunavut Territory, Canada. Deposit No. 6 is located approximately 25 kilometres east-northeast of the Mary River camp, while Deposit No. 7 is located 25 to 30 kilometres northeast from the camp; and is some 12 kilometres north of Deposit No. 6.

At Deposit No. 6, assays from surface sampling averaged 67.1% iron along the northwest-southeast striking high grade magnetite-dominant zone that is exposed for an approximate one kilometre strike length and up to 170 metre width. The exposure occurs within an intense magnetic anomaly that has a more than four kilometre strike length and 300 metre width.

Deposit No. 7 averaged 66.1% iron in surface sampling of a high grade magnetite-dominant zone that is exposed for a 700 metre strike length and up to 100 metre width. A second zone occurs 1.3 kilometres to the southeast. This zone is exposed for a 300 metre strike length and 5 to 10 metre width in a highly deformed belt.

Richard McCloskey, Chairman and Acting CEO of Baffinland stated, "Our regional exploration work continues to provide us with confirmation of the vast potential of this region. We are confident of ongoing success from these programs."

"The success of the 2010 field season continues with the exciting discovery of two new deposits. Additional results will be announced as assays from the regional exploration program are received over the next few months. I expect that this and future work will continue to expand our knowledge and the ultimate potential of the new discoveries." stated Michael Zurowski, Baffinland's Executive Vice President.

SGS Lakefield Research Limited performs assay and analytical work under a strict protocol designed for testing lump iron ores. Representative samples will be sent to Studien Gesellschaft für Eisenerz-Aufbereitung (SGA) in Germany, where they are composited for detailed metallurgical testing to ISO standards for iron ore. The analytical testwork is supervised and interpreted by Michael T. Zurowski, P. Eng., a Qualified Person as defined by National Instrument 43-101.

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 interpretation of assay results, its completed magnetic survey including related statements about the planned release of additional assay results and metallurgical testing results, statements about the continuation of the Company's exploration program including plans relating to additional mapping, more comprehensive sampling, drilling on any of the properties comprising the Company's Mary River Project and metallurgical testing and statements about the Company's potential resources 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.

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.

Table 1: Surface Sample Assay Results

Sample ID   Deposit   Fe%   SiO2% Al2O3%   P%   Mn%   S%
2561   No. 6   69.5   1.2 0.8   0.162   0.06   0.02
2562   No. 6   68.3   2.0 1.3   0.105   0.06   0.02
2563   No. 6   63.2   4.8 3.3   0.083   0.13   0.01
2564   No. 6   67.4   3.3 1.4   0.048   0.08   0.01
2565   No. 6   65.1   4.1 1.6   0.236   0.08   0.01
2566   No. 6   68.6   2.8 0.8   0.074   0.04   0.01
Average   No. 6   67.1   3.0 1.5   0.118   0.07   0.01
2567   No. 7   60.9   14.4 0.4   0.009   0.05   < 0.01
2568   No. 7   67.3   3.5 0.4   0.011   0.04   < 0.01
2569   No. 7   59.6   10.8 1.4   0.012   0.14   < 0.01
2570   No. 7   69.4   2.3 0.2   0.057   0.40   0.01
2571   No. 7   69.5   0.7 0.6   0.035   0.16   0.04
2572   No. 7   69.1   2.7 0.9   0.026   0.08   0.01
Average   No. 7   66.1   5.7 0.6   0.025   0.08   0.01

Each sample was approximately 20 kilograms in weight.

Contact Information

  • Baffinland Iron Mines Corporation
    Richard D. McCloskey
    Chairman and Acting CEO
    Baffinland Iron Mines Corporation
    Michael T. Zurowski
    Executive Vice President