New Millennium Capital Corp.
TSX VENTURE : NML

New Millennium Capital Corp.

March 03, 2009 18:59 ET

New Millennium Capital Corp. Announces Filing of Pre-Feasibility Study Technical Report on KeMag

CALGARY, ALBERTA--(Marketwire - March 3, 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 the filing today on SEDAR of the technical report on its 100% owned KeMag property ("the Project") prepared by the Consulting Engineer BBA Inc. ("BBA") located in Montreal, Quebec. The estimated mineral resources supporting the study were established by Geostat Systems International ("Geostat") also of Montreal, in compliance with NI 43-101.

As reported on January 16, 2009, the Project assumes a mine and concentrator at Harris Lake, Quebec, and a 750 km slurry pipeline to a pellet plant and ship loading facility at Pointe-Noire, Quebec. The results of the Study are positive.

Highlights of the KeMag Pre-Feasibility Study:

- Production assumption of 15 million tonnes per year ("mtpy") pellets and 7 mtpy concentrate

- Proven and Probable Mineral Reserves of 2.141 billion tonnes

- Stripping ratio of 0.39 in the first 25 years

- Total initial capital cost of US$3.8 billion and working capital of US$26.4 million

- Internal rate of return ("IRR") of 25% (unleveraged and before corporate taxes and mining taxes)

- Return on equity ("ROE") of 39% (before corporate taxes and mining taxes)(1)

- Net present value ("NPV") of US$ 7.3 billion (before corporate taxes and mining taxes)(2)

- Payback of 4 years after the start of commercial production

- Minimum 28 years mine life

- Direct jobs creation of 1,230 at the mine, concentrator, pipeline, pellet plant and shiploading facility.

- Selling Price: BF grade pellets : US$ 89.8/tonne, Concentrate: US$58.7/tonne

(1) Based on a 30/70 equity/debt ratio.

(2) Based on a 8% discount rate.

Other Project Highlights:

- Anticipated start of construction during 2nd quarter 2011

- Anticipated start of commercial production in 2014

- Accuracy of the cost estimates in the Study is considered to be +/- 25%

- Exchange rates used for cost estimates and revenues are 0.85 US$ per CDN$

- Operating cash cost of US$ 23 per tonne of pellets (BF)

- NPV at 8% discount rate is estimated at US$ 7.3 billion

- Total undiscounted Cash Flow of US$ 28.1 billion

- Forecast average yearly Cash Flow after debt payments exceeds US$ 1.1 billion

- Economics presented are based on an estimated 25 year mine plan

- Mine life is expected to exceed 28 years, based on current Proven and Probable Mineral Reserves and estimated pipeline throughput of 21.2 mtpy of concentrate

About New Millennium

New Millennium controls the emerging Millennium Iron Range, which holds the world's largest undeveloped iron ore deposits in the Province of Newfoundland and Labrador and in the Province of Quebec. In the same area, the Company is also advancing to near term production its DSO (Direct Shipping Ore) Project. Tata Steel, the world's sixth largest steel company, owns 19.9% of New Millennium and is the Company's largest shareholder and strategic partner. Tata has an exclusive option to fund 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 (see news release 08-17, October 1, 2008). The Millennium Iron Range currently hosts two advanced projects: LabMag contains 3.5 billion tonnes of Proven and Probable reserves plus 1.0 billion tonnes of Measured and Indicated resources and 1.2 billion tonnes of Inferred resources; KeMag contains 2.1 billion tonnes of Proven and Probable reserves, 0.3 billion tonnes of Measured and Indicated resources and 1.0 billion tonnes of Inferred resources.

The Company's DSO project contains, based on historical estimates that are not in compliance with NI 43-101, in excess of 100 million tonnes of direct shipping quality ore (see news release 08-05, February 5, 2008). The historical estimates contained in this news release of quantities of direct shipping quality ore are not in accordance with the mineral resources or mineral reserves classifications contained in the CIM Definition Standards on Mineral Resources and Mineral Reserves, as required by National Instrument 43-101 ("NI 43-101"). Accordingly, NML is not treating these historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and such historical estimates should not be relied upon. A qualified person has not done sufficient work to date to classify the historical estimates as current mineral resources or mineral reserves. These Inferred estimates should not to be misconstrued as representing current economic viability. The term "ore" in this release is being used in a descriptive sense for historical accuracy and is not to be misconstrued as representing current economic viability. A feasibility study has not been completed in respect of the DSO properties and there is no certainty the proposed operations will be economically viable.

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.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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