New Millennium Iron Corp.
TSX VENTURE : NML

New Millennium Iron Corp.

August 23, 2011 07:00 ET

New Millennium Iron Corp. Announces Financial Results for the Second Quarter Ended June 30, 2011

CALGARY, ALBERTA--(Marketwire - Aug. 23, 2011) -

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

New Millennium Iron Corp. ("NML" or the "Company") (TSX VENTURE:NML) announced today its financial results for the second quarter ended June 30, 2011.

The following discussion of the Company's financial performance is based on the Interim Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A"), which have been filed on the SEDAR website at www.sedar.com.

The Company's results of operations for the three months ended June 30, 2011, is a net loss of $2,809,000 ($0.02 per share) compared to a net loss of $878,000 ($0.01 per share) for the comparative period in 2010. This loss represents expenses of $3,058,000 (2010 - $876,000) and a loss on sale of long-term investments of Nil (2010 - $6,000), net of investment income of $250,000 (2010 - $5,000). The most significant expense items were stock based compensation of $1,845,000 ($53,000), general and administrative expenses of $645,000 (2010 - $542,000) professional fees of $302,000 (2010 – $226,000) and market development expenses of $247,000 (2010 – $46,000).

The net loss for the six month period ended June 30, 2011, was $5,580,000 ($0.03 per share) compared to a net loss of $1,376,000 ($0.01 per share) for the 2010 fiscal year. This loss represents expenses of $6,514,000 (2010 - $1,546,000) and a loss on sale of long-term investments of Nil (2010 - $6,000), partially offset by other income of $600,000 (2010 - $Nil), investment income of $335,000 (2010 - $9,000) and an increase in fair value of long-term investments of $Nil (2010 – $168,000). Again, the most significant expense items were stock-based compensation of $2,690,000 (2010 - $117,000), professional fees of $2,193,000 (2010 - $413,000), general and administrative of $1,219,000 (2010 - $873,000), and market development of $371,000 (2010 - $122,000).

As at June 30, 2011, the carrying value of mineral properties increased by $2,288,000 to $54,423,000 from $52,135,000 as of December 31, 2010. The main components of mineral properties at June 30, 2011, were mineral licences ($3,422,000), resource evaluation ($22,634,000), drilling ($21,528,000), environmental ($14,062,000), amortization of property and equipment ($40,000), net of tax credits and mining duties ($7,263,000).

The most significant second quarter 2011 activities, which are fully described in the MD&A were: (1) the start of a bulk sample collection for pilot plant testing in the Taconite Project feasibility study; (2) the signing of an Impact and Benefit Agreement with the Nation Innu Matimekush-Lac John for the Direct Shipping Ore ("DSO") Project; (3) the awarding of engineering, procurement and construction management contract for the DSO Project; (4) the start of mobilization to commence DSO Project construction during June 2011; (5) the identification of two target areas for NML's 2011 drilling and resource evaluation program; (6) the announcement of Robert A. Martin's retirement, effective July 1st, 2011 and his remaining association with the Corporation as Chairman of the Strategic Advisory Committee of the Board of Directors; the appointment of Dean Journeaux as President and Chief Executive Officer, also effective July 1st, 2011; (7) the appointment of Ernest Dempsey as Vice-President Investor Relations & Corporate Affairs; and (8) the new brand identity and the name change of the company to "New Millennium Iron Corp.".

Subsequent events also reported in the second quarter 2011 MD&A were: (1) the progress of the bulk sampling program for pilot scale testing of the Taconite Project; (2) the approval by the Government of Newfoundland and Labrador of the surface lease application by Tata Steel Minerals Canada Ltd.; (3) the issuance of permits for the site preparation and construction of the DSO Project camp; (4) the start of the 2011 drilling program at the DSO properties to convert historical resources for NI 43-101 compliance and hydrogeological survey; (5) the start of drilling at NML's 100% owned Lac Ritchie Property, and progress update; and (6) the plans to drill a new exploration target located between the KéMag and LabMag deposits.

About New Millennium

The Corporation controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds one of the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation is also advancing its DSO Project to near term production. Tata Steel Limited, one of largest steel producers in the world, owns approximately 27% of New Millennium and is the Corporation's largest shareholder and strategic partner.

Tata Steel has exercised its exclusive option to participate in the DSO Project and has a commitment to take the resulting production (see news release 10-16 dated September 14, 2010). Tata Steel also has exercised its exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project and the KéMag Project (see news release 11-09 dated March 6, 2011).

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 dated July 5 2006 and news release 07-11 dated July 17, 2007); KéMag 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 dated January 16, 2009).

NML's DSO project contains 64.1 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8% Fe, 8.1 million tonnes of Measured and Indicated Mineral Resources at an average grade of 58.8% Fe, 7.2 million tonnes of Inferred Resources at an average grade of 56.8% Fe and about 40.0 - 45.0 million tonnes of historical resources that are not currently in compliance with NI 43-101 (see news release 09-03 dated February 11, 2009, news release 09-05 dated March 4, 2009, news release 09-16 dated December 9, 2009 and news release 10-12 dated July 8, 2010). 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.NMLiron.com, www.tatasteel.com and www.tatasteeleurope.com.

Dean Journeaux, Eng., is the Qualified Person as defined in National Instrument 43-101 who has reviewed and verified the scientific and technical mining disclosure contained in this news release.

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.

Contact Information

  • New Millennium Iron Corp.
    Dean Journeaux
    President & CEO
    (514) 935-3204

    New Millennium Iron Corp.
    Andreas Curkovic
    Investor Relations
    (416) 577-9927
    www.NMLiron.com