New Millennium Iron Corp.
TSX VENTURE : NML

New Millennium Iron Corp.

August 11, 2011 07:00 ET

New Millennium Iron Corp. Announces Plans to Drill New Exploration Target Located Between the KéMag and LabMag Deposits and Provides Update on the Bulk Sampling Program and Lac Ritchie Drilling

CALGARY, ALBERTA--(Marketwire - Aug. 11, 2011) -

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New Millennium Iron Corp. ("NML" or the "Corporation") (TSX VENTURE:NML) announced today that based on its ongoing evaluation of historical drill results incorporating recent airborne magnetic survey data it has identified another high priority target. The target coincides with drill hole HR179D drilled on the strike extension of the taconite formation connecting the LabMag and KéMag deposits. This zone extends for approximately 18 km from the north end of the LabMag Deposit to the south end of the KéMag Deposit. The taconite band in this area coincides with NL-1 and NL-2 airborne magnetic anomalies outlined (Refer to Figure 1) based on the Airborne Magnetic survey conducted in 2010 (refer to NR11-03).

Hole HR1279D was drilled in 2006 as an exploratory hole to check the taconite extension north west of the LabMag deposit. The hole was drilled to a depth of 105 m intersecting all economic stratigraphic units. Although the results of the testing and analysis were encouraging no additional drilling was carried out as NML decided to concentrate its efforts on KéMag and LabMag. However, the Airborne Magnetic survey conducted in 2010 indicated the presence of groups of magnetic anomalies over the taconite extension between LabMag and KéMag deposits (Figure 2). Recent analysis by the Corporation demonstrates a strong connection between the drill hole results and certain anomalies that support further exploration. NML will conduct an initial drilling program this fall, comprising at least five or six holes, to outline the extent of a potential additional deposit.

Dean Journeaux, NML's President and CEO, said: "The results of our ongoing studies suggest the possibility of a continuity between the LabMag and KéMag deposits and warrant further investigation. Based on the complementary evidence of the test hole and magnetic survey, we have now decided to further explore anomalous area NL1, which is 100% owned by NML. This next development target further underscores the additional resource potential of the Millennium Iron Range and demonstrates further potential value for our shareholders beyond the Taconite Project."

The following Table shows the results of the tests and analysis of the HR1279D drill cores.

Table 1

HR1279D

Unit Length (m ) DTWR % Concentrate Fe % Concentrate
SiO2
% Total
Fe
%
LC 15.1 30.03 69.14 3.79 30.73
JUIF 6.4 17.50 69.97 2.15 34.59
GC 3.9 15.00 70.83 1.85 22.05
URC 2.4 28.50 70.27 1.97 40.35
PGC 13.0 39.19 70.29 2.25 33.96
LRGC 35.1 34.71 70.20 2.12 32.30
Total/Average 75.9 31.89 70.02 2.46 32.19

The average grade of HR 1279D in comparison with the deposit averages of LabMag and KéMag (Table 2).

Table 2

Deposit Proven & Probable (million tonnes ) DTWR % Concentrate Fe % Concentrate
SiO2
% Total
Fe
%
Taconite Project:
LabMag 3,545 25.79 69.98 2.17 29.6
KéMag 2,141 27.00 69.10 2.70 31.3
Taconite Other:
HR1279D* 31.89 70.02 2.46 32.19

*Note: higher Davis Tube Weight Recovery (DTWR) for this hole.

Other NML Activities:

KéMag Bulk Sampling for Pilot Scale Testing

The collection of Bulk Samples for testing is nearing completion. Approximately 70 t out of 75 t were collected to date and being sent to MRC Laboratory, Nashwauk, Minnesota, USA for processing. The laboratory has received approximately 65 t of the samples. Sample preparation and analytical work are well underway.

Airborne Magnetic Anomaly, Lac Ritchie

Two diamond drills are being moved to Lac Ritchie to start the first phase of drilling to check the magnetic anomaly. A third drill will be added to the fleet when the drilling for Bulk Sampling is completed at the KéMag deposit.

Dean Journeaux, Eng., and Thiagarajan Balakrishnan P.Geo., are the Qualified Persons as defined in National Instrument 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release.

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.

To view the Figure 1 map, click the following link: http://media3.marketwire.com/docs/NMIC_Figure1.pdf

To view the Figure 2 map, click the following link: http://media3.marketwire.com/docs/NMIC_Figure2.pdf

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Contact Information

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

    Investor Relations
    Andreas Curkovic
    (416) 577-9927