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Message: Announces Filing Of Year End Results and Initiates Feasibility Study
| April 2, 2009 |
| Consolidated Thompson Announces Filing Of Year End Results and Initiates Feasibility Study for Expansion From 8 Million Tonnes to 16 Million Tonnes Per Year |
| TORONTO, ONTARIO--(Marketwire - April 2, 2009) - Consolidated Thompson Iron Mines Limited (TSX:CLM) ("CLM", or the "Company") provides the following highlights from its audited annual consolidated financial statements and MD&A for the year ended December 31, 2008 that were filed on SEDAR: - Mine site development is progressing according to budget. Production is expected to begin in the fourth quarter of 2009. As at December 31, 2008, a total of $189 million had been spent on the development of the Bloom Lake mine. - Subsequent to year end, the Company announced it had signed an agreement with Wuhan Iron and Steel (Group) Corporation ("WISCO"). For consideration of US$240 million, WISCO will receive common shares equal to approximately 19.9% of the issued CLM shares, on a post-investment basis. In addition, WISCO will receive not less than a 25% interest in a newly incorporated company that is to be established to operate the Bloom Lake mine, and will commit to purchase at fair market prices a similar percentage of iron ore production over the life of the mine. - As at December 31, 2008, the Company had total cash resources (including short-term investments and restricted cash) of $179.7 million. - During 2008 exploration was conducted on the west side of the Bloom Lake property and on the Lamelee property, which was acquired during the acquisition of Quinto Mining Corporation. Updated NI 43-101 mineral resource estimates for Bloom Lake were released on March 16, 2009, increasing total estimated measured and indicated mineral resources at the Bloom Lake project by 189 million tonnes to 827 million tonnes. See press release of March 16, 2009. - 2008 milestones included: - In March, the Company received from the Quebec Government the degree required to allow construction and mining activities at Bloom Lake. - In May, the Company entered into an Impact and Benefits Agreement with the local Innu with respect to the Bloom Lake Iron Mine Project. - In June, the Company completed the acquisition of the Quinto Mining Corporation, a junior mining company with two iron ore properties in close proximity to the Bloom Lake property. - In August, the Company signed a rail transportation agreement with Quebec North Shore and Labrador Rail Company, Inc. - In October, the Company announced that the environmental assessment process on Labrador Railway Project was complete. Feasibility Study on 16 Million Tonne Per Year Scenario Consolidated Thompson Iron Mines Limited has engaged BBA Inc. ("BBA") to complete a feasibility study contemplating the production of 16 million tonnes of iron ore concentrate per year from the Bloom Lake property. Richard Quesnel, the President and Chief Executive Officer of CLM, commented, "While our focus is squarely on the commencement of production at Bloom Lake in the fourth quarter of 2009, we are also keeping an eye on the future of CLM and ways to leverage the strength of our assets. With the greater financial stability offered by WISCO's strategic investment in CLM, we are pleased to initiate a feasibility study on an expanded scenario of 16 million tonnes of annual production." About Consolidated Thompson Consolidated Thompson Iron Mines Limited is an exploration and development company. The Company believes that the updated positive Feasibility Study, based on the current understanding of the quality and size of the Bloom Lake deposit, reflects the potential to expand and advance the project and exploit other opportunities in the iron ore industry. The Company has approximately 119.4 million shares outstanding and trades on the TSX under the symbol CLM. Further information can be accessed at the Company's website at www.consolidatedthompson.com. Richard Quesnel, who is the President and Chief Executive Officer of the Company and a qualified person under National Instrument 43-101, has reviewed the scientific and technical information in this press release. |
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