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Message: Provides Update on Progress of DSO and Taconite Projects
| April 8, 2009 |
| New Millennium Capital Corp. Provides Update on Progress of DSO and Taconite Projects |
| CALGARY, ALBERTA--(Marketwire - April 8, 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) provided today an update on the status of its Direct Shipping Ore ("DSO") and LabMag/KeMag ("Taconite") projects. During 2009, the Company is aggressively advancing its DSO Project toward production. The Company is working closely with its strategic partner, Tata Steel. In order to expedite the large volume of activity, Suren Rao, Tata's CEO - Canada Projects, has recently moved to Montreal and will shortly form a Tata team of professionals to oversee Tata's interest in the DSO project. Mr. Rao will be based in New Millennium's head office. New Millennium outlined several interrelated and contingent key objectives and tentative timelines for 2009: DSO Project Objectives 1) Complete the DSO pre-feasibility ("PFS") study in Q-1 2) Complete the DSO joint venture agreement with Tata ("JVA") in Q-2 3) Obtain DSO road, railway and power line permits in Quebec ("QC") in Q-2 4) Complete the DSO feasibility study ("FS") in Q-3 5) Obtain DSO environmental approval (Newfoundland and Labrador ("NL") in Q-4 6) Obtain DSO project approval by Tata in Q-4 7) Order early stage DSO track material, camp and equipment in Q-4 LabMag and KeMag ("Taconite Projects") Objectives 1) Complete KeMag pre-feasibility study and reserves estimate in Q-1 2) Start LabMag Project feasibility study stage in Q-3 A schedule, outlining all 2009 objectives and other significant activities is attached as figure 1. Robert Martin, President and CEO of New Millennium, commented on overall progress, "New Millennium and Tata Steel have made significant progress on advancing the DSO Project toward production. We are particularly pleased that, as part of our cooperative optimization studies, we have identified further potential efficiencies that could improve an already strong internal rate of return, and also better suit Tata's requirements. We will perform additional work to confirm these improvements and expect a completed Feasibility Study in Q3, 2009 and commencement of production in Q2, 2011". UPDATE ON DSO PROJECT Objective 1 The DSO pre-feasibility study was completed and announced in News Release 09-05 dated March 4, 2009. Objective 2 A draft JVA was received from Tata Steel Global Minerals Holdings Pte Ltd ("Tata") in Q-1, 2009. It is expected that the negotiation of this agreement will be completed on schedule in Q-2. Objective 3 An environmental approval for the QC portion of DSO infrastructure (roads, railway and power lines) that previously existed will not require an environmental impact assessment ("EIA") because these facilities previously existed. We are on schedule to obtain these construction permits during Q-2. Objective 4 In an effort to further improve the DSO project, Tata has proposed that a special steering committee be formed consisting of 3 NML and 3 Tata representatives, to utilize Tata's expertise, for the purpose of optimizing some of the pre-feasibility assumptions relating to the wash plant process and crude ore materials handling system. The optimization studies, which could significantly improve the already robust (39%) project IRR, is expected to take about two months and result in a DSO FS completion in Q-3. Based on this timing the NML/Tata plan is to start mine production, subject to a positive feasibility study and financing, in Q-2, 2011. Objective 5 The optimization studies will delay the final submission of the NL DSO Environmental Impact Statement ("EIS"). This is expected to result in final NL environmental approval in Q-4. Objective 6 The extension of the completion of the FS and NL environmental approval are not expected to delay the DSO project approval by Tata which is expected in Q4. Objective 7 Early stage track material, camp and equipment are expected to be ordered, subject to availability of financing, in Q4, 2009. Other, Impact Benefit Agreement (IBA) Agreements in Principle to negotiate IBAs have been signed with the Naskapi Nation of Kawawachikamach ("NNK") and the Nation Innu Matimekush-Lac John ("NIMLJ") - both of which are located in the Schefferville mining area. The Innu Nation ("IN"), the Labrador First Nation, and the Sept-Iles First Nation, Innu Takuaikan Uashat mak Mani-Utenam ("ITUM"), have also confirmed their willingness to negotiate IBAs. Negotiations with all First Nations are currently in progress. Other, Rail Tariffs NML also expects to negotiate tariff agreements with the Tshiuetin Rail Transportation Inc, ("TSH") which is owned by three QC First Nations (NNK, NIMLJ & ITUM); the Quebec North Shore and Labrador Railway ("QNS&L") controlled by Rio Tinto; and the Chemin de Fer Arnaud ("CFA") owned by Wabush Mines. NML has engaged AECOM, an expert on railway systems, to assist with these negotiations. Other, Rail Rehabilitation The section of track that is owned and operated by TSH needs to be upgraded in order to allow the full scale development of the DSO ore bodies that are owned by NML and other mining interests. As future rail traffic could reach 8 million tonnes per year, NML's rail consultants have proposed an 8 year rail rehabilitation program expected to cost in the order of $60 million. NML has agreed to assist TSH in the preparation of a joint package for the TSH rehabilitation business plan for presentation to various government agencies in the near future. UPDATE ON TACONITE PROJECTS Objective 1 The KeMag PFS and reserve estimate was completed and announced in News Release 09-01 dated January 16, 2009. Objective 2 In accordance with the binding agreement that was reported in News Release 08-17 dated October 1, 2008, Tata has an exclusive right to negotiate and settle a proposed transaction in respect of the LabMag project by June 30, 2009. In this regard, NML and Tata have had initial discussions to determine LabMag development possibilities. Tata's decision to negotiate and settle a proposed transaction may depend in part on a successful outcome of these discussions and on its due diligence which will be focused on, among other things, the reduction of project costs. It is expected that the successful completion of objective 2 will result in the start of the LabMag project FS stage in Q-3, 2009. Jean-Charles Bourassa, Eng. and Moulaye Melainine, Eng. are the Qualified Persons as defined in NI 43-101 who have reviewed and verified the scientific and technical mining disclosure contained in this news release on behalf of NML. To view an image of Figure 1 - 2009 Objectives and Other Significat Activities, pleae click on the following link: http://media3.marketwire.com/docs/40... . About New Millennium New Millennium controls the emerging Millennium Iron Range, located in the Province of Newfoundland and Labrador and in the Province of Quebec, which holds the world's largest undeveloped magnetic iron ore deposits. In the same area, the Corporation is also advancing to near term production its DSO (Direct Shipping Ore) Project. Tata Steel, the world's sixth largest steel corporation, owns 19.9% of New Millennium and is the Corporation'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 0817, 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 Corporation's DSO project contains 52.5 million tonnes of Proven and Probable Mineral Reserves, 3.5 million tonnes of measured and indicated Mineral Resources, 5.8 million tonnes of Inferred Resources and about 40.0 million tonnes of historical resources that are not currently in compliance with NI 43-101. 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. |
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