CALGARY, ALBERTA -- (Marketwired) -- 07/04/13 -- New Millennium Iron Corp. ("NML" or the "Corporation") (TSX: NML)(OTCQX: NWLNF) announced today that Tata Steel Minerals Canada ("TSMC"), in which NML has a 20% interest, advises that it has entered into a confidential agreement for the sale of TSMC's iron ore production to the Iron Ore Company of Canada ("IOC"). The contract shall allow TSMC to commence shipment of its products in the current year.
Under the confidential sales agreement with IOC, TSMC's production will be sold by IOC's marketing organization for delivery to several markets, the details of which will be negotiated between the two parties. In 2012, TSMC produced approximately 300,000 mt of 62% Fe direct shipping ore ("DSO") sinter fines from a portable screening plant. Production resumed in mid-June this year and is expected to continue until October. Meanwhile, construction of the Timmins Processing Plant is progressing and it is now planned to start the plant in November producing DSO grade sinter fines using the crushers and screens and drying for winter shipping. The wet processing and upgrading section of the plant is currently expected to be operational in Q1, 2014. The target is to ship about 2.0 million tonnes in 2013.
Dean Journeaux, President and CEO of NML, said, "This is an important step for NML as we transform ourselves from being a developer to a producer by entering the iron ore market. This interim sales agreement with IOC will enable TSMC to continue production until TSMC can use the new multi-user dock now being constructed by the Port of Sept-Iles at Pointe-Noire, Quebec. We are pleased with the progress of the DSO Project and will continue to work together with TSMC to ensure the completion of plant construction and the continuing transition to a successful production and sales operation."
IOC is Canada's largest iron ore producer from its mines located in Western Labrador and is a leading global supplier of iron ore pellets and concentrates. IOC's major shareholder and operator is the international mining group Rio Tinto which has activities in more than 40 countries throughout the world. IOC owns 100% of the Quebec North Shore and Labrador ("QNS&L") Railway and, at the port of Sept-Iles, owns established storage and ore handling facilities, including its shipping dock capable of taking ocean going vessels up to 240,000 (dwt) tonnes.
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 and Tata Steel Limited, one of the largest steel producers in the world, are advancing a DSO Project to near term production. Tata Steel Limited owns approximately 26.3% of New Millennium and is the Corporation's largest shareholder and strategic partner.
Tata Steel 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). The DSO Project is owned and operated by TSMC, which in turn is 80% owned by Tata Steel and 20% owned by NML. The DSO Project contains 64.1 million tonnes of Proven and Probable Mineral Reserves at an average grade of 58.8% Fe, 21.0 million tonnes of Measured and Indicated Mineral Resources at an average grade of 59.2% Fe, 10.3 million tonnes of Inferred Resources at an average grade of 58.3% Fe and about 25.0 - 30.0 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, news release 10-12 dated July 8, 2010 and news release 12-14, dated May 31, 2012). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
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