(1) Naskapi LabMag Trust through LabMag Limited Partnership (LLP) owns the other 20%.
Mineral Resources are concentrations or occurrences of minerals in such form and quantity and of such grade or quality such that they have reasonable prospects for economic extraction. . While New Millennium has historically used a cut-off of 18% DTWR to meet this test, previous studies (2012 NI 43-101 report on the Lac Ritchie deposit, 2009 NI 43-101 report on the KeMag deposit) have shown that the marginal cut-off for Davis Tube weight recovery to meet this test could be lower than 18%. SGS Canada Inc. built pit shells for the Sheps Lake and Perault Lake properties based on the economic parameters described in the Lac Ritchie NI 43-101 technical report. According to those parameters, the resulting cut-off grade was 4.7% DTWR. This cut-off grade is significantly lower than the usual 18%, and SGS Canada Inc. considers it reasonable to use a cut-off grade of 15% DTWR for the delineation of Mineral Resources.
Table 2 indicates the effect of a lower DTWR cut-off. At a cut-off of 15% DTWR, the Mineral Resources of Sheps Lake and Perault Lake increase from 3.580 to 4.070 billion tonnes of Indicated Resources (at an average of 23.38% DTWR) and from 795 to 1,006 million tonnes of Inferred Resources (at an average of 21.95% DTWR).
Table 2: Summary of Sheps Lake and Perault Lake PropertiesMineral Resources Estimate (DTWR greater than = 15%)---------------------------------------------------------------------------- Tonnes Inventory in Total Concentrate ConcentrateProperty Classification millions Fe% DTWR% Fe% SiO2%----------------------------------------------------------------------------Sheps Lake(i) Indicated 2,039 32.54 24.83 70.60 1.47 -------------------------------------------------------------- Inferred 310 32.16 24.84 70.42 1.58----------------------------------------------------------------------------Perault Lake Indicated 2,031 28.77 21.91 70.43 1.34 -------------------------------------------------------------- Inferred 695 28.73 20.65 70.42 1.49----------------------------------------------------------------------------Total Indicated 4,070 30.66 23.38 70.52 1.41 -------------------------------------------------------------- Inferred 1,006 29.79 21.95 70.42 1.52----------------------------------------------------------------------------
Mr. Maxime Dupere geo. is the independent Qualified Person responsible for the Mineral Resource Estimate and the preparation of the technical report in compliance with NI 43-101. Dean Journeaux, 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.
A Technical Report in respect of the mineral resource estimates disclosed in this news release is required under NI 43-01 to be filed on SEDAR within 45 days. The effective date of these mineral resource estimates is February 7, 2013.
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.
