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Results of First NI 43-101 Mineral Resource Estimate/Direct Shipping Ore Project

posted on Feb 11, 2009 10:51AM

February 11, 2009

New Millennium Capital Corp. Announces Results of First NI 43-101 Mineral Resource Estimate on Its Direct Shipping Ore (DSO) Project

CALGARY, ALBERTA--(Marketwire - Feb. 11, 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) announced today the results of the Mineral Resource estimate from 2008 drilling of its 100% owned DSO Project ("Project") located near Schefferville, Quebec. The estimate of Mineral Resources was established by SGS Geostat Ltd ("Geostat") of Montreal, Quebec. The study was reviewed by others with expertise critical to some aspects of the Project. Geostat will also prepare a National Instrument ("NI") 43-101 Technical Report which will be posted on SEDAR within 45 days of this news release.

The primary objective of the reverse circulation drilling program was to convert certain historical resources to NI 43-101 compliant Mineral Resources. NML had earlier reported its development plan of the Project (News Releases 07-21 and 08-14) based on historical resources. NML owns 28 DSO deposits located in different locations as shown in the attached map (Figure 1). NML does not own 100% of some of these deposits. Other companies have claims that cover part of the deposits in which NML owns the rest of the claims. However, NML owns 100% of the Mineral Resources reported below. NML's current development model for the project involves commencement of development in Areas 2 and 3 and then move operations to Area 4. The 2008 drilling program was designed to convert sufficient historical resources in areas 2, 3 and 4 to NI 43-101 compliant resources and reserves in order to complete an economic evaluation of the project. No drilling was done in Area 1.

Summary of Mineral Resource Estimate:

A summary of the Mineral Resource estimate, based on current drill results, are reported in Table 1. This demonstrates approximately 56.0 million tonnes of Measured and Indicated Mineral Resources at an average grade of 59.0% Fe on a dry basis plus an additional 5.8 million tonnes of Inferred Mineral Resources.

Table 1
Summary of Resource Estimate based on 2008 drilling
(Using cut-off grades of Fe+Mn greater than or equal to 50%, SiO2 less than
18% and Mn less than 3.5%)
----------------------------------------------------------------------------
Resource                           Tonnes (in
 Classification                      millions)     % Fe    % SiO2      % Mn
----------------------------------------------------------------------------
Measured                                 22.4     59.79      6.03      0.13
----------------------------------------------------------------------------
Indicated                                33.6     58.42      8.79      0.67
----------------------------------------------------------------------------
Total M+I                                56.0     58.97      7.68      0.45
----------------------------------------------------------------------------
Inferred                                  5.8     55.76      9.23      0.93
----------------------------------------------------------------------------

Mr. Robert Martin, President & CEO stated, "The new resource estimate has fully met our expectations and is a significant milestone for our DSO project. Although we were confident that the reported resources would compare favourably with the earlier reported historical estimates, the completion of this NI 43-101 estimate is an important step in our ongoing work to establish the feasibility of the project. We intend to undertake further drilling in the deposits located in Area 4, where we expect to start mining after the initial 3-4 years of production in Areas 2 and 3. Now that we have identified sufficient resources, we are proceeding to complete a prefeasibility study with the objective to upgrade the resources to reserves."

2008 Drilling Program:

The DSO drilling program started on July 21, 2008 and concluded on October 24, 2008. During this period 140 holes were drilled for a total length of 7,835 meters. A total of 2,396 samples were collected for analysis. Table 2 provides the details of drilling for the various areas and deposits. Please also refer to the attached maps (Figures 2a & 2b) for the drill hole locations.

Table 2
Summary of DSO Drilling, 2008

----------------------------------------------------------------------------
Area                   Deposit   No. of Holes   Total Meters  Total Samples
----------------------------------------------------------------------------
4                     Goodwood             25           1652            499
----------------------------------------------------------------------------
                     Kivivic 4             13            596            178
----------------------------------------------------------------------------
                     Kivivic 3             10            506            162
----------------------------------------------------------------------------
                     Kivivic 5              8          426.5            132
----------------------------------------------------------------------------
                       Sunny 1              2             86             25
----------------------------------------------------------------------------
Total Area 4                               58         3266.5            996
----------------------------------------------------------------------------

----------------------------------------------------------------------------
3                   Fleming 7N             20         1175.2            353
----------------------------------------------------------------------------
                     Timmins 4             25         1160.5            365
----------------------------------------------------------------------------
                     Timmins 3             10            753            244
----------------------------------------------------------------------------
                     Timmins 7             12            562            182
----------------------------------------------------------------------------
Total Area 3                               67         3650.7           1144
----------------------------------------------------------------------------

----------------------------------------------------------------------------
2                   Ferriman 4             15          917.6            256
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Total all Areas                           140         7834.8           2396
----------------------------------------------------------------------------

Typical sections from Fleming 7, Ferriman 4 and Goodwood are shown in Figures 3-5 attached.

Mineral Resource Estimates by Deposit:

The details of the resource estimates for the various deposits are provided in Table 3. Five deposits in Area 2 and 3 were fully drilled; whereas 5 deposits were partially drilled in Area 4. Of the 5 partially drilled deposits in Area 4, resource estimates for only 3 deposits are reported. More drilling will need to be done in the remaining 2 deposits prior to the estimation of mineral resources.

Additional drilling is planned in 2009, and beyond, to include all of NML's properties as well as more detailed drilling in some of the larger deposits with the objective to convert the reviewing historical resources to NI 43-101 compliant resources. NML estimates that additional historical resources in the order of 45-50 million tonnes remain to be drilled.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for minability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated mineral resource categories through further drilling, or into mineral reserves once economic considerations are applied.

The historical estimates contained in this news release of quantities of direct shipping quality ore are not in accordance with the mineral resources or mineral reserves classifications contained in the CIM Definition Standards on Mineral Resources and Mineral Reserves, as required by National Instrument 43-101 ("NI 43-101"). Accordingly, NML is not treating these historical estimates as current mineral resources or mineral reserves as defined in NI 43-101 and such historical estimates should not be relied upon. A qualified person has not done sufficient work to date to classify the historical estimates as current mineral resources or mineral reserves. The term "ore" in this release is being used in a descriptive sense for historical accuracy, and is not to be misconstrued as representing current economic viability. A feasibility study has not been completed in respect of the DSO properties and there is no certainty the proposed operations will be economically viable.

Table 3
Mineral Resource Estimate by Deposit in Claims owned by NML
(Using cut-off grades of Fe+Mn greater than or equal to 50%, SiO2 less than
18% and Mn less than 3.5%)
----------------------------------------------------------------------------
Deposit                Tonnage      Fe(%)     Mn(%) SiO2 (%) Classification
----------------------------------------------------------------------------
                    22,404,000     59.79      0.13     6.03        Measured
                   ---------------------------------------------------------
Goodwood
 Area 4              8,503,000     57.47      0.33    10.46       Indicated
                   ---------------------------------------------------------
                       821,000     53.32      1.20    13.91        Inferred
----------------------------------------------------------------------------
                             0                                     Measured
                   ---------------------------------------------------------
Fleming 7
 Area 3              6,572,000     61.03      0.15     6.37       Indicated
                   ---------------------------------------------------------
                             0                                     Inferred
----------------------------------------------------------------------------
                             0                                     Measured
                   ---------------------------------------------------------
Timmins 3
 Area 3              2,147,000     59.67      0.03    11.96       Indicated
                   ---------------------------------------------------------
                       485,000     59.70      0.04    11.90        Inferred
----------------------------------------------------------------------------
                             0                                     Measured
                   ---------------------------------------------------------
Timmins 7
 Area 3                935,000     58.38      0.25    12.30       Indicated
                   ---------------------------------------------------------
                             0                                     Inferred
----------------------------------------------------------------------------
                                                                   Measured
                   ---------------------------------------------------------
Timmins 4
 Area 3              2,131,000     60.54      0.04     9.77       Indicated
                   ---------------------------------------------------------
                                                                   Inferred
----------------------------------------------------------------------------
                                                                   Measured
                   ---------------------------------------------------------
Ferriman 4
 Area 2              9,361,000     55.37      1.86     8.12       Indicated
                   ---------------------------------------------------------
                     2,081,000     53.78      1.69     6.38        Inferred
----------------------------------------------------------------------------
                                                                   Measured
                   ---------------------------------------------------------
Kivivic 5
 Area 4              2,196,000     62.16      0.08     7.56       Indicated
                   ---------------------------------------------------------
                       516,000     63.18      0.06     5.77        Inferred
----------------------------------------------------------------------------
                                                                   Measured
                   ---------------------------------------------------------
Kivivic 3
 Area 4              1,754,000     60.70      0.36     7.93       Indicated
                   ---------------------------------------------------------
                     1,935,000     58.97      0.46    10.57        Inferred
----------------------------------------------------------------------------
                    22,404,000     59.79      0.13     6.03        Measured
                   ---------------------------------------------------------
Total               33,598,000     58.42      0.67     8.79       Indicated
                   ---------------------------------------------------------
                    56,002,000     58.97      0.45     7.68             M+I
                   ---------------------------------------------------------
                     5,839,000     55.76      0.93     9.23        Inferred
----------------------------------------------------------------------------

Resource Estimation Methodology:

The methodology used to estimate the mineral resources of the DSO deposits is 3D block modeling with Inverse Square Distance interpolation. The estimation was limited to a mineralized envelope interpreted on vertical cross-sections and later meshed into solid shapes. Different lithologies were modeled and estimated separately. Two sources of drill holes were used to estimate the mineral resources: Historical drilling from the previous owners available in the public domain and drill holes from NML 2008 drilling campaign. Drill holes intersecting the mineralized envelopes were composited into 3-meter composites. Each composite was assigned a lithological unit based on the interpreted geology and corresponding 3D solid.

The interpretation of the geology took into account cut-off values on the 3 main elements, Fe, Mn and SiO2. A minimum grade of 50% Fe, a maximum grade of 3.5% Mn and a maximum grade of 18% SiO2 were used as guides for differentiating mineralized units from "waste". A specific gravity value of 3.0 was used to convert volumes into tonnes in all lithological units.

The estimated mineral resources were classified following NI 43-101 naming conventions, namely Measured, Indicated and Inferred mineral resources. Each deposit was classified by either identifying zones based on drilling density or by applying a search ellipsoid methodology where the drilling density was considered irregular.

Qualified Persons:

A NI 43-101 compliant technical report by Geostat is expected to be posted on www.sedar.com within 45 days. The report is prepared by Robert de l'Etoile, Eng., who is a Geological Engineer experienced in mineral resource estimation. Mr. de l'Etoile is an independent Qualified Person as defined by NI 43-101.

Dean Journeaux, Eng., and Mr. Jean Charles Bourassa, 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.

About New Millennium

New Millennium controls the emerging Millennium Iron Range, which holds the world's largest undeveloped iron ore deposits in the Province of Newfoundland and Labrador and in the Province of Quebec. In the same area, the Company is also advancing to near term production it's DSO (Direct Shipping Ore) Project. Tata Steel, the world's sixth largest steel company, owns 19.9% of New Millennium and is the Company's largest shareholder and strategic partner. Tata has an exclusive option to fund the DSO Project, a commitment to purchase the resulting production, and an exclusive right to negotiate and settle a proposed transaction in respect of the LabMag Project (see news release 08-17, 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 Company's DSO project contains 22.4 million tonnes of Measured resources, 33.6 million tonnes of Indicated resources, 5.8 million tonnes of Inferred resources and about 45.0 to 50.0 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.

This release may contain forward looking statements within the meaning of the "safe harbor" provisions of US laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. New Millennium does not assume any obligation to update any forward looking information contained in this news release.

To view an image of Figure 1: Property Overview please visit the following link: http://media3.marketwire.com/docs/21... .

To view an image of Figure 2a - Property Detail - DSO 2 & 3 please visit the following link: http://media3.marketwire.com/docs/21... .

To view an image of Figure 2b - Property Detail - DSO 4 please visit the following link: http://media3.marketwire.com/docs/21... .

To view an image of Figure 3 please visit the following link: http://media3.marketwire.com/docs/21... .

To view an image of Figure 4 please visit the following link: http://media3.marketwire.com/docs/21... .

To view an image of Figure 5 please visit the following link: http://media3.marketwire.com/docs/21... .

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