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Developing iron ore projects in Northern Quebec and Labrador
Message: Announces Filing of Pre-Feasibility Study Technical Report on KeMag
| March 3, 2009 |
| New Millennium Capital Corp. Announces Filing of Pre-Feasibility Study Technical Report on KeMag |
| CALGARY, ALBERTA--(Marketwire - March 3, 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 the filing today on SEDAR of the technical report on its 100% owned KeMag property ("the Project") prepared by the Consulting Engineer BBA Inc. ("BBA") located in Montreal, Quebec. The estimated mineral resources supporting the study were established by Geostat Systems International ("Geostat") also of Montreal, in compliance with NI 43-101. As reported on January 16, 2009, the Project assumes a mine and concentrator at Harris Lake, Quebec, and a 750 km slurry pipeline to a pellet plant and ship loading facility at Pointe-Noire, Quebec. The results of the Study are positive. Highlights of the KeMag Pre-Feasibility Study: - Production assumption of 15 million tonnes per year ("mtpy") pellets and 7 mtpy concentrate - Proven and Probable Mineral Reserves of 2.141 billion tonnes - Stripping ratio of 0.39 in the first 25 years - Total initial capital cost of US$3.8 billion and working capital of US$26.4 million - Internal rate of return ("IRR") of 25% (unleveraged and before corporate taxes and mining taxes) - Return on equity ("ROE") of 39% (before corporate taxes and mining taxes)(1) - Net present value ("NPV") of US$ 7.3 billion (before corporate taxes and mining taxes)(2) - Payback of 4 years after the start of commercial production - Minimum 28 years mine life - Direct jobs creation of 1,230 at the mine, concentrator, pipeline, pellet plant and shiploading facility. - Selling Price: BF grade pellets : US$ 89.8/tonne, Concentrate: US$58.7/tonne (1) Based on a 30/70 equity/debt ratio. (2) Based on a 8% discount rate. Other Project Highlights: - Anticipated start of construction during 2nd quarter 2011 - Anticipated start of commercial production in 2014 - Accuracy of the cost estimates in the Study is considered to be +/- 25% - Exchange rates used for cost estimates and revenues are 0.85 US$ per CDN$ - Operating cash cost of US$ 23 per tonne of pellets (BF) - NPV at 8% discount rate is estimated at US$ 7.3 billion - Total undiscounted Cash Flow of US$ 28.1 billion - Forecast average yearly Cash Flow after debt payments exceeds US$ 1.1 billion - Economics presented are based on an estimated 25 year mine plan - Mine life is expected to exceed 28 years, based on current Proven and Probable Mineral Reserves and estimated pipeline throughput of 21.2 mtpy of concentrate 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 its 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 take 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. |
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