NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
New Millennium Iron Corp. ("NML" or the "Company") (TSX VENTURE:NML) announced
today its financial results for the second quarter ended June 30, 2011.
The following discussion of the Company's financial performance is based on the
Interim Consolidated Financial Statements and Management's Discussion and
Analysis ("MD&A"), which have been filed on the SEDAR website at www.sedar.com.
The Company's results of operations for the three months ended June 30, 2011, is
a net loss of $2,809,000 ($0.02 per share) compared to a net loss of $878,000
($0.01 per share) for the comparative period in 2010. This loss represents
expenses of $3,058,000 (2010 - $876,000) and a loss on sale of long-term
investments of Nil (2010 - $6,000), net of investment income of $250,000 (2010 -
$5,000). The most significant expense items were stock based compensation of
$1,845,000 ($53,000), general and administrative expenses of $645,000 (2010 -
$542,000) professional fees of $302,000 (2010 - $226,000) and market development
expenses of $247,000 (2010 - $46,000).
The net loss for the six month period ended June 30, 2011, was $5,580,000 ($0.03
per share) compared to a net loss of $1,376,000 ($0.01 per share) for the 2010
fiscal year. This loss represents expenses of $6,514,000 (2010 - $1,546,000) and
a loss on sale of long-term investments of Nil (2010 - $6,000), partially offset
by other income of $600,000 (2010 - $Nil), investment income of $335,000 (2010 -
$9,000) and an increase in fair value of long-term investments of $Nil (2010 -
$168,000). Again, the most significant expense items were stock-based
compensation of $2,690,000 (2010 - $117,000), professional fees of $2,193,000
(2010 - $413,000), general and administrative of $1,219,000 (2010 - $873,000),
and market development of $371,000 (2010 - $122,000).
As at June 30, 2011, the carrying value of mineral properties increased by
$2,288,000 to $54,423,000 from $52,135,000 as of December 31, 2010. The main
components of mineral properties at June 30, 2011, were mineral licences
($3,422,000), resource evaluation ($22,634,000), drilling ($21,528,000),
environmental ($14,062,000), amortization of property and equipment ($40,000),
net of tax credits and mining duties ($7,263,000).
The most significant second quarter 2011 activities, which are fully described
in the MD&A were: (1) the start of a bulk sample collection for pilot plant
testing in the Taconite Project feasibility study; (2) the signing of an Impact
and Benefit Agreement with the Nation Innu Matimekush-Lac John for the Direct
Shipping Ore ("DSO") Project; (3) the awarding of engineering, procurement and
construction management contract for the DSO Project; (4) the start of
mobilization to commence DSO Project construction during June 2011; (5) the
identification of two target areas for NML's 2011 drilling and resource
evaluation program; (6) the announcement of Robert A. Martin's retirement,
effective July 1st, 2011 and his remaining association with the Corporation as
Chairman of the Strategic Advisory Committee of the Board of Directors; the
appointment of Dean Journeaux as President and Chief Executive Officer, also
effective July 1st, 2011; (7) the appointment of Ernest Dempsey as
Vice-President Investor Relations & Corporate Affairs; and (8) the new brand
identity and the name change of the company to "New Millennium Iron Corp.".
Subsequent events also reported in the second quarter 2011 MD&A were: (1) the
progress of the bulk sampling program for pilot scale testing of the Taconite
Project; (2) the approval by the Government of Newfoundland and Labrador of the
surface lease application by Tata Steel Minerals Canada Ltd.; (3) the issuance
of permits for the site preparation and construction of the DSO Project camp;
(4) the start of the 2011 drilling program at the DSO properties to convert
historical resources for NI 43-101 compliance and hydrogeological survey; (5)
the start of drilling at NML's 100% owned Lac Ritchie Property, and progress
update; and (6) the plans to drill a new exploration target located between the
KeMag and LabMag deposits.
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 is also advancing its DSO Project to near term production.
Tata Steel Limited, one of largest steel producers in the world, owns
approximately 27% of New Millennium and is the Corporation's largest shareholder
and strategic partner.
Tata Steel has 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). Tata Steel also has exercised its exclusive right to
negotiate and settle a proposed transaction in respect of the LabMag Project and
the KeMag Project (see news release 11-09 dated March 6, 2011).
The Millennium Iron Range currently hosts two advanced projects: LabMag contains
3.5 billion tonnes of Proven and Probable reserves at a grade of 29.6% Fe plus
1.0 billion tonnes of Measured and Indicated resources at an average grade of
29.5% Fe and 1.2 billion tonnes of Inferred resources at an average grade of
29.3% Fe (see news release 06-13 dated July 5 2006 and news release 07-11 dated
July 17, 2007); KeMag contains 2.1 billion tonnes of Proven and Probable
reserves at an average grade of 31.3% Fe, 0.3 billion tonnes of Measured and
Indicated resources at an average grade of 31.3 % Fe and 1.0 billion tonnes of
Inferred resources at an average grade of 31.2% Fe (see news release 09-01 dated
January 16, 2009).
NML's DSO project contains 64.1 million tonnes of Proven and Probable Mineral
Reserves at an average grade of 58.8% Fe, 8.1 million tonnes of Measured and
Indicated Mineral Resources at an average grade of 58.8% Fe, 7.2 million tonnes
of Inferred Resources at an average grade of 56.8% Fe and about 40.0 - 45.0
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 and news release
10-12 dated July 8, 2010). A qualified person has not done sufficient work to
classify the historical estimate as current mineral resources and the historical
estimate should not be relied upon.
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.NMLiron.com,
www.tatasteel.com and www.tatasteeleurope.com.
Dean Journeaux, Eng., is the Qualified Person as defined in National Instrument
43-101 who has reviewed and verified the scientific and technical mining
disclosure contained in this news release.
Forward-Looking Statements
This document may contain "forward-looking statements" within the meaning of
Canadian securities legislation and the United States Private Securities
Litigation Reform Act of 1995 These forward-looking statements are made as of
the date of this document and the Corporation does not intend, and does not
assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and
reflect management of the Corporation's expectations or beliefs regarding future
events and include, but are not limited to, statements with respect to the
estimation of mineral reserves and resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production, costs of
production, capital expenditures, success of mining operations, environmental
risks, unanticipated reclamation expenses, title disputes or claims and
limitations on insurance coverage. In certain cases, forward-looking statements
can be identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or variations
of such words and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or
the negative of these terms or comparable terminology. By their very nature
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the Corporation to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements. Such
factors include, among others, risks related to actual results of current
exploration activities; changes in project parameters as plans continue to be
refined; future prices of resources; possible variations in ore reserves, grade
or recovery rates; accidents, labour disputes and other risks of the mining
industry; delays in obtaining governmental approvals or financing or in the
completion of development or construction activities; as well as those factors
detailed from time to time in the Corporation's interim and annual financial
statements and management's discussion and analysis of those statements, all of
which are filed and available for review on SEDAR at www.sedar.com.
Although the Corporation has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward looking statements.
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