Baffinland Announces Economics for the Mary River Direct Shipping Road Haulage Project Option
Toronto, Ontario – Jan. 13, 2011 – Baffinland Iron Mines Corporation (TSX:BIM) (“Baffinland” or the “Company”) today announces results of the Feasibility Study on the Road Haulage Project Option on Deposit No. 1 of its 100%-owned Mary River Project, located in Nunavut Territory, Canada. The Road Haulage Feasibility Study (the “RHFS”) was completed by AMEC Americas Limited.The Road Haulage Project Option contemplates trucking the iron ore northwest along the existing 100 km Milne Inlet tote road 300-days per year and shipping iron ore using market vessel ships during an approximate 90-day (mid-July through mid-October) open water season in Milne Inlet. Mining and shipping targets 3 million tonnes of lump and fine iron ore production per annum. Production is expected to be 75% high quality lump iron ore and 25% premium quality fine iron ore (sinter feed). Baffinland’s lump and fine iron ores are expected to grade greater than 66% iron over the twenty-year life of production.
The Company expects that production would start in 2013 with approximately 1 million tonnes of iron ore being shipped This is the earliest date that production could be achieved assuming that the environmental assessment process is complete and permits are received by the second half of 2012. Full production of 3 million tonnes per annum is expected to commence in 2014 over an anticipated mine life of 20 years.
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