Baffinland Revises Bulk Sample Program Targets
TSX SYMBOL: BIM
TORONTO, ONTARIO – July 9, 2008 – Baffinland Iron Mines Corporation (“Baffinland”) announced today revised targets for the shipment of high grade iron ore under its Bulk Sample Program from its Mary River deposits on Baffin Island to key European blast furnace operators in 2008. Baffinland anticipates the shipment of between 120,000 tonnes and 150,000 tonnes of iron ore to be shipped to steelmakers in three trial cargos, of which two will be lump and one of iron ore fines.A reduction in the amount of iron ore anticipated to be shipped in 2008 under this program is primarily due to the advent of an earlier than anticipated spring melt combined with severe rainfall in the later part of June resulting in a need for extensive construction and maintenance work along the full length of the 100-kilometre tote road to the shipping site at Milne Inlet. Haulage of the bulk sample on this road has been interrupted for approximately six weeks. Drier weather recently has helped expedite work on the road and ore haulage is expected to resume by July 31, 2008.
To date blasted ore under the bulk sample program totals 166,956 tonnes, with 108,316 tonnes hauled to the crusher and 98,400 tonnes crushed. A total of 39,048 tonnes of ore has been hauled to Milne Inlet. An additional 40,000 to 50,000 tonnes of ore is scheduled to be mined and crushed during the summer months. The haulage and stevedoring equipment required to complete the bulk sample are on site, and two bulk carriers, the Federal Baffin and the Federal Franklin, managed by Fednav Limited, are nominated to deliver the ore to Europe.
The three shiploads of iron ore are anticipated to be delivered to Europe in 2008. The first ship is anticipated to load a cargo of lump iron ore around the end of August. A second shipment of lump iron ore is anticipated to be loaded in mid-September, and a final cargo of iron ore fines is anticipated to be loaded around the end of September. Discussions with Baffinland’s potential customers indicate that the revised bulk sample size will be sufficient to meet the original program objectives that being the final metallurgical test of the Mary River iron ore. The test results will be part of a “blast furnace technical report” that will be shared with potential customers and will form the basis for the negotiation of long-term sales and purchase agreements.
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Baffinland is a Canadian publicly-traded junior mining company that is focused on its wholly-owned Mary River iron ore deposits located on Baffin Island, Nunavut Territory, Canada.
FOR FURTHER INFORMATION CONTACT:
GORDON A. MCCREARY
President and CEO
RODNEY A. COOPER
Vice President, Operations and COO