New Millennium Iron Corp. Reports 23.45% Increase in DSO Project Indicated Resource Estimate
Date : 02/24/2014 @ 6:00AM
Source : Marketwired
Stock : New Millennium Iron Corp. (QX) (NWLNF)
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New Millennium Iron Corp. Reports 23.45% Increase in DSO Project Indicated Resource Estimate
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New Millennium Iron Corp. Reports 23.45% Increase in DSO Project Indicated Resource Estimate
CALGARY, ALBERTA--(Marketwired - Feb 24, 2014) - New Millennium Iron Corp. ("NML" or the "Corporation") (TSX:NML)(OTCQX:NWLNF) announced today the results of the 2012 drill program conducted on the DSO Project by Tata Steel Minerals Canada Ltd. ("TSMC"), a joint venture between NML and Tata Steel owned 20% by NML. Three deposits were drilled in Area 4: Kivivic 1C, Kivivic 2 and Kivivic 5 (Figure 1.) The drilling consisted of 28 exploration and definition holes for a total of 1,387.3 meters resulting in a 23.45% increase in the Indicated resource estimate compared to the most recent resource estimate published in 2012 (NR 12-14). The gravity anomaly drilled is one of the 13 strong gravity anomalies outlined by the 2010 Airborne Magnetometer and Gravity survey (NR11-03) and the follow up ground gravity survey (NR12-12).
Robert Patzelt, President and CEO of NML, said: "This addition to the growing resource base is very welcome news. The increase of NI 43-101 compliant Indicated resources gives TSMC the option to potentially increase mine life or consider a higher production rate. We are pleased to note that the potential exists to discover additional DSO resources, which could add to the current certified resources. We will be concentrating in the vicinity of the plant location because new discoveries in that area would be beneficial due to shorter haulage distances. It is encouraging that TSMC has identified high priority targets that will be further investigated."
2012 Area 4 Deposit Drilling
In-fill drilling was carried out in deposits Kivivic 1C, Kivivic 2 and Kivivic 5 in 2012. The objective is to fully define the structure and the ore extent and grade of all three ore bodies. During the program, 28 holes for a total of 1,387.3 meters were drilled. All the samples collected were processed at the site facility and the required amounts were sent to Accurassay Laboratory, Thunder Bay, Ontario for final chemical analysis. Table 1 below summarizes the 2012 program.
Table 1
Area Deposit No. of Holes Total Meters Total Samples
4 Kivivic 1C 11 756.0 247
4 Kivivic 2 11 411.7 135
4 Kivivic 5 6 219.6 72
Total 28 1,387.3 454
Table 2 below provides the overall grade of the 3 deposits based on the entire drilling done to date. Kivivic 1C, Kivivic 2 and Kivivic 5 average 59.36%, 60.28% and 60.17% Fe with SiO2 values at 7.50%, 10.25% and 10.35%, respectively (Appendix 1, Table 7). Table 2 below also provides the average grade of each of the deposits on a yearly basis.
Table 2
Deposit Year Meters in Ore Fe% SiO2% Al2O3% Mn% P% LOI%
Kivivic 1C 2011 291.99 60.90 6.06 0.551 0.04 0.031 6.67
2012 243.83 57.51 9.23 0.755 0.04 0.062 5.34
Average 59.36 7.50 0.644 0.04 0.045 6.06
Kivivic 2 2011 534.8 60.21 9.82 0.954 0.37 0.016 2.30
2012 286.51 60.41 11.04 0.673 0.06 0.009 1.61
Average 60.28 10.25 0.856 0.262 0.014 2.06
Kivivic 5 2008 247.0 61.48 8.49 0.280 0.091 0.014 1.72
2011 259.2 58.34 12.49 0.981 0.43 0.022 2.56
2012 128.02 61.36 9.61 0.382 0.031 0.005 2.03
Average 60.17 10.35 0.587 0.217 0.015 2.13
Summary of Mineral Resource Estimate:
The primary objective of the drilling program was to convert Inferred and historical resources to NI 43-101 compliant Indicated and Measured resources. A summary of the Mineral Resource estimate, based on the additional 2012 drilling, is reported in Table 3. The most recent Resource Estimate is contained in Table 2 of NR 12-14, dated May 31, 2012. The new estimate consists of approximately 98.9 million tonnes of Measured and Indicated Mineral Resources at an average grade of 59.3% Fe on a dry basis plus an additional 6.7 million tonnes of Inferred Mineral Resources at 56.7% Fe.
Table 3
Summary of Updated Resource Estimate based on 2012 Drilling
(Using cut-off grades of Fe = Greater than 50%, SiO2 Less than 18% and Mn Less than 3.5%)
Resource
Classification Tonnes (millions)
2011 Drilling Tonnes (millions)
2012 Drilling %
increase %
Fe %
SiO2 %
MnO
Measured 26.5 26.5 0% 59.6 6.3 0.13
Indicated 58.6 72.4 23.5% 59.2 9.3 0.40
Total M+I 85.1 98.9 16.2% 59.3 8.5 0.33
Inferred 10.3 6.7 -34.9% 56.7 10.5 0.82
Mineral resources that are not mineral reserves have not yet been demonstrated as economically viable to mine. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral 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.
Resource Modeling, Kivivic 1C, Kivivic 2 and Kivivic 5
Resource models for these deposits were completed by NML. Table 4 provides the estimated resources for each deposit. All these deposits required additional drilling to upgrade and expand the resource base. Figures 2 to 7 in Appendix 2 show the surface extent of the deposits with holes drilled to date and the typical sections from each of the deposits.
Table 4
Summary of Resource Estimate based on 2012 drilling
(Using cut-off grades of Fe = Greater than 50%, SiO2 Less than 18% and Mn Less than 3.5%)
Deposit Classification K tonnes Fe% SiO2% MnO%
Kivivic 1C Indicated 6,682 59.98 7.25 0.05
Kivivic 2 Indicated 13,380 61.09 9.77 0.25
Kivivic 5 Indicated 8,751 60.34 10.55 0.12
Total 28,813 60.60 9.42 0.16
Resource Estimation Methodology
The resource estimation of the Kivivic 1C, Kivivic 2 and Kivivic 5 was done using the same 3D block modeling methodology as previous estimates, where the grades in each block are estimated by interpolation of the surrounding drill hole composites. First, 3D mineralized envelopes are developed delineating potentially mineralized rock. They were created from geological interpretation made on 2D vertical sections from the drill hole information. Next, a 3D block grid is created and covers the extent of the mineralized envelope created above. Each block is interpolated using the Inverse Distance Weighting (IDW) interpolation method. The grades for each lithology are interpolated using only the composites belonging to that lithology. The historical bulk density value of 3.0 was used to convert volumes into in-situ tonnes. With the additional 2012 drilling, there is now sufficient confidence in the resources to classify them as indicated. The classified mineral resources are the accumulation of the individual blocks inside the mineralized rock types and inside each classification zone. Only the blocks having a Fe grade above 50%, a SiO2 grade below 18% and a MnO grade below 4.5% (Mn<3.5) are considered to be mineralized for the purposes of the mineral resource estimates. NML established the estimate of additional Mineral Resources internally which was reviewed by Qualified Persons (as defined by National Instrument 43-101) who have experience with the DSO Project and relevant expertise.
Results of 2012 Gravity Anomaly Drilling, Timmins Plant Area
The 2010 Airborne Magnetometer and Gravity survey outlined 50 strong gravity anomalies with coinciding weak magnetic anomalies within the properties held by TSMC in QC and NL. The ground gravity survey carried out in the fall of 2011 and the summer of 2012, by Géosig Ltée of Québec, was to validate the locations of the airborne gravity anomalies on the ground. Table 5 provides the details of this survey. One gravity anomaly area, approximately 300 meters northwest of Timmins DSO plant site was explored by drilling 7 test holes for a total of 216.4 meters (Figure 1). Seventy two (72) samples were collected and sent to Accurassay Laboratory in Thunder Bay, Ontario, for analysis. The assay results indicate that the iron formation is leached and enriched with a potential for the presence of a DSO deposit. Table 6 gives details of the 2012 drilling with holes intersecting leached and enriched material. This area needs to be fully explored by drilling. Table 5 shows the details of the ground gravity survey conducted in 2012. The survey covered 27 lines over a length of 34.7 line kilometers.
Table 5
Location Province Number of Lines Length, Line km Number of Stations
Quebec 23 30.6 630
Newfoundland & Labrador 4 4.1 84
Total 27 34.7 714
The ground survey results were interpreted by Jean M. Hubert, P.Eng, consulting geophysicist for TSMC. Some of the anomaly areas surveyed covers the known DSO deposits. The intensity of the gravity anomaly (mgals values) over the deposits varies between 1.05 and 1.51. Comparable gravity values (mgals) seem to occur in all the surveyed areas indicating the potential for discovering additional DSO deposits. J. M. Hubert interpreted and evaluated all the survey data and recommended follow up surface exploration work with test pitting, trenching and test drilling of selected anomalies as shown in Appendix 3 Table 8. These selected targets show moderate to strong gravity values coinciding with moderate to weak magnetic anomalies.
Table 6
Hole No Coordinates UTM Total Interval meters Length Average Assay %
Easting Northing Depth m From To meters Fe SiO2 Al2O3 MnO P LOI
12TFN008 622009 6084602 32.89 0.00 30.48 30.48 44.51 33.58 0.75 0.04 0.01 1.73
12TFN009 622139 6084422 39.47 6.10 36.58 30.48 48.51 27.99 0.85 0.03 0.04 1.54
12TFN008A 521977 6084579 32.89 0.00 30.48 30.48 56.89 16.54 0.59 0.03 0.01 1.30
12TFN020 621737 6084684 39.47 3.05 33.53 30.48 54.18 21.20 0.23 0.03 0.01 0.92
12TFN021 621857 6084635 26.32 0.00 3.05 3.05 52.76 20.66 0.93 0.07 0.01 2.50
12TFN019 621875 6084714 39.47 3.05 36.58 33.53 55.82 17.87 0.03 0.01 0.03 1.53
Proposed 2014 Summer Exploration Program
The preliminary drilling results of the Timmins Plant Site anomaly indicate the presence of leached and enriched DSO type of material in that area (Table 6). Because of the on-going production, work prioritization and development of several deposits to feed the dry crushing and screening plant, no work was undertaken in 2013 to further evaluate the anomaly. This area is planned to be fully explored with additional drilling during the summer of 2014. In addition, all recommended gravity anomaly targets, will be test pitted and trenched initially by using backhoes in a systematic manner. If DSO type of material is encountered, the area will be trenched, mapped, sampled and the mineralized area will be delineated. In areas of deep overburden, test drilling will be carried out in a grid pattern to outline the leached and enriched zones. Detailed drilling will follow in potential areas outlined by initial exploration test pitting and trenching.
