|
|
|
Baffinland Appoints CEO and Provides Update on 2004 Drill Program |
05/26/2004 |
|
Download this Press Release
|
May 26, 2004 - Toronto, Ontario – Baffinland Iron Mines Corporation (TSX-V: BIM) (“Baffinland” or the “Company”) is pleased to announce the appointment of Gordon A. McCreary as Chief Executive Officer (“CEO”), in addition to his previous duties as Chairman of Baffinland. Mr. McCreary’s appointment as CEO became effective May 11, 2004 upon his resignation from Kinross Gold Corporation (“Kinross”) where he had been an officer since the inception of Kinross in 1993. During his tenure at Kinross, Gord’s responsibilities included corporate development and investor relations and at the time of his resignation he was Vice President Corporate Affairs.
Mr. McCreary is a Mining Engineer with approximately 30 years of experience in the mining industry with a particular focus on remote northern mining operations. He has a Masters of Business Administration (“MBA”) from Queen’s University where he completed his MBA thesis in 1978, entitled “A Preliminary Discussion of the Factors Relating to the Transportation of Iron Ore from the Arctic Archipelago”. The potential for the development of the high-grade Mary River iron ore deposits of Baffinland was the cornerstone of his MBA thesis.
Organizational and oversight responsibilities for the drilling program at Mary River are in the capable hands of Michael T. Zurowski, President of Baffinland. Michael is a Geological Engineer with over 20 years of mineral exploration experience, including 15 years with a major international mining company. He has been fully engaged in the Mary River Project for the last six months and had been partially involved for the prior three years.
The 2004 program at Mary River consists of a proposed 5,000 metre diamond drill program consisting of 25 to 30 holes and split into two budgeted phases with the following primary objectives:
• Expand the known resource base at the Number 1 deposit. The indicated resource of the Number 1 deposit, as delineated by 3,319 metres of diamond drilling in the mid-1960’s and determined in 2003 by Strathcona Mineral Services Limited, is 133.8 million tonnes grading 66.8% iron (“Fe”). This indicated resource conforms to sections 1.3 and 1.4 of National Instrument 43-101 and represents shallow drilling of the Number 1 deposit over a strike of approximately 1.2 kilometres of a total exposed strike length of approximately 3.5 kilometres. The Number 1 deposit remains open along strike in both directions and down dip from the limits of the previous diamond drilling.
• Establish a drill-indicated resource base at the Number 2, Number 3 and Number 3A deposits. These three deposits have not been drilled in the past but have had a significant amount of historic surface sampling with grades of approximately 67% to 68% Fe.
• Define the metallurgical (physical and chemical) characteristics of the iron ore deposits, particularly with regard to the potential of the deposits as direct-shipping lump and sinter feeds for European steel mills.
• Begin the consultation process with the local communities and the Qikiqtani Inuit Association to ultimately develop an Inuit Impact and Benefits Agreement for a potential multi-generational project. This will include the development of a socio-economic and environmental database to maximize benefits and minimize impacts.
• Review transportation corridors to potential deep-water ports on Milne Inlet and Steensby Inlet and investigate shipping alternatives.
The first phase of the 2004 program, estimated at a cost of $4.5 million, consists of the mobilization for the drill program, camp construction, drilling of 5,000 metres of large diameter core and the beginning of environmental baseline data collection. As a result of the private placements completed by Baffinland previously, the Company has sufficient funds for this first phase of the 2004 program. The mobilization for the 2004 program is proceeding well with two diamond drills and associated supplies and equipment currently positioned in Pond Inlet, 160 kilometres north of the Mary River airstrip. In early June, the camp, drills, fuel, salt, supplies and personnel are scheduled to be airlifted to Mary River and the drill program is expected to commence in mid-June on the Number 1 deposit. The 2004 drill program is forecast to be completed by mid-September.
The $3.0 million second phase of the 2004 program, subject to financing, is expected to consist of detailed metallurgical testing, preliminary and continued flora and fauna studies, development of a digital terrain model and the positioning of additional fuel, drill salt and equipment for continuation of the 2004 program and preparation for the proposed 2005 program. These supplies are planned to be delivered to the Arctic via this summer’s sealift that services the communities of the Canadian Arctic.
The 2005 program is intended to expand on the exploration work being completed in 2004 and is currently expected to consist of a minimum of 10,000 metres of large diameter core and continuation of environmental, socio-economic and engineering studies. Conceptually, the objective of the 2004 and 2005 drill programs is to delineate a substantial resource to support a direct-shipping iron ore operation focused on European markets with a production of approximately 10 million tonnes per year. Justification for such an operation would require an approximate doubling of the tonnage of the resources delineated in the 1960’s.
This press release includes certain “Forward–Looking Statements” within the meaning of section 21E of the United States Securities and Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Baffinland Iron Mines Corporation, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statement. Important factors that could cause actual results to differ material from Baffinland’s expectations are disclosed under the heading “Risk Factors” and elsewhere in Baffinland’s documents filed from time to time with the TSX Venture Exchange Inc. and other regulatory authorities.
THE TSX VENTURE EXCHANGE INC. HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE.
|
|
|
|