March 07, 2005 - Toronto, Ontario – Baffinland Iron Mines Corporation (TSX-V: BIM) (“Baffinland” or the “Company”) announces initial metallurgical testwork completed on drill core composites from its 2004 advanced exploration program. Approximately 2.8 tonnes of drill core in 20 composite samples from Deposit No 1 were sent to Studien Gesellschaft für Eisenerz-Aufbereitung (SGA) in Germany for metallurgical testwork essential for evaluation of potential iron ore sale products to the steel industry. Of the 20 samples, Relative Reducibility (ISO Standard 7215 Test) has been completed on 9 of the samples to date.
Results for the first 9 samples are as follows:
|
Composite Sample # |
Reduction Test (ISO 7215) RI% |
Fe % |
Magnetite % |
SiO2 % |
Al2O3 % |
P % |
S % |
Drill Hole # |
|
2 |
54.3 |
69.22 |
18 |
0.69 |
0.44 |
0.012 |
<0.005 |
37 |
|
5 |
34.5 |
64.58 |
45 |
7.04 |
0.64 |
0.01 |
0.17 |
37 |
|
7 |
42.4 |
68.74 |
12 |
0.33 |
0.33 |
0.017 |
0.077 |
37 |
|
10 |
33.4 |
64.01 |
49 |
6.96 |
0.75 |
0.03 |
0.28 |
39 |
|
13 |
53.5 |
66.55 |
17 |
2.16 |
0.82 |
0.107 |
<0.005 |
44 |
|
14 |
56.2 |
65.66 |
4 |
1.89 |
0.68 |
0.117 |
0.006 |
44 |
|
15 |
49.9 |
62.43 |
8 |
4.75 |
1.29 |
0.097 |
0.005 |
44 |
|
16 |
48.1 |
65.7 |
75 |
0.43 |
0.7 |
0.012 |
0.26 |
34 |
|
17 |
46.3 |
62.14 |
88 |
2.46 |
1.45 |
0.039 |
0.45 |
34 |
Michael Zurowski, President of Baffinland stated that “The results are very encouraging with seven of the nine samples showing acceptable to excellent reducibility.” Two samples (#5 and #10) exhibit marginal reducibility. A very positive result for reducibility was determined for samples #16 and #17. These samples have a high lump potential despite the high magnetite content. Mr. Zurowski went on to state that “It was expected, due to historic testwork completed in the 1960’s and 1970’s, that sections of Deposit No. 1 with hematite dominant mineralization would be a high quality lump product, however the indicated lump potential of the magnetite rich portions of the Deposit are extremely encouraging and also indicative of a high quality lump deposit as well.”
The Relative Reducibility Test is designed to measure how the blast furnace converts iron oxide to relatively pure iron by a series of reduction reactions. The samples were selected based only upon the magnetite content (0-20%; 20-40%; 40-60%; 60-80%; and 80-100% magnetite) of the drill core to determine how the magnetite affects reducibility and potential as lump iron ore. The reason for the selection was negative conclusions drawn in Baffinland’s 43-101 qualifying report, written by Strathcona Mineral Services, December 2003, due to low reducibility in a surface magnetite sample. Reducibility is dependent upon porosity, permeability, grain size, mineralogy and iron content. Baffinland, like any new iron ore producer, will require considerable metallurgical testwork to define the characteristics of their sale products over the long-term.
Acceptable reducibility is an essential component for the determination of lump iron ore, which is a sized direct charge to the blast furnace and commands an approximate 27% premium in price to that of sinter feed. There are more than 63 separate standard tests specific to iron ore set by the International Standard Organisation. The initial twenty samples will establish the general characteristics of the deposit and determine which specific tests are required to determine consistency and predictability of any potential sale product. Although further testing is required, Baffinland is very encouraged by the results and believes that they confirm the high quality lump potential of the deposit.
Drilling at Deposit No. 1 in 2004 totalled 2,814 metres of large diameter core in 15 holes. Testwork on the phosphorous content has been completed and the average phosphorus content of the intercepts released previously is 0.052% P. This is somewhat higher than the phosphorus content calculated historically in the 1960’s, but still within the limits of a high quality lump ore product. An indicated resource at Deposit No. 1 contains approximately 116.7 million tonnes grading 68.3% Fe, 0.8% SiO2, 0.03% S and 0.03% P. In addition, a separate high sulphur resource contains 26.9 million tonnes grading 62.8% Fe, 3.8% SiO2, 0.43% S and 0.03% P. The 2004 drill results are not included in this estimate. However, the 2004 program has more than doubled the drill-indicated strike length of Deposit No 1 to over 2.5 kilometres and confirmed the depth extent to more than 400 metres below the ridge of the Deposit. Further the discovery of the new Upper Zone parallel to the southeast limb has significantly increased the average width.
Gordon McCreary, Chairman and CEO of Baffinland said, “These initial metallurgical test results, when combined with the assay results released in late 2004, are supportive of the Company’s view that Deposit No. 1 has the potential to become a significant lump iron ore producer.” As stated in previous Baffinland press releases, the objective of the 2004 and 2005 programs is to delineate a substantial resource to support a direct-shipping iron ore operation focused on European markets with a production rate 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 at a comparable grade and with comparable metallurgical attributes. Mr. McCreary stated further that, “The exploration and metallurgical results to date are supportive of a large directshipping ore operation with a majority of the production being in the form of lump iron ore that traditionally commands an approximate 27% premium price to fines.”
The testwork includes physical (tumble strength, abrasiveness, size distribution, etc.) and metallurgical (analysis, reduction under load, softening, dripping and melting in the REAS test, decrepitation, etc.) testwork. After complete receipt of the initial results, an additional 50 to 60 samples will be submitted for continued metallurgical testing. The initial results will determine specific parameters for the additional metallurgical testing, however, the samples will be based upon an anticipated mine plan rather than strictly mineralogy of hematite/magnetite content.
Testwork continues at SGA under the direct supervision of Dr Volker Ritz, Managing Director of the facility and who has approved the contents of this press release specifically relating to the metallurgical testwork. SGA has 83-years experience as a research centre for iron ore beneficiation, agglomeration and metallurgical testing of burden materials and mineral processing of raw materials for the Iron and Steel Industry and is owned by six European steel mills. Dr. Ritz stated that, “The initial results of the comprehensive metallurgical testwork being performed by SGA on the Baffinland composite samples is very encouraging regarding the quality lump ore potential of Baffinland’s Mary River Project”.
The press release has been prepared under the supervision of Michael T. Zurowski, P. Eng., a Qualified Person as defined by National Instrument 43-101. The reserve figure quoted in the text of this press release is a historical resource estimate, by Watts Griffis and McOuat Limited in the 1960’s, containing approximately 116.7 million tonnes grading 68.3% Fe, 0.8% SiO2, 0.03% S and 0.03% P. Management believes that the historical estimate is relevant and conforms to an indicated resource under NI 43-101.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict, including risks relating to the exploration and development of the Company’s iron ore deposits. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements. Additional information identifying risks and uncertainties is contained in the Company’s filings with the Canadian securities regulators, which filings are available at www.sedar.com.
THE TSX VENTURE EXCHANGE INC. HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE.
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