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Baffinland Reports Significant Drill Intercept in Deposit No. 3 |
12/04/2006 |
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December 4, 2006 - Toronto, Ontario – Baffinland Iron Mines Corporation (TSX: BIM) (“Baffinland” or the “Company”) today provided an up-date about the Company’s 2006 programs on its wholly-owned Mary River iron ore deposits, Baffin Island, Nunavut Territory, Canada. Baffinland completed 7,067 metres in the 2006 diamond drilling program, including geotechnical drilling, in-fill drilling on Deposit No. 1, step out drilling on Deposit No. 2 and the first drilling on Deposit No. 3. The geotechnical drilling was designed to test foundation conditions for infrastructure and provide data to assist in pit slope optimization for Deposit No. 1 for the Definitive Feasibility Study (“DFS”) that is being prepared by Aker Kvaerner E&C (“Aker Kvaerner”), a division of Aker Kvaerner Canada Inc., and is scheduled for completion in the fourth quarter of 2007.
The drilling of Deposits Nos. 2 and 3 was designed to test the “blue-sky” potential of these deposits for a Satellite Deposits Scoping Study to be prepared in parallel with the DFS for Deposit No. 1. This Scoping Study is to investigate the implications of subsequent expansion of the Mary River operation based on incremental production from the satellite deposits using much of the infrastructure established for the development of Deposit No.1.
The highlight of the 2006 drilling program was a continuous core interval of 169.8 metres of massive specular hematite in Deposit No. 3 where assays are pending. The interval was from 90.2 metres down the hole to 260 metres down the hole and the true thickness of this interval is interpreted as approximately 140 metres. The hole ended in mineralization due to technical drilling difficulties. Deposit No. 3 is located approximately 700 metres south of Deposit No. 2 and about 3.5 kilometres east of Deposit No.1. The current interpretation is that Deposit No. 2 is the faulted westerly extension of Deposit No. 3 and that Deposit No. 3A is the easterly extension of Deposit No. 3 with minimal outcrop available in the approximate 1.5 kilometre interval between Deposits Nos. 3 and 3A. A schematic plan view interpretation of Deposits Nos. 2, 3 and 3A is available at www.baffinland.com.
To date, assay results from the 2006 program have included partial assay results in several holes and two complete holes in Deposit No. 1 and two complete holes in Deposit No. 2 that support previous results. When sufficient additional assay results are available in December Baffinland will release the first batch of assay results from the 2006 program.
In addition to drilling and assaying, Baffinland made significant progress in data collection to support the DFS in the areas of metallurgical testwork, resource modeling, land and marine transportation studies, potential port assessments, environmental baseline data collection, socioeconomic assessment, traditional knowledge studies, renewable energy studies and iron ore market reconnaissance. In addition, later in the year Baffinland commenced negotiating the Inuit Impact and Benefits Agreement with the Qikiqtani Inuit Association. In May, Aker Kvaerner completed the Scoping Study for Deposit No. 1 generating capital cost estimates, operating cost estimates and completing economic analysis for a 10 million tonne per year production rate of the Mary River Project. Successful exploration has encouraged Baffinland to consider an expanded annual production rate in the DFS of 12.5 to 15 million tonnes per year with further expansion being accessed in the Satellite Deposits Scoping Study.
SGS Lakefield Research Limited performs assay and analytical work under a strict protocol designed for testing lump iron ores. Samples are then sent from Lakefield to Studien Gesellschaft für Eisenerz-Aufbereitung (SGA) in Germany, where they are composited for detailed metallurgical testing to ISO standards for iron ore. Baffinland expects to communicate several batches of technical data over the next few months. In addition, as this data becomes available we will update the appropriate section of the Baffinland website at www.baffinland.com with appropriate drawings such as cross-sections, to assist in the interpretation of the data.
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 Toronto Stock Exchange and other regulatory authorities.
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