QUEBEC and LABRADOR — New Millennium Capital (NML) of Calgary and a subsidiary of India’s Tata Steel are forming a joint venture to bring NML’s direct shipping ore (DSO) iron ore project into production. Tata will own 80% of the joint venture and will arrange up to $300 million toward construction, and purchase all of the output.
The DSO project contains 52.5 million tonnes of proven and probable reserves at an average grade of 58.9% Fe, 3.5 million tonnes of measured and indicated resources at an average grade of 59.0% Fe, 5.8 million tonnes of inferred resources at an average grade of 55.8% Fe, and about 40.0 million tonnes of historical resources that are not currently in compliance with 43-101 standards.
The DSO project includes several deposits in Quebec and Labrador near Schefferville, QC. A production start date in Q2 2011 is anticipated. Negotiations are underway on railway, terminal and First Nation agreements.
The entire technical report covering the DSO project may be read at www.NMLResources.com.