IRON ORE STUDY: Feasibility positive for New Millennium’s DSO project

QUEBEC - The feasibility is positive for its DSO (direct shipping ore) iron ore project, says New Millennium Capital of Calgary. The project would produce 4.0 million t/y of sinter fine and super fines. A mine life of at least 10 years is possible based on proven and probable reserves totalling 64.1 million tonnes.

The DSO project is a brownfield project near Schefferville, QC. Mining from the old pits can be restarted with a minimum of capital. A fly-in, fly-out operation with plant, offices and maintenance facilities located on the border with Labrador is planned. Tailings will be stored in a mined out pit. A rail line is available to ship concentrates to the Pointe Noire Terminal at Sept-Iles, QC.

The preproduction capital cost is estimated at US$300 million and working capital of about US$13.5 million. The unleveraged, pre-tax internal rate of return (IRR) is 29% with the initial capital payback expected in three years. About 200 jobs could be created.

New Millennium has sent the study for review by its joint venture partner, India's Tata Steel. Further details are available in the news release dated Feb. 25, 2010, at www.NMLResources.com.