RE: 2 key Questions kgman, I would suggest you visit their website. It is very informative.
Keep in mind this is a long term project, it's not like drilling and producing an oil well. Think of it as similar to a Fort McMurray Oil Sands project. Capital intensive but very profitable. Iron ore is in similar demand to oil and prices are reacting accordingly,(we have recently seen current prices on new ore and pellet contracts rise 70-80% over previous rates).
Below are some excerpts from their website and the recent news release of Feb 28-2005 that address your questions
Website:
The LabMag Iron Ore Project is one of the largest potential iron-ore resources of its type in the world. New Millennium Capital Corp. (NML) plans to develop this resource into a new world-class iron-ore project.
The Labrador-based LabMag Iron Ore Project proposal is planned to be an open-pit mine, utilizing a standard shovel/truck operation that will mine 33 million tonnes of crude ore per year for an estimated 20 years.
News Release:
The present News Release reports the results of an additional 27 holes with a combined length of 1,772 metres that were drilled on seven additional section lines traversing block “A”. These latest results continue to indicate that a high quality concentrate, in the order of more than 69% and less than 3% silica, can be made from the rock represented by these diamond drill cores.
Geological modelling has commenced. A scoping study has been initiated by the NML (LabMag team) of technical specialists. This study will outline the various facilities such as the mine, crusher, concentrator, pipeline, pellet plant, port and other associated facilities required to develop the project. The study is expected to be complete by May 15, 2005.
News Release:
In January, 2005, NML’s President and CEO, Robert Martin, headed a marketing team to the Far East, in addition to being part of the Canada Trade Mission to China representing the natural resource industry. Mr. Martin and his team met all of the major steel producers in South Korea, China and the Province of Taiwan. They also met with major trading companies in both China and Japan. In Europe and North America, preliminary contacts have been made with the large iron ore users to schedule presentations. Iron ore users have shown a high level of interest and further meetings
are scheduled to develop potential business relationships.
In my opinion, they will have no trouble attracting interest and financing for this project. This project will take several years before it brings product to the market but it is very likely that the valuation of iron ore will continue to increase over those years. The prize which the "market" will eventually realize will be the minimum indicated resource of 660 million tonnes of iron ore, sufficient to operate the planned facilities for 20 years. This "minimum indicated" would very likely increase as they are actively claiming additional land as per the below excerpt from their Feb 17-2005 news release.
News Release
A total of 141 new claims with potential for open pit direct shipping ores have been applied for.They are comprised of 40 claims (2,000 hectares) in 10 different groups in Quebec; and in Labrador, 101 claims (2,525 hectares) in 5 different groups. In addition a total of 250 claims with open pit magnetite iron potential were registered, 103 claims (5,000 hectares) in Quebec in 4 groups and 147 claims (3,675 hectares) in 4 groups in Labrador. These claims will increase NML’s property holdings in the Schefferville area by a total of 391 claims, the equivalent of 13,200 hectares or 132 sq. km.
Do your research and have patience
Brax21