Taconite Project

Tata Steel Ltd. and New Millennium Iron Corp.(TSX: NML) signed Heads of Agreement in March 2011 for undertaking a joint Feasibility Study for the Taconite Project. The Project comprises of LabMag and KeMag deposits which form a part of the Millennium Iron range in Northern Canada similar to the Mesabi Iron range in the United States.

Pre-feasibility study proposes annual production of 15 million tonnes of pellets and 7 million tonnes of concentrate.

The Feasibility Study is underway at an estimated cost of $50 million, 64% of which will be funded by Tata Steel Ltd. while the balance 36% will be shared by NML. SNC-Lavalin has been appointed as the Study Manager for the Feasibility and EIS Studies which is scheduled for completion by end 2012. Tata Steel will make an investment decision based on the outcome of the Feasibility Study.

The Taconite project has the potential to be one of the lowest-cost pellet producers in  North America.

Further details about the project can be summarized as in tables below:

LabMag Project

Category Billion tonnes Grade (Fe%)
* Proven+Probable 3.5 29.6
Measured+Indicated 1.0 29.5
Inferred 1.1 29.3

KéMag Project

Category Billion tonnes Grade (Fe%)
* Proven+Probable 2.1 31.2
Measured+Indicated 0.3 31.2
Inferred 1.0 31.2

Note: * Proven+Probable are NI-43-101 Compliant.