active projects now and resources for the future calgary_20120605...1 dean journeaux . president and...

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Dean Journeaux President and CEO New Millennium Iron Corp. AGM Calgary – June 5, 2012 1

Active Projects Now and Resources for the Future

2 AGM Calgary – June 5, 2012

Safe Harbour Statement

New Millennium Iron Corp. shall not be liable or responsible for any claim or damage, direct or indirect, special or consequential, incurred by the user arising out of the interpretation, reliance upon or other use of the information. Users should not rely on information for any purpose other than for gaining general knowledge of New Millennium Iron Corp. Although New Millennium Iron Corp. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Resources listed as “historical” are not currently in compliance with NI 43-101, and a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. The Corporation is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.

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Emerging leader in iron ore

AGM Calgary – June 5, 2012 3

• Controls an entire iron ore district

• DSO production in 2012

• Taconite Project - Company builder

in feasibility stage • Among Canada’s most experienced

iron ore teams, with strong ties to the Labrador Trough

• Canada’s largest holder of certified 43-101 resources: 10.4 BT Measured & Indicated, 3.6 BT Inferred

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NML at a glance


TSX Symbol NML

Shares Outstanding 178,211,646

Options (avg. $1.59) 11,871,000

Agents' Warrants (avg. $3.50 ) 1,084,285

Shares Fully Diluted 191,166,931

Share Price (May 25, 2012) 1.72$

52 Week High/Low 3.23 / 0.90

Market Capitalization 306,524,031$

Working Capital (Est. March 31, 2012) 103,240,000$

Market Facts• TSX Listing – October

2011

• Strong working capital position

• Growing analyst coverage

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Projects building long-term growth


Exploration

DSO

Taconite

Direct Shipping Ore On the path to production

KéMag & LabMag deposits A Company Builder

Defining the resource base A huge iron ore district, controlled by NML

• Production start in December 2012 • 100% off-take guaranteed by Partner

Tata Steel • $20-$40 M expected annual cash

flow based on current prices

• Among the world’s largest undeveloped magnetite deposits

• Feasibility Study jointly with Tata Steel, completion in December 2012

• Investment decision Q2, 2013

• 43-101 for lac Ritchie resources: 3.3 BT Measured & Indicated, 1.4 BT Inferred

• Drilling at major targets in the Millennium Iron Range (“MIR”)

• 8,500m of drilling in 2012

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Strong, credible partner


a respected multi-national

company

Requires 20-25 mtpy of iron ore in Europe

No captive iron ore source for its European operations

Also considering merchant mining business

One of the World’s largest steel companies

Crude steel capacity of 28 mtpy with plan to increase to 40 mtpy by 2020

Partnership for DSO Project and Taconite Project

Tata Steel owns 26.9% of NML and has 3 Board members

~ 3,700 nautical miles

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DSO Project - Overview

• Owned and operated by Tata Steel Minerals Canada –Tata 80%, NML 20%

• Processing complex, housed under a weather-proof structural dome

• First company in Schefferville area to operate year round

• Engineered to be among the lowest cost operations

• Quality to meet Tata Steel Europe’s specifications with Fe > 64.5% and Al2O3 + SiO2 < 4.5%, Moisture <2.5% in winter

• 84% recovery with integrated plant

• 4.2 mtpy of sinter fines and super fines


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DSO Project - Steady progress


• EPCM work in progress with orders placed for long delivery items

• All permits secured to complete construction

• Agreements with all four First Nations

• Rail Tariff Agreement signed with Quebec North Shore and Labrador Railway and Tshiuetin Rail Transportation

• Camp inaugurated and operational

• Site preparation and foundation installation in progress

• Dome installation begun in Q2, 2012

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DSO Project - Completion schedule


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Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013

Timmins Site

Commissioning

Q4 2013

Camp Installation

Fabrication / Erection Dome

Foundations

Erection / Structural Steel

Equipment Procurement & Delivery

Installation Mechanical / Electrical

Plant Commissioning

Ramping up Production to 100 %

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DSO Project: Increasing the resource base


New DSO Targets 25 Existing DSO Deposits

Anomalies continued to be investigated High priority targets identified in 2011, to be further investigated

64.1 Million Tonnes 31.3 Million Tonnes 26.4 Million Tonnes Historical Resources

P+P Reserves Additional M+I+I Resources

120.0 million tonnes of resources In situ grades 58-60% Fe

2,700 meters to be drilled in 2012

Over 50 new anomalies based on the results of aerial gravity surveys


Taconite Project - Overview • Heads-of-Agreement signed with Tata Steel in March 2011 • Bankable feasibility study in progress with completion targeted

for end of 2012 LabMag and KéMag deposits being evaluated Budget of $50 million Jointly managed and cost shared: Tata Steel 64%, NML 36%

• Tata Steel investment decision in Q2, 2013

• Subject to a positive feasibility study, Tata will arrange financing up to $4.85 Billion, excess to be shared pro-rata

• NML has 20% equity free-carry with total equity opportunity of

up to 40%

• Off-take interest in proportion to ownership

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Taconite Project: Plant and infrastructure

22 mtpy concentrator

600+ km slurry pipeline

17 mtpy pellet plant

270 km transmission line

(To be built by hydro provider)

3 million tonne capacity stockpile at terminal

Federal Government funding announced for state-of-the-art, multi-user loading dock to be built by the Port of Sept-Iles

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Taconite Project - A competitive new supplier


• Fine-grained concentrate ideally suited for low-cost pipeline transport • Enables cost-effective alternative to rail

High quality products from ~30% Fe head grade Concentrate Fe 69.7% SiO2 2.7% BF Pellets Fe 66.4% SiO2 3.7% DR Pellets Fe 67.5% SiO2 1.8%

• This pipeline makes NML potentially the lowest-cost North American pellet producer

Cost Comparison:

Rail (including capital cost)

$12 - 15 / tonne

Pipeline (not including capital cost)

$2 / tonne


Taconite Project - Status

• Environmental base line studies in progress • Innu / SNC-Lavalin engaged as Study Manager, working with leading specialized consultants:

– Met-Chem Canada Inc., Montréal, Québec: Mining – Barr Engineering, Minneapolis Minnesota: Concentrator and Upgrading Plant – Brass Engineering, San Ramon, California: Slurry pipeline – Outotec, Espoo, Finland: State-of-the-art pelletizing technology – Innu/SNC-Lavalin Limited Partnership, Montréal, Québec: Tailings, site

infrastructure, electrical transmission and product storage

• World Steel Dynamics, Englewood Cliffs, New Jersey: Market Study

• Discussion with potential off-takers

• Feasibility study to be completed by Q4, 2012

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Taconite Project Schedule


2013 2011 2012 2016

Complete Feasibility Study, jointly with Tata Steel

Development to Production

Tata Steel: Investment decision targeted by end of April, 2013

2014 2015

2013 2011 2012 2016 2014 2015

2017

2017

Engineering and Construction

Production

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Exploration – Building a massive resource base

Taconite Project Resource Estimate Category (M tonnes)

KéMag LabMag lac Ritchie

Proven + Probable

2,141 3,545

Measured + Indicated

307 1,045 3,330

Inferred 1,014 1,151 1,437

Fe Grade (average)

31.2% 29.5% 30.0%


NML is among the World’s largest holders of certified iron ore resources

• 2012 Exploration in progress, with 8,500 meters planned.

Initial drill results expected in Q2, 2012.

• Possible existence of a 90 km long mineralized belt extending from KéMag to Perault Lake.

• The Millennium Iron Range is a potential iron ore district, comparable to the US State of Minnesota’s Mesabi Range.

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Poised to supply growing global steel demand

• Forecasters agree that wealth creation, urbanization and industrialization in developing countries will continue to push up demand for steel for infrastructure, housing and durable goods and sustain strong iron ore demand.

• Medium case here forecasts ~2.1 billion Mt per year by 2025, v. 1.4 billion in 2011.

• China alone expected to import 1.3 billion Mt of iron ore in 2020, versus 654 Mt in 2011.

• Rio Tinto projects that over next 7 years global supply additions need to be at rate of at least 100 Mt each year to satisfy demand growth and replace supply exits. Source: McKinsey & Company



NML – Events on the horizon

DSO Project: • Erection of the domed structure beginning in Q2, 2012 • Commissioning of the plant Q4, 2012 • Production start by end of 2012

Taconite Project: • Progress of engineering and pilot plant testing • Development of offtake opportunities to supplement Tata Steel • Feasibility Study to be completed in Q4, 2012

Exploration Projects: • Publication of initial Perault Lake results in Q2, 2012 • Continuous reporting of results throughout the year • Publication of complete drill core results by year end

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Conclusion

Properties located in mining-friendly jurisdictions

Two advanced projects in one of world’s richest iron regions

High-value iron to supply rising global demand

Strategic partner Tata Steel needs the ore

Experienced management team

Strategy in place to form new partnerships

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www.NMLiron.com

Thank you.

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active projects now and resources for the future calgary_20120605...1 dean journeaux . president and...

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