Here's a nice simple solution i use for smaller files:
NSString *path = [[NSBundle mainBundle] pathForResource:@"Terrain1" ofType:@"txt"];
NSString *contents = [NSString stringWithContentsOfFile:path encoding:NSASCIIStringEncoding error:nil];
NSArray *lines = [contents componentsSeparatedByCharactersInSet:[NSCharacterSet characterSetWithCharactersInString:@"\r\n"]];
for (NSString* line in lines) {
if (line.length) {
NSLog(@"line: %@", line);
}
}