Advanced Explorations' Updated Resource Report Moves 60% of Resource from Inferred Into Indicated Category
TORONTO, ONTARIO -- (Marketwire) -- 04/06/11 -- Advanced Explorations Inc. (TSX VENTURE: AXI)(FRANKFURT: AE6) (the 'Company' or 'AEI') is pleased to announce an updated National Instrument (NI) 43-101 compliant mineral resource estimate for the C-Zone of its flagship Roche Bay iron project located on the east coast of the Melville Peninsula in Nunavut, Canada, as follows:
-- The resource estimate now includes 323 million tonnes in the Indicated
category averaging 26.7% total iron (25.8% magnetic iron) at a 20% iron
cut-off grade.
-- A further 226 million tonnes averaging 25.8% total iron (23.8% magnetic
iron) at a 20% iron cut-off grade remains in the Inferred category.
-- In comparison to the previous resource estimate (as press released March
12, 2009) approximately 60% of the original Inferred resource volume has
been re-classified as Indicated.
The upgraded resource classification is expected to positively impact the drill program at Roche Bay in support of the Feasibility Study while these new evaluations are also supporting the current approach to a concentrate production at Roche Bay.
As a result of a change in business models from greater than 96% iron nuggets to 67% iron concentrate production from the future Roche Bay mine, the iron cut-off grade was lowered from 25% to 20% as the new business model provides for a more simplified and more flexible production flow sheet. The concentrate model is included in the ongoing Feasibility Study which will also consider the additional results from this summer's drilling campaign.
John Gingerich, President and CEO, commented:
'We continue to be impressed with the results received from the Roche Bay Project. With almost two thirds of the original inferred resource now classified as indicated, we remain encouraged about the viability and quality of the ore body at Roche Bay as well as the remainder of the 140 km stretch of banded iron formation on the Melville Peninsula including our Tuktu project. The very positive impact of the coastal location on operation and development strategies will also play an important role in the Feasibility plan for Roche Bay. Further simplifying the mine plan has had additional impacts, and we are confident to successfully move the project into production'.
C-Zone Roche Bay Iron Project
April 6, 2011 Mineral Resource Estimate - Indicated and Inferred Resource
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Cut-off
grade Tonnes Total Magnetics
Fe (%) (Mt) Fe % (FE3O4%)(i) SIO2% AL2O3% MnO% P2O5% S% LOI%
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INDICATED 20 323.1 26.73 25.77 50.85 2.86 0.07 0.20 0.70 0.81
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25 211.7 28.74 29.71 49.75 2.27 0.06 0.20 0.62 0.67
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30 66.2 31.74 36.09 47.59 1.61 0.04 0.20 0.49 0.32
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INFERRED 20 226.3 25.85 23.85 51.83 3.09 0.07 0.20 0.81 1.04
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25 135.2 27.84 27.63 50.84 2.48 0.06 0.21 0.72 0.93
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30 20.6 31.56 35.07 48.08 1.66 0.04 0.19 0.56 0.63
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(i)Magnetics (Fe3O4 %) are the Satmagan results corrected to reflect Davis
Tube test work.
As part of the April 24, 2009 Roche Bay Magnetite Project C-Zone Technical Report, Golder provided recommendations to potentially improve confidence in future estimates, including validation of Satmagan test results with a representative suite of Davis Tube tests, as well as additional Satmagan tests. Following these recommendations, AEI provided Golder with an additional 1200 Satmagan and 200 Davis Tube test results. The Davis Tube results were analyzed by Golder and found to correlate very closely with the magnetic component indicated by the Satmagan values.
Golder remodeled the C-Zone mineralization (April 6, 2011 model) by including the new Satmagan data and applying a block modeling techniques called 'unfolding'. This technique tends to produce a more robust model with increased dependence on the characteristics of the mineralized data and less dependence on personal interpretation. Other than 'unfolding' the same basic interpolation techniques used in the April 24, 2009 technical report were applied to the April 6, 2011 model (Ordinary Kriging, etc) and the resulting mineral resource estimate yielded very similar results on a global basis when compared to the mineral resource estimate reported on March 12, 2009.
To provide additional confidence in the mineral resource, Golder also conducted an analysis based on potential annual production (10 million tonnes) for the C-Zone. In this analysis approximately half of the drill hole data was removed along the strike length of C-Zone. This resulted in data on every 400m section instead of 200m section. The C-Zone was then re-modeled and re-estimated using the same criteria, methods and parameters as used for the April 6, 2011 model. A volume approximately representing the potential annual production was then evaluated at various locations (for tonnes, grade and contained metal), throughout the April 6, 2011 model and the new 'reduced drill hole section' model. This comparative analysis showed a significant strike length portion of the model to have contained metals within /-15%.
Based on the comparison of the Satmagan and the Davis Tube data, the remodeling of the C-Zone using the 'unfolding' technique and the results of the study of potential annual production (10 million tonnes), Golder has re-classified approximately 60% of the original Inferred resource volume of the C-Zone as Indicated.
The updated mineral resource was completed by Mr. Greg Greenough, P.Geo., a qualified person for Golder, who has provided written permission for the release of this updated mineral resource estimate in the form and context in which it is provided here. The Company will file an updated NI 43-101 technical report within 45 days in regard of its updated mineral resource estimate.
ON BEHALF OF THE BOARD
John Gingerich, President & CEO
ABOUT Advanced Explorations Inc.
Advanced Explorations Inc., based in Toronto, Ontario, is a resource development company focused on its Roche Bay Iron Ore Project in Nunavut, one of the world's largest developing iron ore districts. The Roche Bay Project is located proximal to a natural deep water harbour on the east coast of the Melville Peninsula in Nunavut, Canada giving it many logistical advantages. The project has an indicated resource of 323 million tonnes, outlined within a small portion of the potential 140 km of banded iron formation. This iron formation incorporates the Roche Bay deposits, the Company's Tuktu deposits and other targeted deposits in areas to the north, south and west of the Company's Roche Bay Project. The preliminary economic assessment from the Roche Bay deposit alone indicates a potential net present value of US $1.1 billion, and the potential for rapid advancement into development of either iron concentrate or high value iron nugget products. The management team has extensive technical, exploration and Canadian Arctic mining expertise to effectively develop the high quality iron ore opportunities on the Melville Peninsula.
This news release also includes forward-looking statements that involve a number of risks and uncertainties. The information reflects numerous assumptions as to industry performance, general business and economic conditions, regulatory and legal requirements, taxes and other matters, many of which are beyond the control of the company. Similarly, this information assumes certain future business decisions that are subject to change. There can be no assurance that the results predicted here will be realized. Actual results may vary from those represented, and those variations may be material.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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Contacts:
Advanced Explorations Inc.
(416) 203-0057 x226