Advanced Explorations Inc. Reports Half Billion Tonnes in Indicated Category for C-Zone at Its Roche Bay Iron Project
TORONTO, ONTARIO -- (Marketwire) -- 01/17/12 -- Advanced Explorations Inc. (the 'Company' or 'AEI') (TSX VENTURE: AXI)(FRANKFURT: AE6) is pleased to announce two National Instrument (NI) 43-101 compliant mineral resource estimates for its Roche Bay Iron Project located on the east coast of the Melville Peninsula in Nunavut, Canada. As part of the ongoing feasibility study on the project's C-Zone, an updated resource estimate reported the following results:
-- The resource estimate now includes 501 million tonnes in the Indicated
category averaging 26.35% total iron (25.67 % magnetic iron) at a 20%
iron cut-off grade.
-- A further 66 million tonnes averaging 26.37% total iron (25.72 %
magnetic iron) at a 20% iron cut-off remains in the Inferred category.
-- In comparison to the previous resource estimate (as press released April
06, 2011) the Indicated resource has increased by approximately 55%.
The C-Zone resource upgrade is a result of additional diamond drilling from the 2011 field season and recently completed Davis Tube test work. Since 2007, a total of 95 NQ diameter (47.7 mm) diamond drill holes totaling over 27,000 metres has been drilled in order to define the 4,500 metre long C-Zone Banded Iron Formation.
John Gingerich, President and CEO, commented:
'AEI succeeded in its objective to upgrade the majority of the Inferred resources from the C-Zone into the Indicated category as a basis for sufficient modeling in the feasibility study. Furthermore, the Company has increased its entire NI 43-101 resource base to over one billion tonnes on the Melville Peninsula with its recent inferred resource estimate on the Tuktu Project of 465 million tonnes (see news releases dated November 28, 2011 and January 13, 2011), and today's announcement of 501 million tonnes of Indicated and 66 million tonnes of Inferred resources at the Roche Bay Iron Project. Over 80% of the region's banded iron formation remains untested, and we are excited about the future potential of increasing the resource base'.
C-ZONE INDICATED RESOURCE
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Cut-off Total
grade Tonnes Iron MnO P S
Fe % (Millions) (%) Fe3O4% SiO2% Al2O3% % % %
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15 561.4 25.46 24.25 51.50 3.22 0.073 0.087 0.76
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20 501.3 26.35 25.67 51.22 2.98 0.071 0.088 0.75
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25 316.8 28.36 29.87 50.15 2.38 0.061 0.090 0.66
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C-ZONE INFERRED RESOURCE
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Cut-off Total
grade Tonnes Iron MnO P S
Fe % (Millions) (%) Fe3O4% SiO2% Al2O3% % % %
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15 73.0 25.58 24.49 51.53 3.06 0.070 0.086 0.78
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20 65.9 26.37 25.72 51.23 2.88 0.068 0.086 0.76
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25 42.5 28.38 29.86 50.04 2.26 0.057 0.088 0.68
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As press released November 28th and July 25th, 2011, the Company also wishes to announce an initial resource estimate on the Roche Bay Project's A/B Zone:
-- The initial resource estimate for the A/B Zone is 92 million tonnes in
the Inferred category averaging 24.64% total iron at a 20% iron cut-off
grade.
-- The A/B Zone is located approximately 5 kilometres to the north east of
C-Zone and is part of the same Banded Iron Formation.
-- The area included in the Inferred resource represents only a small
portion of the actual A/B Zone magnetic footprint.
-- Drill holes used in this Inferred estimate were part of the 2008 drill
campaign and historical holes drilled in 1982 by Borealis Exploration.
'We are very pleased to have been able to include the A/B Zone Inferred resource in our Roche Bay resource update,' commented John Gingerich, President and CEO. 'Despite limited historical information, we were able to use two recent drill holes along with a number of historical holes to convert a small portion of the historical A/B Zone resource into an NI 43-101 compliant inferred resource.
This is a very important initial step toward developing a viable business model for the A/B Zone as an early start-up option, in parallel to the C Zone development phase. Metallurgical tests indicate this resource beneficiates to a high quality concentrate or to a lower grade (greater than 50% Fe) coarse dry concentrate as part of our overall business strategy for the Roche Bay Project. These scenarios provide additional potential flexibility to advance the project and to add value to all stages of its development'.
A/B-ZONE INFERRED RESOURCE
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Cut-off grade
Fe % Tonnes (Millions) Total Iron (%)
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15 142.8 22.20
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20 92.2 24.64
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25 38.6 27.88
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Note: magnetic iron and other elements reported for the C-Zone resource
estimate have not been included in the A/B-Zone resource estimate since
sampling results in 1982 did not include these elements.
Golder Associates Ltd. (Golder) completed the C-Zone mineral resource update and the A/B- Zone initial resource estimate. The mineral resource update and tonnage increase of Inferred to Indicated for the C-Zone is supported by the 2011 drilling, additional Davis Tube test results completed by AEI in 2011, and the strong correlation between Satamagan and Davis Tube test results for estimating magnetic iron from total iron. The same modeling methodology (unfolding, ordinary kriging) and parameters (search volumes, variogram ranges) were used as for the May 2011 NI 43-101 compliant mineral resource estimate.
The A/B-Zone Inferred initial resource estimate is based on 15 drill holes from 1982 and 2 drill holes in 2008. The same modeling methodology and parameters were used as for the C-Zone, based on the proximity to C-Zone and the same mineralisation host, style and orientation.
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's C Zone has an indicated resource of 501 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