Advanced Explorations Inc announced that field work is underway on its iron ore properties located on the Melville Peninsula in Nunavut, Canada.
Moving forward with the development of its flagship Roche Bay Iron Project, AEI continued a geotechnical program that includes confirming water depths for Capesize ships in its natural deep water harbour at Roche Bay. In addition, recent metallurgical studies as part of flow sheet optimization on the C Zone resource indicate that concentrates in excess of 69% Fe, <5.0% Si and <0.07% S can be achieved. High quality concentrates with these specifications currently demand premium pricing.
Additional exploration work is also being undertaken to follow-up previously discovered high grade iron at the Tuktu Project to further determine the project's direct-ship ore potential. Initial field work has focused on the 1600 metre long ground magnetic anomaly where prospecting in 2011 yielded results in excess of 62% Fe (see press release October 26, 2011). Preliminary reports indicate, the northern portion of the anomaly is fairly well exposed and has been traced along strike for approximately 500 metres where it disappears under shallow cover. Widths up to 100 metres are noted, and of particular importance is the presence of abundant specular hematite. The first assays from the channel sampling are expected within the next 4 to 6 weeks.
The Company also wishes to report that it has been in strategic partnership discussions with several of the world's largest power generation companies who expressed interest in AEI's proposed LNG (Liquified Natural Gas) remote power solution program. It is anticipated that a memorandum of understanding will be concluded in the near future. The work undertaken by AEI suggests power generation savings of up to 65% over Arctic Diesel is possible with significant environmental benefits as well. Concluding a strategic partnership in the development of LNG power generation will bring to the project the capability and capacity to deliver the power solution and allow the Company to focus of the Roche Bay mine development.
Mr John Gingerich president & CEO commented that "We have made a continued effort to follow up on all of our promising iron ore assets while our priority remains the development of our flagship Roche Bay Iron Project. The results of the important geotechnical work at Roche Bay will benefit the detailed engineering work that is expected to commence after the completion and release of the Feasibility Study. At the same time, we are continuing to evaluate the DSO potential at Tuktu which could have a substantial impact on the economics and merit of both projects. There have also been important developments taking place in respect to our remote LNG power solution. The successful implementation of a power solution at Roche Bay will not only have potential to substantially lowering operating cost, these solutions could have a major impact on other northern resource projects and Canada's Arctic development strategy."
Source - Advanced Explorations
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