Advanced Explorations Inc. Update on Roche Bay Iron Project
TORONTO, ONTARIO -- (Marketwire) -- 09/28/11 -- Advanced Explorations Inc. (TSX VENTURE: AXI)(FRANKFURT: AE6) (the 'Company' or 'AEI') wishes to provide an update on its progress relating to the 2011 Roche Bay Iron Project program. The 2011 summer resource and geotechnical drilling at Roche Bay has recently been completed, and the Company is in the process of closing down onsite field activities. The results from the civil geotechnical program will be used to finalize the layout of infrastructure for the ongoing Feasibility Study ('FS'). Resource and technical information gained from this program will be used to update the tonnage for the resource model, while upgrading inferred to indicated resources and for the open pit geotechnical study.
The recent visit of the Chinese delegation (as press released September 7th, 2011) successfully accomplished a challenging schedule of community meetings along with detailed technical review meetings of the project. The technical reviews involved the key engineering team and AEI team members assigned to the feasibility study. The delegation also took the opportunity to visit the Roche Bay site and to examine several representative northern mining operations including a visit of a recently commissioned operation.
Mr. Yaogan Zeng, Vice President, Xinxing Ductile Pipes Co. Ltd. ('XDIP'), commented:
'Our organization would first like to express our gratitude for the warm reception we received in Canada and Nunavut in particular. We have been pleased with the efforts of both our Chinese experts led by Han-Xing Mining Institute in conducting our technical due diligence and by Wardrop Engineering (a Tetra Tech Company) in advancing the Roche Bay Feasibility Study. XinXing Pipes Group ('XXP') is actively promoting the completion of the China process for the project and is working with AEI to conclude the Joint Venture agreement in the near term while we are eagerly awaiting the final feasibility study report'.
Subsequent to shareholder and TSX Venture Exchange approval to enter into a Joint Venture Agreement with XXP (as press released June 30th, 2011 and July 28th) with the intent to bring the Roche Bay Iron Project into production, the Company established a financial (invoicing/cash call) and technical framework for implementation of the feasibility study and Joint Venture. Given positive FS results and support from XXP, along with strong iron ore prices, the completion of the formal Joint Venture agreement (see September 27th, 2010 press release) and approval process by the Chinese government are expected to be completed in the near future.
John Gingerich, President and CEO, commented:
'We accomplished the required 2011 objectives and remain on track to have the draft FS submitted by Q4 of this year with the final report in early 2012. As part of this process, another revised NI 43-101 resource report will be released this fall updating the resource base to be used in the FS study. The feasibility study is expected to continue on track, and with the consolidation of our relationship with XXP, an exciting future for AEI lies ahead. Dedication and priority focus on Roche Bay has allowed us to move forward despite delays and markets conditions'.
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 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 ('PEA') 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. A feasibility study is currently underway that is examining a concentrate start up operation of 5 million tonnes per year. Future expansions will consider additional concentrate and/or iron nuggets as envisaged in the PEA filed on SEDAR. 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