Advanced Explorations Inc. Collaborates with Government of Nunavut on Alternative Power Solutions
TORONTO, ONTARIO -- (Marketwire) -- 04/03/12 -- Advanced Explorations Inc. (TSX VENTURE: AXI)(FRANKFURT: AE6) (the "Company" or "AEI") announces today that it has entered into an agreement with the Government of Nunavut, as represented by the Department of Economic Development & Transportation, to advance research on alternative energy sources for use in northern Canada. The Company continues to study energy sources for use at its Roche Bay and Tuktu iron ore projects located on the east coast of the Melville Peninsula, in Nunavut, Canada. The Company believes the application of alternative energy sources can supply power and reduce its operating costs for the future mine and allow potential production expansions.
Throughout the Arctic, communities and the economy rely exclusively on electricity generated from diesel fuel. With development of the Roche Bay project the use of more alternative power generation options is becoming increasingly attractive. The near shore location of the mine, coupled with access to a deep water port provides strategic partnership opportunities to fully leverage these advantages into a regionally based, alternative energy program. This approach would provide substantial benefits to the Roche Bay project and its surrounding communities. It could also have the potential to serve as a regional hub for Nunavut in producing cleaner, less expensive and more commercially sustainable power generation over the longer term.
The Company engaged Tetra Tech Wardrop ("Tetra Tech"), to prepare a Phase I report that assesses the technical and economic merits of alternative energy systems when compared to arctic diesel. The development of alternative power sources is of real interest to the Government of Nunavut, and as such the parties have agreed to collaborate and share any intellectual property generated from this work.
John Gingerich, President & CEO commented:
"The implementation of a sustainable, reliable and cost-effective power source for Canada's North is the key to unlocking its true value and to facilitate economic and social development at a broader scale. We are very pleased to work together with the Government of Nunavut in moving forward with this vision. Our team has successfully worked on implementing a plan for an alternative power solution, and we believe that the potential savings in capital and operating cost or our mining projects will play a key part on our way to becoming a cost-competitive producer in the iron ore space".
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 developing its Roche Bay and Tuktu Iron Ore Projects in one of the world's largest developing iron ore districts, the Melville Peninsula in Nunavut. The Ocean-based Roche Bay Project boasts an NI 43-101 compliant resource estimate of over 500 million tonnes outlined within a small portion of the potential 140 km of banded iron formation. A feasibility study for the project's C-Zone is near completion. To date, the Company has delineated over 1 billion tonnes of iron under NI 43-101 among its Roche Bay and Tuktu deposits and continues to explore other targeted deposits in areas to the north, south and west of Roche Bay. A 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 iron concentrate 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