News:
Advanced Explorations Inc. to Expand Feasibility Production Target at Roche Bay Iron Ore Project
5/9/2011 8:40:55 AM - Market Wire
TORONTO, ONTARIO, May 09, 2011 (MARKETWIRE via COMTEX News Network) --
Advanced Explorations Inc. (TSX VENTURE: AXI)(FRANKFURT: AE6) (the "Company" or "AEI") is pleased to announce progress in the ongoing Feasibility Study work for the C-Zone of its Roche Bay Iron Project. The Company has concluded multiple advantages may be drawn from an increased production of up to 5 million tonnes per year of concentrate (65%-66% Fe grade). This represents a 66% increase in production from the previously announced base case (3 million tonnes per year).
The proximity of the ore body to future port facilities, the relatively low infrastructure CAPEX requirements, a simplified production flow sheet, and the recently announced increase in global resources (inferred and indicated as press released April 26) at Roche Bay provide additional operational flexibility and scalability of production:
-- More near term production to take advantage of the anticipated high iron
ore prices due to increasing demand out of China, India and Japan.
-- Operational cost efficiencies from increased scale of production.
-- Improved leverage of the project's unique ocean location given the
global bottleneck created from lack of effective railroad
infrastructure/access and port capacities.
-- Higher (and earlier) cash flows to current plan, with concurrent
positive influence on IRR and NPV.
-- Low technical risk (proven and established technologies), relatively low
CAPEX, translating to simpler plan to production.
The Company is also pleased to announce that planning has been completed for this year's geotechnical drilling program. This drilling is designed to test ground conditions for the foundation, infrastructure locations, and early civil works for the project. These efforts are to support the Feasibility Study, the development of the project infrastructure layout, and for optimization of schedules to advance the Project to production. Once this work is completed, the drill program will then focus on both in-fill drilling and resource expansion. The target for this year at Roche bay is to increase the NI 43-101 compliant resource to at least 750,000,000 million tonnes.
John Gingerich, President and CEO, commented:
"The Company is extremely pleased with the progress of work on the Feasibility Study. The additional production is not only important to our partner, the XinXing Pipes Group, but it is also aligned with the strategic vision of China's iron ore plan that has target back integration capacity equal to 30% of consumption. With future requirements projected to be one billion tonnes of iron ore per year it is very important that as much capacity as possible is delivered in the initial start up. The Company has not yet determined how this will affect future expansion plans as the results from drilling underway at Tuktu may require additional modifications. The future expansion plans will not affect the delivery of the Feasibility Study with the initial draft still expected in Q4 of this year".
ON BEHALF OF THE BOARD
John Gingerich, President & CEO