Advanced Explorations Inc. Announces Tuktu Inferred Resource Estimate
28 November 2011 - 7:00AM
Marketwired Canada
Advanced Explorations Inc. (TSX VENTURE:AXI)(FRANKFURT:AE6) (the "Company" or
"AEI") is pleased to announce its initial inferred resource estimate of 465
million tonnes of 31.1% total iron for the Tuktu Magnetite Project located in
Nunavut, Canada, approximately 60km north of the company's flagship Roche Bay
magnetite Project and 70 km west of the hamlet of Hall Beach. The National
Instrument (NI) 43-101 compliant Inferred Mineral Resource estimate was
completed by APEX Geoscience Ltd. ("APEX") in conformance with the CIM Standards
of Disclosure for Mineral Projects.
John Gingerich, President and CEO, commented:
"The 465 million tonne Tuktu resource estimate is extremely encouraging given
the remarkable consistency of the average grade (31.1%) regardless of the
cut-off grade used. With drill tested widths up to 400 m and the depth ranging
from 200-250m, there is significant opportunity to increase the resource at
depth and along the 400 m of untested strike. Metallurgical work on drill core
samples will commence soon but based on an initial review, we expect these ores
to have similar beneficiation characteristics as the A, B and C Zones at our
Roche Bay iron project.
With the previously released results from the C-Zone (April 6, 2011) the
Company's has now delineated over 1 billion tonnes of iron ore on its Roche Bay
and Tuktu iron properties consisting of an NI 43-101 compliant resource of the
Roche Bay Project's C-Zone with 323 million tonnes in the indicated category and
226 million tonnes in the inferred category, as well as the new resource
estimate for Tuktu at 465 million tonnes. The updated C-Zone and new A/B Zone
resource estimates should continue to add to our total resource base. The
ongoing confirmation of historic resources at Roche Bay and the discovery of
additional iron ore at Tuktu further validate the importance of this emerging
Melville Peninsula iron district".
APEX Geoscience Ltd. (APEX) was contracted by AEI in the spring of 2011 to
provide geological services and supervision of the drill program at the Tuktu
prospect and was subsequently retained to complete a resource estimate. The
Company has received a summary report from APEX that describes a Global Inferred
Mineral Resource Estimate for the Tuktu Project of 465 million tonnes grading
31.1% total iron (Fe) and 35.13% total magnetics (see Table 1). A sensitivity
analysis of the grade and tonnage relationships, based upon total iron cut-off
values, has been completed (Table 1) and demonstrates remarkable consistency at
a number of grade cut-offs. This result was not unexpected as the model was well
constrained to the Tuktu iron formation, which was observed to be remarkably
consistent in magnetite content visually and in grade both along and between
drill-hole intercepts. This was further supported by detailed ground geophysical
surveys and geological mapping.
Table 1 - The 2011 Tuktu Magnetite Deposit Inferred Mineral Resource
Estimate.
----------------------------------------------------------------------------
%
Lower Cut-Off Tonnes % Magnetics % % g/cc
% Fe (Total) (000,000) Fe (Total) (ii) S (Total) P SG
----------------------------------------------------------------------------
15 467.28 31.01 35.10 0.30 0.04 3.36
----------------------------------------------------------------------------
18 466.52 31.04 35.12 0.30 0.04 3.36
----------------------------------------------------------------------------
20 465.50 31.06 35.13 0.30 0.04 3.36
----------------------------------------------------------------------------
22 463.84 31.10 35.16 0.30 0.04 3.36
----------------------------------------------------------------------------
24 460.31 31.16 35.23 0.30 0.04 3.36
----------------------------------------------------------------------------
25 457.48 31.20 35.28 0.30 0.04 3.36
----------------------------------------------------------------------------
26 452.00 31.27 35.32 0.29 0.04 3.36
----------------------------------------------------------------------------
28 431.45 31.46 35.50 0.29 0.04 3.36
----------------------------------------------------------------------------
30 361.03 31.90 35.92 0.27 0.04 3.37
----------------------------------------------------------------------------
Notes:
(i) Inferred Mineral Resources are not Mineral Reserves. Inferred Mineral
Resources do not have demonstrated economic viability, and may never be
converted into Reserves.
(ii) "% Magnetics" represents Satmagan test data which is a physical test of
the percentage of magnetic minerals in a given sample. This value can be
affected by magnetic minerals other than magnetite the most likely being
pyrrhotite, an iron sulphide mineral. However, APEX accepts that the
Satmagan data is essentially equivalent to (but not actually) a measure of %
magnetite based upon observations made during core logging and the
relatively low total sulfur assays indicating that the potential influence
of minerals such as pyrrhotite is negligible. Davis Tube test work to
validate Satmagan data is currently underway at Activation Laboratories.
Mineral Resource Estimate
The Initial Mineral Resource Estimate for the Tuktu magnetite deposit was
prepared by Andrew Turner, P.Geol., Michael Dufresne, M.Sc., P.Geol., and Steve
Nicholls, MAIG, all with APEX Geoscience Ltd. The current inferred resource is
based upon the results of a 20 hole (4070.4 m) core drilling program that was
completed by AEI between May 4 and July 21, 2011. The 2011 drilling program was
conducted under the direct supervision of Mr. Turner of APEX. All samples were
sent from an initial preparation in Hall Beach, NU, at a facility setup by AEI
but manned and operated by Activation Laboratories Ltd. ("Actlabs") from which
250g sample aliquots were sent to Ancaster, ON, for ICP, XRF, S-Leco and
Satmagan analyses. APEX, on behalf of AEI, employed a comprehensive QA/QC
protocol with respect to drill-hole and analytical data that, for the latter,
included the insertion and monitoring of an appropriate number of standards,
duplicates and blanks into the stream of drill core samples.
The resource model was generated using a total of 17 diamond core holes, with an
average drill-hole spacing of 250 m. The model was constrained by a wireframe
that was constructed from the intersections of the Tuktu iron formation, which
is an example of a classic Algoma-type banded iron formation (BIF). The Tuktu
BIF was modeled as a steeply (approx. 70 degrees) southwest dipping body with a
large hook fold at its north end. The model was limited to between 200 m and 250
m below surface and extends 2350 m along strike (2070m drill-hole to drill-hole)
with widths up to 400m across strike.
The drill database consists of a total of 1,282 composites of 2 m length, with
no capping levels applied. The mineral resource was estimated by Ordinary
Kriging ("OK") within a three dimensional wireframe envelope based primarily on
geological characteristics (geological model as opposed to a mineralization
envelope). Octant search ellipsoid distances and orientations were established
by variography. The search ellipsoid ranges varied from 240 to 420m as the
primary axis. Grade estimation was applied to 50 m ("Y" - along strike) x 20 m
("X") x 20 m ("RL") parent blocks with sub-blocking to honor wireframe volumes.
Block densities (specific gravity, or "SG") were calculated during the OK
estimation process based on a combination of both field measurements (water
displacement method tests were completed on one piece of core every meter along
12 drill holes) and calculated values for samples without direct SG measurements
based upon a relationship between total Fe and SG.
As yet, no metallurgical test work has been conducted on drill core material
from the Tuktu deposit and thus APEX has selected for reporting purposes a
resource calculated using the same 20% total iron cut-off grade that was
selected for the resource calculation at the Company's Roche Bay C-Zone deposit
(see AEI Press Release April 6, 2011) available at www.sedar.com.
John Gingerich, President and CEO, commented:
"The resource estimate lays the foundation to undertake an economic assessment
as to the conventional exploitation of the Tuktu 1 deposit. While this is a very
important next step, the Company's 2012 field season priority will be to assess
the potential to define a resource associated with the high grade (greater than
62% Fe) prospecting samples taken from Tuktu 2 located 5 kilometres east of
Tuktu 1 deposit".
The resource estimate reported in this press release was prepared by Steve
Nicholls, MAIG under the direct supervision of Andrew Turner, P. Geol., and
Michael Dufresne, M.Sc., P.Geol., all with APEX, who have reviewed and verified
the contents of this release. Andrew Turner, P.Geol., and Michael Dufresne,
P.Geol., are "Qualified Persons" as defined by National Instrument 43-101. An NI
43-101 compliant technical report in regard to the initial inferred mineral
resource for the Tuktu deposit will be filed on SEDAR within 45 days of the date
of this press release.
The Company is currently exhibiting at the 2011 San Francisco Hard Assets
Conference (booth 503) and will also be presenting to investors at the JTVIR
Metals & Mining Conference on November 30th at 8:40 a.m. (EST) at the Boston
Harbor Hotel. The presentation can be viewed live via webcast at
http://www.wsw.com/webcast/vir8. On December 9th and 10th, AEI will be attending
the Global Resource Investment Conference (booth 514) at the Sheraton Shenzhen
Futian Hotel in Shenzhen China where president & CEO John Gingerich will give a
speech on the development options for the Roche Bay and Tuktu Iron Projects.
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 has an
indicated resource of 323 million tonnes with 226 million tonnes in the inferred
category, 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. 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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