Advanced Explorations Inc.

Advanced Explorations Inc.

August 18, 2010 12:34 ET

Advanced Explorations Enters Into Option Agreement to Acquire Alaskan Iron Sands Project

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2010) - Advanced Explorations Inc. (the "Company" or "AEI") (TSX VENTURE:AXI)(FRANKFURT:AE6) is pleased to announce that it has entered into an option agreement with Alaskan based 7th Sea Holdings Company ("7th Sea") to either purchase for cash, shares or a combination of both, or earn up to 100% interest in 7th Sea's wholly owned Alaskan claims (the "Agreement") and 25 kilometre area of interest.

John Gingerich, President and CEO, commented:

"With the option to acquire a potential iron sands project, we are adding another property to our portfolio that emphasizes our focus on iron ore and facilitates the expertise and skill set of our team. In-house sampling to date indicates iron content comparable to other global iron sands projects. The location proximal to tidewater and the potential product show similarities with the Company's Roche Bay magnetite project in Nunavut. We have already initiated metallurgical studies to determine the flow sheet required to produce a quality iron product".

The Company believes additional advantages are a year-round shipping window, potential low mining cost and the proximity to the Asian market (6500 km from China). Thus, the AEI remains focused on a commodity that continues to be in high demand worldwide.

With the iron sand mineralization is exposed at surface for over 25 kilometres the Company believes the project has a high tonnage potential. A spot sample for the USGS National Geochemical Survey database (2001) of 65.6% Fe2O3 is what drew 7th Sea to the area. A composite sands sample taken during an initial site visit returned a result of 8.23% Fe2O3 which compares favorably to other iron sands projects. For example: The Pampa El Toro Sands deposit in Peru has a reported grade of 6.67% Fe2O3.

The Agreement is subject to a 90 day due diligence period and AEI may elect to exercise its option to either purchase the property (US$1.6 million cash and/or shares) or to by June 1st, 2012 earn undertake work commitments of $US 2,000,000 and cash and/or stock payments of $US 1.6 million. The Claims are subject to a 3% NSR with a 1.75% buyback provision. The Company intends to conduct and complete its due diligence prior to exercising its option, and remains committed to working with 7th Sea to further unlock the project's value. The terms and conditions of the Agreement remain subject to TSX Venture Exchange approval.

A finder's fee may be payable subject to TSX review and approval.


John Gingerich, President & CEO

ABOUT Advanced Explorations Inc.

Advanced Explorations Inc., based in Toronto, Ontario, is a resource development company focused on developing high quality iron ore opportunities. Currently, the company holds interests in projects located in Nunavut with low infrastructure needs. The Roche Bay magnetite project is located on the coast and is bolstered by a deep water access to its eastern coast. The Company intends to build upon logistical benefits when developing its current projects at Roche Bay and Tuktu. AEI plans to produce high quality iron products from the 357 million tonnes inferred resource of the project's C-Zone. Its preliminary economic assessment for the project indicates a potential US $2.76 billion net present value, a minimum of 50 years mine life and a return on investment between three and five years. Led by an experienced management team with technical, exploration and mining expertise the company has the capabilities to rapidly advance the Roche Bay and Tuktu Projects and explore other local and global opportunities.

About 7th Sea Holdings Company

7th Sea is an Alaskan based Company founded for the purpose of acquiring and developing sustainable and responsible mining projects in Alaska. To date 7th Sea's long standing presence and relationships in Alaska have helped foster local support for development in the local communities nearby. 

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.


Contact Information

  • Advanced Explorations Inc.
    (416) 203-0057 x226