Advanced Explorations Inc.
TSX VENTURE : AXI
FRANKFURT : AE6

Advanced Explorations Inc.

February 17, 2011 10:52 ET

Advanced Explorations Contracts Wardrop to Complete Feasibility Study

TORONTO, ONTARIO--(Marketwire - Feb. 17, 2011) - Advanced Explorations Inc. (the "Company" or "AEI") (TSX VENTURE:AXI)(FRANKFURT:AE6) is pleased to announce the formal commencement of a Feasibility Study with its associated work programs to follow during the 2011 field program at its Roche Bay Project, located on the Melville Peninsula, Nunavut, Canada. The feasibility program is designed to build upon the Company's previously published Preliminary Economic Assessment for the Roche Bay Project (available at www.sedar.com) which outlined a base case estimate of pre-tax Net Present Value of C$1.16 billion and an Internal Rate of Return of 24%. The project scope and scale of the Feasibility Study has been simplified and will focus on an initial start up as a concentrate producer with capacity to expand into additional concentrate and/or higher value iron products. The modified plan takes advantage of what is expected to be a much simpler and lower cost development process. 

John Gingerich, President and CEO, commented:

"Our management team is working very hard at fast-tracking our schedule to complete the definitive feasibility study. We are also undertaking an aggressive drilling program on the C-Zone ore body designed to better enhance and further define its resources on a NI43-101 compliance basis. We have designed our feasibility study with the aim of moving to a production decision as quickly as possible." 

AEI is pleased to have awarded Wardrop Engineering Inc. (Wardrop), a Tetra Tech Company, the responsibility of completing the definitive feasibility study. Wardrop is a full service engineering firm, whose presence spans world-wide with a distinctive Canadian mining presence. Two Tetra Tech companies, Wardrop and EBA Engineering Consultants Inc. (EBA) are collaborating to provide focused technical support for this definitive feasibility study. Wardrop is providing mining and mineral processing expertise, while EBA is providing arctic engineering and permitting support. Both firms are considered experts in their fields and have served industry clients since the 1960s and 1970s, respectively. Tetra Tech (NASDAQ:TTEK) is a leading provider of consulting, engineering, program management, construction and technical services with more than 12,000 employees worldwide. AEI believes the combined Wardrop team offers AEI and its Roche Bay Project a wealth of experience developed over decades of work on similar projects in the Far North.

The Feasibility Study will include the following elements:

  • An open pit mine Feasibility Study encompassing initially a minimum 3 million tonne per year iron concentrate production
  • Project development based on growth variable to exceed 3 million tonne per year concentrate facility producing 65 to 66% Fe
  • Development of a multi berth port facility capable of sustaining a minimum 10 million tonne per year mine operation
  • Review of socioeconomic impact of construction and plant operation
  • Community consultation, mine permitting and negotiation of an Impact and Benefits Agreement
  • Establishment of an Owner's team for mine development
  • Planning of ancillary infrastructure including materials management and power plant

The Company believes the results of the additional drilling campaign will support the next phases of Roche Bay Project development, and build-out.

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 coast of the Melville Peninsula in Nunavut, Canada giving it many logistical advantages. The project has an inferred resource of 357 million tones, 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. 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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Contact Information

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