Advanced Explorations Inc.

Advanced Explorations Inc.

November 05, 2008 10:27 ET

Advanced Explorations Inc. Updates Business Plans

TORONTO, ONTARIO--(Marketwire – Nov. 5, 2008) - Advanced Explorations Inc. (TSX VENTURE:AXI.H)(NEX BOARD:AXI.H)(TSX VENTURE:AXI) (the "Company" or "AEI") is pleased to provide a further update on its proposed Nugget (granulated pig iron) operation associated with the Roche Bay Project in Nunavut, Canada. There are important benefits to AEI in moving away from the traditional iron ore products (concentrate/pellets) to producing a higher purity (approximately 98% Fe) higher value iron nugget. Focusing on a higher value product reduces the need for a high mine rate to generate cash flow. In addition, shipping a high purity - high value product reduces the need to ship large product volumes.

With a projected plan to initially produce 1 million tonnes per year of nuggets the Company believes it is possible to meet shipping requirements with a single Panamax class vessel of 70,000 tonnes shipping capacity, servicing Europe, as well as opening up additional potential markets in North America. The Company also believes that the impact of future expansions and the increase in product volumes for shipping is easily accommodated. The simpler shipping solution should allow the Company to access a larger existing commercial fleet and address all transportation concerns including environmental restrictions, as well as, issues raised by local communities, potential investors and strategic partners.

AEI believes the iron nugget operation will provide a high value product and lower traditional dependence on high mine rates to generate cash flow. Thus, the potential for a lower mine rate should allow for smaller mine infrastructure and reduce capital and associated power requirements. It is estimated that, to meet the business plan, less than 4 Mtpy will enter the mill. With such a low mine rate for an iron ore project there are important implications to "life of mine" for a typical deposit. Thus, there is greater potential for a long lived mining operation which can be aligned with various Governments' social economic development strategies.

John Gingerich, President & CEO of AEI, commented:

"A substantially reduced mine rate and shipping requirement has obvious
implications on both transportation and capitalization requirements. In
the current market a simpler, potentially lower cost project is the only
way to move forward. A smaller mine footprint reduces the need to rapidly
deplete mineral inventories and process large volumes of product which is
supportable by local Inuit communities. With the current plan we have
struck the important balance in meeting all the stakeholder needs."

To help stakeholders better understand the potential benefits to the business plan the Company expects to release additional details on its business plan in the near future. AEI also continues to examine partnership opportunities that will provide support for current and future activities.


John Gingerich, President and CEO

ABOUT Advanced Explorations Inc.

Advanced Explorations Inc., based in Toronto, Ontario, is a mining exploration company exclusively focused on developing high quality iron ore opportunities. In early 2007, AEI acquired the option to earn an interest in the Roche Bay Magnetite Project located on the Melville Peninsula in Nunavut, Canada. Led by an experienced management team with technical, exploration and mining expertise the company has the capabilities to rapidly advance the Roche Bay Project and explore other local and global opportunities. Located proximal to a natural deep water harbour the Roche Bay deposit benefits from transportation efficiencies possibly making it one of the world's premium iron ore prospects. Shares of the company trade at the TSX Venture Exchange (AXI) and at the Frankfurt Stock Exchange (AE6). For more information please visit

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

  • (416) 203-0057 x226