Orbite Aluminae Inc.
TSX : ORT

Orbite Aluminae Inc.

June 05, 2012 07:00 ET

Orbite Begins its Drilling Campaign, Files a New Patent Application for the Extraction of Rare Earths and Joins Trade Mission to Russia

MONTREAL, QUEBEC--(Marketwire - June 5, 2012) - Orbite Aluminae Inc. (TSX:ORT) (the "Company") is pleased to announce the start of its exploratory drilling campaign aimed at upgrading its resources and developing new exploitation zones. It also announces that it has filed a new patent application in the U.S. In addition, Richard Boudreault, President and CEO of Orbite, will make a guest presentation on alumina procurement at the International Aluminum & Power Conference, to be held in June in Montreal, Quebec. Finally, on invitation by the Honourable Ed Fast, Canada's Minister of International Trade, Orbite management is currently part of a trade mission to the Russian Federation to pursue new business opportunities.

Drilling campaign

Orbite is pleased to announce the launch of its 2012 exploration and drilling campaign, which primarily targets aluminous clay and rare earth elements on the Company's Grande-Vallée property.

An initial 3,000 m to 4,000 m drilling campaign in the Marin Sector is intended to upgrade part of the current indicated in-pit resources in order to complement certain elements of the ongoing feasibility study with respect to mining operations. Most of the holes aim to firm up the resources within the limits of the proposed pit contour. Other drill holes will serve to confirm the previously indicated strong alumina and rare earths continuity in the aluminous clays on the immediate NNE outside boundary of the proposed pit. A few additional holes will be drilled to provide a better understating of the fault patterns and their behavior in the surrounding pit area of the Marin Sector.

Extension outside Marin Sector

Further ground exploration will be done in the Simoneau and Madeleine Sectors. A ground geophysical survey is proposed to define the contacts between the various local geological horizons. This will be followed by a 1,500 m to 2,000 m drilling campaign to explore the continuity of the aluminous clay as well as its alumina and rare earth elements content. As indicated previously (see press release dated April 17, 2012), the assay results for certain rare earth elements and rare metals in the drill holes in the Simoneau Sector, located more than 13 km west of the Marin Sector in the same geological horizon of aluminous clay as the L'Orignal Formation, also point to strong continuity and homogeneity between these two sectors and within the Formation.

New mining claims exploration

Following the acquisition of a track of mining claims in the Québec to Grande-Vallée area located on the continuation of the L'Orignal aluminous clay Formation (see press release dated April 23, 2012), Orbite recently initiated a detailed geological and mapping survey that will extend over most of the 2012 summer season. The new claims represent about a nine fold increase in surface over the Grande-Vallée property. This may be followed by an exploratory drilling campaign during the fall season in the most interesting target areas already identified.

Patent application

The Company is proud to announce that on May 16, 2012, it filed a new provisional patent application (US 61/647,549) in the United States. The application targets a process to enable the cost-effective and environmentally responsible extraction of rare earths without requiring alumina removal beforehand. The technology introduced by the Company allows for the extraction of rare earths from raw materials, including mineral ore, and is intended for out-licensing to rare earth producers interested in separating their resource into products. This patent application adds a tenth family to the Orbite intellectual property portfolio, which now includes three issued patents and 23 applications pending in nine different countries.

Business development in Russia

Upon receiving an official invitation from the Honourable Ed Fast, Minister of International Trade for Canada, Orbite is participating this week in a six-day trade mission to Saint Petersburg and Moscow to meet with its partner UC Rusal, Russian government officials, and potential new business partners. The trip is an initiative of the Canada Eurasia Russia Business Association.

International Aluminum & Power Conference

Richard Boudreault, President and CEO of Orbite, has been invited to make a formal presentation at the International Aluminium & Power Conference, which will be held in Montreal June 14 and 15, 2012. This year, among other topics of discussion, delegates will examine technology improvements and the need to reduce energy-related costs, which will provide Mr. Boudreault with the opportunity to highlight the expertise and knowledge of Orbite. His presentation will focus primarily on the securing of low-cost alumina from aluminous shale and its potential to bring down transformation costs. The International Aluminium & Power Conference brings together key speakers and aluminum industry stakeholders from around the world.

Purchase of shares

As a sign of Orbite's commitment to its business objectives, members of the Company's management team and Board of directors have recently purchased shares of the Company on the open market.

The technical information contained in this press release has been reviewed and approved by Marc Filion, Eng. Ph.D., MBA, a Qualified Person as defined in Regulation 43-101.

About Orbite

Orbite currently owns 100% of the mining rights over a total of 60,984 hectares including the Grande-Vallée property measuring 6,665 hectares, the site of an aluminous clay deposit located 23 km south of Grande-Vallée, and a 2,600 m2 facility in the process of being converted into a high-purity alumina plant in Cap Chat, in the Gaspe region. An NI 43-101 report identified over 1 billion tonnes of aluminous clay in part of the deposit. The Company also owns ten different families of intellectual property rights (and patent pending), protected by Canadian and U.S. patents, for extracting alumina and for which patents are also pending in other countries. www.orbitealuminae.com.

Forward-looking statements

Certain information contained in this document may include "forward-looking information". Without limiting the foregoing, the information and any forward-looking information may include statements regarding projects, costs, objectives and future returns of the Company or hypotheses underlying these items. In this document, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management's good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. These risks uncertainties and assumptions include, but are not limited to, those described in the section of the Management's Discussion and Analysis (MD&A) entitled "Risk and Uncertainties" as filed on March 22, 2012 on SEDAR, and could cause actual events or results to differ materially from those projected in any forward-looking statements. The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.

Contact Information

  • MEDIA
    Frederic Berard
    Vice-President and General Manager
    H+K Strategies
    514-395-0375

    ORBITE
    Jacques Bedard
    CFO
    Orbite Aluminae Inc.
    514-744-6264 Ext : 111

    INVESTOR RELATIONS
    Louis Morin
    Investor Relations
    514-591-3988

    Jason Monaco
    Managing Partner
    First Canadian Capital Corp.
    416-742-5600

    Nicole Blanchard
    Investor Relations
    Sun International Communications
    450-973-6600