Orbite Aluminae Inc.
TSX : ORT

Orbite Aluminae Inc.

November 29, 2011 16:11 ET

Orbite Bring Clarification to the Press Release Issued This Morning

MONTREAL, QUEBEC--(Marketwire - Nov. 29, 2011) - Orbite Aluminae Inc. (TSX:ORT) (« Orbite ») hereby provides a clarification on the press release issued this morning. This clarification does not, in any way, modify the assumptions and conclusions elaborated in Genivar's Preliminary Economic Assessment ("PEA").

This clarification addresses the classification of the rare earth and metal oxides used in the PEA. These elements including, among others, dysprosium, erbium, europium, yttrium, cerium, neodymium, praseodymium, and terbium, and rare metals such as gallium and scandium are to be qualified under NI 43-101 as Inferred mineral resources. The results of the various analysis of elements (not oxides) are shown in the table below :

Element Average (g/tonne)
Ga 30.81
Sc 17.07
Ce 143.24
La 72.49
Nd 65.28
Pr 17.59
Sm 12.38
Dy 8.76
Er 4.77
Eu 2.31
Gd 9.89
Y 47.03

For greater certainty, Orbite's Indicated mineral resources totalling 800 to 1000 million tonnes, specifically refer to the aluminous clay that contains the following components: alumina (23.13%), hematite (8.5%), silica (50.9%), magnesium (1.3%) and other oxides (5.6%) all of which compose the total Indicated mineral resources as stated in the NI 43-101 technical report (Amended August 2011). Mr. Levaque is the independent geologist (as per NI 43-101) who carried out the geological work described in the aforementioned analyses and who reviewed and authorized this press release.

The PEA is preliminary in nature and it includes Inferred mineral resources regarding rare earth and metal oxides that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the conclusions reached in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

All references contained in this PEA pertains only to the production of smelter grade alumina (SGA) (including projected daily production levels) and the production of other resources, including rare earths, and have been made by assuming that the technical, financial and economic feasibility of such operations will be further demonstrated.

The portion of the Preliminary Economic Analysis (PEA) reported in the Nov 29 news release, which includes revenues based on the recovery of products other than alumina, should not be relied upon to the same level as the alumina production portion.

About Orbite

Orbite owns 100% of the mining rights on approximately 6,441 hectares of a Grande-Vallée property, the site of an aluminous clay deposit located 23 km to the south of Grande-Vallée, and a 2 600 sq. m. full scale pilot plant in Cap Chat, in the Gaspé region. The NI 43-101 report issued in August 2011 has identified an Indicated Resource of about 1 Billion tonnes of aluminous clay in part of the deposit. The Company also owns the intellectual property rights to a unique Canada and U.S.-patented process for extracting alumina from aluminous ores and for which patents are also pending in other countries. www.orbitealuminae.com

Regulation 43-101 and forward-looking statements

The Preliminary Economic Assessment ('PEA') referred to herein constitutes a "preliminary economic assessment" within the meaning of Regulation 43-101 respecting standards of disclosure for mineral projects (Québec) ("Regulation 43-101"). All references contained in this PEA pertains only to the production of smelter grade alumina (SGA) (including projected daily production levels) and the production of other resources, including rare earths, and have been made by assuming that the technical, financial and economic feasibility of such operations will be further demonstrated. No preliminary feasibility study, pre-feasibility study, nor a feasibility study pursuant to the requirements of Regulation 43-101 has been completed to date.

Certain information contained in this document may include "forward-looking information", particularly regarding the daily production of the projected plant described in this PEA, the anticipated cost of the construction of such plant producing SGA and other resources including rare earths. 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 November 14, 2011 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. As for projected dates of beginning of operations, namely the year 2013 for the SGA production plant projected to be put into service, this date is an objective and that many steps (feasibility study, financing, environmental and government authorizations and other important an usual conditions) remain before confirming any particular schedule. Notwithstanding the PEA, no independent study has confirmed the feasibility of putting the production plant described herein into service according to the projected dates and its projected financial and economic performance.

Readers are invited to consult the Report on the Geological Study prepared in conformity with Regulation 43-101 and the Annual Information Form of the Corporation, both amended and restated and respectively filed on August 21 and 25, 2011 and the Management's Discussion and Analysis filed on November 14, 2011 which are available at www.sedar.com or on the Corporation's website at www.orbitealuminae.com.

Contact Information

  • MEDIA
    Frederic Berard
    Vice-President
    HKDP Communications and public affairs
    514-395-0375, ext. 259

    Jacques Bedard
    Vice-President Finance and Chief Financial Officer
    Orbite Aluminae Inc.
    514-744-6264

    INVESTOR RELATIONS
    Louis Morin
    Investor Relations
    Orbite Aluminae Inc.
    514-591-3988

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

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