Pacific Iron Ore Corp.
TSX VENTURE : POC

Pacific Iron Ore Corp.

April 06, 2011 13:15 ET

Pacific Iron Ore Corporation Announces the Filing of Technical Report on the Bugaboo Creek Deposit, Pearson Project, BC

CALGARY, ALBERTA--(Marketwire - April 6, 2011) - Pacific Iron Ore Corporation (TSX VENTURE:POC),("Pacific Iron Ore" or the "Company") has filed a Technical Report to support the previously released (February 1, 2011) updated mineral resource for its 100% owned Bugaboo Creek Deposit, which is located near Port Renfrew on Vancouver Island. This National Instrument 43-101 report prepared by Wardrop, a Tetra Tech Company ("Wardrop") of Vancouver, British Columbia, has been filed on www.SEDAR.com, and is also available for review on the company's website, www.pacificironorecorp.com. It is estimated that the Bugaboo Creek deposit contains an inferred resource of 14.3 million tonnes grading 60 percent recoverable magnetite, which is nearly double the previous estimate. A cut-off of 20 percent magnetite was used in the determination of this resource. 

The corporation is advancing the Bugaboo Creek deposits with the corporate goal of exporting approximately 2 million tonnes per year of iron concentrate to steel producers within the Pacific region. Additional exploration is required to meet these proposed production targets. 

The estimate was prepared by Klaus Triebel, CPG, who is an employee of Wardrop, a qualified person for purposes of National Instrument 43-101 and independent of the Company. The effective date of the estimate is March 9, 2011. 

Pacific Iron Ore Corporation reported a resource estimate of 7.8 million tonnes in late 2008 and the current revision of resources is based on drilling completed in 2009 and 2010. In 2009, the corporation drilled 16 holes, totaling approximately 4700 metres and in 2010, the corporation drilled 32 holes of totaling approximately 9100 metres. 

The aforementioned resources are contained within five zones, these zones are typically 200 to 300 metres in lateral extent and 20 to 40 metres in thickness. Results are summarized in the following table.

       
Zone Tonnage* Grade Density
  Mt % Fe3O4 g/cc
       
       
Upper Conqueror 3,967 54 3.57
Lower Conqueror 4,863 63 3.81
Daniel 3,043 64 3.83
Deep Zone 2,237 58 3.67
Mishael 214 59 3.68
       
Total 14,324 60 -
       

* reported tonnages are inferred under NI 43-101 

It is expected that additional drilling will increase the resources within the Bugaboo Creek project, current Bugaboo Creek exploration costs for a tonne of high-grade iron resource is in the range of $0.55 per tonne. The Mishael zone, Lower Conqueror zone and the Deep zone are considered open to expansion of their respective resources. These resource estimates are considered preliminary in nature. 

The deposits are considered high-grade and are typical of a skarn iron deposits. Iron mineralization is associated with the contact between intrusive diorites and limestone formations. These deposits are located approximately 11 kilometres from Port Renfrew on the west coast of Vancouver Island. 

Analysis of sample material from the drilling program on the Bugaboo Creek project was completed by ALS Chemex of North Vancouver, B.C., with high grade iron samples(greater than 20 percent Fe) being by the University of British Columbia for magnetically recoverable iron content. 

The Company has initiated baseline environmental studies to ensure that permit timelines are not compromised. This work is currently being managed by Allnorth Consultants of Vancouver, and includes surface water quality evaluation, meteorological and hydrological data collection as well as site planning. 

Preliminary grinding test work has been completed by G&T Metallurgical Services of Kamloops, B.C., evaluating four mineralized zones for work index determination. 

Corporate Direction and Strategy

Pacific Iron Ore Corporation is dedicated to the development of its strategic mineral deposits, located in the Port Renfrew area of Vancouver Island, British Columbia, as well as, in the Kenora area of Ontario.

Jeffrey B. Austin, P.Eng. is the qualified person for Pacific Iron Ore Corporation and responsible for the content of this news release. 

Company Contacts:

For further information please refer to the Corporations profile on SEDAR which can be accessed at www.sedar.com, visit our website at www.pacificironorecorp.com.

Forward Looking Statements:

The TSX.V Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward looking statements". All statements in this release, other than statements of historical facts, that address future production, reserves potential, exploration drilling, exploration activities and events or developments that the Corporation expects are forward looking statements. Although the Corporation beliefs the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause results to differ materially from those in the forward looking statements include, but are not limited to: market prices; exploitation and exploration successes; continued availability of capital, financing and personnel; government regulation and laws; the Corporations relationship with First Nations; environmental developments; and general economic, market or business conditions. Investors are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward looking statements. For more information on Pacific Iron Ore Corporation, Investors should review the Corporation's registered filings which are available at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific Iron Ore Corporation
    Todd Montgomery
    Chief Executive Officer
    (403) 228-0607
    (403) 262-4860 (FAX)
    or
    Pacific Iron Ore Corporation
    Leonard Cornez
    Chief Financial Officer
    (403) 218-0294 or 1-866-682-5812
    (403) 265-2887 (FAX)
    or
    Pacific Iron Ore Corporation
    Jeffery B. Austin, P.Eng.
    President
    (250) 763-4892
    (403) 265-2887 (FAX)
    www.pacificironorecorp.com