Advanced Explorations Inc. Focuses Plans on an Iron Nugget Plantadmin
Advanced Explorations Inc. announce that it intends to strengthen its Roche Bay Project in Nunavut with the addition of an iron nugget plant. Following the lead of Steel Dynamics Inc. (“SDI”) and others, AEI plans to utilize the MIDREX/Kobe Steel ITmk3® Process to produce “pig iron” nuggets which are higher in grade (~98% Fe) and sell at a price multiple to the traditional iron ore products.
In pursuing the development of an iron nugget plant, the Company believes the higher value attributable to nuggets is supported with a number of additional benefits. By shipping a high grade iron product, fewer ships are needed to move the same amount of iron and, thus may simplify transportation requirements. Also, the nugget production process will generate surplus heat that may be sufficient to generate electrical power for mining and concentrate operations. There are additional environmental benefits to this business plan, and the Company has also identified a number of synergies with respect to the Canadian Government’s northern development strategy.
John Gingerich, President & CEO of AEI, commented: “We are confident about the nugget business opportunity as it provides additional benefits to the development of a mining project at Roche Bay. We believe this direction will result in a cost competitive end product, and allow for additional marketing opportunities throughout North America and worldwide. After
evaluating the MidRex/Kobe ITmk3® technology and associated economics in relation to our project, the AEI team visited the Steel Dynamics’ Mesabi nugget plant in Minnesota as part of our due diligence process. We are now positive that we can further develop a flexible, cost-effective marketable product that captures varying efficiencies to keep us competitive.”
Despite current markets the company is moving forward with its proposed development agenda. Additional drill assays have been received and will be released shortly once Quality Assurance and Quality Control has been completed. The Company is also examining strategic business opportunities as a means to accelerate project development work, and in this regard it is in discussion with Roche Bay Plc to further simplify the Project’s ownership structure.
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, potentially one of the world’s largest undeveloped magnetite deposits. 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 http://www.advanced-exploration.com.