TORONTO, ONTARIO--(Marketwire - Nov 26, 2012) - Advanced Explorations Inc. (TSX VENTURE:AXI)(AE6.F) (the "Company" or "AEI") today announced encouraging results from the recently completed 2012 drill campaign at its Tuktu 2 Iron Project located 60 km north of the Roche Bay Iron Project on the Melville Peninsula in Nunavut, Canada.
This drill program was launched to validate the existence of very high grade iron mineralization typical of deposits containing Direct Ship Ore ("DSO") type material. As presented in the summary table, the drill results indicate a consistent existence of DSO material in drill core over several intersections, and the Company believes that an intensive follow-up drill program of approximately 5,000 metres is required, along with metallurgical studies, to define a DSO resource that would support more advanced studies as to the potential of an economic DSO mining operation at Tuktu.
John Gingerich, President & CEO, commented:
"We are very encouraged by the results of this validation drill program as the assays clearly indicate the consistent presence of very high grade iron within the Tuktu 2 deposit. After the sampling program, this drilling confirms the existence of DSO-type material at Tuktu 2, which bodes well for discovering similar lenses not only at the overall Tuktu Project but also along the 140 km of banded iron formation extending across Roche Bay.
A narrow intersection of 63% iron reported from the 2007 drill campaign at Roche Bay has a more significant meaning now given our enhanced understanding of the area''s DSO potential. While development on Roche Bay will focus on the traditional BIF asset, work will be needed to fully assess the DSO potential of the C-Zone area."
The Company''s 2012 exploration program at the Tuktu 2 Project, which commenced late August and was completed mid-October, was comprised of surface sampling and prospecting, ground magnetometer and gravity surveys and 1,536 metres of diamond drilling in eleven drill holes, four holes (12TK001-004, 413 metres) at the T2-A Prospect and seven holes (12TK005-011, 1,123 metres) at the T2-H Prospect.
Tuktu 2-H (T2-H) Results:
The most significant drill results (Table 1) were obtained from the Tuktu 2-H occurrence that was discovered during this summer''s prospecting and mapping program. High grade pods of iron mineralization occur within an alteration zone ranging from 50 to 150 metres in width. From mapping and geophysics, the inferred strike length of the BIF which hosts the mineralization is approximately 1,500 metres. Orientation drilling tested only 300 metres of the apparent strike. All holes intersected high grade sections of +50% Fe with the best intersections in hole 12TK007 with approximately 59% iron content over 64 metres and hole 12TK007 with over 37.5 metres of 66.3% iron.
Summary Table 1
Significant Drill Intersections -TUKTU 2-H Zone
|Drillhole||From (m)||To (m)||Interval (m)||% Fe2O3 (total XRF)||% Fe (from XRF)|
Notes: Mineralized intersections are down hole intersection widths and may not be true thicknesses; hole locations were non-optimal due to proximity and location of nearby lakes.
Delineation of shallow (<150 metres from surface) high grade iron resources (>58% Fe) within the zone will require tighter drill spacing than used on traditional BIF program, but average depth of the holes will be substantially lower. The Company anticipates initiation of the delineation drill program in the spring of next year.
Tuktu 2-A (T2-A) Results:
Drilling along the original prospect, Tuktu 2-A (Table 2) intersected similar style mineralization but within a narrower zone of alteration and similarly narrower lenses of high grade iron (>60% Fe). Holes drilled immediately beneath the high grade channel samples collected over the summer of 2012 intersected shallow zones of east-dipping mineralization associated with specular schist characterized by fine to medium grained specular hematite (10% magnetite, 90% hematite). All holes intersected high grade sections of +50% Fe with the best intersection in hole 12TK002 with 10.51 metres of 65.6% iron content.
The high grade lenses associated with this style of mineralization typically pinch and swell along strike. The mineralization is open along strike to the east and southeast, and the Company believes there is still substantial potential for the discovery of additional high grade iron along the 1.6km magnetic anomaly which hosts the T2-A Prospect. Another showing 1.6km south of T2-A has yet to be drilled where a 62.26% Fe surface grab sample was found at the T2-E Prospect. T2-E may prove to be the strike extension of the T2-A zone as suggested by the geophysics and limited geologic exposures. A definition drill program would also further investigate this prospect.
Summary Table 2
Significant Drill Intersections -TUKTU 2-A Zone
|Drillhole||From (m)||To (m)||Interval (m)||% Fe2O3 (total XRF)||% Fe (from XRF)|
Notes: Mineralized intersections are down hole intersection widths and may not be true thicknesses.
The work referred to in this press release was performed under the supervision of Mr. Andrew Turner, P. Geol., of APEX Geoscience Ltd., who has also compiled and tabulated drill assay results contained herein. Mr. Turner is a "Qualified Person" as defined by National Instrument 43-101 and has reviewed and verified the results described in this press release.
Assay results described herein have been derived from samples of NQ sized drill core prepared on site where it was sawn in half using a rock saw with 1/2 of the core removed for sampling, normally in 1.5m lengths, and the other half remaining on site. Samples were sent by helicopter to a sample preparation facility in Hall Beach, Nunavut, where they were crushed and homogenized and a ~250g sub-sample was collected and shipped by commercial airfreight for laboratory analysis in Ancaster, Ontario; both facilities are operated by Activation Laboratories Inc. ("Actlabs") who are responsible for sample security from their arrival in Hall Beach. The total iron analyses discussed herein were performed using X-ray fluorescence (XRF). Advanced Explorations Inc. employs a rigorous Quality Assurance/Quality Control (QA/QC) program with respect to all drill core sampling, which includes the insertion into the sample stream of standards, blanks and duplicate samples. The 2012 QAQC data was examined by Mr. Turner and no significant issues were identified with respect to the overall accuracy and precision of the data described herein.
ON BEHALF OF THE BOARD
John Gingerich, President & Chief Executive Officer
ABOUT Advanced Explorations Inc.
Advanced Explorations Inc., based in Toronto, Ontario, is a resource development company focused on developing its Roche Bay and Tuktu Iron Ore Projects in one of the world''s largest developing iron ore districts, the Melville Peninsula in Nunavut. The Ocean-based Roche Bay Project boasts an NI 43-101 compliant resource estimate of over 500 million tonnes outlined within a small portion of the potential 140 km of banded iron formation. A positive feasibility study for the project''s C Zone revealed a net present value of $642M on a base case 5.5 Mtpa start-up concentrate operation and substantial upside potential including becoming a low quartile cost producer. To date, the Company has delineated over 1 billion tonnes of iron under NI 43-101 among its Roche Bay and Tuktu deposits and continues to explore other targeted deposits in areas to the north, south and west of Roche Bay. The management team has extensive technical, exploration and Canadian Arctic mining expertise to effectively develop the high quality iron ore opportunities on the Melville Peninsula.
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.