Cap-Ex Ventures Ltd TSXV:CEV announced assays from the Northwest zone of its Block 103 iron property in Quebec. Results include
30.6% iron over 148.4 metres
31% iron over 118.9 metres
31.5% iron over 91.4 metres
Chairman of Operations Brian Penney tells ResourceClips.com, “I’ve seen enough iron ore to know that there’s plenty there in Block 103. Block 103 is sandwiched between two of the bigger resources in the Schefferville area, belonging to New Millennium TSX:NML. It’s south of the KeMag deposit which is 3.5 billion tonnes, and north and slightly east of the LabMag deposit, which is 5.7 billion tonnes. New Millennium seems to think there’s a mineralization zone extending between KeMag and LabMag, and if so—and this is supported by our drill holes in the area as well—it will run right through Block 103.
“The assays are consistent with almost every assay we’ve put out to date, which is very positive for Block 103. The grades are fairly consistent with New Millennium’s results from a magnetite deposit—pretty typical 30% iron, delivering the Davis Tube quality concentrate at 68% iron. In 2011, 6,000 metres were drilled. We were going approximately 200 metres from surface, and at times the drill holes ended in mineralization. It’s just an indication of how much potential resource is there. Based on the magnetic signature, based on the history, and based on the geology in the area—which has been further verified through New Millennium’s drilling—we with think the possibilities for Block 103 are limitless.
What we’re also doing in 2012 is bringing on the engineering program. We’ll commence that within the next month or two, and that will really detail the timeline to production. We hope by the end of 1Q 2013 to issue our preliminary economic assessment—Brian Penney
“Starting mid-May, we anticipate going in and drilling between 15,000 to 20,000 metres for 2012,” Penney continues. “At the end of the drilling program those drill results combined with what we already have will make up our maiden resource. Block 103 is 18-kilometres long and 9-kilometres wide, so if we want to drill the entire extent of Block 103, even at an inferred level, we will be many years doing so. We’re focusing in an area for 2012 on which we intend to put our maiden resource—which we expect to be fairly significant—in doing so we’ll demonstrate that the potential for Block 103 is even greater.
“In terms of infrastructure, there’s a railway within 30 kilometres of us going all the way down to the Port of Sept-Îles. [Given] the magnitude of the deposit, obviously the existing infrastructure would have to be improved significantly. We’re also going to put 5,000 metres in our Redmond deposits in 2012, and that would be a near-term type of deposit that might generate 1 to 2 million tonnes per year.”
Does Cap-Ex intend to take Block 103 to production? “Absolutely,” Penney replies. “That’s why I’m here; that’s the expertise I bring to this picture. I’m a metallurgist and my whole career has been on the operating side of iron ore rather than the exploration side. That’s one of the reasons why Cap-Ex joined with Forbes & Manhattan. I am myself a Forbes employee. We understand the blueprint in terms of removing the risk to allow us to get to production, and that’s what we’re here to do.
“We could literally be drilling this for years and developing a big, big resource. The question is, how big is big enough? So what we’re also doing in 2012 is bringing on the engineering program. We’ll commence that within the next month or two, and that will really detail the timeline to production. We hope by the end of 1Q 2013 to issue our preliminary economic assessment.”
Penney adds that Cap-Ex is fully funded for 2012.
“The group that led the 2011 program did a very good job recognizing the potential and staking the claims that they have. From a resource perspective and the requirements to get into production, I think they realized that they needed some help at this stage because of the immensity of the project. That’s where Forbes can bring their expertise. And considering Cap-Ex’s current market cap, the potential is enormous. Based on what we’ve released so far, we’re undervalued. I think we’re going to prove up a deposit that will be comparable to New Millennium’s.
“I would say that Quebec is quite possibly the best province in Canada from a resource development perspective,” Penney concludes. “I’m very excited about 2012. It’s going to be a big year for Cap-Ex. And in 1Q 2013, with our PEA release and our maiden resource, you’re going to see that market cap increase significantly.”
by Ted Niles