Sunday 23rd October 2016

Resource Clips

Advanced reports Nunavut Feasibility: 1.37M CAPEX, $642M NPV, 16% IRR

Resource Clips - essential news on junior silver mining and junior silver miningAdvanced Explorations Inc TSXV:AXI announced the results of a feasibility study of the C Zone of its Roche Bay Iron Project on the Melville Peninsula, Nunavut. The project has a pretax net present value (NPV) of US$642 million at an 8% discount rate, a pretax internal rate of return (IRR) of 16%, a mine life of 15 years, a strip ratio of 0.92:1, a startup mine net cashflow of US$2.9 billion, a US$1.37 billion CAPEX, an operating life-of-mine cost of US$49.13 per tonne of (66%) iron concentrate and startup production of 5.5 million tonnes per year.

Roche Bay is located 60 kilometres southwest of Hall Beach and 240 kilometres west of Iqaluit. The C Zone orebody is located six kilometres from tidewater where the project has a natural deep-water harbour. At a 20% iron cutoff, the project hosts an indicated resource of 501.3 million tonnes grading 26.35% iron, 51.5% silicon dioxide, 3.22% aluminum oxide and 0.073% manganese oxide and an inferred resource of 73 million tonnes grading 25.58% iron, 51.3% silicon dioxide, 3.06% aluminum oxide and 0.07% manganese oxide, at a 15% iron cutoff.

President/CEO John Gingerich commented, “The completion of our feasibility study marks a significant milestone for the company and lays a clear foundation for the path forward to production. The positive economics at this initial modest startup production rate demonstrate that we have an excellent project with substantial opportunities for expansion and to further lower the operating cost using power solutions such as liquefied natural gas (LNG). The location of the project at tidewater and its consequent low infrastructure requirements promote future expansion and lower operational and construction risks, which compare favourably with many projects in Brazil, Australia and Canada. We are well positioned to become a globally competitive, low-cost producer and are on our way to become one of the lowest cost iron ore producers in North America.”

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Advanced Explorations Inc
416.203.0057 ext 226

by Kevin Michael Grace

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