Advanced Explorations focuses on iron nugget plant

Monday, 03 Nov 2008

Platts report that Toronto based Advanced Explorations Inc intends to strengthen its Roche Bay iron ore project in Nunavut by adding an iron nugget plant.

Following the lead of US based mini mill Steel Dynamics and others, Advanced Explorations Inc plans to use the trademarked MIDREX Kobe Steel ITmk3 process to produce iron nuggets that are higher in grade about 98% Fe content for sale at a price multiple to the lower grade iron ore.

By shipping a high grade iron product, Advanced Explorations Inc explained in a statement, that fewer ships are needed to move the same amount of iron. Also, the nugget production process will generate surplus heat that may be sufficient to generate electrical power for mining and concentrate operations.

Mr John Gingerich president & CEO of Advanced Explorations Inc said that "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 ITmk3R technology and associated economics in relation to our project, the 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 market conditions, Advanced Explorations Inc said it 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. It is also examining strategic business opportunities as a means to accelerate project development work. It said it was talking to Roche Bay to further simplify the project's ownership structure.

In early 2007 Advanced Explorations Inc 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.