Alderon Announces Further Resource Upside and Comments on Rail Capacity
05 November 2010 - 12:00AM
Marketwired
Alderon Resource Corp. (TSX VENTURE: ADV)(OTCQX: ALDFF) ("Alderon")
is pleased to announce plans for a winter drill program on the
Kamistiatusset ("Kami") Iron Ore Project in western Labrador that
is aimed at further increasing the potential size of its iron ore
resource. The program will consist of 5,000 meters (m) of drilling
in North Rose and is designed to expand on the current 25,000m
program expected to be completed by the end of November 2010. The
2010 and winter 2011 programs are planned with the goal of
delineating 600 to 800 million tonnes at a grade between 28-32%
iron ore. The potential tonnage and grade are conceptual in nature
and it is uncertain if further exploration will delineate a mineral
resource.
"We are having great success with the 2010 program and have
found the area north of Rose Lake to have great iron thicknesses
and grade," says Matt Simpson, Chief Operating Officer of Alderon.
"We want to make sure to include this new area to our current work
heavily focused on proving up Rose Central and Mills as it should
add significantly to the resource."
A total of 21,907m has been drilled on the property to date and
the 2010 drill program is on track to be completed by the end of
November 2010 with 25,000m drilled. The 2010 program will be
followed by an initial National Instrument 43-101 ("NI 43-101")
resource estimate in the first quarter of 2011. Watts, Griffis and
McOuat Limited ("WGM") has been commissioned to provide this
resource estimate and has already completed the required site
visits and sampling program.
The 2011 winter program is expected to commence during the last
week of January and take approximately seven weeks to complete. The
program is anticipated to cost approximately $2.5 million and will
also be followed with an updated NI 43-101 resource estimate late
in the second quarter of 2011. The winter program will focus on
adding the northern portion of the Rose Lake Zone to the
resource.
Rail Capacity
BMO Research attended a site visit of the Iron Ore Company of
Canada (IOCC) operations in October 2010. In the BMO Capital
Markets write up on Labrador Iron Ore Royalty dated October 21,
2010, BMO states, based on commentary from senior IOCC management,
that, "... Rio Tinto's QNS&L (Quebec North Shore &
Labrador) rail line, which runs essentially from Schefferville to
Sept-Iles, could be expanded with minimal capex (capital
expenditure) to 75 - 80Mtpa (million tonnes per annum) of hauling
capacity." This capacity is in line with an earlier analysis
conducted for Alderon by industry experts.
"There is currently only approximately 30Mtpa being shipped
along this rail line," says Mr. Simpson. "Even if every existing
mine expands to their full currently stated production target and
each known new company (including Alderon) commences production,
there is still only just over 60Mtpa being produced, so rail
capacity shouldn't be an issue."
About Alderon
Alderon is a leading iron ore exploration and development
company in Canada. The Kami Project is located within an existing
iron ore district and is surrounded by producing iron ore mines.
The Alderon team is comprised of skilled professionals with
significant iron ore expertise to advance Kami towards
production.
Alderon's exploration work on the Kami Property is supervised by
Edward Lyons, P.Geo., the Chief Geologist for Alderon and a
Qualified Person as defined by NI 43-101. Mr. Lyons has reviewed
and is responsible for the technical information contained in this
news release.
For more information on Alderon, please visit our website at
www.alderonmining.com.
ALDERON RESOURCE CORP.
On behalf of the Board
Mark J. Morabito, President & CEO
This news release may contain forward-looking statements. These
statements are based on current expectations and assumptions that
are subject to risks and uncertainties. Actual results could differ
materially because of factors discussed in the management
discussion and analysis section of our interim and most recent
annual financial statement or other reports and filings with the
TSX Venture Exchange and applicable Canadian securities
regulations. We do not assume any obligation to update any
forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Alderon Resource Corp. - Vancouver Office Mark
Morabito 604-681-8030 604-681-8039 (FAX)
mmorabito@explorationgroup.com Alderon Resource Corp. - Toronto
Office 416-309-2135 416-861-5887 (FAX) info@alderonmining.com
www.alderonmining.com
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