Vancouver – A first resource for Alderon Resource‘s (ADV-V) Kamistiatusset (Kami) iron ore project in western Labrador has established a global resource of 608 million indicated and inferred tonnes.
The Kami project sits roughly 6 km east of Consolidated Thompson’s Bloom Lake deposit and about 10 km southwest of the town of Wabush. The resource estimate includes the Rose Central zone and the Mills Lake zone 3 km to the southeast.
Rose Central, with a defined strike length of 1.7 km and a true thickness of up to 320 metres, is estimated to contain 376.1 million indicated tonnes grading 29.8% total iron or 26.9% oxide iron and 46 million inferred tonnes grading 29.8% total iron or 27.2% oxide iron, both using a 20% cut-off.
Mills Lake, with a defined strike length of 1.5 km and a true thickness of up to 180 metres, is estimated to contain 114.1 million indicated tonnes averaging 30.5% total iron or 27.8% oxide iron and 71.9 million inferred tonnes averaging 30.7% or total iron or 28.2% oxide iron using the same cut-off.
The resource estimate is based on 24 km of drilling over 68 holes, while both zones are open to expansion.
The project straddles the Labrador-Quebec border, with 47.8 sq. km in Labrador and 1.3 sq. km in Quebec. Duley Lake Provincial Park sits just north of the property.
According to a technical report, mineralization consists mainly of semi-massive bands, or layers, and disseminations of magnetite and/or specular hematite in re-crystallized chert and interlayered with bands of chert with minor carbonate and iron silicates. The hematite-rich rock has occurrences of manganese that could be a concern for the production of concentrates.
Alderon has $16.1 million in planned spending for 2011, including a 5,000-metre winter drilling program that should wrap up shortly, 25,000 metres of definition drilling and a scoping study.
Prospect generator and royalty company Altius Minerals (ALS-T) holds 39.3% of Alderon shares, while Alderon is also backed by Forbes & Manhattan. Altius started exploring the property in 2006 before optioning it to Alderon and still holds a 3% net sales royalty.
Alderon’s share price climbed 17¢ on the day the resource was released, and 43¢ the day before, to close at $4 even. The company hit a 52-week trading high of $4.20 in February after climbing from a low of 85¢ last July. As of April 1 Alderon had 82.2 million shares outstanding and $22.5 million in working capital.
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