Oceanic Announces Assay Results of 36.3% Fe Over 60 Metres & 30.5% Fe Over 133 Metres at Hopes Advance and Provides Project U...
December 16 2011 - 6:00AM
Marketwired Canada
Oceanic Iron Ore Corp. (TSX VENTURE:FEO)(OTCQX:FEOVF) (the "Company") is pleased
to provide a project update and announce a further set of assay results from
both twinned and new exploration holes conducted as part of its 2011 resource
verification program at the Hopes Advance project area.
Hopes Advance Assay Results
The 2011 drill program at Hopes Advance consisted of 115 holes with 11,618
metres of NQ calibre drilling. At Hopes Advance, 67 historical drill holes were
twinned in the Castle Mountain, Zone 2, Zone 4, Iron Valley, McDonald Zone and
Bay Zones "A", "B", "C", "D", "E" and "F". In addition, 48 exploration drill
holes were completed at Castle Mountain, Zone 4, Iron Valley and Bay Zones "B",
"C", "D", "E" and "F". The Company also undertook 1,086 metres of NQ drilling
over 11 drill holes at Kayak Bay located in the Roberts Lake Area.
As at September 21, 2011, the date the Company announced its NI 43-101 Compliant
Resource for Hopes Advance, assay results on 79 drill holes in respect of Hopes
Advance had not yet been reported in full. The Company is today reporting assay
results on 50 holes (31 twinned and 19 exploration). Further drill holes are
expected to be reported in the coming weeks. Drill hole results from Kayak Bay
are also expected in the coming weeks.
Steven Dean, Chairman and CEO of the Company noted: "The exploration drill holes
that we are reporting today illustrate significant potential upside for the
Hopes Advance resource which should become apparent when we release the updated
resource estimate for Hopes Advance in the coming months."
To view the map that sets out the geology of the Hopes Advance area click on:
http://media3.marketwire.com/docs/feo1.pdf
Twinned Drilling Results
The latest results from twinned holes demonstrate a good correlation of iron
formation thickness and total Fe (iron) grades. For Bay Zones "B", "C", "D", "E"
and "F", results from a number of drill holes returned greater mineralized iron
formation thicknesses and improved grades compared to those reported
historically.
Exploration Drilling Results
Results from the exploration drilling demonstrates excellent continuity of
mineralization at the Castle Mountain, Zone 4, Iron Valley, Bay Zone "C", "D",
"E" and "F" grids of the Hopes Advance Area. At Castle Mountain, drill holes
HA-11-067 and HA-11-079 demonstrate that mineralization continues an extra 150 m
down dip to the southeast. At Zone 4, drill holes HA-11-032 and HA-11-066 extend
the mineralization an extra 300 m to the northwest. At Iron Valley, exploration
drill hole IV-11-011 demonstrates a thick intersection of iron formation grading
33.4% total Fe over a true width of 105.1 m. Holes at Bay Zones "D", "E" and "F"
demonstrate excellent continuity of the mineralization extending the
mineralization an extra 300 m to the south with drill holes BF-11-005 (Bay Zone
F), BE-11-001A, HA-11-049 (Bay Zone E), and HA-11-052 a HA-11-054 (Bay Zone D).
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Corresponding Historic Drill Hole
2011 Results Results (1954 - 1957)
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From To T.Width % Fe From To T.Width % Fe
DDH (m) (m) (m) total DDH (m) (m) (m) total
------------------------------------------ ---------------------------------
Castle Mountain
------------------------------------------ ---------------------------------
HA-11-067(i) 32.80 94.60 59.67 36.3
------------------------------------------ ---------------------------------
HA-11-068 30.20 45.80 14.92 32.8
------------------------------------------ ---------------------------------
HA-11-068 51.30 56.30 4.78 34.9 P-97 47.24 53.34 5.83 36.9
------------------------------------------ ---------------------------------
HA-11-068 79.60 121.00 39.59 33.9
------------------------------------------ ---------------------------------
HA-11-074A 52.40 111.00 58.03 31.5 P-96 51.82 87.66 35.49 33.7
------------------------------------------ ---------------------------------
HA-11-075 36.00 68.00 31.69 32.4 P-95 36.58 65.53 28.64 32.2
------------------------------------------ ---------------------------------
HA-11-078(i) 47.40 61.40 13.39 30.2
------------------------------------------ ---------------------------------
HA-11-079(i) 56.00 89.00 32.92 29.7
------------------------------------------ ---------------------------------
HA-11-080(i) 39.20 90.80 50.82 28.4
------------------------------------------ ---------------------------------
HA-11-081(i) 45.70 55.73 9.88 27.0
------------------------------------------ ---------------------------------
Zone 2
------------------------------------------ ---------------------------------
HA-11-020 14.50 91.00 75.34 36.3 E-150 15.24 83.21 65.95 36.2
------------------------------------------ ---------------------------------
HA-11-021 33.00 138.00 98.67 32.0 E-158 30.48 107.90 72.75 35.7
------------------------------------------ ---------------------------------
HA-11-022 2.00 56.27 53.45 33.22 E-159 0.00 57.91 54.42 33.6
------------------------------------------ ---------------------------------
HA-11-033 2.57 25.00 22.09 30.6 E-164 13.72 18.29 4.29 31.2
------------------------------------------ ---------------------------------
Zone 4
------------------------------------------ ---------------------------------
HA-11-024 2.00 35.10 31.82 30.9 R-102 0.91 35.05 32.82 30.6
------------------------------------------ ---------------------------------
HA-11-031B 30.60 60.00 29.04 32.3 R-130 18.90 48.77 29.50 35.3
------------------------------------------ ---------------------------------
HA-11-032(i) 51.00 77.90 25.97 32.8
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HA-11-066(i) 24.90 55.60 30.40 35.5
------------------------------------------ ---------------------------------
Iron Valley
------------------------------------------ ---------------------------------
HA-11-034(ii) 28.50 86.40 55.93 32.2
------------------------------------------ ---------------------------------
HA-11-035(ii) 22.75 80.40 55.68 32.8
------------------------------------------ ---------------------------------
HA-11-036(ii) 9.50 76.00 66.34 31.5
------------------------------------------ ---------------------------------
IV-11-001(ii) 15.10 66.00 50.70 31.9
------------------------------------------ ---------------------------------
IV-11-004A(ii) 16.37 81.50 64.87 31.9
------------------------------------------ ---------------------------------
IV-11-007(i) 59.60 92.10 32.01 31.9
------------------------------------------ ---------------------------------
IV-11-010(ii) 12.30 45.70 28.93 26.1
------------------------------------------ ---------------------------------
IV-11-011(i) 29.66 135.19 105.11 33.4
------------------------------------------ ---------------------------------
Bay Zone F
------------------------------------------ ---------------------------------
HA-11-041(i) 50.70 174.50 107.21 33.2
------------------------------------------ ---------------------------------
HA-11-043 13.70 23.40 9.55 34.0 H-118 30.48 39.62 9.00 33.6
------------------------------------------ ---------------------------------
HA-11-043 28.70 101.20 71.40 28.2 H-118 44.20 91.44 46.52 29.8
------------------------------------------ ---------------------------------
BF-11-001(i) 6.50 28.05 19.53 26.3
------------------------------------------ ---------------------------------
BF-11-001(i) 42.10 56.80 13.32 33.8
------------------------------------------ ---------------------------------
BF-11-002(i) 88.10 126.00 34.35 33.4
------------------------------------------ ---------------------------------
BF-11-002(i) 72.56 127.80 50.06 29.0
------------------------------------------ ---------------------------------
BF-11-005(i) 61.30 207.90 132.86 30.5
------------------------------------------ ---------------------------------
Bay Zone E
------------------------------------------ ---------------------------------
HA-11-047 19.30 75.40 45.95 32.5 H-113 19.81 82.30 51.19 32.4
------------------------------------------ ---------------------------------
HA-11-048 4.30 114.80 84.65 31.5 H-89 0.00 91.44 70.05 34.1
------------------------------------------ ---------------------------------
HA-11-049(i) 48.40 184.40 127.80 32.0
------------------------------------------ ---------------------------------
BE-11-001A(i) 61.30 132.10 66.53 32.8
------------------------------------------ ---------------------------------
Bay Zone D
------------------------------------------ ---------------------------------
HA-11-050 19.90 85.40 59.36 30.8 H-87 21.34 82.30 55.25 31.5
------------------------------------------ ---------------------------------
HA-11-051 13.40 88.70 59.34 32.2 H-84 15.24 88.39 57.64 32.1
------------------------------------------ ---------------------------------
HA-11-052(i) 25.20 98.00 70.30 32.3
------------------------------------------ ---------------------------------
HA-11-053 24.40 66.20 34.24 34.3 H-83 16.76 74.68 47.45 32.9
------------------------------------------ ---------------------------------
HA-11-054(i) 40.30 106.80 61.66 32.8
------------------------------------------ ---------------------------------
Bay Zone C
------------------------------------------ ---------------------------------
HA-11-055 31.00 95.00 58.00 36.0 H-58 35.05 88.48 48.42 27.4
------------------------------------------ ---------------------------------
HA-11-056A 37.70 133.00 92.02 33.2 H-57 36.58 66.48 28.87 33.2
------------------------------------------ ---------------------------------
HA-11-058 1.50 30.00 23.35 29.8 H-53 62.48 76.20 11.24 27.0
------------------------------------------ ---------------------------------
HA-11-059(i) 56.00 97.58 36.01 33.2
------------------------------------------ ---------------------------------
HA-11-060 2.50 44.00 36.98 33.1 H-51 25.91 74.68 43.45 31.8
------------------------------------------ ---------------------------------
Bay Zone B
------------------------------------------ ---------------------------------
HA-11-061 22.40 67.00 41.05 35.5 H-21 19.81 70.10 46.29 31.0
------------------------------------------ ---------------------------------
HA-11-062 2.50 34.00 28.55 35.2 H-17 6.10 33.53 24.86 34.0
------------------------------------------ ---------------------------------
HA-11-063 11.80 124.00 97.17 35.9 H-12 48.77 83.82 30.35 34.0
------------------------------------------ ---------------------------------
Bay Zone A
------------------------------------------ ---------------------------------
HA-11-064 15.90 41.00 24.24 36.6 H-07 15.24 30.48 14.72 38.5
------------------------------------------ ---------------------------------
McDonald
------------------------------------------ ---------------------------------
MC-11-001(i) 23.70 47.00 21.90 30.4
------------------------------------------ ---------------------------------
MC-11-045 4.40 56.00 48.49 32.6 C-45 1.52 54.86 50.12 36.5
------------------------------------------ ---------------------------------
MC-11-060 14.10 26.45 11.61 21.8 C-64 15.24 25.91 10.03 21.3
------------------------------------------ ---------------------------------
(i) Indicates exploration drillholes.
(ii) Indicates twinned holes, but without sufficient historical data to
present in the table above.
Holes that have been reported to date continue to show low levels of sulphur and
phosphorous levels.
The drilling is of NQ caliber with sample lengths being collected up to a
maximum length of two meters. Assay samples collected are sent to ALS Chemex for
Whole Rock analysis by lithium borate fusion and XRF (oxides), Ferrous iron by
H2SO4 - HF and acid digestion and titrimetric finish, and Total Sulphur by LECO
method.
Project Update
Since the September 2011 release of the NI 43-101 compliant mineral resource
estimate and preliminary economic assessment in respect of the Hopes Advance
project, the Company has continued to fast-track the project on a number of
fronts including:
-- Ongoing provincial and federal government and Inuit interaction in
regards to infrastructure under the Plan Nord;
-- Resource estimate update in respect of Hopes Advance, which is expected
to be published late Q1 2012;
-- Metallurgical testing on some 700 composite samples, expected to be
completed late Q1 2012;
-- Pilot plant testing and flowsheet development to commence in April 2012,
using 250 tonne bulk sample already delivered to Montreal, Quebec;
-- Preparation of pre-feasibility study to be published in late Q3 2012,
followed by a feasibility study within 12 months; and
-- Ongoing environmental review and consultation being led by Golder
Associates in Montreal.
The timing of the resource estimate update and pre-feasibility study has been
impacted by the under-capacity of the laboratories responsible for producing
assay and metallurgical test results critical to the completion of both the
resource estimate update and the pre-feasibility study. This seems to be a
structural issue facing the industry generally and management is actively
engaged with its service providers to try to ensure timetables are respected.
Financing
Given the expected delays to the timing of the resource estimate update and
pre-feasibility study, the Company has arranged a non-brokered private placement
of 5,750,000 units (the "Units") at a price of $0.35 per unit to raise gross
proceeds of $2,012,500 to be used for continued development of the Project. Each
unit consists of one flow through common share in the capital of the Company and
one half of one share purchase warrant, with each whole warrant entitling the
holder to purchase one non-flow through common share in the capital of the
Company at a price of $1.00 for a period of five years after closing. This
financing represents the maximum flow through eligible proceeds for the Company
based on the Company's expected eligible expenditures in 2012, and the Company
has moved to secure this funding at a premium to the current market price.
The private placement is subject to the approval of the TSX Venture Exchange.
About the Company
Oceanic is focused on the development of the Ungava Bay iron properties. These
properties comprise in excess of 3,000 claims over three project areas, namely
Hopes Advance, Morgan Lake and Roberts Lake, which cover over 1,284 square
kilometres along the northern extension of the Labrador Trough in the Nunavik
Region of northern Quebec. The projects contain over 300 kilometres of iron
formation and all the deposits are located within 20 - 50 km of tidewater.
On September 21, 2011 the Company announced an NI 43-101 compliant "In-Pit"
Mineral Resource Estimate for Hopes Advance of 358,362,000 tonnes at 31.8% Fe
indicated and 872,423,000 tonnes at 32.4% Fe inferred and on September 22, 2011,
the Company announced the completion of a Preliminary Economic Assessment
("PEA") in respect of Hopes Advance, which under the Company's optimal
production scenario of 20 million tonnes per annum of concentrate, achieves a
pre-tax NPV of $10.4 billion, and pre-tax IRR of 34% at an 8% discount rate.
Further information in respect of the NI 43-101 Resource Estimate and the PEA is
available in a technical report prepared by Micon International Limited dated
November 4, 2011 entitled "Technical Report on the Mineral Resource Estimate and
Results of the Preliminary Economic Assessment Hopes Advance Bay Iron Deposits
Ungava Bay Region, Quebec, Canada" available for review on SEDAR (www.sedar.com)
and the Company's website (www.oceanicironore.com).
Eddy Canova, P.Geo., the Exploration Manager for the Company and a Qualified
Person as defined by NI 43-101, has reviewed and is responsible for the
technical information contained in this news release.
OCEANIC IRON ORE CORP. (www.oceanicironore.com)
On behalf of the Board of Directors
Steven Dean, Chairman and Chief Executive Officer
This news release includes certain "Forward-Looking Statements" as that term is
used in applicable securities law. All statements included herein, other than
statements of historical fact, including, without limitation, statements
regarding potential mineralization and resources, exploration results, and
future plans and objectives of Oceanic Iron Ore Corp. ("Oceanic", or the
"Company"), are forward-looking statements that involve various risks and
uncertainties. In certain cases, forward-looking statements can be identified by
the use of words such as "plans", "expects" or "does not expect", "scheduled",
"believes", or variations of such words and phrases or statements that certain
actions, events or results "potentially", "may", "could", "would", "might" or
"will" be taken, occur or be achieved. There can be no assurance that such
statements will prove to be accurate, and actual results could differ materially
from those expressed or implied by such statements. Forward-looking statements
are based on certain assumptions that management believes are reasonable at the
time they are made. In making the forward-looking statements in this
presentation, the Company has applied several material assumptions, including,
but not limited to, the assumption that:
(1) there being no significant disruptions affecting operations, whether due to
labour/supply disruptions, damage to equipment or otherwise; (2) permitting,
development, expansion and power supply proceeding on a basis consistent with
the Company's current expectations; (3) certain price assumptions for iron ore;
(4) prices for availability of natural gas, fuel oil, electricity, parts and
equipment and other key supplies remaining consistent with current levels; (5)
the accuracy of current mineral resource estimates on the Company's property;
and (6) labour and material costs increasing on a basis consistent with the
Company's current expectations. Important factors that could cause actual
results to differ materially from the Company's expectations are disclosed under
the heading "Risk Factors" in the Company's Filing Statement dated November 22,
2010 (a copy of which is publicly available on SEDAR at www.sedar.com under the
Company's profile) and elsewhere in documents filed from time to time, including
MD&A, with the Toronto Stock Exchange and other regulatory authorities. Such
factors include, among others, risks related to the ability of the Company to
obtain necessary financing and adequate insurance; the economy generally;
fluctuations in the currency markets; fluctuations in the spot and forward price
of iron ore or certain other commodities (e.g., diesel fuel and electricity);
changes in interest rates; disruption to the credit markets and delays in
obtaining financing; the possibility of cost overruns or unanticipated expenses;
employee relations. Accordingly, readers are advised not to place undue reliance
on Forward-Looking Statements. Except as required under applicable securities
legislation, the Company undertakes no obligation to publicly update or revise
Forward-Looking Statements, whether as a result of new information, future
events or otherwise.
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