Advanced Explorations Inc. (OTC Other: ADEXF; TSX-V: AXI) continues to advance a feasibility study on its Roche Bay Iron Ore project, incuding potentially increasing production from 3 million tonnes per year to up to 5 million tonnes per year.
The proximity of the ore body to future port facilities, the relatively low infrastructure CAPEX requirements, a simplified production flow sheet, and the recently announced increase in global resources provide additional operational flexibility and scalability of production:
— More near term production to take advantage of the anticipated high iron
ore prices due to increasing demand out of China, India and Japan.
— Operational cost efficiencies from increased scale of production.
— Improved leverage of the project’s unique ocean location given the
global bottleneck created from lack of effective railroad
infrastructure/access and port capacities.
— Higher (and earlier) cash flows to current plan, with concurrent
positive influence on IRR and NPV.
— Low technical risk (proven and established technologies), relatively low
CAPEX, translating to simpler plan to production.