Advanced Explorations (CVE:AXI) Provides Notice to Exercise Option on Alaska Iron Sands Project
After AEI's review of 7th Sea's Alaskan claims, and the approximate 25 kilometer area of interest following the announcement of the Agreement on August 18, 2010, AEI believes additional exploration and metallurgical work is justified to better understand the Project's true economic potential. The Company plans to implement a more systematic sampling and drill (auger holes) program to better characterize (tonnage and grade potential) the resource.
John Gingerich, President and CEO, commented: "AEI will continue to advance and enhance its iron ore property portfolio. While the Alaska sands project is a slight divergence from the mainstream iron ore projects, its unique attributes provide an interesting economic opportunity to AEI. We believe that the coastal location and proximity to the Asian market (approximately 3500 nautical miles from China) are significant commercial advantages that will benefit the Project. The Company's recent and ongoing review of the Project has resulted in a clear plan for moving the project forward. Better characterization of the resource is needed to support a development scenario, and we hope to complete this work before June, 2011."
Under the Agreement, AEI is required to undertake work commitments of US$2,000,000 and cash and/or stock payments of US$1.6 million. The Claims are subject to a 3% Net Smelter Royalty with an Option for AEI to buyback up to 1.75% of the royalty. In addition, a finders' fee in connection with the Agreement may be payable and remains subject to the approval of the TSX Venture Exchange.
About 7th Sea Holding Company
7th Sea is an Alaskan based Company founded for the purpose of acquiring and developing sustainable and responsible mining projects in Alaska. To date, 7th Sea's long standing presence and relationships in Alaska have helped foster local support for development in the local communities nearby.
About Advanced Explorations Inc.
Advanced Explorations Inc. is in the development stage, and is engaged in the acquisition, exploration and development of properties within the resource sector.
Advanced Explorations Inc.