Altius today released an update of the company’s exploration work on a number of its iron ore projects in the Labrador West Iron Ore district, some of which are under option to third parties.
According to a news release, Alderon Resources Corp. recently announced positive drill results from its ongoing resource delineation program on the Kami iron ore project in Western Labrador.
Alderon has the option to earn a 100 per cent interest in the project from Altius by incurring $5 million in exploration expenditures on the property by November 2012, and by issuing a minimum of approximately 32 million shares to Altius. Altius will retain a three per cent gross sales royalty.
Labrador West Project: under an option agreement with Altius, Rio Tinto Exploration Canada Inc. commenced its 2010 exploration program on eight exploration licences throughout the western Labrador iron ore mining district.
Drilling began on July 11 and tested targets known as the Bruce Lake and Goethite Bay Prospects. Three holes have been completed for a total of 270 metres, only one of which reached target depth due to drilling problems.
Prospecting and mapping is ongoing to gain a better understanding of the structural geology in order to prioritize additional drill targets.
An earn-in exploration and royalty agreement began in December 2008 allowing Rio Tinto to earn up to a 70 per cent interest in the licences in stages by spending up to $7 million in exploration within five years. Altius retains a three per cent Gross Overriding royalty of which one per cent may be purchased for $10 million on or before the tenth anniversary of the agreement.
Snelgrove Lake Project: Altius' 2010 exploration program on the Snelgrove Lake project comprised reconnaissance scale mapping and rock sampling of iron formation, as well as manual trenching over higher grade iron targets.
A total of 68 rock samples were collected from taconite-type iron formation on the property and returned a mean assay grade value of 33.7 per cent iron. Areas of higher-grade oxide iron formation (e.g. 55-65 per cent iron) identified during the 2009 exploration program were further sampled confirming the results of the previous year with 13 samples ranging between 21 - 59 per cent iron with a mean assay grade of 43 per cent Fe. The extent and continuity of these mineralized areas is still unknown. Altius is seeking a partner for this project.
Julienne Lake Project: Altius holds mineral rights covering the projected extensions of the Julienne Lake deposit under Wabush Lake and Julienne Lake in Labrador West, approximately 15 kilometres northeast of IOCC's Carol Lake operation. The deposit contains a historic and NI-43-101 non-compliant resource of 558.8 million tonnes grading 35 per cent iron.
Altius has been prospecting for iron ore in western Labrador since 2003 and is one of the largest exploration licence holders in the district.