SANIRAJAK/HALL BEACH
Advanced Explorations Inc.(AEI)(TSX V:AXI) and Parkson Star Ltd. of Hong Kong have reached an agreement and signed a memorandum of understanding to bring AEI’s Roche Bay iron ore project into production.

This map indicates the location of the Roche Bay project relative to the communities of Hall Beach and Igloolik. The project has received a significant financial impetus after securing an agreement with a Chinese backer to fund mine construction. - photo courtesy Advanced Explorations Inc.

Newly named Savik Iron Mines Ltd. will be a joint venture between the two companies to build a mine at Roche Bay. Parkson, in exchange for committing to cover the $1.37 billion dollars in construction and contingency costs, will receive 80 per cent interest in Savik mine.

Savik mine will include the Roche Bay and Tuktu projects which AEI has been developing since taking over the properties in 2007.

Although AEI has been developing baseline environmental studies and engaging with local communities, the Savik proposal has not yet entered into the Nunavut Impact Review Board (NIRB) process.

Brendan Purdy, AEI legal counsel, said the company is now in a position to work toward completing a draft environmental impact statement to bring to the NIRB.

“Our focus this year will be on getting on track with the (draft) environmental impact statement and other permitting,” said Purdy.

The Roche Bay project is located 60 km southwest of the hamlet of Hall Beach, with permanent population of 654 people and commercial-grade airport.

The deposit sits less than six km from a natural deep water bay and so does not require construction of a railway or slurry pipelines to move product.

The site has seen much exploration since 1968. According to a 2012 feasibility study, the Roche Bay mine would require 371 permanent personnel over the projected 15-year mine life. A further 48 workers would be required on a seasonal basis.

These employment numbers relate only to mine production, management and maintenance. They do not include related employment such as camp catering or cleaning. Employment numbers for mine construction were not available.

The mine may have an ultimate productive 20 to 25 year life at 8 million tonne ore production per year, if historic resource numbers estimated at 1.1 billion tonnes of ore concentrate are correct.

The Tuktu property, located near Roche Bay, is at an earlier stage of exploration.

Parkson Star is a private Chinese investment fund.