Advancing a second key iron ore asset in Nunavut: Tuktu

Advanced Explorations (AXI-V) took another step in its bid to mold itself into a significant iron ore miner in Canada’s Far North.

The company released a maiden resource estimate on its Tuktu iron project in eastern, mainland Nunavut – its second project in the territory.

The project sits roughly 60 km north of the company’s flagship Roche Bay project, which boasts a potential starter pit sitting just 8 km from the ocean.

Inferred resources for the Tuktu 1 deposit came in at 465 million tonnes grading 31.1% total iron using a 20% iron cut-off.

The company’s next move at the site will be to look at adding tonnage by drilling along strike and at depth. It also wants to define a resource associated with the high-grade, direct-shipping ore type samples, which grade over 62% total iron. That higher-grade material lies in the Tuktu 2 area, roughly 10 km southeast of Tuktu 1.

Importantly, a sensitivity analysis of the grade and tonnage relationships demonstrated consistency of grade and tonnage at a number of grade cut-offs.

Advanced says it wasn’t surprised by the finding because it constrained the model to consider only the Tuktu iron formation – which is consistent in magnetite content visually and in grade both along and between drill hole intercepts.

Since metallurgical testwork has not been done at Tuktu yet, Apex Geoscience chose the same 20% cut-off grade that was used at its Roche Bay C-Zone deposit.

The Roche Bay project has indicated resources of 323 million tonnes at 26.7% total iron and 226 million inferred tonnes at 25.8% total iron.

The company has staked claims on the same iron formation that incorporates the Roche Bay deposits, the Tuktu deposits and other targeted deposits in areas to the north, south and west of Roche Bay.

A preliminary economic assessment from the Roche Bay generates a net present value of US$1.1 billion and argues there is a potential to develop either iron ore concentrate or high value iron nugget products.

A feasibility study now underway is considering a concentrate start-up operation of 5 million tonnes per year.

The company’s shares have traded between $1.03 and 24¢ over the last 52-week period and in Toronto on Jan. 13 – the day the news of resource was released – its shares were trading for 24.5¢ on 171,000 shares traded.