delays indeed....
1.9 Conclusions
A third independent NI 43-101 mineral resource has been completed for the Roche Bay Iron Property for AEI for
the A/B and C-Zones deposits and is based on drilling information collected in 1982, 2007-2008 and 2011
exploration programs under the direction of AEI, magnetite testwork, mineral interpretation and resource
classification studies. A Feasibility Study (FS) is currently underway by Wardrop, A Tetra Tech Company
(Wardrop) and AEI will be completed in 2012.
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1.10 Recommendations
The following recommendations are provided for ongoing development of the Roche Bay Iron Property:
? Future drilling should consider further testing the BIF footwall and hanging wall zone areas in order to fully
define the BIF mineralization and potentially increase the width and depth of the overall A/B and C-Zones.
The A/B-Zone has only been drilled to a depth of 180 m and there is potential below this depth to add to the
resource.
? Complete Infill drilling on the A/B-Zone to increase the confidence in the current resource from Inferred to
Indicated. This will also require completing additional Davis Tube testwork on all infill and exploration
drilling.
? Complete additional metallurgical and process testwork on the A/B-Zone ores in order to confirm the same
processing methods for A/B and C-Zones.
? Future drilling programs should continue collecting geotechnical data in critical areas (i.e. proposed pit walls
and known hydrogeological areas).
? Completion of additional prospecting on the A/B and C-Zones and other areas of the Roche Bay Iron
Project to further evaluate the iron formations for their iron ore potential and evaluate the area’s potential for
hosting Archean mesothermal lode gold deposits and/or VMS mineralization. The prospecting should also
be supplemented by airborne geophysical surveying with electromagnetics.
The Phase 2 work plan study includes the completion of a FS planned to be completed in 2012. The cost of the
Phase 2 study is estimated to be approximately $20,000,000 and includes further engineering studies, resource
definition drilling, geotechnical drilling, exploration drilling and condemnation drilling in preparation for early
works programs.