VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 3, 2012) -Alderon Iron Ore Corp. (TSX:ADV)(NYSE Amex:AXX) ("Alderon" or the "Company") is pleased to announce the successful completion of its final exploration drill program prior to the preparation of a Feasibility Study on its Kamistiatusset ("Kami") Iron Ore Project in western Labrador. The drilling program of 32 holes, totalling 12,300 metres, which began in mid-January and ended 30 April 2012, has concentrated on infill drilling within the currently defined mineral resource estimate in the North Rose area. The goal of this program is to upgrade the current mineral resource into the Measured and Indicated categories in preparation for the Feasibility Study expected in Q3 2012.
"Having safely and successfully wrapped up this final round of drilling, we want to thank our entire exploration team, of both Alderon staff and contractors, for their hard work and dedication in advancing the Kami Project so rapidly over the past 12 months," says Tayfun Eldem, President and CEO of Alderon. "With the exploration phase of the program now behind us, we are focusing our attention on the completion of the Feasibility Study later this year, which will be the next important milestone in Alderon's development."
During the preceding 12 months the Alderon team has compiled an impressive list of accomplishments. Highlights include:
- Completing an initial mineral resource estimate on North Rose, Rose Central and Mills Lake of 490 million tonnes at 30.0% iron in the Indicated category and an additional 598 million tonnes at 30.3% iron in the Inferred category. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
- Completing a Preliminary Economic Assessment ("PEA") of the Kami Project which indicates a positive pre-tax NPV of US$3.07 billion (discounted at 8%); pre-tax IRR of 40.2%; payback period of 2.7 years and an annual production of 8 million tonnes at 65.5% iron. The PEA is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the conclusions reached in the PEA will be realized.
- Initiating the Federal and Provincial Environmental Assessment processes and the Government of Canada and the Provincial Government of Newfoundland and Labrador have issued draft environmental impact statement guidelines for public review.
- Adding former Newfoundland and Labrador Premier Danny Williams to its Board of Directors.
- Adding several senior former Iron Ore Company of Canada and Consolidated Thompson executives to the management team, most notable appointing Tayfun Eldem as President and CEO.
- Entering into an agreement for a strategic partnership with Hebei Iron & Steel Group Co., Ltd., China's largest steel producer, for an aggregate investment of C$194 million.
- Completing a strategic investment with Liberty Metals & Mining Holdings, LLC of approximately C$40 million.
- Graduating to the Toronto Stock Exchange under the symbol ADV.
- Commencing trading on the NYSE AMEX exchange under the symbol AXX.
Other positive developments include the Federal government's announcement that it is investing up to C$55 million in the construction of a new multi-user deep water dock at the Port of Sept-Îles.
The 2012 drill hole location map and complete assay results are posted on the Alderon website at: https://www.alderonmining.com/projects/kami/
About Alderon
Alderon is a leading Canadian iron ore development company with offices in Vancouver, Toronto, Montreal, St. John's and Labrador City. The 100% owned Kami Project is located within Canada's premier iron ore district and is surrounded by four producing iron ore mines. The Alderon team is comprised of skilled professionals with significant iron ore expertise to advance Kami towards production.
Edward Lyons, P. Geo., the Chief Geologist for Alderon and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this news release.
Additional information about the Kami Project including details of the assumptions and parameters underlying the mineral resource estimate can be found in the technical report filed on SEDAR at www.sedar.com entitled: "Technical Report Preliminary Economic Assessment of the Rose Central Deposit and Resource Estimate for the Rose Central, Rose North and Mills Deposits of the Kamistiatusset (Kami) Iron Ore Property, Labrador for Alderon Iron Ore Corp." dated March 9, 2012. For more information on Alderon, please visit our website at www.alderonironore.com.
ALDERON IRON ORE CORP.
On behalf of the Board
Mark J. Morabito, Executive Chairman