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Alderon Iron Ore Corp AXXDF

Alderon Iron Ore Corp is a Canada based development-stage company. It is conducting iron ore evaluation activities related entirely to its Canadian properties located in western Labrador in the province of Newfoundland and Labrador. The company's operating segment is the acquisition, exploration, and evaluation of mineral resources. Its flagship project is the Kami Iron Ore project located in the Labrador Trough.


GREY:AXXDF - Post by User

Bullboard Posts
Comment by Greenandgold.on Feb 29, 2012 10:56am
235 Views
Post# 19604242

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But what is your opinion, or mine for that matter, worth? The PEA for Kami specifies exactly the quality of ore that is expected to be produced. And the experts in the matter, BBA Consulting, establish that the final product will be very similar to the final product at Bloom Lake. It's typical high-quality iron ore concentrate from the Labrador Trough with very low qualities of deleterious elements like phosphorus and sulphur (compared to the South American and Australian deposits).

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Aside from the manganese levels (which will be held to a reasonable 0.75% in the final concentrate) there's no appreciable difference in the Bloom Lake and Kami products. Similar iron content and similar silica, aluminum oxide, MgO, TiO2, phosphorus, sulphur levels. Similar Davis Tube recovery rates (both around 38%). The Kami deposit size will be a little larger and the head iron grades a little higher (30% vs. 29%), and ADV has less infrastructure to build.

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If your argument is that Bloom Lake isn't going to be a profitable mine for Cliffs in the long run, that's fine. If Bloom Lake fails, then Kami will also fail, because the two mines are very, very similar.

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My understanding from Morabito is that the Chinese have already made bids on a Kami offtake deal, but ADV is holding out for a monster deal. They want what Consolidated Thompson got. We will see.

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