BUSINESS MODEL

“We are confident that we can further develop a flexible, cost-effective marketable product that captures varying efficiencies to keep us competitive.”   

John Gingerich, President & CEO

 

Advanced Explorations Inc. plans to develop the banded iron ore formation on the Melville Peninsula using nugget producing technologies in the process of iron making.

The end product will be high purity granulated iron nuggets which are higher in grade (>95% Fe) compared to conventional pellets (67%-71%) and sell at a price multiple to the traditional iron ore products. As a high quality iron nugget producer, AEI can serve a variety of markets:

• Steel Companies, custom mills, integrated mining/steel companies, foundries
• Price driven by Asia markets, highest value market product
• Customers USA/Canada, Europe, Asia

The selection of iron nugget, as a final product, is based on the rigorous study of mineralogical, chemical and physical characteristics of Roche Bay ores, in relationship with enrichment process efficiency and investment cost of the project.

With the decision to pursue the well known nugget process instead of the pellet plant, Advanced Explorations Inc. intends to manufacture a product that is preferred by the Electric Arc Furnace Industry around the world. AEI has the potential to become one of the few official producers of manufactured iron "nuggets" worldwide.

 

Source on Nugget Plant: Midrex Technologies

 

Nugget Plant Advantages

• Low capitalization
• High margin
• Early cash-flow creation
• Low carbon footprint
• Waste gas and waste heat recycling
• Small scale, low impact
• Canada-focused
• High iron content
• Reduced shipment cost by 1/3 (>95% Fe iron nuggets compared to 67% Fe pellets)
• Due to high purity iron nuggets are preferred by the steel industry

 

Environmental Benefits:

• Processing magnetite is cleaner than processing hematite – less CO2 emission
• Smaller economic footprint due to smaller scale of the operation
• No railway line required due to location directly at natural deep water harbour

The project is expected to qualify for a Kyoto Carbon credit.