Pacific Iron Ore Corporation (TSX.V: POC), announces that inferred resources have nearly doubled to 14.3 million tonnes grading 60 percent recoverable magnetite within in the Bugaboo Creek iron deposits. A cut-off of 20 percent magnetite was used in the determination of this resource.
The corporation is advancing the Bugaboo Creek deposits with the corporate goal of exporting approximately 2 million tonnes per year of iron concentrate to steel producers within the Pacific region. Additional exploration is required to meet these proposed production targets.
An updated resource estimate has been completed by Wardrop, a Tetra Tech Company (Wardrop), under the direction of Klaus Triebel, CPG. Mr. Triebel is a Qualified Person ("QP") for purposes of NI 43-101, is an employee of Wardrop, and independent from Pacific Iron Ore Corporation as described in section 1.4 of NI 43-101.
Pacific Iron Ore Corporation reported a resource estimate of 7.8 million tonnes in late 2008 and the current revision of resources to 14.3 million tonnes is based on drilling completed in 2009 and 2010. In 2009, the corporation drilled 16 holes, totaling approximately 4700 metres and in 2010, the corporation drilled 32 holes of totaling approximately 9100 metres.
The aforementioned resources are contained within five zones. These zones are typically 200 to 300 metres in lateral extent and 20 to 40 metres in thickness.
It is expected that additional drilling will increase the resources within the Bugaboo Creek project, current Bugaboo Creek exploration costs for a tonne of high-grade iron resource is in the range of $0.55 per tonne. The Mishael zone, Lower Conqueror zone and the Deep zone are considered open to expansion of their respective resources. These resource estimates are considered preliminary in nature.
The deposits are considered high-grade and are typical of a skarn iron deposits, and iron mineralization is associated with the contact between intrusive diorites and limestone formations. These deposits are located approximately 11 kilometres from Port Renfrew on the west coast of Vancouver Island.
Analysis of sample material from the drilling program on the Bugaboo Creek project was completed by ALS Chemex of North Vancouver, B.C., with high grade iron samples (greater than 20 percent Fe) being analyzed by the University of British Columbia for magnetically recoverable iron content.
Pacific Iron Ore Corporation has initiated baseline environmental studies to ensure that permit timelines are not compromised. This work is currently being managed by Allnorth Consultants of Vancouver, and includes surface water quality evaluation, meteorological and hydrological data collection as well as site planning.
Preliminary grinding test work has been completed by G&T Metallurgical Services of Kamloops, B.C., evaluating four mineralized zones for work index determination.
Source: Pacific Iron Ore Corporation