Cap-Ex Iron Ore Ltd. – Iron Ore Development in Canada
Overview
Cap-Ex Iron Ore Ltd. (TSXV:CEV,OTCQX:CPXVF,FWB:XOV) is a Canadian iron ore exploration and development company with key projects in and around the Labrador Trough. The Company’s projects are all strategically located close to iron ore processing plants and rail.
The Company’s flagship project, Block 103, is at the epicenter of the Labrador Trough, which contains world-class iron deposits, and currently produces 99% of Canada’s iron ore. The Federal government has pledged to invest $55 million on a new $220 million multi-user deep-water port at Sept Iles, and the Quebec Provincial government’s $80 billion “Plan Nord” for the area includes hydro power, community development and an additional railway for increased accessibility.
Investment Highlights
- Initial NI 43-101 resource of 7.2 billion tonnes inferred at 29.2% iron.
- Flagship project located in the Labrador Trough, which produces 99% of Canada’s iron ore;
- Solid infrastructure and access to government funding;
- Qualified, experienced and successful management team;
- PEA expected in June 3013.
Key Project
Block 103
Block 103, wholly owned by Cap- Ex, is located at the epicenter of the Labrador Trough northwest of Schefferville, Quebec. The property is within 26km of existing rail to Port of Sept Iles, close to several power access options, and is surrounded by iron ore developers Tata Steel and New Millennium magnetite deposits of KeMag and LabMag- a combined resource of roughly nine billion tonnes.
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Block 103 currently hosts and NI 43-101 inferred resource of 7.2 billion tonnes with a grade of 29.2% total iron. This Inferred resource covers an area with a strike length of approximately 4 kilometers (km) and a width of 2.5km. Based on the Magnetic Airborne survey previously completed, the Block 103 Property covers a strike length of approximately 12km. Mineralized zones are open towards the northwest and southeast and to depth.
Two distinct zones of magnetite mineralization, the Greenbush Zone and the Northwest Zone, were identified on the property as a result of a 6,000 metre drilling campaign conducted in 2011. Mineralization was consistently encountered at shallow depths with thicknesses of up to 260 metres. Laboratory analysis of the samples collected during this 2011 program revealed very consistent grades of mineralization ranging from 28.5% to 34.6 % total Fe (iron).
The 2012 exploration program included 22,300 metres of diamond drilling as well as additional surface sampling, focused primarily on the continued investigation and definition of mineralization in the Greenbush Zone.
Mineral resources which are not mineral reserves, do not have demonstrated economic viability.
Cap-Ex selected BBA to complete the Preliminary Economic Assessment of Block 103, which is expected in June 2013.
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Other Projects
Cap-Ex Iron Ore Ltd. has other projects in its portfolio including: Redmond, Lac Connelly, Porky Lake and Snelgrove. There are numerous iron zones known within the Cap-Ex Redmond Property. The Redmond property’s historic reports by IOC show iron ore occurrences in trenching and drill holes within the claim. In 2011, testing revealed encouraging beneficiation results of up to 56.9 % iron in some of the samples.
The Lac Connelly property is located 250 km north of Schefferville, near the planned WISCO/ADI iron ore mining operation and the proposed “Plan Nord” railway.
The Porky Lake property covers a large area of the Sokoman iron formation. Historic reports by Iron Ore of Canada (IOC) noted the Porky Lake properties contain abundant dark-blue heavy compact beds of hematite extending for over 50 km. Samples taken by IOC averaged 56 % iron.
The Snelgrove mineral claims’ historical reports and geophysics indicate occurrences of iron mineralization within the mineral claims.
Summary
Cap-Ex Iron Ore Ltd. is focused on the development of its Block 103 Iron Ore Project in the Labrador Trough, near the mining town of Schefferville, Quebec. The Block 103 property is strategically located close to an existing railway, which can provide a direct link to a shipping port, and is adjacent to New Millennium Iron Corp-Tata Steel LabMag and KeMag deposits and the New Millennium-Tata oxide deposits to the east. It has a NI 43-101 inferred resource of 7.2 billion tonnes of 29.2% iron. A PEA is expected in June 3013.
Management
Francois Laurin – President and CEO
Francois Laurin was formerly chief financial officer of Consolidated Thompson Iron Mines Ltd., which was acquired by Cliffs Natural Resources in 2012 for $4.9 billion. Mr. Laurin also has extensive experience in the transportation, telecommunication, media and private equity industries. He is currently a member of the board of directors of several non-profit organizations and has been a director and member of board committees of both public and private companies. Mr. Laurin is a Chartered Accountant and a Chartered Financial Analyst, and holds a graduate diploma in Public Accountancy and a Bachelor of Commerce degree from McGill University.
Andrew W. Bowering – Chairman and Director
Andrew Bowering is an entrepreneurial management consultant to public companies and he has provided services in a variety of management and financial oversight roles. Mr. Bowering has held senior executive positions and directorships in numerous public companies involved in mineral exploration in Canada, the United States, Mexico and China. He has an in-depth knowledge of securities markets, regulatory affairs and investor/public relations. Mr. Bowering has led several large acquisition programs in British Columbia, Alberta and Mexico. Mr. Bowering obtained his Bachelor’s degree in Economics and Political Science from the University of British Columbia in 1986.
Brian Penney – Chairman of Operations and Director
Brian Penney brings more than fifteen years of industry experience to the Company from the Iron Ore Company of Canada (“IOC”), a Rio Tinto subsidiary. During his tenure with IOC, Mr. Penney served as general manager of processing facilities, mining operations and integrated planning. Mr. Penney is also currently president and chief executive officer of Ridgemont Iron Ore Corp. He is a licensed professional engineer, and graduated from Technical University of Nova Scotia with a degree in Metallurgy.
Brett Matich – Director
Brett Matich has over 20 years’ experience in the mining industry in Australia and around the world. Mr. Matich was formerly managing director of Aztec Resources Ltd., where he identified an Australian dormant iron ore mine, and successfully completed a bankable feasibility study. Aztec was takeover by ASX listed Mount Gibson Iron Ltd. in 2006 and the mine currently exports approximately three million tonnes of iron ore per annum. As inaugural managing director of Fox Resources Ltd. in 2002, Mr. Matich identified a closed Australian nickel mine and successfully returned it to production in 2004. He has been involved in excess of $100 million in corporate financing arrangements.
Graham Harris – Director
Graham Harris has over eighteen years’ experience in the finance industry. Mr. Harris was formerly senior vice president at Canaccord Capital Corporation and senior vice president and director at Yorkton Securities. He also served as Yorkton’s representative to the Investment Dealers Association of Canada. Mr. Harris obtained a Bachelor’s degree in Economics from the University of British Columbia.
Troy Gill – Director
Troy Gill spent fifteen years with Rio Tinto, primarily in commodities. At Rio Tinto, Mr. Gill was team leader of Pilbara Iron Ore and oversaw the discovery of the high grade Wellthandelthaluna deposit and the 750Mt Caliwingina Channel Iron Deposit. Mr. Gill is currently vice president, exploration at Guerro Exploration Inc., and exploration manager at Sanatana Diamonds Inc. Mr. Gill holds a Bachelor’s degree in Geology from the University of Wollongong, Australia.
Gary Norris – Director
Mr. Norris has spent over 30 years working for the Newfoundland and Labrador Government including as the Clerk of the Executive Council and Secretary to Cabinet. Mr. Norris has also held a number of other senior Executive positions, including Assistant Deputy Minister of Environment and Deputy Minister of Intergovernment Affairs Secretariat. He is the current Executive Vice President Government & Community Affairs for Alderon Iron Ore Corp., a leading iron ore development company also located within the Labrador Trough. Mr. Norris will help guide Cap-Ex through the development of its 100% owned Block 103 Iron Ore Project and will provide advice with respect to liaising with local, provincial and federal Governments. Mr. Norris holds a Bachelor of Arts degree in Political Science and Economics from Memorial University of Newfoundland.
Mark J. Morabito - Special Advisor to the Chief Executive Officer
Mr. Morabito has over 15 years’ experience in public markets with a strong focus on junior mining with extensive experience in capital-raising and corporate development. Mr. Morabito founded and has been the principal driving force behind a number of successful resource development companies including Alderon Iron Ore Corp. He is also the founder of EGM Exploration Group Management Corp, which is now part of Forbes & Manhattan as Forbes West, overseeing all of the Forbes and Manhattan western North American operations.
Mr. Morabito has a BA from Simon Fraser University and completed his J.D. at the University of Western Ontario. He practiced Corporate Finance and Securities Law in Toronto and Vancouver prior to becoming a principal in the mining industry.
Jasvir Kaloti – Chief Financial Officer and Corporate Secretary
