Cap-Ex Iron Ore Ltd (TSX-V: CEV) (“Cap-Ex” or the “Company”) is pleased to announce the results of a ground gravity survey conducted by Tata Steel Minerals Canada Ltd. (TSMC) on the Company’s wholly owned Block 103 property located in the Labrador Trough northwest of Schefferville, Quebec. The ground gravity survey, performed in October and November of 2014, was designed to explore for DSO (Direct Shipping Ore) by targeting airborne anomalies with high gravity readings associated with a low magnetic background. The survey is part of TSMC’s work commitments pursuant to a Road Access and DSO Exploration Agreement announced on October 8, 2014.
The ground gravity survey was successful in the detection/confirmation of anomalies that suggest the presence of buried masses of iron with densities exceeding 2.67 g/cc (grams per centimeter cubed) characteristic of DSO type deposits. All of the selected airborne targets showed values that would be expected from DSO type large tonnage iron deposits. In addition, new gravity anomalies were identified that were not observed in the airborne survey.
Measurements from 887 gravity stations were collected by the Quebec-based geophysical consulting company GEOSIG INC. Their geophysicist commented “Gravity anomalies on the ground gravity survey are much stronger and more obvious [than the airborne survey], leaving no doubt about their existence” (GEOSIG INC. Block 103 Ground Gravity Survey Work Report). Based on the positive results from this survey, in-field geological verification including drilling is highly recommended.
The ground gravity survey, although successful in identifying anomalies, was not able to survey all the proposed DSO targets identified from the airborne survey due to weather based time constraints. This leaves the possibility to further increase the number of quality gravity anomalies for future field verification and drilling.
Graham Harris, the CEO of Cap-Ex, comments “We are now able to focus on the highest potential areas for identifying DSO reserves adjacent to TSMC’s new processing and shipping facility. The ground gravity survey results confirm Cap-Ex’s strategy to move forward with exploration focused on identifying easily accessible low cost DSO style iron ore. We look forward to continuing this exploration program with TSMC on Block 103 property this coming season.”
Adrian Smith, PGeo., is the Qualified Person pursuant to National Instrument 43-101 who has reviewed and approved the technical and scientific information in this news release.
ABOUT CAP-EX IRON ORE LTD.
Cap-Ex Iron Ore Ltd. is a Canadian listed company, focused on the development of its Block 103 iron ore property in the Labrador trough, near the mining town of Schefferville, Quebec. The Block 103 property is strategically located close to existing railway to shipping port, and is adjacent the New Millennium-Tata oxide deposits to the east.
CAP-EX IRON ORE LTD.
President & CEO
Cautionary Note Regarding Forward-looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the development potential of the Company’s Block 103 iron ore property, future exploration plans and budgets and permitting. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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