PITTSBURGH, Pa.--(BUSINESS WIRE)--Allied American Steel Corp (NASDAQ OTC Bulletin Board: AAST.OB; "Allied American" or "the Company") is pleased to announce plans to contract with a drill operator within the next 30 days to immediately commence the next phase of advanced exploration drilling on the Company's Lake Touladi Property iron-titanium (Fe-Ti) deposit in Quebec, Canada.
As an advanced exploration mining company focused on the discovery and production of significant iron ore resources (Fe), and the titanium dioxide (TiO2) resources often associated with iron deposits, Allied American's immediate focus is to further the development of its Lake Touladi Property to reach the pre-mine feasibility stage. Further details of the next phase of exploration drilling will be released in the near term as available.
The Lake Touladi Property represents 48 mineral claims totaling 6,773 acres (2,741 hectares). To the northwest is the world's largest solid deposit of ilmenite (iron and titanium oxide mineral) at Rio Tinto's open-pit Fer et Titane mine (also known as Lac Allard or Lac Tio mine). Owing to the magnitude of the ilmenite deposit, the mine has a projected life of at least another 50 years, and currently employs close to 300 workers.1
"We're well positioned in every way to take our Lake Touladi asset to the next level," commented Jes Black, Chief Executive Officer & Chairman of Allied American. "In terms of mineralization, we already have our 43-101 report as well as drilling and survey analyses that point to extensive mineral resources on the property. In terms of location, we're on North America's eastern seaboard, giving us easy export access for meeting world demand for both iron ore and titanium dioxide. And in terms of financing, we're well funded to continue with this next phase of exploration drilling."
NI 43-101 TECHNICAL REPORT
National Instrument 43-101 is a strict mineral resource standard required for public companies disclosing scientific and technical information about mineral projects based in Canada. As required by the NI 43-101 standard, Michel Boily, PhD. P. Geo authored the 43-101 technical report (May 10, 2010) based on his personal physical examination and sampling of the Lake Touladi Property, as well as previous exploration drilling, sampling and surveying results; lab analyses of samples; and all historic information available on both the property and previously completed exploration work and findings.
The report concludes that [page 3] the Lake Touladi Property "represents a high potential asset" and that [page 60] "The Lake Touladi Fe-Ti deposit posses [sic] the geological characteristics necessary to become a world-class open pit mine. New exploration work at the Lake Touladi Fe-Ti deposit, including an airborne magnetic survey, suggests important undiscovered mineralized zones associated with strong negative signatures covering a large area (3 X 0.5 km) and probably related to ilmenite-rich or reversely polarized Ti-magnetic-rich mineralized bodies at shallow depth."
The report also cites how [page 2] four major mineralized zones (A to D) where initially discovered on the Lake Touladi Property in the 1950's by ground based exploration, magnetic surveying and drilling. 1,800 meters of drilling was completed, concentrated mainly in the A and B zones. [page 13] A total of 18 short holes were drilled to depths ranging from 18 to 30 meters at widely separated points in the two zones. When using a cut off depth of only 160 meters, the overall resource in zones A and B (2 of the 4 zones initially discovered) was historically established as 124 million tons (Mt). [page 2] The average grade established was 23.3 wt. % Fe and 6.6 wt. % TiO2.
A copy of the 43-101 report can be downloaded here: http://www.alliedamericansteel.com/AASI_Form_43-101F1_Technical_Report.pdf
Based on information supplied by the sellers of the property, drilling that confirmed mineral resource depths at more than 330 meters indicates the Lake Touladi Property represents an inferred resource of 248 Mt, and a production life of 45.9 years. The gross valuation of the Company's estimated iron and titanium dioxide resources is calculated at $72.17 billion while annual potential operating value is projected as being $1.1 billion net. (Gross valuation based on $291 per ton in the ground [i.e., $60 per ton Fe + $231 per ton TiO2] x 248 Mt mineral resources. Net annual potential operating value based on 360 days x 15,000 tons per day minus 30% for operating, mining, separation and transport costs.)
FOR MORE INFORMATION
More information on Allied American's ongoing iron-titanium deposit exploration program, and more information about the Company, is available at Allied American Steel Corp’s corporate website, www.alliedamericansteel.com, including regular news updates.
ABOUT ALLIED AMERICAN STEEL: Allied American Steel Corp is an advanced exploration mining company focused on the discovery and production of significant iron ore resources, and the titanium dioxide resources often associated with iron deposits. The Company is publicly traded, and can be found on the NASDAQ OTC BB under the ticker symbol AAST.OB. Based in Pittsburgh, PA, Allied American Steel is positioned to continue the strategic expansion of its property portfolio on North America's eastern seaboard, granting easy access to world export markets. A 43-101 technical report (Michel Boily, PhD. P. Geo, May, 2010) on the Company's Lake Touladi Property in Quebec, Canada, cited 4 major mineralized zones (A to D) on the property. The combined estimated historical mineral resources for Zones A and B alone were established as 124 million tons (Mt) grading an average 23.3 wt. % iron (Fe) and 6.6 wt. % titanium dioxide (TiO2). Based on information supplied by the sellers of the property, drilling that confirmed mineral resource depths at more than 330 meters indicates the Lake Touladi Property represents an inferred resource of 248 Mt, and a production life of 45.9 years. The gross valuation of the Company's estimated iron and titanium dioxide resources is calculated at $72.17 billion while annual potential operating value is projected as being $1.1 billion net. (Gross valuation based on $291 per ton in the ground [i.e., $60 per ton Fe + $231 per ton TiO2] x 248 Mt mineral resources. Net annual potential operating value based on 360 days x 15,000 tons per day minus 30% for operating, mining, separation and transport costs.)
|ON BEHALF OF THE BOARD OF DIRECTORS,|
|Allied American Steel Corp|
|Jes Black, Chief Executive Officer & Chairman|
NASDAQ OTC BB: AAST.OB
1 Rio Tinto, Fer et Titane website, Sept. 15, 2010
This press release contains certain statements that are forward-looking and which involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Allied American Steel Corp's current expectations and projections about future events, based on information currently available. The forward-looking statements in this press release may also include statements relating to Allied American Steel Corp's anticipated financial performance, strategies, business prospects, new developments, and similar matters. Allied American Steel Corp disclaims any obligation to update any of its forward-looking statements, except as may be required by law.