August 14, 2012 (Investorideas.com Mining stocks newswire) - eResearch Corp Reports: Canadian Orebodies (TSX-V: CO) is delaying the spin-out of its non - iron ore assets into a new company. The plan was originally announced in April 2012, and will be revisited when either market sentiment improves or the Company deems it more appropriate.
The non-iron ore assets comprise lithium and rare metals assets (10 properties) in Ontario (see eResearch's April 21, 2012 Perspective and May 16, 2012 Initiating Report).
The Company's flagship iron ore project, Haig Inlet, is located on the Belcher Islands in Hudson Bay in southern Nunavut.
Canadian Orebodies also announced that Don McKinnon has retired as Chairman of the Board and would not seek re-election at the Company's September 6, 2012 Annual General Meeting. Mr. McKinnon is noted for the discovery of the Hemlo gold mining camp.
Canadian Orebodies Inc. has interests in 11 mining exploration properties located in Canada. The Company's exploration focus is on iron ore and its main property is the Haig Inlet iron ore project, located on the Belcher Islands in Hudson Bay in southern Nunavut (see the map below).
The Company's Haig Inlet project is a hidden gem in the Canadian iron ore sector. The project is relatively unknown, but it already has more than 500 Mt @ 35% Fe in a NI 43-101 compliant mineral resource. Further, this resource will likely increase to more than 1 billion tonnes as a result of the planned exploration of three new targets in 2012-2013.
The project's location on the Belcher Islands in Hudson Bay is favourable compared to the locations of many of its more well-known domestic peers. Since the Belcher Islands are close to Quebec, the project may be able to capitalize on some of the infrastructure commissioned under the province's Plan Nord. The climate on the Belchers is generally more favourable than for many of the Nunavut-based iron ore projects. Most importantly, the deposit is located at tidewater and will not need a costly railroad or a pipeline to get to port.
The Haig Inlet iron ore property covers 2,685 ha of Inuit-Owned Land. A NI 43-101 resource estimate for the property was issued in February 2012, consisting of an Indicated iron ore resource of 230 million tonnes at 35.17% Fe, and an Inferred resource of 289 million tonnes at 35.47% Fe. In 2011, Canadian Orebodies staked new claims that are to the north and the west of the property and cover 22,691 hectares of Municipal Land.
A Preliminary Economic Assessment (PEA) for Haig Inlet is expected in early 2013. A favourable PEA could be the catalyst to attract a strategic partner, which is the most likely route of development for the Company.
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