Alderon Resource Corp. (TSX.V: ADV) (OTCQX: ALDFF) (“Alderon”) is pleased to announce that it has exercised its option right (the “Option”) under an Option Agreement dated November 2, 2009, pursuant to which Alderon has acquired a 100% interest in the Kamistiatusset (“Kami”) iron ore project in western Labrador from Altius Resources Inc. (“Altius”). Altius is a wholly-owned subsidiary of Altius Minerals Corporation (TSX: ALS). In order to complete the exercise of the Option, Alderon has issued an aggregate of 32,285,006 common shares from its treasury to Altius. In addition, Altius’ Chairman, John Baker, and CEO, Brian Dalton, have been nominated for election to the Alderon Board of Directors at the Annual General Meeting (“AGM”) which is being held on December 10, 2010. Details regarding the AGM can be found on the company website at http://www.alderonmining.com/corporate/agm/. Altius will also retain a 3% gross sales royalty on iron ore concentrate from the Kami Project.
Alderon is also pleased to announce the completion of the 2010 drill program. A total of 25,749 meters (m) have been drilled on the property, representing 73 drill holes. Assay highlights with drill plan maps and sections from the 2010 program are posted on the Alderon website at: http://www.alderonmining.com/projects/kami/. An initial National Instrument 43-101 (“NI 43-101”) resource estimate is underway and is expected to be complete in the first quarter of 2011. Watts, Griffis and McOuat Limited (“WGM”) have been commissioned to provide this resource estimate and have already completed the required site visits and sampling program.
A $2.5 million 2011 winter drill program has been planned and is aimed at further increasing the potential size of the iron ore resource. The program will consist of 5,000m of drilling in North Rose and is expected to commence during the last week of January and take approximately seven weeks to complete. The 2010 and winter 2011 programs are designed with the goal of delineating 600 to 800 million tonnes at a grade between 28-32% iron ore. The potential tonnage and grade are conceptual in nature and it is uncertain if further exploration will delineate a mineral resource. An updated NI 43-101 resource estimate will follow the 2011 winter program and is expected late in the second quarter of 2011.
“The completion of the exercise of option as well as the 25,000m drill program represent significant milestones in the company’s development”, says Mark Morabito, President and Chief Executive Officer of Alderon. “We’re looking forward to 2011 when we expect to complete two resource estimates, a scoping study and full metallurgical program.”
Alderon is a leading iron ore exploration and development company in Canada. The Kami Project is located within an existing iron ore district and is surrounded by producing iron ore mines. The Alderon team is comprised of skilled professionals with significant iron ore expertise to advance Kami towards production.
Alderon’s exploration work on the Kami Property is supervised by Edward Lyons, P.Geo., the Chief Geologist for Alderon and a Qualified Person as defined by NI 43-101. Mr. Lyons has reviewed and is responsible for the technical information contained in this news release.
For more information on Alderon, please visit our website at www.alderonmining.com
ON BEHALF OF THE ALDERON BOARD
"Mark J. Morabito"
President & CEO
Vancouver Office Toronto Office
T: 604-681-8030 T: 416-309-2135
F: 604-681-8039 F: 416-861-5887
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the risks associated with outstanding litigation, if any; risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to U.S. shareholders. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Investors are cautioned against attributing undue certainty to forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.