In 2007, Roche Bay plc signed a joint venture agreement with Advanced Explorations Inc. to develop its Eastern properties on the Melville Peninsula, including the Roche Bay Project. Advanced Explorations currently owns 75% of the joint venture and holds an option to complete a full earn-in or purchase of a 100% interest in the project by December 31, 2015.
Regardless of ownership percentage, Roche Bay also holds a 4% gross overriding royalty (GOR) on iron products having greater than 90% iron content, a 6% GOR on iron products having less than 90% iron content and a 10% GOR on byproduct precious metals. AXI has two alternative royalty purchase options which would allow it to reduce the royalty rates to as low as 2% (other than the precious metal royalty, which is to remain at 10% in perpetuity), no later than December 15, 2020.
On September 27, 2010, Advanced Explorations entered into a strategic agreement with XinXing Pipes Group Co., Ltd., a Chinese state-owned enterprise. XinXing Pipes gained a 14% stake for agreeing to fully fund the Roche Bay Project to production, and will provide up to $1 billion in capital to build out the project.
On August 10, 2012, Advanced Explorations released the results of a positive feasibility study on the C Zone of the Roche Bay Project. The study envisions a 5.5 million tonnes-per-year start-up production rate based upon the Indicated resources of 501MT @ 26.53% Fe. The project has a pre-tax NPV (8%) of $642m and an IRR of 16%. It is important to note that this study only considered the indicated resources of the C Zone and not the more speculative resources of the A/B Zone, D Zone, E Zone and F Zone. Advanced Exploration believes that further drilling to produce measured and indicated resources for these zones could significantly enhance the mine life and economics of the project.

East Melville (RB-AXI) Map Pty - Dec 2012

AXI’s 2013 Milestones
  • Independent geoscientists conclude there exists DSO potential at both Roche Bay and Tuktu projects
  • Identified high-priority structural and geologic targets that warrant further evaluation for their DSO potential
AXI’s 2012 Milestones
  • Published first Feasibility Study
  • Continued relationship-building with Inuit community
Development History
  • 2011:
    – Shandong Fulun Steel exercises right to off-take agreement on Roche Bay Project
    – Draft Feasibility Study
  • 2010:
    – AXI closes $5.3 million strategic investment by XXP
    – AXI enters into agreement with Shandong Fulun Steel Company, where Fulun Steel can earn the right to 19% of the off-take on iron products
    – AXI and XXP execute formal agreement to develop Roche Bay Project
    – Signs MOU with XXP for proposed strategic partnership, where XXP can acquire a significant interest in AXI and/or the Roche Bay and Tuktu projects
  • 2009: 
    – Preliminary Economic Assessment release – indicates potential US $2.76 billion NPV
    – Announces filing of NI 43-101 Technical Report for Roche Bay Project
    – Completes agreement with the company to acquire 100% interest in the Roche Bay Project – can acquire the Corporation’s remaining interest through a buyout option
    – Announces Inferred Resource Estimate – 360 million tonnes of 28% total iron at 25% iron cut-off reported for C Zone of Roche Bay Project