Alderon Releases Positive Preliminary Economic Assessment

Alderon Resource Corp. (TSXV:ADV,OTC:ALDFF) reported it has received the results of the Preliminary Economic Assessment in the Kamistiatusset iron ore property.

The press release is quoted as saying,

Highlights of the Rose Central Kami Iron Ore PEA include:
? Concentrate production rate of 8 million tonnes per year at a grade of 65.5% iron
? Commercial production commencing in 2015 with a mine life of 15.3 years
? Capital cost of US$989 million (excluding closure costs, sustaining capital & leased equipment)
? Pre-Tax IRR of 40.2%
? NPV (discounted at 8%) of US$3.07 billion
? Payback period of 2.7 years
? Total operating cost (excluding royalties) of US$44.87/tonne concentrate (averaged over the life of mine)

Alderon’s President and CEO Tayfun Eldem says,

We are very excited to see such a high NPV, especially since this PEA is only based on the Rose Central zone of the Kami Property. There is significant upside once we include North Rose and Mills Lake. These positive results allow us to move directly to the Feasibility Study phase and we expect that report by the third quarter of 2012.

For the complete press release, click here.