Bedford Resource Partners have staked 99 claims in Quebec, 100 miles north of Schefferville that cover the Lac Otelnuk iron ore deposit.
(PRWEB) April 18, 2005 -- Bedford Resource Partners of Toronto, Canada have
staked 99 claims covering 11,767 acres in north central Quebec, 100 miles north
of Schefferville. They hold title to the Lac Otelnuk iron ore deposit which is a
Lake Superior type meta-taconite formation within the Sokoman iron formation in
the Labrador Trough. It is identical to the deposits of the Wabash Lake and
Mount Wright mines further south.
The strongly magnetite property is a 1.7 billion ton iron ore deposit @ 33.4% Fe. Historical estimates indicate it hosts 10-12 billion tons @ 30 % Fe.
Fabio P. Micacchi, managing partner, stated "This is an exciting opportunity for us, but because the project is so large we will seek JV partners."
The global demand for iron ore is strong partly due to China's economic growth.
“China expects to face shortages in more than two-fifths of production materials, including iron ore and crude oil, in the first half of this year because of rising industrial production. China’s production won't meet demand for 43 percent of 300 types of materials surveyed by the trade ministry, the Beijing-based Ministry of Commerce said…” Bloomberg (Koh Chin Ling) April 11/05.
Canada will have to increase it's iron ore production.
"In the next 10 years," R. Martin, CEO, New Millenium Capital Corp. said, "We’re going to need new mines that are equivalent to 10 times what Canada produces today."
There has been a total of 5 iron ore Canadian transactions recently that indicate market interest in iron ore projects. They are: Baffin Island, New Millenium Capital Corp., Palladon Ventures, Ungyva Mining, and New American Gold.
King Resources, the former holder of the Lac Otelnuk property completed extensive exploration with an preliminary feasibility study in 1975 using $21.00 / ton for pellet pricing. It reported a return of investment of 15%. The current iron pellet pricing is approximately $70.00 / ton.
Bedford Resource Partners is a privately held firm.
This announcement appears as only a matter of record.
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Source : http://www.prweb.com/releases/2005/4/prweb229730.htm