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Canadian Orebodies Announces Further Results from Haig Inlet Iron Ore Project

Canadian Orebodies Inc. has announced the second set of drill results from the summer drill program at the Haig Inlet Iron Ore Project, located on the Belcher Islands in Nunavut, Canada.

Assay results have now been received for an additional nineteen holes drilled at Haig Inlet, and highlights include:

  • Hole CO11-42 assayed 30.0% Fe over 43.8m, including 34.2% Fe over 20.0m;
  • Hole CO11-23 assayed 29.1% Fe over 50.0m, including 33.2% over 18.0m;
  • Hole CO11-43 assayed 29.7% Fe over 42.5m, including 36.0% over 14.0m;
  • Iron mineralization intersected over a strike length of roughly 7.5 kilometers and remains open to the north and south; and
  • Preparation of initial NI 43-101 compliant resource estimate by Q1/2012.

The holes from this second set of assay results cover a widespread area that traces the iron mineralization from Haig Inlet to the north over a distance of approximately 7.5 kilometers. Drilling has indicated that the iron formation shows excellent continuity over this vast area and clearly demonstrates the potential of Haig Inlet to host a large tonnage of iron ore.

In this second set of assays, the top of the iron formation averages 90.7m below surface and ranges from 53.0m to 191.8m below surface. Thickness of the iron formation ranges from 29.8m to 50.0m and averages 40.1m, while average Fe grades over these intervals range from 26.2% to 30.0% and average 28.2%Fe.

Complete assay results with drill plan maps are available on the Canadian Orebodies website at: http://www.canadianorebodies.com/s/HaigInletIronOre.asp.

"This set of assays is very encouraging as these results demonstrate a strike length of over 7.5 kilometers of iron ore mineralization and confirms that the northern extension of the iron formation trends well beyond the primary target area, where it still remains open to both the north and south," says Gordon McKinnon, President & CEO of Canadian Orebodies. "The size of the Haig Inlet project relative to the area covered by this season's drilling represents significant blue sky potential. Combined with the project's proximity to tidewater, these are two key aspects which could give Haig Inlet a considerable advantage over other projects."

Canadian Orebodies has acquired and staked portions of land around Haig Inlet that Orebodies believes to be the most amenable to open pit mining. The area immediately north of Haig Inlet represents one of these target areas which was the focus of Orebodies' summer drilling program. The iron mineralization in this target area is essentially flat lying with only very slight changes in dip. Other highly prospective areas, including the continuation of the Kipalu Iron Formation stratigraphy south of Haig Inlet, are being assessed in preparation for further anticipated drilling in 2012.

The Haig Inlet Iron Ore Project covers over 15,204 hectares on Flaherty Island in Nunavut. A significant amount of exploration work, including numerous widely-spaced diamond drill holes, was carried out on the property during the 1950's by BMC. BMC's exploration programs targeted the Kipalu Formation of iron-bearing rocks, which is an iron formation of the Superior type. The Haig Inlet project is host to a significant unclassified historical resource estimate of 907 million tonnes grading 27% iron as defined in the government publication, "Northern Mineral Policy Series; NM1: Mines and Important Mineral Deposits of the Yukon and Northwest Territories, 1982".

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