VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/25/13 -- Oceanic Iron Ore Corp. ("Oceanic" or the "Company") (TSX VENTURE: FEO)(OTCQX: FEOVF) is pleased to announce that it has received the Product Value In Use Marketing Study ("Study") requested from Vulcantech Technologies.
The Study concludes that in addition to the iron unit premium for the high grade Hopes Advance product at 66.6% Fe measured against the 62% Fe benchmark, an estimated minimum 10% value-in-use premium can be anticipated due to the product's high quality and low impurities. To illustrate, the Study concludes that a minimum 10% premium above prevailing prices for Brazilian ores of similar grade could be reasonably expected.
The Hopes Advance high quality product is expected to be in prominent demand in all steelmaking markets which will support Oceanic's efforts to penetrate markets where there is a close proximity shipping advantage (e.g Europe and the Middle East), as well as securing other benefits such as long term sale contracts. These added benefits are in addition to anticipated high product demand in the Asian market. The Study projects that steel producers in China, Korea, Japan, and Taiwan, would all benefit considerably from the product's superior chemistry.
The quality of existing and new sources of iron ore supply is expected to continue to decline globally, therefore the demand for alternative high quality sources of feed will be emphasized in order to maintain the status quo on blast furnace performance and quality of finished steel products. Moreover, as the percentage of Chinese production transforms to steel produced for consumer goods and specialized steel applications, high quality, low impurity sources of feed of the calibre of Hopes Advance will realize even greater demand to accommodate this future market shift in the sector.
Specifically, the Study concludes that:
"It has been proven in this 'Study' that the Oceanic products are chemically superior (Al2O3 = 0.01% and P2O5 less than 0.01%) to many other current offerings and will offer value in a wide range of steel mills.
The modelling results show a suite of value points depending on the ores being replaced and operational constraints per steel mill. Despite all the differences there is one common factor in all steel mills - there is a finite tolerance for the impurities of phosphorus and alumina.
Since the Oceanic product is so strong in this field it can be used as a sweetener in almost any raw material burden."
The Company's pre-feasibility study in respect of the Hopes Advance project (November 2012), included the results of comprehensive pilot plant testing completed by SGS Lakefield which highlighted both the chemistry and the metallurgical attributes of the Hopes Advance product, and formed the basis of assessment in the Study.
As previously stated by the Company, the purpose of the Study was to broaden Oceanic's understanding of the market for its future products. The Company anticipates that the conclusions derived from the Study will be integral to the analysis and due diligence undertaken by potential strategic partners and future off-takers. The Study will also form the foundation for the marketing assessment required by the feasibility study.
Most Popular Stories
- NSA Defends Global Cellphone Tracking Legality
- Ad Counts Rise in 2013 for Hispanic Magazines
- Top Websites for U.S. Hispanics
- Networks Vie for U.S. Hispanic TV Viewers
- Saab Gets Back into the Game; U.S. Auto Sales Soar
- Apple Activates Customer-Tracking iBeacon
- Dell Offers Undisclosed Number of Employee Buyouts
- 2013 Tech Gift Guide: iPad Mini Still Hot; Chromecast a Great Low-Cost Option
- A Biography of Jonathan Ive, Apple's Creative Chief
- Authorities Close to Deal with JPMorgan Chase over Madoff Response