Client Update: Ridgemont Iron Ore Corp.

Getting Down to Business

Ridgemont Iron Ore Corp has not let the current sad state of the junior resource sector deter it from forging ahead with its exploration activities. Following the acquisition of IronOre and the associated C$9.1 million financing earlier this year, Ridgemont has been busy with the execution of their 2012 exploration program, designed to advance its newly acquired Lac Virot Iron Ore project in Labrador.

On October 4th, following the announcement of Ridgemont’s first set of drill results, Dundee Securities updated their watch list coverage, saying, “The project boasts close proximity to four other operating mines, and is within ~14km of the Kami project [Alderon’s iron ore project]. Wabush NL and Fermont QC are also nearby. This should help lower technical and infrastructure risk…This is the same team that brought us Alderon and Consolidated Thompson. We envision Ridgemont as being able to advance this project with the same attention and zeal as it has in the past.” Ridgemont was added to Dundee’s watch list back in May of this year. Considering the location of the project and the team managing it, if the current program continues on course, I don’t think it will be long before Dundee, or some other firm, initiates full coverage on the company.

Right team for the job

With the addition of Tayfun Eldem to the Board of Directors earlier this summer, Ridgemont is beginning to put together a world-class team…not unlike what Alderon began doing in 2010 and 2011. Mr. Eldem currently serves as the President and CEO of Alderon and also worked for the Iron Ore Company of Canada (“IOC”) for more than 20 years. Mark Morabito, who has now assumed the role of Executive Chairman for Ridgemont, (also Executive Chairman of Alderon) was the driving force behind Alderon’s rapid development and led the team that struck an off-take agreement with China’s largest steel producer, Hebei Iron & Steel Group, worth over $400 million.

Between Ridgemont’s President and CEO, Brian Penney, who brings 20+ years of iron ore experience, much of it with IOC in the Labrador Trough, the company’s VP Exploration, Ed Lyons, who was previously Chief Geologist for Consolidated Thompson Iron Mines and Alderon, Directors Matt Simpson and Tayfun Eldem, and Executive Chairman Mark Morabito – it seems that Ridgemont has the right people in the right place at the right time.

2012 Exploration Program on the Lac Virot Iron Ore Project

True to his word, Brian Penney, Ridgemont’s President and CEO, is focusing this year’s exploration efforts on Lac Virot. The program has been designed to follow up on the positive, coincident airborne magnetic survey and surface sampling results from last year. Analytical results from 33 grab and chip samples collected during the 2011 field program from exposed iron formation outcrops ranged from 16.6 to 60.5% Fe as Total Iron, with an average for all samples collected of 30.6% Fe.

Acting on strong drill results received to date, the 2012 program, which was initially planned to include 5,000 meters of drilling, has now been increased to 9,000 meters in order to advance the project as much as possible during the current field season. To date, Ridgemont has received assay results for 9 drill holes totaling 2,700 meters (see drill plan map below).

Highlights from the first set of assay results from the ongoing drill program on Lac Virot include:

The Lac Virot iron project is located roughly 20 km from four operating iron ore mines (Mont-Wright, Carol Lake, Scully and Bloom Lake) and is also within close proximity to readily available labor, as well as the necessary infrastructure including nearby power and a common-carrier railway which would transport the material to a year-round deep sea port. Access to this kind of infrastructure is key in making an iron ore project economically viable and one of the main reasons that I believe Ridgemont’s Lac Virot project has strong potential.

The project also benefits from the Point Noire new port facility initiative which is expected to be complete by Q1 2014 and should include a multi-user platform suitable for large capsize vessels.

Bottomline

Lac Virot is located in the most prolific iron ore producing area of Canada. With the project now under the leadership of a management team with decades of iron ore experience in the area, I am looking forward to a steady stream of good news and positive results from Ridgemont as the 2012 drill program continues.