Canadian Orebodies Inc.

CANADIAN OREBODIES INC. : http://www.CanadianOrebodies.com/ : QwikReport

Haig Inlet Iron Ore Project

The Haig Inlet Iron Ore Project covers over 15,200 hectares, located on the Belcher Islands, Nunavut, Canada. A significant amount of exploration work, including numerous widely-spaced diamond drill holes, was carried out on the property during the 1950's by Belcher Mining Corporation Ltd ("BMC"). BMC's exploration programs targeted the Kipalu Formation of iron-bearing rocks containing hematite iron formations of the Superior type.

On February 6, 2012, the Company announced an initial independentent National Instrument (NI) 43-101 Mineral Resource estimate using information from the 2011 drill program. The estimate was completed by G H Wahl & Associates Consulting, and resulted in an indicated iron ore resource of 230 million tonnes at 35.17% iron and an additional inferred resource of 289 million tonnes at 35.47%. In-pit mineral resources were delineated over an area of roughly 9 square kilometers and found to be flat lying. The mineralization extends to the north and south of the property, leaving potential for expansion through further drilling.

The current mineral resources statement for Haig Inlet is presented below.

Area	Mineral Resource Category	Million Tonnes	%Fe
Haig North	Indicated	230	35.17
Haig North	Inferred	155	35.55
Haig South	Inferred	134	35.37
Haig North	Total Indicated	230	35.17
Haig North & South	Total Inferred	289	35.47

Resource Estimate Details

The mineral resource estimate for the Haig Inlet Deposit is based on results from 64 diamond drill holes totaling 9,119.2m and is effective as of February 6, 2012. No cut-off was applied as the lowest grade (27%Fe) within the modeled iron formation lies well above the economic cut-off of 15%Fe. The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define the inferred mineral resources as Indicated or Measured mineral resources and it is uncertain if further exploration will result in upgrading them to Indicated or Measured mineral resource categories. No known environmental, legal, or political risks have been identified. In terms of resource risk, future studies will need to assess in-pit hydrogeology as much of the deposit is proximal to surrounding water level.

Mineral Resource parameters:

1) A total of 179 specific gravity measurements were taken and used to generate a Fe based regression formula where density = (0.0378(i)Fe%) + 2.2232. Waste rock was assigned a density of 2.65 g/cc.
2) Resources were modeled in vertical sections. 3D shells were generated by linking the horizontal sections. Wireframes were constrained to the main high grade hematite rich iron formation unit.
3) The database for the Haig Inlet North and South Deposit comprised a total of 9,119.2m (64 DDH) of drilling with samples assayed by SGS using XRF methods.
4) Average thickness of the high grade portion of the Kipalu Iron Formation unit was 15m across the 9 square kilometers drilled.
5) The grade estimation was completed using ordinary kriging interpolation and validated with drill hole - block grade comparisons and inverse distance methods.
6) Indicated mineral resources include all mineralized blocks within an optimized pit shell, within the mineralized solid boundary, within a 250m centered drill grid.
7) Inferred mineral resources include all mineralized blocks within an optimized pit shell and within the variogram range.
8) Whittle pit optimization software was used to define a pit shell used to constrain the resource estimate. Input assumptions included 50 degree pit slope, average mining cost of $2.75/tonne, processing cost of $10/tonne of ore, general and administrative costs of $1/tonne, process recovery of 60% and metal price of $140/dmt unit. Pit optimization was completed by R. Carapetian (P. Eng.)

In October 2011, Orebodies identified and staked a parallel iron trend to the west of the Haig Inlet property. These newly staked claims cover an additional 9,600 hectares of Municipal Land as seen in the maps below:

Click here for a map of the Belcher Islands.	Click here for a map centered on Orebodies' claims.

Canadian Orebodies recently completed a summer drilling program on the Property utilizing 3 diamond drills. In total, 64 drill holes totalling 9,119.2 meters were completed, including 2 drill holes that were abandoned early. All the holes drilled in this program were focused on the Kipalu Formation of iron-bearing rocks, following up on the work previously carried out on the Property in the 1950's by BMC, in the central location around Haig Inlet. The Company is extremely pleased that all the completed holes intersected iron oxide mineralization and the assay results have shown excellent continuity of grade and thickness.

The first phase of drilling this season was completed on seven lines spaced approximately 500 metres (m) apart on an area measuring roughly 3km by 3km immediately north of Haig Inlet. On each line, drill holes were also spaced approximately 500m apart. These initial assays comprise a number of holes on lines A, B, C and D, covering an area of roughly 1.5km north-south by 2.5km east-west.

The Kipalu Iron Formation in this target area is essentially flat lying with only very slight changes in dip. Drilling has indicated that the iron formation shows excellent continuity over the entire 9 square kilometer area in the drilling completed during the first phase of the program.

In the first set of assays, the top of the iron formation averages 59m below surface and ranges from 41m to 94m below surface. Thickness of the iron formation ranges from 32m to 52m and averages 45m, while average Fe grades over these intervals range from 28.4% to 30.2% and average 29.2%Fe.

The holes from the 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 the 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.

The holes from the third set of assay results were primarily focused on the eastern and western limbs of the iron formation in the area north of Haig Inlet. In this set of assays, the top of the iron formation averages 79.4m below surface and ranges from 13.1m to 132.6m below surface. Thickness of the iron formation ranges from 38.0m to 48.0m and averages 43.7m, while average grades over these intervals range from 27.7% Fe to 29.6% Fe and average 28.7% Fe.

A table of intercepts and average grades is included below. All drill holes were oriented vertically and all core intervals represent true widths.

Hole ID	Section Line	From (m)	To (m)	Width of Zone (m)	Average Intercept Fe% Grade
CO11-1	A	43.5	95.6	52.1	29.4%
including		43.5	63.5	20.0	34.0%
CO11-2	A	49.7	94.5	44.8	29.4%
including		49.7	63.7	14.0	35.7%
CO11-3	A	72.9	105.1	32.2	28.4%
including		72.9	84.9	12.0	32.0%
CO11-4	A	59.1	106.1	47.0	28.5%
including		59.1	77.1	18.0	31.7%
CO11-5	A	54.3	96.3	42.0	28.6%
including		54.3	70.3	16.0	31.7%
CO11-6	B	46.8	97.5	50.7	29.4%
including		46.8	66.8	20.0	34.2%
CO11-7	B	67.8	111.5	43.7	29.9%
including		67.8	83.8	16.0	35.4%
CO11-8	B	67.8	116.1	48.3	29.1%
including		67.8	85.8	18.0	34.3%
CO11-9	B	56.9	105.1	48.2	29.1%
including		56.9	74.9	18.0	33.3%
CO11-10	B	41.5	85.5	44.0	29.3%
including		41.5	57.5	16.0	33.8%
CO11-11	C	13.1	55.1	42.0	29.6%
including		13.1	29.1	16.0	34.7%
CO11-12	C	53.0	99.0	46.0	29.8%
including		53.0	67.0	14.0	35.8%
CO11-13	C	58.9	102.9	44.0	29.3%
including		58.9	74.9	16.0	34.6%
CO11-14	C	73.3	115.1	41.8	30.0%
including		73.3	91.3	18.0	34.1%
CO11-15	C	65.7	109.7	44.0	29.4%
including		65.7	81.7	16.0	34.5%
CO11-16	C	43.9	87.9	44.0	29.5%
including		43.9	59.9	16.0	35.0%
CO11-17	D	94.0	135.7	41.7	30.2%
including		94.0	113.7	19.7	35.0%
CO11-18	D	54.0	100.0	46.0	29.4%
including		54.0	72.0	18.0	34.5%
CO11-19	D	73.2	115.2	42.0	29.9%
including		73.2	91.2	18.0	34.5%
CO11-20	D	78.8	122.8	44.0	29.3%
including		78.8	92.8	14.0	35.0%
CO11-21	D	78.3	124.3	46.0	29.1%
including		78.3	92.3	14.0	35.7%
CO11-22	D	65.2	111.2	46.0	28.6%
including		65.2	79.2	14.0	35.6%
CO11-23	E	107.9	157.9	50.0	29.1%
including		107.9	125.9	18.0	33.2%
CO11-24	E	68.8	114.4	45.6	28.3%
including		68.8	84.0	15.2	32.3%
CO11-25	E	83.3	127.3	44.1	28.9%
including		83.3	97.3	14.0	34.7%
CO11-26	E	101.8	134.0	32.2	29.8%
including		101.8	113.8	12.0	35.4%
CO11-28	CD	67.8	117.8	50.0	29.3%
including		67.8	83.8	16.0	34.8%
CO11-29	DE	119.0	169.0	50.0	28.6%
including		119.0	137.0	18.0	33.3%
CO11-30	G	57.0	95.0	38.0	28.3%
including		57.0	69.0	12.0	32.4%
CO11-31	G	132.6	178.6	46.0	27.7%
including		132.6	142.6	10.0	33.7%
CO11-32	I	80.6	116.6	36.0	26.7%
including		80.6	84.6	4.0	32.4%
CO11-33	I	58.3	94.3	36.0	27.4%
including		58.3	62.3	4.0	32.7%
CO11-34	K	131.3	163.3	32.0	26.7%
CO11-35	K	100.2	134.2	34.0	26.3%
CO11-36	J	77.8	113.8	36.0	26.6%
CO11-37	H	60.5	96.5	36.0	27.3%
including		60.5	66.5	6.0	32.4%
CO11-38	M	117.3	147.1	29.8	26.2%
CO11-39	M	191.8	222.2	30.4	26.4%
CO11-40	F	71.4	113.4	42.0	28.6%
including		71.4	85.4	14.0	33.6%
CO11-41	F	104.2	148.2	44.0	28.5%
including		104.2	118.2	14.0	33.3%
CO11-42	AB	58.1	101.9	43.8	30.0%
including		58.1	78.1	20.0	34.2%
CO11-43	AB	71.7	114.2	42.5	29.7%
including		71.7	85.7	14.0	36.0%
CO11-44	AB	57.3	103.3	46.0	29.6%
including		57.3	75.3	18.0	33.9%
CO11-45	AB	60.8	110.5	49.7	29.2%
including		60.8	77.9	17.1	34.3%
CO11-46	BC	66.3	113.0	46.7	29.6%
including		66.3	82.3	16.0	35.3%
CO11-47	BC	68.1	110.7	42.6	29.8%
including		68.1	82.1	14.0	35.9%
CO11-48	BC	72.1	119.3	47.2	29.0%
including		72.1	90.1	18.0	33.1%
CO11-49	BC	51.4	101.2	49.8	28.7%
including		51.4	69.4	18.0	32.9%
CO11-50	E	123.4	171.4	48.0	28.7%
including		123.4	147.4	24.0	31.5%
CO11-51	G	133.7	175.3	41.6	27.7%
including		133.7	143.7	10.0	33.6%
CO11-52	G	196.0	242.4	46.4	28.0%
including		196.0	210.0	14.0	32.3%
CO11-53	Haig South	118.9	165.2	46.3	29.3%
including		118.9	132.9	14.0	34.0%
CO11-54	F	135.8	184.9	49.1	28.5%
including		135.8	151.8	16.0	33.3%
CO11-55	F	193.8	246.2	52.4	29.0%
including		193.8	209.8	16.0	34.9%
CO11-56	F	115.0	159.0	44.0	28.9%
including		115.0	131.0	16.0	33.2%
CO11-57	F	121.6	166.6	45.1	28.9%
including		121.6	134.6	13.0	34.7%
CO11-58	EF	100.9	148.1	47.2	28.3%
including		100.9	113.2	12.3	34.5%
CO11-59A	EF	108.8	156.2	47.4	29.4%
including		108.8	120.8	12.0	36.2%
CO11-60	E	44.8	90.6	45.9	29.1%
including		44.8	60.8	16.0	33.4%
CO11-61	D	84.5	130.5	46.0	28.4%
including		84.5	96.5	12.0	33.4%
CO11-62	E	100.2	159.0	58.8	28.3%
including		100.2	116.0	15.8	33.6%
CO11-63	CD	54.0	113.6	59.6	27.0%
including		54.0	69.1	15.1	34.0%
*Average				44.2	28.7%
*Minimum				29.8	26.2%
*Maximum				59.6	30.2%

Click here for a plan map of the drill holes.	Click here for a list of the collar coordinates.

A Fe regression formula based on 50 initial samples indicates a mean density factor of 3.34g/cc.

The Kipalu Iron Formation is a Paleoproterozoic Superior-type banded iron formation that was deposited between an extensive shallow marine carbonate succession and deep marine turbidites interbedded with mafic volcanics and gabbro sills, which covers a vast area around the Haig Inlet area.

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 has been the focus of Orebodies' current drilling program. 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. This area represents a potential continuation of the iron mineralization which could hold considerable upside based on the fact that this deposit is of the Superior type and that excellent continuity in the zone to the north is shown in our initial results.

*The mineral resource outlined here is a non-compliant NI 43-101 Mineral Resource since it is historical in nature and should not be relied upon. There is no direct evidence that these numbers or any portion thereof will ever be achieved at any time with further exploration work. These are historical resource estimates that do not comply with the current Canadian Institute of Mining, Metallurgy and Petroleum Resources (CIM) Definition Standards on Mineral Resources and Mineral Reserves as required by National Instrument 43-101 (NI 43-101) "Standards of Disclosure for Mineral Projects." Historical BMC exploration results were studied by a qualified person and compared with other non-BMC exploration programs carried out on the Belcher Islands. Although conclusions support the presence of a large area of iron mineralization, the historical results are not considered reliable given an incomplete database of diamond drill hole logs and the lack of accurate collar surveying related to the BMC historical exploration programs. In addition, the unknown level of quality assurance/quality control implemented during the historic BMC programs, which is currently required to be carried out under the supervision of a qualified person as defined by NI 43-101 policy, questions the reliability and confidence in the historic estimate.

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This page was created on Mon Aug 27, 2012 at 2:22:31 AM Pacific Time.