Block 103 Iron Ore Project

Block 103

Block 103 is located within the heart of the Labrador Trough which is one of the largest iron belts in the world, and accounts for 99% of Canada's iron ore. Block 103 covers an area of 7,275 hectares, located 30km northwest of the mining town of Schefferville, Quebec, Canada. Block 103 is surrounded by iron ore developers.

Nearby infrastructure includes power, rail and roads including active haul roads crossing the property.

See below for more project details.

WHY INVEST?

  THE RIGHT GEOLOGY

"Primary source of iron around the world"

The iron formation on the Block 103 property is iron formation of the Lake Superior-type. "Lake Superior-type iron formation consists of banded sedimentary rocks composed principally of bands of iron oxides, magnetite and hematite within quartz (chert)-rich rock with variable amounts of silicate, carbonate and sulphide lithofacies. Such iron formations have been the principal sources of iron throughout the world."

- Gross, G.A., 1996 -

Lake Superior-type iron-formation: in Geology of Canadian Mineral Deposit Types, (ed.) O.R. Eckstrand, W.D. Sinclair, and R.I. Thorpe; Geological Survey of Canada, Geology of Canada, No. 8, pp. 54-66 (also Geological Society of America, the Geology of North America, v. P-1).

 Mineralization

Two zones of mineralization have been defined on the Property and both are located in the northern part of the Property. Drilling has only been done on the northern part of the Property. The two zones of mineralization are the Greenbush Zone located near Greenbush Lake and the Northwest Zone named such because of its location along the northwest margin of the Property.

The Greenbush Zone is defined as a portion of the Sokoman sequence in the north part of the Property, adjacent to Greenbush Lake, and was the focus for most of the drilling program. As currently defined, the Greenbush Zone is approximately 10 km long NW-SE and 5 km wide SW-NE and encompasses the area of the 2013 Mineral Resource estimate.

  Focused by Tectonics

The more densely drilled part the Greenbush Zone shows the tectonically stacked slices comprising Sokoman (Iron Formation) and adjacent lithologies projected to surface. The slices are separated by thrust faults. Cross Section 9+400N (as shown here) is a representative drill vertical cross sections through the Greenbush Zone. The cross sections show the individual stacked Northeast dipping slices include various components of the Menihek to Wishart sequence. The slices have names assigned based on location, rather than lithological composition, because each contains sequences of various members and formations that repeat slice to slice.

  Block Model

"Substantially increased the thickness"

Block 103 Block model coverage with major wire frame components is shown here looking towards the north from above. Based on 2013 Inferred Mineral Resource including 7.2 Billion Tonnes at 29.2% Total Iron and 18.9% Magnetic Iron.

Mineralized and non-mineralized domains were modelled and separated into the hanging wall and footwall of these fault zones. The thrusting sometimes eliminated the waste units of Ruth or Wishart Formation and therefore mineralized horizons occur both on the hanging wall and footwall sides of these thrust fault zones. This was an extremely important factor that substantially increased the thickness (and hence tonnage) of mineralized Sokomon Formation in the central part of Block 103 by stacking of the stratigraphy.

The Block 103 Inferred Mineral Resource (Greenbush Zone) is open towards the NW and SE and also at depth. If future drilling proves the existence of similar structures in other parts of the Property, the current resource can be readily increased. This additional tonnage potential exists within a 12 km strike length.

  Development

3D view of the Block 103 - 30 year pit shown here from the 2013 Preliminary Economic Study filed on Sedar.

Due to the immense size of the Block 103 iron ore deposit the previously proposed 2013 PEA pit lacked the optimized efficiencies necessary to carry the project forward. Based on the extensive information now available it is possible to re-scope the scale of the project in order to make a more efficient and economically viable plan for future development.

Currently the Company is working diligently to optimize the economics of the deposit which include focusing on a smaller higher grade portion of the deposit. The company plans to provide updates on the development of the improved economics as they become available.