| Location: |
Nunavik, Quebec, Canada |
| Mineral: |
25% Magnetite Iron (Fe) |
| Property Size: |
192 sq km's |
| Stage of Development: |
Advanced Exploration, Resource Confirmation Drilling |
| Current Work Program: |
Diamond drill program to define a NI 43-101 compliant resource estimate
|
| Potential: |
Multi-billion tonne iron ore deposit |
| Ownership: |
100% |
Property Description
The Lac Otelnuk Iron Project is located 170 kilometers north of the town of Schefferville, Quebec. This town once served as a centre for the iron mining and processing operations of the Iron Ore Company of Canada. The northern terminus of the Quebec North Shore and Labrador Railroad, a common carrier, is located in Schefferville.
The property lies within the Labrador Trough, one of the largest iron ore belts in the world. The belt contains world-class iron deposits that have been continuously mined since 1954. The 192-square-kilometre property was first explored in the early 1950s when a significant magnetite iron formation was mapped over a strike length of approximately 25 kilometres. Subsequent diamond drilling and surface sampling in the 1970s, which was largely limited to the upper iron formation unit, resulted in historic mineral resource estimates for two adjacent zones, the North and South. Magnetite occurs throughout this iron formation with the North and South zones largely uniform in continuity of grade and thickness.
Property History
Based on previous systematic, well-documented past exploration and our initial evaluation of the property, we believe that a multi-billion-ton iron project lies within a 45 kilometre iron formation belt contained within the property. Historic concentrate grades and weight recoveries produced from metallurgical tests of surface samples, drill core and a bulk sample conducted by previous operators compare favourably with active iron-ore operations in the region.
The historic "mineral resource" estimates were prepared by Metals, Petroleum & Hydraulic Resources Consulting Limited (later "MPH"), which managed the exploration programs for King Resources. They were variously referred to as "reserves," "mineable reserves," "drill proven" and "drill indicated" and are documented below.
Property Geology
| Zone |
Long Tons |
Tonnes
(rounded) |
Magnetic
Fe % |
Soluble
Fe % |
I. F. Thickness* |
| North |
613,600,000 |
623,000,000 |
25.08 |
33.92 |
50 ft (15m) |
| South |
1,126,600,000 |
1,145,000,000 |
25.76 |
33.06 |
100ft (30m) |
* Average true thickness, as reported by MPH, used in preparing the estimates.
Note: Historically, tonnages for iron deposits were reported in long tons and this was the case for Lac Otelnuk. WGM has converted long tons to metric measure using a factor of 1.016 long tons = 1 tonne and rounded the resulting tonnages to reflect their uncertain nature.
Previous Work Completed
Lakefield Research (now SGS Minerals Services) of Lakefield, Ontario, carried out limited metallurgical test work on surface samples and drill core from the North Zone in 1971 and 1974. In addition, in 1976, an 18-long ton bulk sample was taken from the North Zone, of which approximately one long ton was shipped to a German laboratory for metallurgical testwork. This work was carried out in 1977. Finally, in 1981 Lakefield carried out testwork on another portion of the bulk sample. While the results from the two laboratories cannot be directly correlated, both prepared concentrates grading 65.1% to 70.6% Soluble Fe with weight recoveries up to 41.0%, acceptable results for taconite deposits.
Current Work Program
Commencement of the first phase work program began in mid 2006 with the construction of a camp to support a diamond drill program. Diamond drilling in 2007 consisted of 26 drill holes designed to test all three units of the South Zone of the deposit known to extend over a strike length of 9,000 meters and was the first phase of a proposed 70 drillhole program. Results from the first 16 holes have confirmed the presence of magnetite iron in the upper, middle and lower iron formation units, thereby increasing the potential for a larger deposit than previous drilling indicated. The Company's goal is to delineate an "inferred" mineral resource in compliance with CIM standards and National Instrument 43-101 ("NI 43-101"), and to advance towards the development stage
The Company is planning to complete the remaining 44 holes on the South Zone as recommended by Watts, Griffis and McOuat Limited, retained as technical consultants to the project. Future drilling will test the continuity of the deposit between The South Zone and North Zone as well as test other exploration targets on the 28,980-hectare property.
Mr. Richard Risto, B.Sc., M.Sc., P.Geo., a Qualified Person under NI 43-101, currently acts as the Qualified Person for the Lac Otelnuk Iron Project.
* These historic "resource" estimates and test results were prepared prior to the implementation of NI 43-101. The Company and WGM have neither audited these estimates nor made any attempt to classify them according to NI 43-101 standards. They are presented because the Company and WGM consider them to be relevant and of historic significance. These estimates should not be relied upon for any assessment of the merit of the property.
** % Fe (iron) in the form of magnetite.
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