The Properties’ deposits are classified as Lake Superior-type. Such iron formations are the principal sources of iron throughout the world. Iron formation deposits in the FIOD include ArcelorMittal’s Mont-Wright and Fire Lake Mines, Mont Reed iron deposits and Cliffs Natural Resources Bloom Lake Mine, (formerly owned by Consolidated Thompson Iron Mines Ltd.) and the Lamêlée Lake and Peppler Lake iron deposits.

Iron formations are classified as chemical sedimentary rock containing greater than 15% iron consisting of iron-rich beds, usually interlayered on a centimetre scale with chert, quartz, or carbonate. Ore is mainly composed of magnetite and hematite, and commonly associated with mature sedimentary rocks.

Stratiform iron formations are distributed throughout the world in the major tectonic belts of the Precambrian shields, and in many Paleozoic and Mesozoic fold belts, as well as parts of the present day ocean floor. Gross (2009) noted that the enormous size of some of the Archean and Paleoproterozoic iron formations reflected the unique global tectonic features and depositional environments for iron formation that were distinctive of the time.

Although various models have been used to explain the deposition of iron formations in the past, current thinking (summarized in Cannon, 1992, Gross, 1996, Gross, 2009) supports the idea of iron formation deposition, resulting from the syngenetic precipitation of iron-rich minerals in a marine setting due to hydrothermal exhalative activity on the ocean floor. The iron is thought to have formed in stable tectonic-sedimentary environments where silica, iron, ferrous and non ferrous metals were available in abundance, mainly from hydrothermal sources, and where conditions were favourable for their rapid deposition with minimal clastic sediment input.

Hydrothermal processes related to volcanism and major tectonic features are thought to be the principal source of iron and other metals. Deep fractures and crustal dislocations over hot spots and high thermal gradients penetrating the upper mantle enabled convective circulation, alteration and leaching of metals from the upper crust, including possible contributions by magmatic fluids. Iron formations are important hosts of enriched iron and manganese ore, gold deposits, and are also marker horizons for massive-sulphide deposits. Deposition of the iron was influenced by the pH and Eh of the ambient water, and biogenic anaerobic processes may have also played a role (Gross, 1996, Gross, 2009).

Post depositional events such as weathering, groundwater circulation and hydrothermal circulation can modify the deposits, and the mineralogy is usually recrystallized and coarsened by medium- to high-grade regional metamorphism. Protracted supergene alteration can be an important economic fact in upgrading the primary iron formation (Gross, 1996).

Iron formations can be subdivided into two (2) types, related to two (2) major types of tectonic environments: the Lake Superior-type on the continental shelf and marginal basins adjacent to deep-seated fault and fracture systems and subduction zones along craton borders; and the Algoma-type along volcanic arcs and rift systems and other major disruptions of the earth’s crust. Development of Lake Superior-types was related to global tectonic systems that caused the breakup of cratons, shields or plates in the Paleoproterozoic. Rapitan-type have distinctive lithological features being associated with diamictite, and were deposited in grabens and fault scarp basins along rifted margins of continents or ancient cratons in sequences of Late Proterozoic and Early Paleozoic rocks.

The mining method selected for the Project is based on conventional drill, blast, load and haul. Annual mining equipment fleet requirements were developed based on equipment performance parameters and average hauling distances.

The primary equipment at the peak in the mine life consists of 40 x 222 t diesel haul trucks, 2 x 28 m3 bucket rope shovels, 1 x 22 m3 bucket hydraulic electric shovel in ore, 2 x 27 m3 bucket hydraulic electric shovels in waste, a 15 m3 bucket wheel loader and 5 x 12¼ inch rotary blast hole drills.

The mine operating and capital costs have been estimated by BBA and consist of equipment energy, equipment maintenance and replacements, blasting and drilling, personnel, and other costs. It is assumed that the mine equipment will be owned by Champion and the workforce will be directly employed by Champion, except for contracted blasting services.

A conventional gravity circuit flowsheet will be used to produce concentrate from the Fire Lake North deposits. Run-of-mine (ROM) material will be transported by the mine trucks before being dumped into a gyratory crusher at one of two (2) dump points. The crushed ROM material will discharge into a surge pocket then onto an apron feeder, before being sent to a stockpile by a conveyor belt. The crushed ROM from the stockpile will be collected by three (3) apron feeders located in a reclaim tunnel and sent to the concentrator via a mill feed conveyor belt. The crushed ROM material will be combined with the oversize material from the AG mill screens and the coarse middlings from the cleaner spirals and fed to the AG mill. The undersize from the classification screens will feed the 3-stage gravity spirals circuit. The rougher spirals will yield two (2) products: a concentrate and a tailings stream. The concentrate stream will feed the cleaner spiral circuit while the tailings will be pumped to the tailings circuit.

The cleaner spirals will produce three (3) products: coarse middlings, fine middlings, and concentrate. The coarse middlings will be recycled to the AG mill. The cleaner fine middlings will be combined with the recleaner fine middlings and the filtrate and pumped to the dewatering cyclones. The concentrate will be going to the recleaner spirals (feed).

The recleaner spirals will produce three (3) products: coarse middlings, fine middlings, and concentrate. The recleaner concentrate will be the final concentrate. The concentrate will be filtered using pan filters and dried using steam during the winter months to prevent freezing during transportation. The recleaner fine middlings will be combined with the cleaner fine middlings and the filtrate and pumped to dewatering cyclones. The recleaner coarse middlings will be recycled to the rougher spiral feed.

The cleaner fine middlings, recleaner fine middlings and filtrate will be combined and pumped to the dewatering cyclones. The cyclone underflow will be combined with the AG mill classification screen undersize product and the recleaner coarse middlings and then pumped to the rougher spirals feed. A fraction of the cyclone overflow, mainly comprised of water with a small amount of fine middlings, will be recycled to the AG mill as needed. Cyclone overflow in excess of this will be sent to the fine tailings thickener.

The rougher spiral tailings will feed a classification/dewatering cyclone cluster. The cyclone underflow, consisting of coarse tailings, will flow directly to the tailings pump box. The cyclone overflow, consisting of fine tailings, will be dewatered in the fine tailings thickener. The thickener overflow will be recycled to the process water tank. The thickener underflow will be combined with the rougher tailings cyclone underflow in the tailings pump box and pumped to the tailings pond via a pipeline. In this way, fine and coarse tailings will be pumped to the tailings pond in a single pipeline.