The Lac Lamêlée iron deposit consists of magnetite Banded Iron Formation (“BIF”) of the Lake Superior type.

The Property area was subjected to high-grade metamorphism corresponding to the limit of upper amphibolite-granulite facies resulting from the Grenville Orogeny.

During metamorphism, the iron formation was recrystallized into a meta-taconite that contains coarsegrained specular hematite, granular magnetite and friable quartz. The grade of this type of iron formation is generally higher than in the un-metamorphosed taconite.

The iron mineralization on the Property is hosted in the Wabush Formation, within two major facies:
a) Iron Oxide Facies
The Iron Oxide member has been broken down into the following sub-units:
* Magnetite Iron formation (MIF)
* Hematite (specularite) Iron formation (HIF)
* Magnetite–hematite Iron formation (MHIF/HMIF)
The three sub-units differ in their ratios of magnetite to hematite but are geochemically and texturally similar. The units are described as well-banded, fine to medium grained rock with cm- to mm-scale beds of magnetite and/or hematite (typically specularite) alternating with quartz beds that usually contain disseminated magnetite and/or hematite. Locally, the bedding becomes diffused and the rock turns into a quartzite with disseminated magnetite.

b) Quartz-Pyroxene-Magnetite Facies (QPyrxM)
The QPyrxM unit is characterized by a significant proportion, up to about 50%, of pyroxene-rich bands alternating with bands of quartz and bands of massive or disseminated magnetite and/or hematite. The QPyrxM varies considerably in its iron oxide content but the average ranges from about 15 to 25% magnetite, with occasional hematite. The contacts between the two facies are often gradational.

In addition to these two facies, a Carbonate Iron Formation (CIF) unit was observed on the Property. The CIF is locally encountered within the QPyrxM. It is similar in appearance to the QPyrxM but contains light yellow-grey bands of iron-magnesium carbonate intercalated between the pyroxene-rich bands. This unit commonly occurs toward the base of the stratigraphy and may contain magnetite.

On the Property, the Wabush Formation is further subdivided into a Lower and an Upper Iron Oxide - Silicate member locally separated by an ultramafic rock (UMF), informally referred to as “Popcorn Rock” (M. Flanagan, 2013) that may contain a few percent of magnetite. Field observations suggest that the ultramafic suite was injected as sills.

Hematite mineralization predominates in the fold hinge zone in the southeastern portion of the Mountain Pond Zone, which is reflected by a lower magnetic susceptibility observed in the ground magnetic survey data.

The iron mineralization is hosted in a re-folded, plunging syncline located near the centre of the Property and extends over about 2.5 km in a general NE direction. The magnetic data strongly suggest that the eastern limit of the iron formation extends some distance from shore into Lac Lamêlée.

The mining method selected for the Project is a conventional open pit, drill and blast, truck and shovel operation with 15 meter high benches. Topsoil and overburden will be stripped and stockpiled for future reclamation use. The mineralization and waste rock will then be drilled, blasted and loaded into rigid frame haul trucks with hydraulic shovels. The mineralized material will be hauled to the primary crusher and the waste rock will be hauled to the waste rock piles.

The mine plan was used to determine the fleet of mining equipment which was estimated to be include 22 haul trucks (227 tonne), 3 electric drive hydraulic shovels (26.5 m3 bucket), 3 production drills as well as a fleet of support and service equipment.

Crushing and Ore Stockpiling.
Mineralized material from the mine is delivered by trucks to the gyratory crusher equipped with two (2) dump points. A hydraulic hammer (rock breaker) is installed adjacent to the crusher to manipulate rocks in the feed pocket and to break the larger mineralized rocks so they can enter the crusher.

Crushed ore falls on a surge conveyor which transports it to the crushed ore stockpile.

Ore is withdrawn from the crushed ore stockpile by apron feeders located inside a reclaim tunnel. The apron feeders ensure a constant crushed ore feed to the mill feed conveyor.

Grinding and Classification.
Crushed ore from the stockpile is fed into an Autogenous Grinding mill (AG mill). Ground ore is discharged from the mill as a slurry. The slurry feeds scalping screens: the screen oversize is returned to the mill and the screen undersize is pumped into distributors which equally distribute the slurry onto the classification screens. The distributors are equipped with valves allowing the feed to a screen to be stopped and the maintenance of the screen whilst in operation. The screens oversize is returned to the mill for further grinding, while the undersize consists in the grinding circuit product and is sent for upgrading to the gravity separation circuit.

Gravity Separation.
The first stage of gravity separation is performed by rougher spirals that remove the coarse silica. The rougher spirals concentrate is sent to the cleaning hydrosizers that will efficiently remove medium and fine silica. The cleaning hydrosizers produce a high grade concentrate at their underflows. The hydrosizer overflow, consisting in fine iron minerals and fine silica, is processed by the scavenger spirals. As the scavenger spiral feed has a narrow size distribution, the spirals can produce a concentrate with an iron grade slightly lower than the hydrosizers concentrate.

The main concentrate launder combines the two (2) concentrates produced by the plant to produce a constant final concentrate and feed to the pan filters.

Concentrate Filtration.
The concentrate launder feeds a gravity distributor that distributes to the horizontal pan filters. The distributor is equipped with valves allowing the stoppage of a filter and its maintenance in normal operation.

There is a by-pass under the concentrate distributor which provides the possibility to send the concentrate to the floor instead of it being filtered. The floor is designed to contain the spill. The floor design collects the solids and redirects the liquid to the main sump nearby. This floor area is used as a temporary storage that makes room for material (concentrate or tails) without affecting the normal operation access points.

Vacuum filtration is provided by vacuum pumps. Pressurized air is provided by dedicated blowers. Air goes counter flow to the slurry direction to unclog the pan filter cloths. Each filter is equipped with a steam hood for increased concentrate drying during the winter to facilitate transportation. Rotating scrolls discharge the concentrate from the filters onto the concentrate collecting conveyor. Filtrate passes through a separation tank and flows to the thickener.