The deposit is hosted in the Sept-Îles Anorthosite Complex (SAC): a large, layered, unmetamorphosed, matie intrusive suite of Cambrian age. The tunnel shaped intrusion displays concentric layering. Mineralization occurs above the Critical Zone in what is termed the Mine Series Stratigraphy. At the base of the deposit massive olivineilmenite magnetite-apatite rocks occur in bands up to several meters thick in gabbro (Nelsonite Layer). Stratigraphically above the Nelsonite horizon, ilmenite, magnetite, and apatite are disseminated, throughout the host gabbros in varying quantities, in three principal layers referred to as the Railroad, Upper and California layers. The layers have shallow dips ( -20 o to -40 °) to the southeast.

Chlorine (Cl), a contaminant in the process of apatite concentrate, is found in the host rock and in the ore composing the Sept-Îles deposit. This particularity is a major concern for Mine Arnaud due to the tact that the Cl content of the produced concentrate cannat exceed 0.14 (VARA specifications). To this date the relationship between the Cl in the head assays and in the concentrate are not perfectlly understood.

A sub-vertical fault system crosses the mineralized body without significant displacement and two other longitudinal, sub vertical faults have displacements that vary from nil up to 50 meters and mimic a horst-and graben type structure. These structures are visible iin the magnetic gradient. Since the apatite encounter ........

The near surface resources will be mined by a large open pit, which will have 28 years of production following three years of construction and pre-production period. Mining operations will be conducted by the Project operator. Surface mining will follow the standard practice of an open-pit operation; with conventional drill and blast, load and haul cycle using a drill/truck/shovel mining fleet. The overburden and waste rock material will be hauled to the overburden and waste disposais areas near the pit. The mineralization will be drilled, blasted and loaded by hydraulic excavators and delivered by large mining trucks to the gyratory crusher or stockpiles near the crushing plant A lite-of mine scenario was developed over 365 days per year. The mine plan is calling for a yearly full capacity production of 11,201,120 tonnes processed per year, reached at year 4, and an average stripping ratio of 0.76 over 28 years of mining operation, plus 2.5 years of stockpile processing. The following graph is summarizing the production and the waste removal.

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