The Property is located in the western margin of the Labrador Trough that extends for more than 1,000 km, from Ungava Bay to Lake Pletipi in Quebec. The belt is about 100 km wide in its central part and narrows considerably to the north and south. The Grenville Front crosses the southern part of the Trough. The rocks in the Labrador Trough are subdivided into an upper volcanic-dominated suite (Doublet Group) and a lower sedimentary sequence (Knob Lake Group) that includes the Sokoman Formation hosting the iron formations found in the region.

The KéMag iron deposit consists of magnetite Banded Iron Formation (“BIF”) of the Lake Superior type. BIFs are sedimentary rocks composed of alternating mm- to cmscale beds of quartz (chert or jasper) and iron oxides (predominantly magnetite and hematite). Variable amounts of gangue minerals, mostly silicates, carbonates and sulphides are present. Banded iron formations have greater than 15 % iron content and represent the principal sources of iron throughout the world and are mined in the Great Lakes region of the United States. The Lake Superior-type BIF are associated with typical shelf-type sedimentary rocks with minimal volcanic input and most formed during the Paleoproterozoic era.

The mining method selected for the Project is conventional truck and shovel. Vegetation and topsoil will be cleared using a mining contractor and be carried out with a fleet of dozers, small excavators and articulated haul trucks ahead of the mining operation. Suitable organic material will be stockpiled for future reclamation use. Overburden will then be stripped using a fleet of excavators and hauled to the overburden dump. The ore and waste rock will be mined with 15 m high benches, drilled and blasted then loaded with large mining shovels into a fleet of rigid frame trucks which will haul the material either to the waste dump, the Class 2 ore stockpile or the primary crushers.

The mining operations for the Project will be 365 days per year, operating around the clock on two (2), 12 hour shifts. A total of seven (7) days per year have been accounted for when the mine will be shut down due to severe weather conditions. These conditions may occur during peak rainfall or snowfall periods or at times when the ambient temperature is extremely low.

During peak production, the total number of 363-tonne haul trucks is expected to reach 35, along with eight (8) shovels, ten (10) production drills and a large fleet of support and service equipment. The total mine workforce during peak production is expected to reach 535 employees.

The basic process flow sheet consists of primary and secondary crushing and screening circuits feeding HPGRs for dry comminution. After cobbing, the liberation of the iron bearing mineral (magnetite) is completed in a wet grinding circuit. Concentration stages include besides cobbing, roughing and finishing with low intensity magnetic separators. The undersize final concentrate is sent to the thickener and the slurry storage tanks or to the flotation plant for low silica.

To produce low silica BF fluxed or DR grade pellets, the concentrate must contain 2.2 % and 1.5 % silica respectively so four (4) flotation lines each with rougher, regrind down to a P80 of 18 µm and cleaner have been added to reduce the silica grade. All flotation steps will use tank type flotation cells. Regrinding will be performed in fine ore mills and classified by hydrocyclones.