The iron formation on the property is iron formation of the Lake Superior type. Lake Superior-type iron formations consist of banded sedimentary rock composed principally of bands of iron oxides, magnetite and hematite within quartz (chert)-rich rock with variable amounts of silicate, carbonate and sulphide lithofacies.

Mineralization of economic interest on the property is oxide facies iron formation. The oxide iron formation ("OIF") consists mainly of semi-massive bands or layers, and disseminations of magnetite and/or specular hematite (specularite) in recrystallized chert and interlayered with bands (beds) of chert with iron carbonates and iron silicates. Where magnetite or hematite represent minor component of the rock comprised mainly of chert, the rock is lean iron formation. Where silicate or carbonate becomes more prevalent than magnetite and/or hematite, then the rock is silicate iron formation ("SIF") and or silicate-carbonate iron formation and its variants. SIF consists mainly of amphibole and chert, often associated with carbonate and contains magnetite or specularite in minor amounts. The dominant amphibole on the Kami property is grunerite. Where carbonate becomes more prevalent, the rock is named silicatecarbonate or carbonate-silicate iron formation. However, in practice, infinite variations exist between the OIF and silicate-carbonate iron formation composition end members. SIF and its variants and lean iron formation are also often interbedded with OIF.

The OIF on the property is mostly magnetite-rich and some sub-members contain increased amounts of hematite (specularite). Hematite appears to be more prominent in Rose North mineralization than at either Rose Central or Mills Lake, but all zones contain mixtures of magnetite and hematite. At both Rose North and Rose Central and at Mills Lake, a bright pink rhodonite, which is a manganese silicate, is associated with hematite-rich OIF facies. Deeply weathered iron formation in the Rose North deposit also contains concentrations of secondary manganese oxides. There may also be other manganese species present.

The Kami Project will be operated using conventional open pit mining methods (drill, blast, load & haul) using an owner operated fleet. The mining sequence will begin with tree clearing and grubbing followed by the removal of the topsoil that will be hauled to a stockpile where it will be used for future reclamation activities. Overburden will be removed with the fleet of shovels and trucks and hauled to the overburden stockpile. Pre-stripping overburden removal will be contracted out. Ore and waste will be drilled and blasted on 14 m benches and loaded into the fleet of haul trucks with the hydraulic excavators. The majority of the waste rock will be hauled to waste rock pile and a certain amount will be hauled to the tailings management facility (“TMF”) to be used for dam construction. The ore will either be hauled directly to the primary crusher or to the ore stockpile. Mining operations will be conducted on a 24 hour basis, 7 days per week and 52 weeks per year.

Waste Rock Pile Design
An overburden stockpile and a waste rock pile have been designed for the Kami Project with adequate capacity to contain the quantities of material that will be generated during the life of the mine. The locations of the overburden and waste rock stockpiles require that Kami LP obtains surface land rights to accommodate the required footprint for each.

The design of the overburden stockpile considers an overburden density of 2.35 t/m3, a swell factor of 1.2 and a compaction factor of 1.1. The design of the waste rock pile considers a waste rock density of 2.83 t/m3, a swell factor of 1.34 and a compaction factor of 1.1.

The overburden stockpile has a capacity of 45 Mm3, a footprint area of 127 ha, and reaches an elevation of 695 m. The maximum height of the waste rock pile design is 100 m. The waste rock pile has a capacity of 210 Mm3, a footprint area of 554 ha, and reaches an elevation of 665 m. The maximum height of the waste rock pile design is 100 m. It should be noted that throughout the mine life 34.5 Mt of waste rock will be used for construction at the tailings management facility.

Mine Production Schedule
A mine production schedule was prepared annually for the entire mine life using the MineSight Schedule Optimizer (“MSSO”) with the objective of maximizing the NPV of the Project. The following mine planning constraints were considered in MSSO:
- Maximum of 7,972 plant operating hours per year (91% utilization);
- Maximum total material movement of 80 Mt per year;
- Maximum plant capacity of 25.1 Mt of mill feed per year;
- Mill throughput limited to 18.5 Mt in ramp-up Year 1;
- The vertical advance rate has been capped at 7 x 14 m benches per year per phase (or 98 m vertical advance per year).

A pre-production period of one year is assumed to develop the open pit, construct the haul road network and build the starter dyke for the tailings management facility. During this period, 9.7 Mt of overburden will be stripped, 9.1 Mt of waste rock will be mined and 2.2 Mt of ore will be stockpiled close to the crusher pad. The overburden in pre-production will be removed by a contractor while the ore and waste will be mined using Kami LP’s fleet of equipment. The majority of the waste rock mined in pre-production will be hauled to the tailings management facility, and for fleet calculations and costing it has been assumed that the placement of the waste rock on the dyke will be done by a contractor. It should be noted that the waste rock quantity mined in pre- production and in the first two years of operation has been aligned with requirements to build the TMF dykes. Without this constraint, less waste rock would be required to be excavated during the first few years and the mine plan can be optimized further.

Mining activities will begin in both the RC and NR regions but the entirety of ore in the first year of production will come from RC. During Year 2, ore mining will be split roughly between the two regions and in Year 3 ore mining will be limited to NR. Both areas will be mined concurrently during the remaining years of the operation.

The total run of mine material mined will gradually ramp up from 21 Mt in pre-production, peaking at 80 Mt in Year 12. During the life of the mine, a total of 27.9 Mt of mostly lower grade ore will be hauled to the stockpile and re-handled throughout the operation. In the last year of operations, approximately 60% of the mill feed will come from the ore stockpile.

Haul Trucks
The haul truck selected for the Project is a rigid frame mining truck with a payload of 292 tonnes. A fleet of five trucks is required in pre-production, followed by seven in Year 1, nine in Year 2 and ramps up gradually until reaching a peak of 23 between Years 10 and 12, after which the truck requirements gradually decline.

- Mechanical availability – Averages 87% but varies by year as the fleet ages;
- Use of availability – 96.5% (25 minutes of standby time per shift);
- Nominal payload – 292 tonnes;
- Shift schedule – 12 hours per shift, two shifts per day, 360 days per year (five days of major weather delays have been considered per year);
- Operational delays – 85 min/shift (this accounts for shift change, coffee and lunch breaks, and refuelling);
- Job efficiency – 92% (accounts for queuing at the shovel and other delays);
- Rolling resistance – 3%;
- Maximum speed limit – 50 km/h.

Excavators
The loading machine selected for the Project is an electric powered hydraulic shovel with an operating weight in the 300-tonne class, capable of digging 61 t per bucket load. This size shovel should typically load the haul trucks in five passes. Using an 85% mechanical availability, 50 minutes per shift in operating delays, and 100 minutes per shift in standby delays, it was estimated that three shovels are required to manage the tonnages of overburden, ore and waste rock in the mine plan. A large wheel loader is also included in the fleet primarily for re-handling from the ore stockpile but it will also be used as an alternate loading machine in the pit. The loader will have a bucket capacity of 38 tonnes.

Drilling and Blasting
The selected electric powered rotary drill model is configured to drill 311 mm (12¼”) diameter blastholes. The drill was also chosen due to its performance in similar operations.

Using a mechanical availability of 86%, 55 minutes per shift in operating delays and 150 minutes per shift in standby delays, it was estimated that one drill will be required in pre-production, followed by two in Year 1, three in Year 3 and a fourth drill from Year 7 to 12. The drilling calculation is based on a penetration rate of 30 m/h and a re-drill percentage of 10%.

The supply of explosives and blasting services will be outsourced locally. The contractor will be responsible for delivering, mixing and loading the drillholes. As such, a list of services and materials was provided by a local vendor and was used for developing the design and costing for blasting. Kami LP personnel will be responsible for detonation. The contractor will have an explosives magazine on site to store the blasting accessories.

The explosive type will be 100% bulk emulsion with average explosive energy of 1.20 g/cm3. Electronic detonators will be used to provide consistent blasts. Bulk emulsion was selected because it is easily transported and has a lower environmental impact than other types of explosives, resulting in lower ammonium nitrate levels emitted into the watershed. Explosive requirements average 16.4 million kg per year and peak at 28.8 million kg in Year 12. This represents a total of approximately 550,000 kg per week during peak production.

- subscription is required.

General process and plant design criteria for the Kami processing plant for this FS are generally
based on the criteria, design, general arrangements and equipment sizing developed by Kami
LP during detailed engineering and on the following considerations.

Crushing and Grinding.

Screening
The slurry from the AG Mill is discharged into a splitting chute distributing the slurry to two horizontal single deck scalping screens of 4.27 m x 8.56 m (14’ x 28’) with a screen mesh opening of 4.0 mm. The oversize fraction from the scalping screens is returned to the AG mill by belt conveyor.

The passing fraction from the scalping screens is collected within a single pump box having two discharges, each having one single-stage pump and each feeding a three-way distributor. Each of these distributors feeds three multi-slope (banana) classification screens of 4.27 m x 8.56 m (14’ x 28’) with a mesh opening of 1 mm. Oversize material from the classifica ........