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 mining methods are based on conventional drilling and blasting, followed by loading and hauling. The selection of the major fleet is based on operating time assumptions, mechanical availability and utilization, haulage distance and cycle time assumptions, and truck speed and consumption profiles. The primary fleet consists of using hydraulic (electric) shovels, diesel haul trucks, electric rotary blast hole drill rigs and wheel loaders. Support equipment includes rubbertire dozers, track type dozers, motor graders, etc.

Material from the mine will be delivered by haul truck to a dump pocket directly feeding the 1,525 mm X 2,260 mm (60” X 89”) gyratory crusher. During periods when the crusher is not available, or to segregate ‘hard material’ for subsequent blending, stockpiling ahead of the crusher can be done. A single gyratory crusher provides the required crushing capacity. Crusher and conveying utilization is assumed to be 75% and nominal and design capacity are 3,493 t/h and 4,017 t/h (dry) respectively. ROM material moisture is assumed to be 1.5% and density is 3.4 t/m3 . A hydraulic rock breaker operated from the crusher control room is provided adjacent to the crusher to break up and manipulate oversized or improperly positioned rocks. Material, crushed to -250 mm, is collected in a surge pocket below the crusher. From the surge pocket, the crushed material is fed by an apron feeder onto the fixed speed belt conveyor. This conveyor discharges onto an overland conveyor.

Crushed material at a nominal rate of 2,879 tph is fed to one 10.97 m dia. x 7.01 m long flange to flange (36’ x 23.0’), 2 x 7,500 kW dual-pinion AG mill. Recycled process water is added in the feed box to control the slurry solid fraction in the mill at around 65-70%. The material is ground to a particle size P80 of 300 microns, which is the size required to achieve sufficient liberation for effective gravity concentration. The AG mill can accept a ball charge of up to 5% should ore hardness conditions require it.

The slurry from the AG Mill is discharged into a splitting chute distributing the slurry to two horizontal single deck scalping screens 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 feed chute by belt conveyor.

The gravity concentrating circuit layout is based on a conventional three-stage spiral circuit. There are two primary distributors, each feeding twelve banks of roughers (twenty-four in total). Each rougher spiral bank has a distributor that feeds sixteen double-start spirals arranged in a back to back configuration of eight spirals.

The gravity circuit concentrate produced by the recleaner spirals is directed by gravity to four horizontal pan filters having a 7.93 m (26’) diameter. The filtered concentrate is conveyed to the concentrate load-out while the filtrate is directed to the fine middling cyclone. Each pan filter is provided with a scroll discharge and a steam hood for steam injection during the winter months. Moisture levels for filtered gravity concentrate are expected to be in the order of 5% in the summer and 2.5% in the winter. This practice is aimed at reducing the risk of concentrate freezing in the railcars during transport to the port terminal facility.

The rougher spiral tailings are pumped to the magnetic separation circuit (mag plant) cobbing Low Intensity Magnetic Separators (LIMS). There is a total of twelve 1.2 m X 3.6 m LIMS units configured in two banks of six, each fed by its own distributor. The concentrate from the cobbing drums consists mainly of non-liberated magnetite, requiring regrinding, and fine liberated magnetite that was not recovered in the spirals. This concentrate is directed to the classification cyclone. The cobber LIMS tailings are directed to the tailings thickener.

Each of the four drum filters (3.93 m dia X 6.55 m length) is provided with a steam hood for steam injection year round. Moisture level for this finer concentrate is expected to be in the order of 7%. The filtered concentrate is discharged onto a conveyor system where it joins the gravity concentrate for conveying to the concentrate load-out. Filtrate is directed to the classification cyclone.

The concentrate discharged from the pan filters and the drum filters is collected onto a common belt conveyor system, dumping into the load-out silo, to be .located directly over the existing Scully rail loop. The load-out silo can be bypassed if required and concentrate can be directed onto an outside emergency stockpile using a telescopic radial stacker. It can later be reclaimed using a reclaim conveyor belt feeder.