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 ........

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 ........

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