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 is delivered by haul truck to a dump pocket directly feeding one 1,525 mm x 2,260 mm (60” x 89”), 750 kW gyratory crusher. Crusher power was determined based on a design crusher work index of 12.8 kWh/t, F80 of 800 mm and P80 of 150 mm. During periods when the crusher is not available, stockpiling ahead of the crusher can be done within a designated area. Specific throughput is based on crusher utilization of 75%, and nominal and design capacities are 3,501 t/h and 4,026 t/h (dry) respectively. ROM material moisture is assumed to be 1.5% and density is 3.4 t/m3.

The overland conveyor discharges onto an outside stockpile of 38,000 t live capacity. This live capacity is sufficient to sustain about 12 hours of processing plant operation, allowing the crusher to be taken out of service for normal maintenance while maintaining feed to the mill. The total pile capacity is in the order of 290,000 t (about 4 days), sufficient to maintain an uninterrupted ........