The Geology and the recent development of taconite and DSO deposits in the Schefferville Area

Transcription

1 The Geology and the recent development of taconite and DSO deposits in the Schefferville Area Taconite DSO 1

2 NML: Newest Producer in Canada s Labrador Trough Now producing direct shipping ore Among the world s largest holders of certified iron ore resources Not just one project, but an entire iron ore district Taconite holdings now in advanced feasibility study stage Highly experienced management team, with strong ties to the Labrador Trough NML Office Locations 2 2

3 The Labrador Trough General Geology The Labrador Trough contains several DSO and magnetic taconite iron deposits. The DSO deposits were mined since The trough is a geosyncline containing Proterozoic rocks which traverses the Quebec-Labrador Peninsula and is 1100 km long. [Map of Kuujjuaq Trough] Labrador Trough Schefferville The belt is 100 km wide in the central part near Schefferville and narrows to the north and south. Sept-Iles 3 3

4 The Labrador Trough The Trough is divided into 3 sections: 1. North section: 250 km long north of Koaksoak River 2. Central section (Schefferville region): 550 km long extends from Koaksoak River to the Grenville front, 30 km north of Wabush Lake. [Map of Trough] [Delineate North section] 3. South section: 300 km long extends from Grenville front to Lake Pletipi. 4 4

5 The Labrador Trough The Trough is divided into 3 sections: 1. North section: 250 km long north of Koaksoak River 2. Central section (Schefferville region): 550 km long extends from Koaksoak River to the Grenville front, 30 km north of Wabush Lake. [Map of Trough] [Delineate Central section] 3. South section: 300 km long extends from Grenville front to Lake Pletipi. 5 5

6 The Labrador Trough The Trough is divided into 3 sections: 1. North section: 250 km long north of Koaksoak River 2. Central section (Schefferville region): 550 km long extends from Koaksoak River to the Grenville front, 30 km north of Wabush Lake. [Map of Trough] [Delineate South section] 3. South section: 300 km long extends from Grenville front to Lake Pletipi. 6 6

7 Three Types of Ore Deposit There are 3 types of ore deposit in the Labrador Trough: 1. Soft ore or DSO, Leached enriched iron formation Composed of friable fine grained hematite, goethite, limonite 2. Taconite, fine grained, weakly metamorphosed iron formation containing more magnetite than hematite 3. Intensely metamorphosed, coarser-grained iron formations containing specular hematite and subordinate amounts of magnetite. DSO 7 7

8 Three Types of Ore Deposit There are 3 types of ore deposit in the Labrador Trough: 1. Soft ore or DSO, Leached enriched iron formation Composed of friable fine grained hematite, goethite, limonite 2. Taconite, fine grained, weakly metamorphosed iron formation containing more magnetite than hematite 3. Intensely metamorphosed, coarser-grained iron formations containing specular hematite and subordinate amounts of magnetite. Taconite 8 8

9 Three Types of Ore Deposit There are 3 types of ore deposit in the Labrador Trough: 1. Soft ore or DSO, Leached enriched iron formation Composed of friable fine grained hematite, goethite, limonite 2. Taconite, fine grained, weakly metamorphosed iron formation containing more magnetite than hematite Metataconite from IOC 3. Intensely metamorphosed, coarser-grained iron formations containing specular hematite and subordinate amounts of magnetite. Metataconite drill core from Altius Minerals 9 9

10 DSO and Taconite Geography DSO Occurs within Knob Lake Range Taconite [Map clearly Knob showing Lake Range 2 regions: Taconite region and Knob Lake 210 Range region] km 8 km 100 km Sedimentary rocks including the cherty iron formation in this area are weakly metamorphosed In the folded and faulted areas, leaching and enrichment have produced earthy friable DSO deposits which were mined by IOCC between 1954 and Taconite Unaltered iron formation Occurs as gently dipping beds west of Schefferville bordering the basement gneisses. Extends from the Menihek Lake to Lac Otelnuk in Quebec over a length of 210 km

11 DSO Deposits: Stratigraphy Sedimentary rocks Formed in situ by circulating waters that percolated through intensely fractured zones, faults and bedding planes Acidic waters leached the chert, carbonates and silicates from the unaltered iron formation Economically important: Ruth and Sokoman Formations Hudsonian orogeny A paleoproterozoic orogeny Structurally created thrusts and folds, a series of synclines and anticlines bound by high angle reverse faults Ore is confined to synclinal portion of the structure 11 11

12 DSO Deposits: Stratigraphy Ruth Formation Banded to laminated, ferruginous slatey unit of Fe-Al silicates, carbonates, quartz and minor pyrite On leaching and enrichment this unit produces Red ore 32 to 37 m thick 12 12

13 DSO Deposits: Stratigraphy Sokomon Formation Consists primarily of banded chert, rich in iron oxide, carbonates and silicates Sub-divided into 3 members and is 100 to 105 m thick. Basal member Silicate carbonate rich iron formation (SCIF) Produces yellow ore on leaching and enrichment Yellow ore is a mixture of limonite and goethite with minor martite

14 DSO Deposits: Stratigraphy Middle member Middle Iron Formation (MIF) Rich in iron oxides such as hematite, martite with only minor magnetite, carbonates, silicates Produces rich blue ore on leaching and enrichment. Upper member Upper Iron Formation (UIF) Iron oxide rich cherty unit with bands of ferruginous slate Produces blue ore with bands of red ore on leaching and enrichment 14 14

15 Taconite Deposits: Stratigraphy Millennium Iron Range Taconite: Typical Cross-Section Sokoman Formation The economically important group of the sedimentary rocks in the taconite areas Same stratigraphic divisions as in the DSO areas All the three members (UIF, MIF and LIF) show higher magnetite content compared to hematite and are un-leached The total thickness of the economic iron formation is 105 to 110 m 15 15

16 Taconite Deposits: Stratigraphy Millennium Iron Range Taconite: Typical Cross-Section Structurally the entire taconite belt is gently dipping towards east and striking at a NNW direction similar to the iron formation in the DSO areas. The magnetite associated with chert/jasper is fine grained, with minor amounts of hematite, carbonates and silicates. This ore is amenable to produce magnetite concentrates by fine grinding the ore and by magnetic separation methods

17 Exploration & Development Work LabMag taconite (NFL) This area, known as Howells River taconite was previously explored by IOC Historic IOC drilling, , 57 holes 6,068m LabMag NML drilled this area between 2004 and 2006 LabMag total drilling: 216 holes, 17,558m Additional work involved bulk sampling for metallurgical testing and pre-feasibility studies

18 Exploration & Development Work KéMag taconite (QC) Strike extension of the LabMag deposit in the Howells River area Stratigraphy, mineralogy, structure and the ore characteristics are very similar to the LabMag property NML carried out drilling in 2006, 2007 and Total Drilling: 89 holes 10734m. Additional work included bulk sampling for metallurgical testing and pre-feasibility studies. A feasibility study is underway to develop these deposits either individually or to gather. This study is expected to be finished by the year end. Tata Steel Canada has 64% of the Joint Venture. [Map of KeMag drilling] KéMag Drilling by campaign (different colours) 18 18

19 LabMag & KéMag Resources & Reserves LabMag CATEGORY TONNES (millions) GRADE (%) Reserves - Proven + Probable 3, % Resources - Measured + Indicated 1, % Resources - Inferred 1, % KéMag CATEGORY TONNES (millions) GRADE (%) Reserves - Proven + Probable 2, % Resources - Measured + Indicated % Resources - Inferred 1, % 19 19

20 DSO Program TSMC and NML hold 100% interest in several licenses that cover the DSO deposits explored by IOCC prior to its closure of the Schefferville operation. NML started a detailed exploration program to develop the deposits occurring in Area 2, 3 and 4. The objective is to bring the deposits in Area 3 into production in 2012 and to bring the Area 4 deposits into production in Additional work involved bulk sampling for metallurgical testing and commissioning Feasibility study. TSMC has drilled deposits Kivivic 1, 2 and Leroy 1 in Area 4 during 2011 and 2012 to convert historical resources into NI compliant resources

21 DSO Logistics Area 4 NML drilled in 2008 and in 2009 (10 deposits) Haul road 35 KM Area # holes Meters drilled Deposits ,218 Ferriman ,717 Timmins 3,4,7, Fleming 7N ,140 Goodwood, Kivivic 3,4,5, Sunny 1 Areas 2 &

22 2010 Airborne Gravity & Magnetometer Survey The surveys were conducted by Fugro Airborne Surveys High intensity magnetometer survey Survey over the taconite areas to outline potential magnetic taconite targets for further exploration Outlined several potential taconite targets for further investigation Based on the interpretation 6 targets were selected for drilling in 2011 and 2012 Combined gravity and magnetometer survey Combined survey over the DSO areas covering Area 2, 3 and 4. Outlined more than 50 potential DSO targets in Area 2, 3 and 4 including the 30 km between Area 3 and Area 4 Targets show high gravity values coinciding with magnetic lows Targets near the DSO plant site are being investigated by a follow-up ground gravity survey to select locations for test drilling and trenching 22 22

23 Survey Areas DSO Area Newfoundland Claim Quebec Claim: Total Magnetic Intensity Newfoundland Claim: Total Magnetic Intensity 23 23

24 DSO Anomalies 25 Existing DSO Deposits million tonnes of combined resources In situ grades 58-60% Fe New DSO Targets Over 50 new anomalies based on the results of aerial gravity surveys Proven and Probable: 64.1 Mt at 58.8% Fe Measured and Indicated: 21.0 Mt at 59.2% Inferred Resources: 10.3 Mt at 58.3%. 2,700 meters drilled in Anomalies being investigated Timmins Area targets around plant site prioritized in 2012

25 Lac Ritchie Anomaly This area is located at the north end of the Millennium iron Range bordering the Adriana s Otelnuk property. The anomaly is approximately 11 km long 2.3 km wide in average. 40 holes for a total of 3,810 m were drilled in 2011 Based on the drilling results a NI compliant resource estimate was made by SGS Geostat. Indicated: 3.33 Bt at 30.3% Fe Inferred: 1.44 Bt at 30.9% Fe 25 25

26 Exploration: Other Project Opportunities Taconite Project New Taconite Projects Other Taconite Anomaly Claim: DSO Claim: Taconite & Other High priority drill targets In 2012, the 5 remaining magnetic anomaly targets areas were selected for exploratory drilling. The program started on March 01/12 and completed on October 22/12. During this period 154 holes were drilled for a total of 17,562 m. Assay results for Perault Lake & Sheps Lake: 2 1 Total Fe% DTWR % Conc. Fe% Conc. SiO2% Perault Lake Sheps Lake

27 DSO Mining Production started in September 2012 Initially mining high-grade 62% (+) Fe grade; dry screening only Expected 2012 production 250,000 mt First deposit being mined is Timmins 4 On track to produce 2.0 mtpy in 2013 and 4.2 mtpy in 2014 DSO Mine Project Site Site Screening Plant 27 27

28 Thank you