Full Moon Project

The Full Moon Project hosts a Taconite iron deposit of approximately 7.3 billion tonnes of indicated resources and 8.7 billion tonnes of inferred resources. In April 2015, the Full Moon Preliminary Economic Assessment was published on SEDAR.

Project Summary

Project Facts (Apr 14, 2015)
Location	~80km NW of Schefferville
Mineral Resources (December 6, 2012)
Deposit Type	Taconite
Measured & Indicated	7.3 billion tonnes (30.18% TFe)
Inferred	8.7 billion tonnes (29.86% TFe)
Preliminary Economic Assessment (April 14, 2015)1
Pre-tax NPV	C$5,771 million at 8% discount rate
Post-tax NPV	C$2,965 million at 8% discount rate
Pre-tax IRR	15.2%
Post-tax IRR	12.4%
Pre-tax payback	5.7 years
Post-tax payback	6.3 years
Initial Project CAPEX	C$7,207.3 million
Average Project OPEX	C$49.85/dmt
Strip Ratio	0.1:1
Economic evaluation based on 100% equity and a concentrate selling price equivalent of US$96/DMT, CFR China for 62%Fe content at a US$ to CDN$ exchange rate of 0.80 Life of mine of nominal 30 years at 20 million tonnes per year of concentrate product (mining all mineral resources gives life of mine of 290 years)

Mineral Resource Statement

Technical Report

April 14, 2015

Technical Report on the Preliminary Economic Assessment for the Full Moon Project

Property Description and Ownership

Full Moon is one of two separate groups of claims that form the Sunny Lake Joint Venture Properties; the other group being Black Bird DSO Deposit. Full Moon is located 80 kilometres northwest of Schefferville, Québec. The property is underlain by Proterozoic sedimentary rocks of the Labrador Trough known to host world-class iron deposits of sedimentary origin.

The Full Moon property consists of 172 contiguous map-designated claims (8420.74 hectares). In total, the Sunny Lake property comprises approximately 274 mining claims covering approximately 13,438.76 hectares (as of February 2021). Through a wholly-owned subsidiary, Century has a 100% registered interest in the project.

Location, Access and Infrastructure

The Full Moon Project is only accessible by helicopter and/or float plane from Schefferville. A seasonally maintained gravel road ends at Lac du Drum about 40 kilometres from the project. Century maintains a temporary exploration camp in the area of the project.

The town of Schefferville is the nearest town to the project with established infrastructure. It is served by commercial flights from several cities and rail links connecting to the Port of Sept-Îles. Air Inuit offers daily flights to Sept-Îles and three flights per week to Montréal via Québec City. In the last decade, a number of new buildings, including medical clinics, a recreation centre, churches, and houses, have been built, both in the town and on the contiguous Matimekosh Reserve, largely to serve an expanding First Nations population.

Background Geology

The iron deposit is a relatively large iron deposit hosted in banded iron formations of the Proterozoic Sokoman Formation. The deposit is relatively flat, with sedimentary units dipping gently to the east at around 12 degrees. The iron mineralization is stratabound and sedimentary in origin. The Sokoman Formation was modelled based on geological information extracted from core drilling data. The area investigated by drilling covers an area measuring approximately 11 kilometres along strike, 4 kilometres across strike and from the surface to a depth of approximately 200-500 metres. The combined true thickness of the iron-bearing units often exceeds 200 metres. The sedimentary units are deformed, locally folded and the iron formations have been displaced and thickened by thrust faults that are sub-parallel to sedimentary strata and are difficult to recognize in core. The deposit is also segmented by a steeply dipping east-west trending cross fault.

Mineral Resource Estimate

The resource database available for geology and mineral resource modeling comprises core borehole information acquired by Century in 2011 and 2012. Surface geological mapping supplements the exploration database. The borehole database comprises 147 core boreholes (30,932 metres) distributed on section lines spaced at 500 metres and borehole spacing on each section line of 400 metres. The assay database comprises 5,580 sample intervals from 147 boreholes and assayed for the common major elements. Assay results for some boreholes are incomplete and affect the grade estimates. Specific gravity was measured by Century using a standard weight in water/weight in air methodology on core samples from complete sample intervals.

SRK is satisfied that the exploration work carried out by Century was conducted in a manner consistent with industry best practices and that the exploration data and the drilling database are sufficiently reliable for the purpose of supporting Mineral Resource evaluation and disclosure pursuant to National Instrument 43-101.

The preliminary assessment includes inferred mineral resources that are considered too speculative geologically to apply the economic considerations that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. The mineral resource estimates discussed may be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio-economic, legal, political and other factors. There is insufficient information available to assess the extent to which the potential development of the mineral resources described may be affected by these risk factors.

Preliminary Economic Assessment

Cima+ completed a Preliminary Economic Assessment (“PEA”) for the Full Moon Project in early 2015. The PEA is based on production of 20 Mtpy of concentrate. The mining activities will be year-round, and the product will be transported by rail via a newly constructed railway extension from the Schefferville area to the mine site, which will tie-in with the existing railway system for further transport to Sept-Iles. The preferred option uses a process plant that recovers both magnetite and hematite, using a process that produces high silica content concentrate (approximately 66% Fe with 4.5% SiO₂). The project plans a mix of local and fly-in/out employees, with a camp installed near the concentrator.

Mining

In-pit resources were estimated from the optimal economic pit that was defined using the operating cost and sales prices (defined below) and based on the October 2012 SRK resource model. The in-pit resources include indicated and inferred resource categories from the block model. Potentially at a planned production rate of 20 Mtpy of concentrate would result in a 290 year mine life. However, to conduct a reliable market study a nominal 30 year period was chosen. Other mining highlights include:

• Average annual production of 20 million tonnes of concentrate grading approximately 66% Fe, 4.5% SiO₂
• Average life of mine stripping ratio of 0.1:1, mining for a nominal 30 years of operation

Metallurgical Testing

Two stages of crushing followed by a grinding stage is required to processes the ore to the optimal grain size. This is followed by a magnetite beneficiation process, which consists of a magnetic separation circuit and a flotation circuit. The final product is a high silica content concentrate.

Port Facilities and Concentrate Railing

Century plans to use the services of a common carrier to rail concentrate from the mine to the Port of Sept-Îles.

Initial Capital Cost Summary

Cima+ estimated the initial capital cost of the project:

Estimated Operating Cost Summary

Cima+ estimated the following operating cost, with input from other parties. Total operating cost over the average life of the mine is estimated at C$49.85/tonne of concentrate loaded on board a ship in Sept-Îles: