The Hayot Lake Deposit is part of the Attikamagen iron ore projects and hosts a Taconite iron deposit of 1.7 billion tonnes of inferred resources. A NI 43-101 Technical Report was published on SEDAR in November 2012.
Project Summary
| Project Facts |  |
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| Location | Labrador Trough, ~20km N of Schefferville | |
| Deposit Type | Taconite | |
| Inferred Resource | 1.7 billion tonnes at 31.25% TFe | |
Technical Report
November 9, 2012
Property Location and Ownership
The Hayot Lake iron deposit is located in northeastern Quebec, approximately 20 kilometres north of the town of Schefferville. Through a wholly-owned subsidiary, Century has a 100% registered interest in the project.
The Attikamagen iron ore properties including Hayot Lake Deposit and Joyce Lake DSO Project, are located approximately 20 kilometres northeast of Schefferville, Québec, with a group of claims straddling the boundary between the Provinces of Québec and Newfoundland and Labrador. The properties include 135 claims located in Québec and 682 claims located in Labrador, covering an aggregated area of approximately 36,142 hectares (as of October 2015). The mineral rights exclude surface rights and were acquired by staking. All claims are located on Crown lands.
Geological Interpretation and Modelling
This large taconite iron deposit is hosted in folded banded iron formations of the Proterozoic Sokoman Formation. The iron mineralization is stratabound and sedimentary in origin and occurs within a synclinal structure plunging shallowly to the southeast.
Century provided to SRK a three-dimensional model for the main stratigraphic rock units of the Sokoman Formation as Gemcom GEMS wireframes interpreted from the drilling data. Each lithology domain delimits five members of the Sokoman Formation: Lean Chert (LC), Jasper Upper Iron Formation (JUIF), Upper Red Chert (URC), Pink Grey Chert (PGC) and Lower Red Green Chert (LRGC). The bottom of the overlying Menihek Formation and the top of the underlying formation were also modelled.
Each lithological unit exhibits different iron content and variable magnetite and hematite proportions. For this reason each lithological unit was considered as separate domain for resource modelling.
Mineral Resource Estimate
The resource database available for geology and mineral resource modelling comprises core borehole information acquired by Century in 2011 and 2012. The borehole database comprises 46 core boreholes (6,282 metres) distributed on section lines spaced at 200 to 800 metres and borehole spacing on each section line of 200 metres. The assay database comprises 1,248 sample intervals from 38 boreholes and assayed for the common major elements. 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 a mineral resource evaluation.
Mineral Resource Classification
Block model quantities and grade estimates for the Hayot Lake Deposit were classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2011) by Filipe Schmitz Beretta and Dr. Jean-François Couture, P.Geo (OGQ#1106, APGO#0197).
SRK is satisfied that the geological model for the Hayot Lake Deposit honours the current geological information and knowledge. The location of the samples and the assaying data are sufficiently reliable to support resource evaluation and do not present a risk that should be taken into consideration for resource classification. The mineral resource model is informed from core boreholes drilled at 200-to-800-metre spacing. The geological information is sufficiently dense to infer the continuity of the geological units containing the iron mineralization between sampling points and to interpret its geometry.
SRK is of the opinion that it is appropriate to classify all modelled blocks in the inferred category within the meaning of the CIM Definition Standards for Mineral Resources and Mineral Reserves.
Mineral Resource Statement
In February 2012, SRK Consulting (Canada) Inc. (SRK) was commissioned to prepare an initial Mineral Resource Statement for the Hayot Lake iron deposit. The mineral resources are reported in accordance with Canadian Securities Administrators National Instrument 43-101 (National Instrument 43-101) and have been estimated in conformity with generally accepted CIM Estimation of Mineral Resource and Mineral Reserves Best Practices Guidelines.
SRK considers that the Hayot Lake iron mineralization is amenable for open pit extraction.
| Mineral Resource Statement1 | |||||||||||
| Grade | |||||||||||
| Domain | Volume (Mm3) | Mass (Mt) | SG | Fe (%) | Al2O3 (%) | SiO2 (%) | P2O5 (%) | P** (%) | MnO (%) | Mn** (%) | LOI (%) |
| Inferred | |||||||||||
| LC | 60.8 | 178.7 | 2.94 | 23.92 | 0.16 | 42.78 | 0.06 | 0.03 | 0.45 | 0.35 | 15.03 |
| JUIF | 125.5 | 414.9 | 3.31 | 31.99 | 0.78 | 42.06 | 0.06 | 0.03 | 0.6 | 0.47 | 5.53 |
| URC | 162.6 | 536.3 | 3.30 | 32.89 | 1.03 | 41.47 | 0.07 | 0.03 | 0.65 | 0.5 | 5.42 |
| PGC | 100.2 | 328.8 | 3.28 | 32.10 | 1.00 | 41.45 | 0.08 | 0.03 | 0.67 | 0.52 | 6.51 |
| LRGC | 80.5 | 264.4 | 3.28 | 31.27 | 0.87 | 41.32 | 0.08 | 0.04 | 0.67 | 0.52 | 7.69 |
| Total Inferred | 529.6 | 1,723.0 | 3.25 | 31.25 | 0.84 | 41.74 | 0.07 | 0.03 | 0.62 | 0.48 | 7.1 |
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