Duncan Lake Iron Ore Property

Location Western Part of the La Grande Greenstone Belt
Mineral Iron (Fe)
Property Size 5,848 hectares
Resource 5.7 MT Measured @ 23.29% Fe; 25.6 MT Indicated @ 23.48 and 821.5 MT Inferred @24.56% Fe

Click here to access the Preliminary Economic Assessment for the Duncan Lake Iron Project.

The Duncan Lake property (“DLIOP”) is located approximately 570 km north of Matagami, Québec, which is the nearest mining community, using a paved road (Highway 109), connecting Matagami to Radisson. Road distance from Montreal to DLIOP property is estimated to 1,350 km. The property is located 50 km south of Radisson and 10 km south of the LG2 regional airport.

The property is subdivided into six (6) different blocks (Deposits 1 to 6) located close to and apart from Highway 109. Deposits 1, 2, and 5 are located southwest of the highway and Deposits 3, 4 and 6 to the northeast in the lateral extension of the other deposits. The property consists of 125 mining claims covering 5,489.19 hectares. All claims were registered as CDC (“map-designated claims”) in the Québec Province electronic system, with boundaries automatically attributed by the system. The DLIOP is subject to a joint venture agreement between Canadian Century, which holds a 51% interest and Augyva, which holds a 49% interest under an option and joint venture agreement dated May 20, 2008.

On May 20, 2008, the Century Iron Mines Corp. signed an option and joint venture agreement with Augyva Mining Resources Inc. (“Augyva”). On November 11, 2010, the Company completed its funding of $6,000,000 to earn an initial 51% interest in the Duncan Lake Deposit in accordance with the option and joint venture agreement entered into between the parties in May 2008. Pursuant to the agreement, and after earning the initial 51% interest, the Company will have the option to increase its interest in the property to 65% by expending a further $14 million in the following 4 years thereafter.

Location

Nearest city      Radisson, Quebec Property is 45km South
Airport LG Regional 10km away
Electricity LG1 and LG@ Hydro Quebec 100km away
Transportation Highway 109 Runs through the property
Shipping Terminal James Bay 120km away

Geology & Mineralization

This territory fills the central portion of the Superior Geological Province, which included four sub-provinces, which are, from north to south: La Grande, Opinaca, Némiscau and Opatica. DLIOP is located in La Grande sub-province. La Grande subprovince is boarded to the north by the Bienville sub-province close to Radisson city, and by the Opinaca sub-province to the east and southeast.

The main characteristic of the La Grande area is the presence of multiphase Meso to Neoarchean tonalitic basement associated to Langelier Complex, overlained by autochthonous to para-autochthonous volcano-sedimentary sequences of Yasinski Group and Ekomiak Formation. These sub-units of La Grande sub-provinces are constituted of volcano-pluton and metasedimentary groups which are crosscut by EW to WNW and ENE shears.

The volcano-sedimentary bands, called greenstone belt, trend generally southwest to northeast as elongated bands. The area is underlain Archean rocks, such as granites, gneisses and schists with some elongated bands of metamorphosed volcanic and sedimentary rocks at the amphibolite facies, associated with Yasinski Group. In the property vicinities, volcanic and metasedimentary greenstone belts extend some 50 km ENE from Duncan and Esprit Lakes. Rock formations include some iron formation lenses, mainly associated with magnetic oxide BIF.

The Yasinski Group, in tectonic contact with the Langelier Complex consists of tholeitic basalts and andesites, which were settled in a deep marine environment. The BIF, mainly composed of oxide magnetite facies, and the sandstone beds are intercalated with volcanic tuffs and flows. Ekomiac Formation consists of fluviatile polygenic sandstones, iron formation and polygenic conglomerates, in tectonic contact with the Yasinski. Proterozoic gabbro dykes and local quartz arenite basins of Sakami Formation are also present. These rocks are intruded by several plutons. Sakami Formation is characterized by abundant and extensive (several kilometers) and relatively thick oxide-facies iron formation units.

The Duncan Lake Iron Deposits are important in volume and suggest a setting in a relatively stable environment such as a continental platform. However, iron formations in Sakami area show characteristics halfway between Algoma type deposits (associated with volcanic rocks) and Superior type deposits (associated with platform environment).

In the DLIOP area, mafic volcanic and sedimentary rocks are strongly sheared, foliated, mylonitized and amphibolitized. Pillow lavas are flattened and stretched. Iron formations  are banded with alternating bands of dark magnetite rich units and light silica bands of 1 to 10 mm, and called BIF. Rock color is greenish-grey with a brown altered surface, recrystallized, fine to medium grains, and granoblastic texture.

The BIF is part of the sediment rock assemblage and consist of alternate silica-rich and magnetite rich layers, compressed into a relatively fine-grained black rock with a strong thinly-bedded and banded structure. Alternating beds vary generally from 1 to 10 millimetres and more. Grain size is variable from bed to bed and inside it and from one deposit to the other, related to post metamorphism events associated to post orogeny and
multiple intrusions. Drag-folding or crenulations are observed as well as disseminated pyrite crystals through the iron formation bands. Generally, the BIF is considered as a consecutive depositional sediment band and the duplication of them is interpreted as result of folding effect.

Mineralization consists of iron formation of BIF type. BIF consists of millemetric to centimetric beds alternating high grade magnetite and recrystallized chert beds with local chlorite-rich and silicate green mudrocks. Waste rocks and associate minerals are mainly quartz, actinolite, tremolite, diopside, grunerite, hornblende, biotite, chlorite, epidote and pyrite in decreasing order. Average head grade varies from 15 to 35% total Fe. Hematite
content is very low, and not continuous if any.

BIF are of typical dark blue colour and becomes dark-green with increased of silicate amphibole minerals. Generally, fine grained, but can be coarser near granite basement contact. However, magnetite grain size can vary from one band to another from fine to medium coarse grains. BIF are mainly metamorphosed and ironoxide grains are recrystallized similarly to secondary and accessories minerals.

Each deposit shows variation in terms of grade and thickness, greatly related or with occurrences of interbedded mafic and felsic intrusions. Deposits 1, 2, and 5 located to the west show less intrusion dykes compared to the other. Deposits 3, 4, and 6 located in the eastern part, and closelyassociated with granitic basement; contain much more intrusive sills and dykes, which translates in a decrease of iron head grade, but also in a major thickness increase of the iron lenses.

At least three (3) sub-iron units have been identified as low grade greywacke iron unit, BIF unit and Lean BIF green silicate unit. However, depositional sequence is not clearly defined and appears complex, related to multi structural deformation and folding.

Well developed disseminated pyrite crystals are present in BIF sequence of DLIOP. However, based on completed DTT tests, pyrite minerals could be eliminated during the beneficiation process. Manganese, titanium and chromium were not observed and, based on chemical analysis, appears to be minor elements not present in DTT test concentrate. Phosphorous in the range of 0.1 to 0.4% P2O5 in the head grade from core samples is considered high. However, phosphorous mineral is mostly eliminated during DTT test (concentrate grade range is 0.01 to 0.03% P2O5).

Deleterious or contaminant minerals contents of iron formation have been verified as well as how they react to the beneficiation process with no problem detected. Consequently, the iron formation of DLIOP is considered as potential for iron deposit.

Drilling

A drilling program was initiated in the summer 2008 (July 14), stopped for Christmas in mid-December, started again in January 2009 and stop in May 2009. Borehole DUN08- 01 to 22 were drilled in 2008 and DUN09-23 to 52 in 2009.

The drilling program, core description and sampling were supervised by Alain Vachon, Eng. Geo., up to the end December. He was replaced by Allan Wenlong Gan, Geo. In January 2009, assisted by Benjamin Blaise (Geo. junior) and by Ken Lam for compilation and database management. In addition, Daniel Gaudreau, P. Eng., from Geologica, and Joël Simard, P. Geo., consultant, have provided assistance to drilling campaign and magnetic field survey program.

Diamond drill cores were transported, logged and sampled at the core building facility of Augyva, located 5 km south of Radisson along Highway 109. Core cutting and sampling process were done by Augyva’s personnel. Augyva’s personnel was housed at Radisson, travelling by truck and snowmobiles to drill sites.

A total of fifty-two (52) boreholes for 10,460.4 m of diamond drilling sized NQ were drilled on five deposits of the DLIOP. Deposit 1, drilled for the first time, was a priority drilling target and was more drilled than the others with thirty-one (31) DDHs totaling 5,979.2 m. Deposit 2 also drilled for the first time, received second priority with seven (7) boreholes for 1,566 m. Deposit 5 also drilled for the first time was drilled by six (6) boreholes for 874 m. Deposit 4 drilled with four (4) boreholes totalling 1,036.2 m, two of them planned for twin holes located close to 1973 past boreholes and two in the northeast extension to test a ground magnetic anomaly. Deposit 3 was tested with four (4) boreholes totalling 1,005 m, two of them on the south iron lenses, one on the northeast extension of the north iron lenses, and one on the west extremity closer to the plunging syncline structure.

From 10,460.4 m drilled, a total of 6,483.73 m of core have been cut in half and sampled for 1,489 samples collected and analysed for major elements by Chemex Laboratory. Total assayed number does not include duplicates, standards and blanks inserted for the QA/QC process, and chip samples from outcrops. Core splitting was realized with two (2) different splitters, first part with a diamond saw but the main portion using hydraulic hammer splitter. In addition, 218 samples were also sent to COREM for metallurgical testing.

Many assay intersections are very long. Some of them are essentially related to the drilling direction concerning the geometry of the iron deposits. The true thickness of the mineralized lenses varies from 5 m to more than 80 m. The grade of the mineralization varies from 15 to 30.5% FeT, but are generally in the range of 25%. In general, total Fe is mainly related to magnetite iron. Iron mineralization grades obtained are considered to be representative of a low grade Taconite. On Deposit 1, the longest interval comes from borehole DUN08-01 with a length interval of 118.75 m at 26.66% Fe, interpreted as 66 m true thickness. In addition, borehole DUN09-29 indicates a long interval of 79.78 m at 23.57% Fe for a true thickness of 70 m. From thirty (31) boreholes drilled on Deposit 1, a total of (forty-nine) 49 intervals of iron mineralization were intersected for a thickness average of 32.47 m at 24.50% Fe, equivalent to 26 m true thickness of the lenses of iron mineralization.

On Deposit 2, the longest interval comes from borehole DUN09-52 with a length interval of 130.91 m at 26.80% Fe, interpreted as 57 m true thickness. From seven (7) boreholes drilled on Deposit 2, a total of thirteen (13) intervals lenses of iron mineralization were intersected for a thickness average of 47.87 m at 26.52% Fe, equivalent to 31.9 m true thickness of the lenses of iron mineralization.

On Deposit 3, the longest interval comes from borehole DUN09-33 with a length interval of 226.46 m at 24.64% Fe, interpreted as 150 m true thickness. From four (4) boreholes drilled on Deposit 3, a total of five (5) intervals of iron mineralization were intersected for a thickness average of 89.25 m at 24.13% Fe, equivalent to 60.4 m true thickness of the  lenses of iron mineralization.

On Deposit 4, the longest interval comes from borehole DUN09-43 with a length interval of 174.07 m at 22.54% Fe, interpreted as 110 m true thickness. From four (4) boreholes drilled on Deposit 4, a total of five (5) iron intervals were intersected for a thickness average of 80.40 m at 21.91% Fe, equivalent to 47.4 m true thickness of the iron lenses.

On Deposit 5, the longest interval comes from borehole DUN09-36 with a length interval of 26.64 m at 24.54% Fe, interpreted as 24 m true thickness. From six (6) boreholes drilled on Deposit 5, a total of 6 iron intervals were intersected for a thickness average of 16.32 m at 25.07% Fe, equivalent to 15.2 m true thickness of the lenses of iron mineralization.

Mineral Resources and Mineral Reserves Estimates

In the fall of 2009, Augyva retained Met-Chem Canada Inc. of Montreal, Quebec, to prepare an independent NI 43-101 compliant technical report on the mineral resources of the Duncan Lake Iron Ore Deposit which was completed and filed on SEDAR in March 4, 2010. In June 2009, the Company announced its final results from the first phase drilling on its Duncan Lake Iron Ore Project. In total, 10,456 meters of drilling was completed. Five magnetite deposits were tested; Duncan 1, 2, 3, 4 and 5 within a radius of 20 km from the Duncan 1 deposit. The cumulative strike length of magnetite iron formation tested by drilling is 10.6 km. Highlights of the results include: 226.46 meters at 25.45% Fe in hole 33; 90.18 meters at 27.12% Fe in hole 39; 75.67 meters at 28.8% Fe in hole 49 and 130.91 meters at 26.79% Fe in hole 52.

Metallurgical tests were carried out by COREM (Quebec, Canada). Davis magnetic tube test analysis completed on 218 representative core samples produced a magnetic concentrate with an average grade of 66.92% iron for all 5 zones from an average feed grade of 27.76% iron. Satmagan tests results indicate an average of 96.62% of the total magnetite is recovered in the magnetic concentrate.

The mineral resource estimate was established by Met-Chem Canada Inc. The qualified person (QP) as defined under NI 43-101, responsible for the resource estimate is Raynald Jean, geo, Principal Geologist at Met-Chem. The following is a summary of the mineral resource estimate based on the Company’s 2008-2009 drilling program, using a cut-off grade of 16% Fe:

Summary of the mineral resource estimate   
Resource classification  Tonnes Fe %
Measured 5,700,000 23.29%
Indicated 25,615,000 23.48%
Inferred  821,135,000 24.56%
Total 852,450,000 24.52%

NI 43-101 Technical Report Preliminary Economic Assessment of the Duncan Lake Iron Property James Bay
NI 43-101 Technical Report on the Mineral Resources of the Duncan Lake Iron Project
Option and Joint Venture Agreement Made Between Canadian Century Iron Ore Corporation and Ressources Minieres Augyva Inc.
Duncan Lake - Technical Report (Download PDF)
For additional information on the property see May 5,2011 Filing Statement