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Bloom Lake Project ii
Technical Report
TABLE OF CONTENTS
1. SUMMARY.....................................................................................................................1-1
1.1 Introduction ....................................................................................................................1-1
1.2 Location..........................................................................................................................1-1
1.3 Ownership ......................................................................................................................1-1
1.4 Project Status.................................................................................................................1-1
1.5 Geology and Mineral Resources....................................................................................1-1
1.6 Mineral Reserves ...........................................................................................................1-3
1.7 Metallurgical Testwork ...................................................................................................1-5
1.8 Processing .....................................................................................................................1-5
1.9 Infrastructure and Support Systems...............................................................................1-5
1.10 Railway & Port Facilities.................................................................................................1-6
1.11 Schedule ........................................................................................................................1-6
1.12 Environmental and Permitting ........................................................................................1-6
1.13 Financial Analysis ..........................................................................................................1-7
1.14 Recommendations .......................................................................................................1-10
2. INTRODUCTION............................................................................................................2-1
2.1 Introduction ....................................................................................................................2-1
2.2 Purpose of the Technical Report....................................................................................2-1
2.3 Basis of the Technical Report ........................................................................................2-1
2.4 Qualified Persons...........................................................................................................2-2
2.5 Site Visit .........................................................................................................................2-2
6. HISTORY .......................................................................................................................6-1
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8. DEPOSIT TYPES...........................................................................................................8-1
9. MINERALIZATION ........................................................................................................9-1
9.1 Lithology and Mineralization...........................................................................................9-1
9.2 Structural Geology .........................................................................................................9-4
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22. RECOMMENDATIONS................................................................................................22-1
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LIST OF TABLES
Table 1-1: Total in situ Mineral Resources at a Cutoff Grade of 15% Total Fe..........................1-2
Table 1-2: Mineral Reserves by Category in Ultimate Pit Design ..............................................1-3
Table 7-1 : Regional Stratigraphic Column ................................................................................7-2
Table 9-1 : Summary – Rock Type Codes for Descriptive Logs ................................................9-1
Table 9-2 : Summary of Means and Medians ............................................................................9-2
Table 10-1 : Analytical Results for Grab Samples before Blasting ..........................................10-4
Table 10-2: Analytical Results for Grab Samples after Blasting .............................................10-4
Table 10-3 : Description of Mini-Bulk Samples ........................................................................10-5
Table 10-4 : 2005 Mini-bulk Sample Locations and Descriptions ............................................10-7
Table 11-1 : List of 1998 Drillholes, Locations and Depths......................................................11-2
Table 14-1 : Statistical Summary- Soluble vs Total Iron for 41 samples..................................14-1
Table 14-2 : Comparison between Iron Assays in hole 72-02 and its Twin 98DN-070............14-2
Table 16-1 : Summary of 1976 Test Results ...........................................................................16-1
Table 16-2 : Composition of Lock-Cycle Composite Samples .................................................16-2
Table 16-3 : Lock-Cycle Test Weight and Iron Recoveries......................................................16-4
Table 16-4 : Jeffrey Magnetic Cobbing Results for Composite A ............................................16-5
Table 16-5 : Davis Tube Results for Composite A at Four Grinds ...........................................16-6
Table 16-6 : Chemical Analysis of Bloom Lake Concentrate ...................................................16-7
Table 16-7 : JKSimMet Simulation results for Autogenous and Ball Mill Circuits ....................16-8
Table 16-8: Mineralogical Compositions................................................................................16-11
Table 16-9 : Summary of Gravity Separation Results............................................................16-14
Table 16-10: Assumptions to Estimate Overall Recoveries for an Average Bloom Lake Ore16-21
Table 17-1 : Total InSitu Mineral Resources at a cutoff grade of 15% Total Fe ....................17-17
Table 18-1 : Pit Optimization Parameters for LG 3D ...............................................................18-2
Table 18-2 : Cut-off Grade Calculation ....................................................................................18-3
Table 18-3 : Mineral Reserves by Ore Category in Ultimate Pit Design ..................................18-8
Table 18-4 : 20-Year Annual Mine Production Schedule.......................................................18-11
Table 18-5 : Haul and Lift Distances (m) ...............................................................................18-22
Table 18-6 : Major Mining Equipment Fleet ...........................................................................18-23
Table 18-7 : Investment Cost Estimate (US Million Dollars) ..................................................18-54
Table 18-8 : Manpower Requirements...................................................................................18-55
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LIST OF FIGURES
Figure 1-1 : Bloom Lake Iron Ore Project – Sensitivity Analysis (before tax) – IRR% ...............1-9
Figure 1-3 : Bloom Lake Iron Ore Project – Sensitivity Analysis (before tax) ..........................1-10
Figure 4-1 : Bloom Lake Property - Location Map .....................................................................4-2
Figure 4-2 : Bloom Lake Property - Location Map .....................................................................4-3
Figure 7-1 : Bloom Lake Property – Location Map ....................................................................7-3
Figure 7-2 : Regional Geology (note that the name of the company was changed from
Consolidated Thompson-Lundmark Gold Mines Ltd. to Consolidated Thompson
Iron Mines Ltd.) ....................................................................................................7-4
Figure 7-3 : Geology Plan Map of the Property .........................................................................7-6
Figure 7-4 : Schematic X-Section through the Deposit..............................................................7-7
Figure 7-5 : Representative Section: D2 - Looking Northeast ...................................................7-8
Figure 7-6 : Representative Section: K – Looking East .............................................................7-9
Figure 11-1 : Drillhole Location Plan........................................................................................11-5
Figure 13-1 : Routine Sample Analysis Flowsheet ..................................................................13-2
Figure 16-1 : Lock -Cycle Flowsheet .......................................................................................16-3
Figure 16-2 : Fe Grade vs Recovery........................................................................................16-4
Figure 16-3 : Fe Recovery vs %SiO2 ......................................................................................16-5
Figure 16-4 : Weight (wt) Recovery vs Head Grade ................................................................16-9
Figure 16-5 : Weight (wt) and Fe Recoveries vs Head Grade ...............................................16-10
Figure 16-6: Weight and iron recoveries for gravity separation .............................................16-15
Figure 16-7: Weight recovery versus head grade for the four different areas of the Bloom Lake
pit ......................................................................................................................16-16
Figure 16-8 : MgO versus MgO in head sample ....................................................................16-17
Figure 16-9: Deportment of magnetite to tails as a function of magnetite in the ore .............16-18
Figure 16-10 : Magnetite in tails as a function of magnetite in the ore ..................................16-19
Figure 16-11: Concentrate silica content versus magnetite in gravity rougher tails...............16-20
Figure 16-12 : Magnetite Recovery in Cobbing stage as a Function of Magnetite in Rougher
Tails.................................................................................................................16-20
Figure 17-1 : Lithological Block Model .....................................................................................17-3
Figure 17-2 : Total Fe% Histogram..........................................................................................17-5
Figure 17-3 : Total Fe% Cumulative Frequency Plot ...............................................................17-6
Figure 17-4 : Total Fe% Probability Plot ..................................................................................17-7
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Figure 18-27: IRR Bloom Lake Iron Ore Project - Sensitivity Analysis (before tax) - IRR% ..18-61
Figure 18-28: NPV Bloom Lake Iron Ore Project – Sensitivity Analysis (before tax) .............18-62
Figure 19-1: Schedule for Bloom Lake Project ........................................................................19-1
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LIST OF ABBREVIATIONS
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1. SUMMARY
1.1 Introduction
Following the completion by Breton, Banville and Associates (BBA) in October 2005 of a
Conceptual Study for the development of a 5,000,000 t/y iron ore concentrate mine and
concentrator in northern Quebec, BBA was selected by Consolidated Thompson Iron Mines Ltd.
(CLM) in November of 2005 to undertake a feasibility study. The feasibility study results were
presented in the technical report of May 2006.
In 2007, BBA carried out a feasibility study to expand the Bloom Lake project to 7 million tonnes
per year of concentrate and the results were presented in the technical report of May 2007. This
report presents the feasibility study results of the Bloom Lake project at a production rate of 8.0
million tonnes per year of concentrate
The present study is based on the resources and reserves published in the May 2006 report. The
scope of the present study includes an update of the mining plan, the mine and concentrator
infrastructure, the capital and operating costs at 8.0 Mt/y as well as a review of the financial
analysis.
1.2 Location
The Bloom Lake property forms part of the south western corner of the Labrador Trough iron
range and is located in close proximity to a number of producing mines. The site is approximately
940 km northeast of Montreal and is serviced by road, rail and air.
1.3 Ownership
CLM holds 240 mining claims covering a total area of approximately 10,500 ha in Normanville
Township of the Province of Quebec.
The Environmental Impact Study (EIS) was presented to the Ministère du Développement
Durable de l’Environnement et des Ressources (MDDEP) at Québec in December 2006. The
certificate of authorization was issued by the MDDEP in April 2008. Detailed engineering was
advanced in March 2008. Construction is underway with plant start-up scheduled for September
2009. Construction of the magnetic separation plant is scheduled for 2011 with start-up the
following year.
Construction of the rail line is subject to authorization from the Newfoundland and Labrador
government. An environmental review report was submitted to the Newfoundland and Labrador
Government on August 29, 2008 and an approval was obtained on October 27, 2008.
The Bloom Lake deposit and nearby iron mines such as Mont-Wright, are located within the
Grenville Province of the Canadian Shield just south of the Grenville Front. The rocks of the
Mont-Wright area form part of the highly folded and metamorphosed south western branch of the
Labrador Trough or Labrador-Québec fold belt.
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Iron formations ("IF") and associated rocks within the Grenville are highly metamorphosed and
complexly folded and occur as numerous isolated segments. Iron mines and undeveloped
deposits in the area include the Mont-Wright, Humphrey and Scully mines, the Bloom Lake and
Fire Lake deposits, Lac Jeannine (mined out) and Smallwood (mined out).
In 1998, Watts, Griffis and McOuat Limited (“WGM”) designed and managed an exploration
program carried out on the Bloom Lake property. The program consisted of geological mapping,
18,705 m of diamond drilling, preparation of a "mineral resource" estimate, bulk sampling and
metallurgical testing. The "mineral resource" estimate was based on the results of the WGM-
managed program and exploration data gathered by previous operators.
Lakefield Research Limited ("Lakefield") conducted all sample analyses and the metallurgical
testing to authenticate historic drilling assay results, establish the relationship between Soluble
and Total iron (old drill results were in the form of soluble iron while 1998 assays were total iron),
and characterize sample mineralogy. All split cores were analyzed for total iron, magnetic iron,
sulphur and specific gravities (“SG”) were determined.
In May 2005, WGM reviewed its 1998 "mineral resource" estimate and concluded that the
estimate complied with the requirements of the Canadian Securities Administrators’ National
Instrument 43-101 (“NI 43-101”) of February 2001 and the standards adopted by the Council of
the Canadian Institute of Mining, Metallurgy and Petroleum in August 2000 (“the CIM Standards”)
and reclassified it according to the CIM standards.
Based on WGM’s knowledge of the geology and mineralogy of the deposit, the limited
metallurgical testwork carried out and the economics of the iron deposits of the area, a 15% Fe
cut-off grade was used for the Mineral Resource estimate. Using this 15% Fe cut-off and an
inverse distance squared ("IVD2") grade interpolation technique, the total Measured and
Indicated block model Mineral Resource for the Bloom Lake deposit on the CLM property was
estimated at 638 million tonnes grading 29.76% total Fe and 10.54% magnetite. The block model
Mineral Resource is summarized in Table 1-1.
Table 1-1: Total in situ Mineral Resources at a Cutoff Grade of 15% Total Fe
Resource Volume Tonnage Average Grades
Category bcm* x 1,000 (kt) Total Fe% Magnetite% CaO% MgO%
A site visit was conducted by André Allaire of BBA and Richard Quesnel of CLM in December
2005 for general acquaintance with the project setting and verification of certain drill hole
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locations as well as mini-bulk sample pit locations. André Allaire did not take any independent
samples, as the mineralogy and iron content of the deposit are well established. The Bloom Lake
deposit has been extensively sampled by past workers during the course of diamond drilling
programs and most recently during the mini-bulk sampling program carried out in 2005.
On May 16, 2006, René Scherrer of CLM conducted a site visit of the property for the locations
of the mini-bulk samples taken in 2005 under the supervision of WGM. During the visit, the
proposed locations of the surface infrastructure including waste dumps, tailings, concentrator
and the connecting rail line profile and the port and ship loading facilities in Sept-Îles were also
visited.
Pit optimization and pit design were carried out to develop the Mineral Reserves from the Mineral
Resources. The original resource model was prepared by WGM in its Technical Report filed on
SEDAR in May 2005. BBA has accepted the original Mineral Resource estimate and has
developed a formula-based weight recovery model in preparation for open-pit optimization. The
MedSystem Lerchs-Grossman 3D (“LG 3D”) pit optimization algorithm was used to develop the
pit shell at the end of its economic life. In accordance with the regulations governing the
preparation of an NI 43-101 report, the pit optimization has used only blocks classified in the
Measured and Indicated categories to generate revenue. Other mineralized blocks containing
Inferred Resources bear no economic value, regardless of grade and weight recovery and are
treated as waste rock, unless proven otherwise by additional geological work.
The pit optimization exercise was based on economic parameters derived from an internal cost
model prepared by BBA and a price of US$ 38.94/ tonne of concentrate at 66% Fe in the
concentrate and a 0.855 exchange rate. The final pit geometry was adjusted to include haulage
ramp, practical wall positions and appropriate pit slope stability as well as benching arrangement.
The Mineral Reserves have been classified in accordance with the requirements of NI 43-101 (as
amended in December 2005) and the CIM Standards (as amended in December 2005). Table 1-2
provides a summary of the mine-life mineral reserves for the Bloom Lake Iron Ore Project using a
cut-off of 15% Fe.
(*)
For hematite ONLY in block model
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Figures may vary slightly due to rounding effects and the number of decimal points used.
The Mineral Reserves contained in the detailed pit design amount to 463.4 million tonnes in the
Proven category and 116.2 million tonnes in the Probable category for a total combined of 579.6
million tonnes at a grade of 30% for total Fe and 38.2% hematite weight recovery, based on a
cut-off of 15%. The stripping estimate, including Inferred Resource material, is 563.8 million
tonnes for an overall mine-life stripping ratio of 0.97 tonnes of waste per tonne of ore.
Based on the results of the metallurgical testing, the average calculated weight recovery is 38%
in hematite and 41% with the magnetite recovery plant, equivalent to a concentration ratio of 2.63
tonnes of ROM per tonne of concentrate in hematite and 2.43 with the magnetite recovery plant.
The Bloom Lake iron ore deposit will be mined using conventional open pit mining methods
based on a truck/shovel operation and will be developed to support a nominal capacity of
8 million tonnes of concentrate per annum. The mining equipment will be leased, operated and
maintained by the personnel of Bloom Lake. Following drilling and blasting, run-of-mine (ROM)
ore will be delivered to a primary crusher located approximately 1,000 m to the north-east of pit
edge at about 680 m elevation.
Selective mining and blending of material will be carried out in order to:
• Mine only hematite ore in the first year of operation with magnetite ore in the subsequent
years following the commissioning of the magnetite plant;
• Maintain the MgO and CaO levels under 4.5% in the ore;
• Insure that the concentrate contains below 6.0% of silica plus alumina;
• Optimize the use of high weight recovery ore to maximize the concentration ratio for
project net present value optimization;
• Feed the mill with ore of constant hardness for a stable process plant operation.
For blending purposes, it is likely that three to four production faces will be developed in ore at
any one time on 2 to 3 benches. A 20-year mine production has been prepared on an annual
basis in the first 5 years and by 5-year increments in the subsequent years. The average total
combined ore and waste movement is fairly constant at approximately 30-31-million tonnes per
annum during the first 5 years of operation.
Any inflow water will be collected in sumps and pumped out of the pit using submersible pumps.
In addition, two (2) main waste disposal dumps will be constructed during the life of the mining
operations. The waste dump capacity has been estimated using a swell factor of 30%.
No allowance has been made for backfilling in mined-out areas, except for deposition of some
tailings on the west side of the pit at the end of operation.
The selection of the mine equipment was made using the following criteria:
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• The main loading equipment is the hydraulic shovel with a lifting capacity of 64 tonnes per
bucket (ONK 340);
• Availability of a minimum of one (1) front end loader having a lifting capacity of 45 tonnes
per bucket (Letourneau Model L-1850 or similar) as support loading equipment. The
flexibility of the loader with its fast response time in replacing a shovel or for a particular
blending requirement, justifies its use;
• Drills are electric with a capacity to drill 15” diameter blast hole with high pull down
pressure (P&H 120-A or similar).
Although field work in the Bloom Lake area began in 1952, the initial metallurgical testwork was
undertaken only in 1973-76. At this time Lakefield Research (now SGS Lakefield) produced
gravity concentrates on a Wilfley Table using drill core samples crushed to -410 microns in size
(35 mesh). In 1998 further metallurgical testing was carried out by Lakefield for Quebec Cartier
Mining Company who had an option on the claims at the time. In mid-2005, eleven mini-bulk
samples were taken from iron formation outcroppings on the property and sent to SGS Lakefield
for testing. These samples were used to confirm and supplement testwork carried out in the
1970s and 1998, and to establish design criteria for the feasibility study.
Based on the results of the metallurgical testing, average weight recoveries of 38% for hematite
and 41% with the magnetite recovery plant have been used in the financial evaluation.
The confirmatory test work run in parallel to the engineering activities confirmed the results of the
previous metallurgical testing. The 38% weight recovery for hematite concentrate and 41% with
the magnetite concentrate are maintained for financial evaluation. The recent test work showed
improved overall recoveries.
1.8 Processing
Metallurgical processing is similar to that found at neighbouring mining operations. Ore from the
mine will be crushed, stockpiled then fed to a single wet autogenous grinding mill operated in
closed circuit with vibrating screens. The liberated hematite and magnetite minerals will be
recovered using three stages of spirals. Tailings from the spiral plant will be passed over wet
drum magnetic separators to recover unliberated magnetite particles. This material will be
reground in a ball mill followed by several more magnetic separator stages to produce a high-
grade magnetite concentrate. Concentrates from the spiral and magnetic plants will be filtered
and the filter cake loaded into railcars for transportation to the port. The tailings from the magnetic
plant will be pumped to a disposal area located several kilometres from the plant.
The main service building will be attached to the concentrating plant and will incorporate
maintenance shops, warehousing, the steam plant, a compressed air plant, emergency vehicle
garage, offices, change rooms, laboratory, a communication room and the security office. Mine
vehicles will be serviced in an adjacent garage.
Bloom Lake will provide fresh water for domestic and boiler use. Drinking water will be supplied to
the mine site in bottles.
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Reclaim water will be pumped from a barge located on either the settling pond or the polishing
pond in the tailings retention area back to the process water reservoir at the concentrator to
reduce the demand for fresh make-up water. Reclaim water will be used for equipment cooling as
well as for general processing use.
Storage tanks for #2 light fuel oil and gasoline, delivered by road tankers, will be provided
adjacent to the concentrator. The 200 000 litres capacity of the #2 light fuel oil tanks represents a
minimum on-site storage capacity of 4-day’s consumption in the boiler house at peak load. The
boiler house will provide steam for heating and concentrate drying. Number 2 light oil will also be
used for heating the crusher building and as a back-up supply for the boiler house.
The major infrastructure required to develop the project is already present in the area. A 12 km
power line will connect the mine site with the Hydro-Québec power grid. Road access will be
provided by the construction of a 6 km section of unpaved highway to meet Highway 389. Thirty-
one kilometres long of railway will also be built to transport concentrate to the existing common
carrier railway line for delivery to the port.
Approximately 300 peoples will be employed at the plant site. Accommodation for construction
crews and plant operating personnel is provided in a camp constructed in the town of Fermont,
13 km from the mine site.
Concentrate will be loaded into railcars and transported over a new section of track to join the
existing common carrier railway. A marshalling yard and a rolling stock repair shop will be
constructed near the junction. The frequency will be approximately one full train per day in each
direction.
Loaded cars will be dumped at the port of Sept-Îles and the concentrate loaded directly onto the
boat or stockpiled and loaded onto boats later for delivery to customers.
1.11 Schedule
An Environmental Review Report was submitted to the Newfoundland and Labrador Government
on August 29, 2008 and was obtained on October 27, 2008. Construction of the railway can now
proceed.
The project is subject to an Environmental Impact Assessment (EIA) in the Province of Quebec
where the plant will be located and another in Newfoundland & Labrador through which the
railway line will pass. No separate federal EIA will be required.
An ongoing program will be implemented to monitor the effects of the Project on water quality,
groundwater, effluents, fish population, benthic invertebrate communities, geotechnical matters
and sediment quality during both the construction and operational periods.
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A rehabilitation plan will be submitted to the Quebec Ministry of Natural Resources and Wildlife
prior to the start of production. Some monetary allocation will be provided in the first eight years
of operations for on going rehabilitation.
The financial evaluation for the Bloom Lake project is carried out by the preparation of a
discounted cash flow model to which the capital and operating cost estimates as well as the
production schedule developed in the mining section are input data. The Internal Rate of Return
(IRR) on total investment and the Net Present Value (“NPV”) resulting from the net cash flows
generated by the project have been calculated. The payback period is also indicated as a
financial measure. The main inputs to the financial analysis are summarized as follows:
• Project timing: production phase of 20 years out of a total mine life reserve of more than
27 years. The construction phase is two (2) years excluding the construction of the
magnetite recovery plant in year 3.
• Income tax: pre-tax and after tax basis (a requirement for a mining operation in the
Province of Quebec)
• Operating cost: owner operated leased mining equipment, processing, contracted rail
transportation and port handling, environment and G/A have been estimated to average
US$24.18 per tonne of concentrate for the first five (5) years of operation and US$24.76
over a period of 20 years.
• Concentrate sale price (3-year rolling average for 2006 to 2008): US$1.069 / Fe% or
US$71.09/tonne at 66.5% Fe content.
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On the basis of the assumptions given above, the IRR and the cumulative cash balance at
various discount rates have been computed and the results are summarized in the table below:
The results of the financial analysis indicate that the Bloom Lake project has an economic
potential before-tax IRR of 58.9% and a NPV of US$6 813 M and US$ 3 847 M, at a discount rate
of 0% and 5% respectively. On an after-tax basis, the IRR is 48.6% and the NPV amounts to
US$4 493 M and US$2 520 M, at a discount rate of 0% and 5% respectively.
The results of the sensitivity analysis of the IRR for iron ore price, capital cost and operating cost
and pre-tax NPV @ 5% discount rate are presented in graphical form in Figures 1 and 2,
respectively. The analysis shows that the project is mainly sensitive to revenue, that being iron
ore price, ore grade and weight recoveries.
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80
70
60
IRR(%)
50
40
30
20
-20% -15% -10% -5% 0% 5% 10% 15% 20%
Change (%)
Figure 1-1 : Bloom Lake Iron Ore Project – Sensitivity Analysis (before tax) – IRR%
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5500
5000
4500
4000
NPV (M$)
3500
3000
2500
2000
1500
1000
-20% -15% -10% -5% 0% 5% 10% 15% 20%
Change (%)
Figure 1-2 : Bloom Lake Iron Ore Project – Sensitivity Analysis (before tax)
NPV @ 5% Discount Rate
1.14 Recommendations
• Start the environmental restoration studies to replace the lake and river sections affected
by the tailings ponds in the summer of 2007 (completed).
• Finalize the agreements with the mining fleet equipment suppliers (completed).
• Finalize the leasing agreements with the railway and port operators (completed).
• Perform exploration drilling to expand the reserves on the west side of the pit (completed).
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2. INTRODUCTION
2.1 Introduction
Following the completion by Breton, Banville and Associates (BBA) in October 2005 of a
Conceptual Study for the development of a 5,000,000 t/y iron ore concentrate mine and
concentrator in northern Quebec, BBA was selected by Consolidated Thompson Iron Mines Ltd.
(CLM) in November of 2005 to undertake a feasibility study. The feasibility study results were
presented in the technical report of May 2006.
In 2007, BBA carried out a feasibility study to expand the Bloom Lake project to 7 million tonnes
per year of concentrate and the results were presented in the technical report of May 2007. This
report presents the feasibility study results of the Bloom Lake project at a production rate of 8.0
million tonnes per year of concentrate
The objective of the study was the evaluation of the technical feasibility and economic viability for
a period of twenty years at 8 Mtpy. The study included the review and validation of all pertinent
existing data, including ongoing studies such as laboratory testing, estimation of the Mineral
Reserves, mine planning, infrastructure and service facilities, environmental evaluation,
investment and operating costs along with the financial analysis.
The Feasibility Study was carried out using information contained in, but not limited to, the
following reports and documents:
• A report titled “A Technical Review and Mineral Resource Estimate for the Bloom Lake
Iron Deposit, Labrador Trough, Québec” prepared by WGM in compliance with the
standards of NI 43-101.
• Report prepared by Journeaux, Bédard & Associates inc on the feasibility and cost
evaluation to contain and manage the tailings and process water for 20 years of
exploitation of the Bloom Lake property.
• An environmental impact study prepared by Genivar Inc. was submitted to the MDDEP in
December 2006.
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• Feasibility Study for 8 Mtpy Iron Concentrate – Bloom Lake Project, Prepared by BBA inc.
for Consolidated Thompson, September 2008.
On May 16, 2006, René Scherrer of CLM conducted a site visit of the property for the locations of
the mini-bulk samples taken in 2005 under the supervision of WGM. During the visit, the
proposed locations of the surface infrastructure including waste dumps, tailings, concentrator and
the connecting rail line profile and the port and ship loading facilities in Sept-Îles were also visited.
This report is based on information from the Bloom Lake Feasibility Study for 8-million tonnes per
year iron concentrate and was prepared by a team of Qualified Persons from BBA Inc. and
Consolidated Thompson Iron Mines Limited following the guidelines of the Canadian Securities
Administrators’ National Instrument 43-101 and Form 43-101F1 and in conformity with generally
accepted CIM “Exploration Best Practices” and ‘Estimation of Mineral Resources and Mineral
Reserves Best Practices” Guidelines.
In the later half of 2006 and the beginning of 2007, several visits to the site, under the direction of
René Scherrer, were conducted for the purpose of carrying out a drilling program and a collection
of bulk samples for confirmatory testwork and to obtain geotechnical data (for plant location and
soil samples).
In the summer of 2008, a drilling campaign was underway on the west side of the property, under
the direction of René Scherrer. Results will be presented at a later date by Consolidated
Thompson Iron Mines in a separate report.
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The authors have compiled this report using information contained in the Bloom Lake Iron Ore
Project Feasibility Study dated September 2008, consultants’ reports, and other documents
supporting the Feasibility Study.
The authors of the present report have not carried out a thorough review of each consultant’s
work. The information provided to BBA was supplied by reputable consultants and BBA has no
reason to doubt the validity of the information.
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The Bloom Lake property is located in the province of Quebec in Normanville Township,
Kaniapiskau County. The centre of the property is at approximately latitude 52° 50’ 30” North,
longitude 67° 17’ West. It is part of the south western corner of the Labrador Trough iron range.
The property is located about 940 km northeast of Montreal, 8 km north of Quebec Cartier Mining
Company’s (“QCM”) Mont-Wright concentrator and 13 km northwest of the Town of Fermont. The
municipalities of Wabush and Labrador City are located 30 km to the east of the property. The
general location of the mine is shown in Figure 4-1.
CLM holds 240 contiguous map designated mining claims in the Bloom Lake area covering a total
surface area of approximately 10,500 ha as shown in Figure 4-2. Sixteen of the claims date from
1951 and 1952 and the remainder were acquired by map designation during 2005, at which time
the original claims were also converted to map designated claims. There are sufficient
assessment credits to hold a large portion of the claims for several years.
The claims convey no surface rights, which are the property of the Crown.
The list of mining claims, along with their expiration dates, is given in Appendix A.
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5.1 Access
The Bloom Lake deposit lies 4 km north of Highway 389 between Mont-Wright and the Town of
Fermont, which connects with Highway 138 at the Town of Baie-Comeau on the north shore of
the St. Lawrence River, a distance of 565 km between Fermont and Baie-Comeau. Highway 138
connects Baie-Comeau to Montréal. The Wabush Airport, 30 km from the proposed mine site,
provides frequent flights to Montreal and the Island of Newfoundland. Currently, access is
provided by the construction of a 6 km section of unpaved highway to meet Highway 389.
5.2 Climate
The area has a sub-Arctic climate with temperatures ranging from -40°C in winter to 25°C in
summer. The average annual temperature is -3.6°C and the average total precipitation is 880
mm. The prevailing winds are from the west and have an average speed of 14 km per hour,
based on 30 years of records at the Wabush Airport.
The town of Fermont has a population of approximately 4,000 and is the residential town for QCM
employees who work at the Mont-Wright operations. The town was originally built by QCM, which
still owns some of the units in town. Fermont has schools, a 72-room hotel, municipal and
recreational facilities, and a business and shopping complex.
There is grid electrical power available nearby, a plentiful supply of water and ample surface area
available for constructing mining and processing infrastructure, for placing waste piles and tailings
impoundment areas, although CLM holds no surface rights as yet.
5.4 Physiography
Topography is gently rolling with the occasional more precipitous area. The general elevation is
600 metres above sea level and relief is about 100 m. The property is poorly drained and covered
by typical northern boreal forest consisting of often stunted spruce, alders and willows. Hill tops
are generally barren and the property has extensive swampy areas.
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6. HISTORY
This section of the report deals with work carried out prior to the feasibility study of April 2006,
with the exclusion of metallurgical testwork. Metallurgical test programs are reviewed in section
“Mineral Processing and Metallurgical Testing”
In 1951, James and Michael Walsh staked claims for Mr. Bill Crawford of Sursho Mining
Corporation (“SMC”) following the discovery of a cobalt showing at Bloom Lake. In February
1952, Quebec Cobalt and Exploration Limited (Queco) was incorporated to acquire the claims
held by SMC. Quebec Cobalt and Exploration Limited initially optioned 1 million shares from
SMC and gradually accumulated more shares until full control was obtained in February 1956. In
1952, Thompson Lundmark Gold Mines, Arnold Hoffman, and Thayer Lindsay advanced money
to Queco for its field program
Today, CLM has 100% ownership of the claims and property formerly held by Queco.
In 1952, a crew of six prospectors initiated a program to prospect an area that included the Bloom
Lake property. The purpose of the program was to sample the cobalt showing and to prospect in
the Mt-Wright-Carheil Lake area. The results of the cobalt showing work were disappointing but
several zones of magnetite-hematite iron formation between Bloom Lake and Pignac Lake were
identified and sampled. Further work was done in 1953, but little is known about this work.
In 1954, further work was conducted to investigate and explore the iron occurrences. The 1954
program consisted of line cutting, geological mapping and magnetometer surveys.
In 1955, Jones and Laughlin (“J&L”) started the first of several field programs after obtaining a
lease from Queco. Cleveland-Cliffs Iron Company (“CCIC”) joined J&L on an equal participation.
The lease was terminated in 1968.
In 1971, Queco sponsored a program consisting of line cutting, geological mapping, gravity and
magnetometer surveys, and diamond drilling that continued into 1972. The program was
managed by H.E. Neal & Associated Ltd.
In 1973, Republic Steel Corporation optioned the property and H.E. Neal & Associates Ltd
prepared a “Preliminary Evaluation” of the property consisting of currently held property and
claims further to the west. This work was carried out until 1976. The evaluation included “mineral
reserve” estimates, a metallurgical test program and preliminary mine design. The mine design
included pit outline, dump area, access roads, and railway spur. Dames and Moore prepared the
mine design and “reserve” estimates. Lakefield Research carried out the metallurgical testwork.
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7. GEOLOGICAL SETTING
The rocks of the Mont-Wright area form part of the highly folded and metamorphosed south-
western branch of the Labrador Trough or Labrador-Québec fold belt. The Labrador Trough
extends along the margins of the eastern boundary of the Superior-Ungava craton for more
than 1,200 km and is up to 75 km wide. The Bloom Lake deposit and the Mont-Wright mine
are located within the Grenville Province of the Canadian Shield just south of the Grenville
Front. The Grenville Front, the northern limit of the Grenville Province, truncates the Labrador
Trough; separating the Churchill Province greenschist metamorphic grade Trough rocks from
the highly metamorphosed and folded Grenville Province Trough rocks.
The Labrador Trough consists of a succession of folded Proterozoic sedimentary and volcanic
rocks and mafic intrusions deposited in interconnected sub-basins. These Aphebian
successions, characteristic of the Labrador Trough, are known as the Kaniapiskau
Supergroup and include the economically important iron formations. The Kaniapiskau
Supergroup is divided into the Knob Lake Group and the Doublett Group. The Kaniapiskau
Supergroup unconformably overlies Archean gneisses and is stratigraphically overlain by the
Helikian Shabogamo Group. Table 7-1 summarizes the regional stratigraphic column.
IFs and associated rocks within the Grenville are highly metamorphosed and complexly folded
and occur as numerous isolated segments. Iron mines and undeveloped deposits within the
Grenville include in addition to QCM's Mont-Wright mine and the Bloom Lake deposit, Lac
Jeannine (mined out), Fire Lake, Smallwood (mined out), and the Humphrey and Scully mines
(Figure 7-1).
Figure 7-2 shows the geology of the Bloom Lake deposit and surrounding area modified after
Cunningham, 1954; Gross, 1968; Alexander, 1975 and QCM, 1998 program results.
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Stratigraphic Column
PROTEROZOIC
Helikian
Shabogamo Group
Gabbro, Diabase
-------------------------------------Intrusive Contact--------------------------------------------------------------
PROTEROZOIC
Aphebian
Kaniapiskau
ARCHEAN
Ashuanipi Complex
Granitic and granodioritic gneiss,
mafic intrusives
Note: The Duley, Carol and Wabush Formations are included in the Gagnon Group.
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Graphics by WGM
Figure 7-2 : Regional Geology (note that the name of the company was changed from Consolidated Thompson-Lundmark Gold Mines Ltd.
to Consolidated Thompson Iron Mines Ltd.)
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The geology and geological interpretation for the Bloom Lake property and the Bloom Lake
deposit are based on data from a number of sources. These sources include the diamond drilling
and mapping done on the property as part of the 1998 program, as well as the drilling conducted
in 1956, 1957, 1967, 1971 and 1972. The geological interpretation relies heavily on the mapping
programs conducted in 1952 and the ground magnetic surveys carried out in 1967 and 1971/72
as compiled in 1973.
Figure 7-3 is a geology plan map of the property. Figure 7-4 is a schematic cross section through
the stratigraphy illustrating patterns in the lithological sequence and consequently
lithogeochemical patterns and signatures. Figures 7-5 and 7-6 are typical drill cross sections
through the deposit. One section (D2) cuts through the deposit northeast of Pignac Lake and the
other section (K) cuts through the main zone of IF west of Pignac Lake.
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Graphics by WGM
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Graphics by WGM
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Graphics by WGM
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8. DEPOSIT TYPES
The Bloom Lake deposit is composed of iron formations of the Lake Superior-type. Lake
Superior–type iron formation consists of banded sedimentary rocks composed principally of
bands of iron oxides, magnetite and hematite within quartz (chert)-rich rock, with variable
amounts of silicate, carbonate and sulphide lithofacies. Such iron formations have been the
principal sources of iron throughout the world (Gross, 1996).
Lithofacies that are not highly metamorphosed or altered by weathering are referred to as
taconite. Strongly metamorphosed taconites are known as meta-taconite or itabirite. The iron
deposits in the Grenville part of the Labrador Trough in the vicinity of Fermont and Wabush are
meta-taconite. The Bloom Lake and Mont-Wright deposits are examples.
A number of models have been considered for the origin of iron formation and associated
lithofacies.
According to Gross (1996) the two principal genetic but controversial models are:
2. Hydrogenous-sedimentary with derivation of the iron, silica and other constituents by deep
weathering of a landmass.
Gross reports that iron-oxidizing micro-organisms might have played a role. Oolites are generally
common in iron formation.
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9. MINERALIZATION
Lithological coding and rock type nomenclature used for the Bloom Lake deposit is based on the
coding used at QCM’s Mont-Wright mine. WGM used this coding, with slight modification, for
logging the 1998 drillholes and applied it to the previous drillholes based on the interpretation of
the older drill logs. Table 9-1 is a summary of the rock type codes and rock type names used.
More detail and description follows for the main rock types.
Several rock type codes are hybrids of codes for principal rock types and are not described
separately.
Iron Formations (IF) on the property are of the Lake Superior type (Gross, 1996).
Amphibolite ("AMP") is dominantly a competent, dark green to black medium to coarse grained
rock consisting mainly of hornblende, biotite and feldspar. A mass of amphibolite covering a large
portion of the claims northeast of Pignac Lake is exposed at surface. Many of the drillholes drilled
on the NE baseline encounter a considerable thickness of amphibolite, the "amphibolite cap" up
to 200 metres thick, before penetrating into IF structurally below the amphibolite. The
amphibolite-IF contacts are sharp although the whole rock analysis (“WRA”) results indicate that
IF immediately adjacent to the contact is often contaminated by aluminium, suggesting either
metasomatic alteration of the IF or microscopic threads or inclusions of amphibolite in the IF. A
narrow argillized zone of amphibolite often occurs immediately above the IF contact. Often this
argillization can be seen to be recent with water presently running along this contact. In addition
to the large massive body of amphibolite described above, narrower intercepts of amphibolite
also occur throughout the IF sequence. These amphibolite units tend to occur towards the bottom
of the IF sequence (see schematic cross section Figure 7-4). In Table 9-2, the means and
medians for total iron, magnetic iron, sulphur, SG and the other whole rock oxides are listed for
each of the major rock types. One hundred and seven samples of amphibolite have a mean SG
of 3.20, and a median SG of 3.18.
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Oxide Iron Formation ("OIF") comprises sequences rich in specular hematite (specularite) and
magnetite. Such OIF sequences are commonly 25% to 40% iron oxide (remainder mostly quartz)
and can have thicknesses (ignoring minor intercalated bands of amphibolite and quartz rock) of up
to 200 m. It is these sequences that are of economic importance. Intervals of core up to a couple
of meters long can comprise near-massive magnetite but commonly, like specularite, magnetite
most often occurs in anastomosing to discontinuous stringers and bands less than 10 cm thick in a
quartz rock or actinolite-quartz rock matrix. Bands tend to be folded and deformed but also can
be regular and tabular. The actinolite-IF contains about 15% magnetite on average, higher than
the other rock types except magnetite-OIF.
Specularite is silvery-grey and non-magnetic. It tends to be coarser grained than magnetite and
like magnetite often occurs in bands. Magnetite-rich OIF ("MOIF") commonly, but not always,
occurs beneath (structurally) the main mass of amphibolite, i.e., Sections C2, D, D2 or immediately
under a thin interval of grunerite-SIF (Figure 7-5). This sequence of magnetite-rich OIF is often
about 30 m to 50 m thick. Thereafter, down sequence, the amount of magnetite decreases as the
amount of specularite increases until specularite is predominant with little or no magnetite
present. The amphibolite cap is missing from the IF sequence west of Pignac Lake and the
magnetite-rich OIF sequence typically under the amphibolite cap is also missing. Magnetite also
often occurs in intervals bordering discrete units of lean OIF or quartz rock, and usually is
prominent in actinolite-SIF adjacent to the narrow intercalated amphibolite units or bands.
Specularite-rich OIF ("SOIF") dominates the OIF sequence between the amphibolite cap related
magnetite OIF sequence and the sequence characterized by actinolite-SIF, magnetite (±
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amphibolite, pyrite, garnets, and chalcopyrite). In the IF branches north, east and northeast of
Pignac Lake, this actinolite-SIF sequence (as described above) is also characterized by the
occurrence of narrow intervals of amphibolite. In the IF branch to the west of Pignac Lake, the
narrow amphibolite bands are missing.
This specularite-rich OIF sequence is commonly up to 100 m to 150 m thick but also thins as the
entire sequence narrows on the edges of the deposit as shown in holes 98DN-005 on Section D3
and 98DN-073 on Section G4.
As shown on Table 9-2, the mean SG of OIF is about 3.47 regardless of whether it is magnetite
or specularite-rich.
Silicate Iron-Formation ("SIF") - Two main types have been recognized on the property. One of
these is dominated by actinolite ("AIF" in Table 9-2), while in the other grunerite is most prevalent.
Both types are coded as SIF in the logs but the two are generally distinguished on the cross
sections and level plans. The two types can be transitional into one another and likely there is
also some tremolite-rich SIF present.
During core logging, intervals were defined as SIF partly on the basis of colour change. The IF
becomes distinctly greener with increased amounts of actinolite. Actinolite-SIF often also shows
an increase in calcite content.
The WRA (whole rock analysis) results show that intervals with actinolite-SIF have increased
levels of MgO as compared to more oxide-rich IF. Work undertaken by Lakefield has shown that
the actinolite content is roughly proportional to MgO levels with actinolite contents about equal to
MgO values multiplied by a constant of 4.5 to 4.7 WGM used an MgO level of 5%, which roughly
translates to 23% to 25% contained actinolite by weight, as a visual guide for defining actinolite-
SIF and distinguishing it from OIF. It is important to note that all rock with >5% MgO, >15% total
Fe is not SIF since amphibolite also contains more than 5% MgO. SIF can contain significant
amounts of oxide iron.
In the IF units west of Pignac Lake the demarcation between OIF and actinolite-SIF is often
clearer than in the IF northeast of Pignac Lake. In the IFs to the west of Pignac Lake there are
distinct anastomosing to continuous bands of actinolite-SIF that often occur towards the bottom of
the IF sequence adjacent to the basal QRIF or QR unit (Figure 7-4). The OIF in this area is often
much "cleaner" with very low levels of MgO and associated CaO as compared with the IF coded
as OIF northeast of Pignac Lake. Northeast of Pignac Lake the OIF contains generally higher,
and more erratically distributed levels of MgO and associated CaO making the demarcation of
distinct bands of SIF less clear and consequently the correlation and continuity of distinct bands
of SIF less certain.
Actinolite-SIF also tends to occur on the borders of the thinner amphibolite units towards the
lower part of the stratigraphic sequence. The IF in these areas is also often enriched in magnetite
as compared with specularite. These SIF intervals often containing multiple thin units of
amphibolite, sometimes sheared and segmented, can also be enriched in sulphide. Such
sulphides consist mostly of pyrite sometimes in coarse, up to 1 cm crystals but also minor
chalcopyrite. Actinolite-SIF also preferentially occurs on IF, QRIF or QR contacts. In such places
it again is more likely associated with increased prevalence of magnetite at the expense of
specularite.
Quartz rock ("QR") and its related variant Quartz Rock Iron formation ("QRIF"), are used to
describe various units that occur throughout the IF sequence and a unit that occurs at the
structural base of the IF immediately above the basal mica schist. During logging, QR was used
to define a rock type consisting mostly of quartz, 95%+, with minimal to nil specularite and/or
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magnetite content. This material may have been derived from chert, quartzite or quartz pebble
conglomerate and the various textural varieties are not distinctly coded or distinguished.
QRIF intervals were defined on the basis of a quartz dominant rock containing less than 15% total
iron but containing some iron in the form of specularite and/or magnetite or silicate. QRIF is
therefore a rock often transitional between OIF and QR, or SIF and QR. The QRIF can contain
significant actinolite-SIF with MgO contents above 5% but is not coded as SIF because total iron
is less than 15%. The QR and QRIF units above the basal schist can often contain significant
muscovite, garnet and feldspar and are transitional into the basal schist or gneiss unit.
Quartz Rock Mica Schist ("QRMS") is used mainly for the schist sequence at the base of the IF
sequence beneath the QR unit. QRMS has occasionally, however, been used for coding biotite-
rich units within the IF sequence, which are likely genetically related to AMP. These QRMS rocks
are described under AMP.
Gneiss ("GN") - The basal QRMS rocks appear to be transitional into GN. Hole 98DN-006 on
Section K and hole 98DN-004 on Section J terminate in gneiss. These GN rocks contain less
mica but more feldspar and quartz than QRMS.
The basal QRMS sequence consists mostly of muscovite and biotite schist with characteristic
porphyroblasts of garnet and feldspar.
In gross terms, the Bloom Lake deposit comprises two doubly plunging synforms on a main east-
west axis separated by a gently north to northwest plunging antiform. One of these synforms is
centred on Triangle Lake, while the centre for the other is located just north of Bloom Lake. The
Bloom Lake property is centred primarily on the eastern synform but covers a portion of the
northern limb of the western synform.
These synforms are the result of a minimum of two episodes of folding and are of regional scale.
In addition to these regional scale folds, which have created the deposit scale synforms shaping
Bloom Lake deposit, there are several other folds of diverse orientation on the property. It is not
clear if all folding directions represent distinct folding episodes or progressive change in fold
orientation with time.
As a result of various folding events or transposition of stratigraphy by folding, local reversals and
repeats in the stratigraphic sequence in the IF are common. The lensitic, crenulated and stringer
nature of the IF as observed in drill core with anastomosing discontinuous interwoven bands of
magnetite and/or specularite and actinolite is largely a result of this complex folding.
Faulting appears to have played a much less significant role than folding on the property.
Cunningham's crews mapped a northeast trending fault that displaces IF west of the west edge of
Pignac Lake. Gross (1968) shows a series of northeast and northwest trending faults, as well as
a series of stratigraphy-parallel faults. There has probably been some faulting but in correlating IF
from hole to hole and section to section, no major displacements due to faulting have been
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defined. Areas of poor ground encountered by drilling west of Pignac Lake may be due to faulting
or simply slumping and weathering. As stated previously, occasionally a weathered zone was
encountered between the amphibolite cap and IF suggesting movement of water along this
contact.
In accordance with this outline, the gross masses of IF are interpreted to be generally continuous
from one drill section to the next. However, the continuity and correlation of thin, individual units
of OIF, SIF, amphibolite or quartz rock can be poor and difficult due to isoclinal folding, refolding,
transposition and segmentation.
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10. EXPLORATION
10.1.1 General
In 1998, a major exploration program was carried out by WGM for QCM, which then held the
Bloom Lake property under option from CLM. QCM held the option on the property until 2001, but
no work was carried out between 1998 and 2005.
The 1998 program included line cutting, surveying, road building, camp construction, diamond
drilling, geological mapping, mini-bulk sampling, bench-scale preliminary metallurgical testwork,
preparation of a “mineral resource” estimate, camp demobilization and site clean-up. The WGM-
managed work was carried out on 16 of the 19 original claims of the Bloom Lake deposit group
only. Portions of the program, such as the “mineral resource” estimate and metallurgical testwork
(carried out by Lakefield) are discussed in detail in separate sections of this report.
The drilling was carried out in three phases and QCM had the option of terminating the program
at the end of each phase. Phase I drilling commenced on May 14. Phase I continued into Phase II
without pause. The Phase I/II drilling was completed on July 14 with the completion of 36 holes.
After a scheduled break, Phase III drilling commenced on August 12 and terminated on
September 25. Seventy-five drillholes totalling 18,705 m were completed during the entire
program.
All sample analyses was conducted by Lakefield. A total of 2,529 samples of split core was
analysed over the duration of the program. Laboratory work included routine sample analysis,
heavy liquid testing (Phase I/II), mineralogical studies and liberation testing. In addition, further
testing was carried out to authenticate old drilling results, establish weight recoveries and the
applicability of Mont-Wright procedures for determining weight recoveries for Bloom Lake
property samples.
To provide control for locating drillhole collars and drilling directions, a grid was re-
established over a portion of the property. Old drillhole collars located in the field and new
collars were surveyed once they were drilled. Roussy, Michaud and Associés ("RMA") of
Sept-Îles, Québec, was contracted to cut the grid, survey the baselines and survey drillhole
collars.
Minor line cutting was done during the program by the WGM geological and geotechnical
crew to extend lines and spot drillholes not located on lines cut by RMA.
Three baselines (main east-west, E-W BL; northeast, NE BL; and southeast, SE BL) were
laid out to enable drilling on cross section lines perpendicular to the strike of three main
branches of the iron deposit. The NE BL and SE BL were subsidiary lines to the main east-
west baseline and were turned off from the main east-west baseline. The new grid was to a
substantial degree coincident with the original (1952) property grid.
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A total of 12.4 km of grid lines was cut in 1998, consisting of 4.0 km of baseline and 8.4 km
of cross section lines.
Surveying was generally restricted to hole collars, baselines and the section-baseline
intersections. Elevations for constructing the topographic profile on the cross sections were
derived from an aerial photographic survey and topographic model produced by Western
Photogrammetry Ltd. in 1973. This same topographic model was used for the Mineral
Resource estimate. Close agreement between the surveyed hole collar elevations and the
topographic model derived from the 1973 survey indicates that the topographic model is
valid for the Mineral Resource estimate. Hole collar elevations between the 1973 survey and
the 1998 survey are generally within ±2 m.
10.1.3.1 General
Two areas on the property, known as the north hill and the west hill were selected for re-
mapping. These areas are situated on the hilltops forming two topographic highs which occur
respectively towards the north and west ends of the property. The north hill area is centred at
UTM (NAD 83) co-ordinates 616100mE/5855900mN while the west hill area is centred at
614900mE/5855300mN.
Geological mapping was necessary to obtain a more accurate picture of surface geology to
complement detailed diamond drilling results so that a cohesive geological interpretation for
the property could be completed and as a preliminary step in selecting bulk sample sites.
The north and west hills were selected because the two main zones of IF on the property
were exposed on these hills. The IF from the north hill area is distinctly different from the IF
exposed on the west hill. The NE branch of the deposit tends to be more uniformly actinolite-
rich than the IF from the west branch of the deposit, which is more actinolite-poor and
specularite-rich.
There is also good outcrop exposure on both hills and thus these two areas represented
good sites for bulk sampling IF outcrop. Re-mapping of these areas was also important
because of the uncertainty of outcrop locations. Outcrop and drillhole locations as shown on
the 1975 geological compilation map of the property did not agree with the initial 1998 land
survey results.
The detailed mapping is incorporated into the geological plan for the property (Figure 7.3)
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In 2005, eleven sample sites were selected for bulk sampling on the basis of range of rock
types, magnetite and actinolite content. Nine sites were sampled in the north hill area and
two samples were taken from the west hill area.
10.1.3.2 Mapping
Control for mapping was established by turning off intermediate grid cross lines, at 25 m
intervals, from the NE or E-W surveyed baseline between the existing surveyed drill cross
section lines. Station markers were established at 25 m intervals along these grid lines.
Outcrop locations were determined by chaining from the nearest grid line.
Outcrops were assigned a unique outcrop number for reference purposes and for locating
samples. The prefix OC1 designated outcrops from the west hill area while the prefix OC2
was used for north hill outcrops.
Due to magnetic deviation caused by magnetite IF, strike measurements shown on the map
were measured from reference lines, established by stretching a chain over the subject
outcrop between known points on the grid.
10.1.3.3 Sampling
Three sets of samples were collected from the north and west hill areas. These samples
consisted of two sets of grab samples and one set of mini-bulk samples. One set of grab
samples was taken prior to blasting for the mini-bulk samples and the second set of grab
samples was taken subsequent to blasting. The grab samples consisted of 5 kg to 10 kg of
material from each site. These samples were sent to the Mont-Wright mine laboratory for
assay. The analytical results are listed in Tables 10-1 and 10-2.
A total of nine mini-bulk samples was taken from the north hill area and one sample was
taken from the west hill area. Each of these samples consisted of 500 kg to 750 kg of
material. A gasoline powered plugger was used to drill three to seven holes about 0.5 m
deep at each sample site. The holes were subsequently loaded and blasted. Castonguay
Frères Ltée of Rock Forest, Québec was contacted to do the blasting. The blasting was all
completed in one day.
The blasted rock was hand loaded into steel drums, which were then labelled and sealed.
The drums were carried to the highway and delivered to the QCM warehouse for shipment.
They were sent to Lakefield but there was no testwork undertaken.
In Table 10-3, location and geological data for the mini-bulk sample sites are summarized.
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In the summer of 1998 and independent of the WGM-managed exploration program, QCM
carried out a regional high-resolution helicopter-borne aeromagnetic/Horizontal Loop
Electromagnetic ("HEM”)/Very Low Frequency ("VLF") survey over an area of approximately 4,100
km2. This survey was roughly centered on the Mont-Wright operation and the 19 original CLM
claims (which are part of the actual 178 claims) were included within the northwest quarter of the
survey area. The survey was flown by High-Sense Geophysics Limited of Toronto. Line direction
and spacing were NW-SE and 200 m respectively, and mean terrain clearance was 30 to 45 m
for the geophysical birds and 60 m for the helicopter.
The magnetic survey outlined the Bloom Lake iron formation, confirming its folded nature and
relatively large aerial extent. A bulls-eye magnetic response was recorded over the three-claim
(Roach Lake Extension) group. Neither the HEM nor the VLF survey recorded anomalies over
either of the CLM claim groups.
10.3.1 General
In 2005, CLM retained WGM to carry out a technical review, including the preparation of a
Mineral Resource estimate for the Bloom Lake iron deposit to assist CLM in making business
decisions and future planning. The technical review was carried out and prepared in compliance
with the standards of NI 43-101 in terms of structure and content and the Mineral Resource
estimate was carried out in accordance with provisions of NI 43-101 guidelines and the CIM
Standards.
WGM also assisted CLM in consolidating its land position as discussed in Section 4 above.
In addition, WGM planned and carried out a mini-bulk sampling program in order as discussed
below.
Eleven mini-bulk samples were drilled, blasted and collected on the North and West Hill areas
between July 26 and 28, 2005. The access trail from Highway 389 had been rehabilitated and
the sample sites marked out earlier in the month. Sample sites were chosen to match as closely
as possible those of the similar program carried out for QCM in 1998.
Nine of the sample locations were on the North Hill and two samples were located on the West
Hill, as described in Table 10-4 and shown on Figure 7-3. All samples were taken in the same
locations sampled in 1998 and designated with the same “lot number” as that used in 1998, with
the exception of Lots 10 and 11. In 1998 the Lot 10 sample was taken from two locations. In
2005 the two locations where the 1998 Lot 10 was taken were sampled separately and identified
as Lot 10 and Lot 11 respectively. Each sample consisted of approximately 500 kg of material.
RSM Mining Services of Labrador City prepared the sites, gathered and bagged the samples and
transported them to the highway.
Castonguay Frères Ltée of Labrador City conducted the drilling and blasting using approximately
6-7 blast holes at each sample location. Blast holes were drilled by a compressed air powered
plugger. Twenty “rice bags” of blasted material were collected at each sample location. Each
bag weighed approximately 25 kg for a total sample weight of 500 kg each. Serialized sample
November 2008
Bloom Lake Project 10-7
Technical Report
tags were enclosed in each “rice bag” and these were then sealed with plastic cable ties. Each
sample, consisting 20 rice bags, was then loaded into a separate one cubic metre cargo bag.
The cargo bags were hauled approximately 4 kilometres to the paved road on a skidder, which
had been adapted to carry the samples. At the road the cargo bags were placed individually on
eleven pallets, wrapped in plastic, loaded into a transport truck and shipped to SGS Lakefield in
Lakefield, Ontario.
The entire program, including loading the samples onto the transport truck, was supervised and
directed in the field by Peter Legein, P.Geo., a WGM Senior Associate Geologist.
The results of the metallurgical testwork, which continued into early 2006 are discussed in
Section 16.
1 North Hill L8+23mNE 0+38mSE 616214 5856000 35% specularite; 2% Mg, 0% actinolite
2 North Hill L7+75mNE 0+75mSE 616219 5855941 15% specularite, 10% Mg, 15% actinolite
3 North Hill L6+87mNE 0+60mSE 616162 5855875 30% specularite, 5% Mg, 7% actinolite
4 North Hill L6+66mNE 0+68mSE 616158 5855850 20% specularite, 15% Mg, 10% actinolite
6 North Hill L5+77mNE 0+77mSE 616118 5855771 0% specularite, 30% Mg, 15% actinolite
7 North Hill L7 + 12mNE 0+llmSE 616132 5855923 20-25% specularite, 2-5% Mg, 15% actinolite
8 North Hill L9+18mNE 0+76mSE 616164 5856143 35% specularite, 2% Mg, 15% actinolite
9 North Hill L6+95mNE 0+26mSE 616136 5855900 35% specularite, 2% Mg, 2% actinolite
10 West Hill 17+35mW 0+75mS 614873 5855229 30% specularite, 0% Mg, 0% actinolite
11 West Hill L17+30mW 0+25mS 614883 5855275 30% specularite, 0% Mg, 0% actinolite
November 2008
Bloom Lake Project 11-1
Technical Report
11. DRILLING
11.1 General
The 1998 drill program was divided into Phases I, II and III. QCM reserved the option to terminate
work after each phase. The program was designed to drill on cross sections at 150 m intervals
with drillholes generally spaced at 150 m along the lines.
Heath & Sherwood Drilling (1986) Inc. ("H&S") was the principal drill contractor. H&S supplied
one H&S HS-35A computerized hydraulic diamond drill and one JKS-300 diamond drill with BQ
and NQ rod strings, casings, hexagonal core barrels (stabilized) and all ancillary supplies. Both
drills were unitized and skid mounted. Most drilling was done with BQ sized equipment, but where
drilling problems were encountered or anticipated due to friable rock, NQ sized holes were
collared.
A total of 18,705 m in 75 holes was completed in three phases of drilling. Table 11.1 provides a
summary of pertinent drilling statistics. Figure 11.1 shows the drillhole locations by drilling phase
and the cross section lines, A through N (except for sections E and F which fall outside the drilled
area). Core was delivered to camp after each shift by the drillers.
Drilling took place on a two shift per day basis, 22 hours per day, 7 days per week. The remaining
2 hours per day were taken up with crew shift changes.
H&S was also responsible for establishing the camp located at the northwest corner of Pignac
Lake (same location as the 1956, 1971 and 1972 camps), managing and servicing the camp and
providing room and board for drillers, WGM geological and geotechnical crew and technical
subcontractors, as required.
Core recovery was generally very good, 98% to 100% for most of the drilling, however, in certain
areas due to extensive alteration, IF was extremely friable. Recovery in these intervals was low
despite NQ size coring, extensive use of mud, use of 5 foot core barrels, slow watchful advance
and face discharge bits. In the geotechnical logs core recoveries were tabulated by run.
November 2008
Bloom Lake Project 11-2
Technical Report
Hole Baseline Section Co-ord. 1 Co-ord. 2 Claim Core Size Start Com Collar Az Collar Inclin Length (m)
Phase I/II - May 14 to July 4, 1998
L3+00m W 0+15m S 51229-4 BQ 14-May 17-May
98DN-001 E-W G-1 210 -45 263.00
98DN-002 E-W I L7+92.5m W 0+40m N 60065-5 BQ 15-May 18-May 180 -75 329.00
98DN-003 E-W H L4+88m W 0+75m N 51229-4 BQ 17-May 21-May 0 -90 322.00
98DN-004 E-W J L10+36m W 0+10m N 60065-5 BQ 18-May 21-May 180 -60 290.30
98DN-005 NE D3 L3+35m NE 1+10m SE 5 1229-4 BQ 22-May 24-May 302 -45 262.00
98DN-006 E-W K L12+50m W 0+25m S 60064-5 BQ 21-May 24-May 180 -75 279.00
98DN-007 NE D L5+43m NE 2+50m SE 5 1229-3 BQ 24-May 28-May 302 -45 362.00
98DN-008 E-W L L15+24m W 0+00m N 60064-5 BQ 24-May 25-May 0 -90 64.00
98DN-08A E-W L L15+24m W 0+05m S 60064-5 NQ 25-May 27-May 0 -90 55.84
98DN-009 E-W M L17+07m W 0+17m S 62390-2 NQ, BQ 27-May 30-May 360 -75 237.00
98DN-010 NE C L8+48m NE 1+70m SE 51229-2 BQ 28-May 1-Jun 302 -45 326.00
98DN-011 E-W N L20+12m W 1+85m S 62390-2 NQ,BQ 31-May 2-Jun 360 -90 221.00
98DN-012 NE C-2 L6+95m NE 2+07m SE 51229-3 BQ 1-Jun 4-Jun 302 -45 326.00
98DN-013 E-W M-2 L18+56m W 1+35m N 62390-2 NQ,BQ 2-Jun 3-Jun 0 -90 176.80
98DN-014 E-W M L17+07m W 3+75m S 60066-1 BQ 4-Jun 6-Jun 360 -60 210.00
98DN-015 NE B-2 L9+96m NE 1+79m NW 60065-3 BQ 5-Jun 9-Jun 122 -45 378.00
98DN-016 E-W L-2 L16+00m W 1+00m S 60066-1 NQ 6-Jun 9-Jun 360 -50 225.50
98DN-017 E-W L L15+24m W 2+80m S 60066-1 BQ 9-Jun 11-Jun 360 -70 191.00
98DN-01 8 NE D L5+43m NE 5+65m SE 51229-4 BQ 9-Jun 25-Sep 302 -45 539.00
98DN-019 E-W K-2 L13+86m W 3+60m S 60066-1 BQ 11-Jun 12-Jun 360 -45 164.00
98DN-020 E-W K-2 L13+85m W 0+50m S 60064-5 NQ 12-Jun 14-Jun 360 -90 154.80
98DN-021 NE D-2 L4+39m NE 4+00m SE 51229-4 BQ 14-Jun 18-Jun 302 -59 398.00
98DN-022 E-W K-2 L13+85m W 0+50m S 60064-5 NQ, BQ 15-Jun 17-Jun 360 -45 183.00
98DN-023 E-W J L10+36m W 0+10m N 60065-5 NQ, BQ 17-Jun 20-Jun 360 -90 254.00
98DN-024 E-W G-1 3+00m W 0+10m S 51229-4 BQ 18-Jun 19-Jun 360 -90 351.00
98DN-025 E-W I-2 L9+27m W 0+05m N 60065-5 BQ 20-Jun 22-Jun 360 -90 267.00
98DN-026 E-W H-2 6+41m W 0+25m N 51229-4 BQ 21-Jun 23-Jun 360 -90 298.00
November 2008
Bloom Lake Project 11-3
Technical Report
(continued)
Hole Baseline Section Co-ord. 1 Co-ord. 2 Claim Core Size Start Com Collar Az Collar Inclin Length (m)
Phase I/II - May 14 to July 4, 1998
98DN-027 NE D-5 L0+35m NE 0+30m NW 60065-5 BQ 22-Jun 25-Jun 360 -55 271.50
98DN-028 E-W H-2 L6+40m W 0+25m N 51229-4 BQ 23-Jun 25-Jun 179 -45 230.00
98DN-029 E-W H-2 L6+40m W 1+50m N 51229-4 BQ 22-Jun 26-Jun 360 -90 333.00
98DN-030 NE D-4 L1+90 m NE 1+30m SE 51229-4 BQ 25-Jun 27-Jun 322 -70 348.00
98DN-031 NE D-2 L4+39m NE 1+85m S 51229-4 BQ 27-Jun 30-Jun 302 -50 317.00
98DN-032 NE D-3 L3+35m N 1+12m SE 51229-4 BQ 28-Jun 30-Jun 360 -90 356.00
98DN-033 E-W J-2 L11+44m W 0+12m N 60065-5 BQ 30-Jun 2-Jul 360 -90 195.10
98DN-034 SE G-3 L3+60m SE 0+20m NE 51225-4 NQ 30-Jun 2-Jul 250 -75 183.00
98DN-035 E-W L-2 L15+96m W 2+40m S 60066-1 BQ 3-Jul 4-Jul 359 -80 181.00
Subtotal 36 holes, 52 elapsed days, 9,542 m, 46 m average per drill per shift
Hole Baseline Section Co-ord. 1 Co-ord. 2 Claim Core Size Start Com Collar Az Collar Inclin Length (m)
Phase III - August 12 to September 25, 1998
98DN-036 E-W H L4+88mW 0+25m N 51229-4 BQ 12-Aug 16-Aug 180 -75 254.00
98DN-037 SE G-2 L2+45m SE 1+60m N 51225-4 BQ 12-Aug 15-Aug 250 -75 324.00
98DN-038 NE D-3 L3+35m NE 6+00m SE 51229-4 BQ 15-Aug 17-Aug 360 -90 270.00
98DN-039 E-W H L4+88m W 0+75m N 51229-4 BQ 16-Aug 19-Aug 360 -65 401.00
98DN-040 E-W I L7+92m W 0+05m N 60065-5 BQ 17-Aug 18-Aug 360 -50 104.00
98DN-041 E-W I L7+92m W 0+05m N 60065-5 BQ 18-Aug 20-Aug 180 -50 257.00
98DN-042 NE D-3 L3+35m NE 3+70m SE 51229-4 BQ 20-Aug 23-Aug 0 -90 369.00
98DN-043 NE D-3 L3+35m NE 0+10m SE 60065-5 BQ 20-Aug 21-Aug 301 -45 110.00
98DN-044 NE D-2 L4+39m NE 0+80m SE 51229-3 BQ 21-Aug 22-Aug 302 -45 180.00
98DN-045 NE C-2 L6+95m NE 0+70m SE 51229-3 BQ 22-Aug 25-Aug 302 -45 287.00
98DN-046 NE D-2 L4+39m NE 3+00m SE 51229-4 BQ 23-Aug 26-Aug 302 -50 366.00
98DN-047 NE B-2 L 9+96m NE 0+50m NW 60065-3 BQ 25-Aug 26-Aug 122 -45 246.00
98DN-048 NE C-2 L 6+95m NE 2+55m SE 51229-3 BQ 26-Aug 29-Aug 360 -90 302.00
98DN-049 NE D-2 L4+39m NE 4+55m SE 51229-4 BQ 27-Aug 30-Aug 302 -70 384.00
98DN-050 NE C-2 L 6+95m NE 2+35m SE 51229-3 BQ 29-Aug 2-Sep 302 -65 402.00
98DN-051 NE D-2, G-1 L4+39m NE 4+75m SE 51229-4 BQ 30-Aug 1-Sep 0 -90 303.00
98DN-052 E-W K L12+51m W 0+25m S 60064-5 NQ 1-Sep 4-Sep 0 -78 188.28
November 2008
Bloom Lake Project 11-4
Technical Report
(continued)
Hole Baseline Section Co-ord. 1 Co-ord. 2 Claim Core Size Start Com Collar Az Collar Inclin Length (m)
Phase III
98DN-053 NE C-2 L6+95m NE 2+90m SE 51229-3 BQ 2-Sep 4-Sep 122 -60 252.00
98DN-054 E-W M-2 L18+57m W 0+02m N 62390-1 BQ 4-Sep 5-Sep 360 -45 137.40
98DN-055 E-W L 15+00m W 0+25m S 60064-5 NQ, BQ 4-Sep 7-Sep 180 -75 185.00
98DN-056 E-W M-2 L18+57m W 0+02m N 62390-1 BQ 5-Sep 7-Sep 360 -90 212.00
98DN-057 E-W L 15+00m W 0+25m S 60064-5 NQ 7-Sep 8-Sep 360 -45 153.41
98DN-058 E-W M-2 L18+57m W 1+40m S 62390-2 BQ 7-Sep 11-Sep 360 -55 324.00
98DN-059 E-W J-2 L11+44m W 0+25m S 60065-5 NQ 8-Sep 13-Sep 0 -55 218.24
98DN-060 E-W M-2 L18+57 W 2+15m S 62390-2 BQ 11-Sep 12-Sep 360 -90 117.00
98DN-061 E-W M-2 L18+57m W 2+70m S 62390-2 BQ 12-Sep 13-Sep 360 -50 150.00
98DN-062 E-W M L17+07m W 2+20m S 62390-2 BQ 13-Sep 14-Sep 360 -60 170.00
98DN-063 E-W J-2 L11+44m W 0+25m S 60065-5 NQ 13-Sep 15-Sep 180 -55 227.38
98DN-064 E-W L L15+24m W 2+45m S 60066-1 BQ 14-Sep 15-Sep 360 -45 110.00
98DN-065 E-W I-2 L9+14m W 0+30m S 60065-5 BQ 15-Sep 16-Sep 180 -45 97.00
98DN-065A E-W I-2 L9+14m W 0+33m S 60065-5 NQ 16-Sep 19-Sep 180 -45 220.68
98DN-066 E-W K L12+51m W 4+25m S 60066-3 BQ 15-Sep 16-Sep 360 -45 96.00
98DN-067 SE G-4 L4+73m SE 0+44m NE 51225-4 BQ 16-Sep 17-Sep 360 -90 147.00
98DN-068 SE G-5 L5+75m SE 0+25m NE 51225-4 BQ 17-Sep 18-Sep 250 -75 105.00
98DN-069 SE G-3 L3+59m SE 0+77m N 51225-4 BQ 18-Sep 19-Sep 360 -90 194.00
98DN-070 NE D L5+61m NE 4+35m SE 51229-3 BQ 19-Sep 23-Sep 303 -46 491.00
98DN-071 SE G-2 L2+45m SE 2+30m NE 51225-4 BQ 19-Sep 22-Sep 360 -90 329.00
98DN-072 SE G-3 L3+60m SE 2+30m NE 51225-4 BQ 22-Sep 24-Sep 249 -75 264.00
98DN-073 SE G-4 L4+75m SE 2+05m NE 51225-4 BQ 24-Sep 25-Sep 249 -75 216.00
Subtotal 39 holes, 45 days, 9,163 m, 50.9 m per shift per drill
Total Phase I, II and III 75 holes, 97 elapsed days, 18,705 m, 48 m per shift per drill
Note: 1. Hole 98DN-01 8 was initially collared in Phase I. It was re-entered and deepened in Phase III.
2. Holes 98DN-055 and 57 are not actually located on Section L but are located about 22 m east of section L.
November 2008
Bloom Lake Project 11-5
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 11-6
Technical Report
The program completed July 4, comprising holes 98DN-001 to 35, was designated the Phase I/II
drill program. The WGM geological and geotechnical crew demobilized from the property July 12
after completing all Phase I/II core logging, core sampling and sample shipping.
The Phase III program commenced August 12 with essentially the same drilling, geological and
geotechnical crew as had been engaged for Phases I and II. Phase III drilling continued to
September 26 when the last hole of the program, hole 98DN-073, was completed.
Core logging, sampling, drill demobilization and camp clean-up extended to October 2. By this
date, all drilling company personnel, surveyors and WGM geological and geotechnical crew had
left the area.
Drillhole collars were spotted prior to drilling by chaining in the collar locations from the nearest
line picket. Drilling azimuths were established by lining up the drill by eye on the cut grid line. Drill
inclinations were established using a Brunton compass on the drill head. Downhole inclinations
were tested by the drillers using acid tests. Acid tests were taken every 50 m to 75 m down each
hole as designated by the drill geologist. RMA was not involved in this inclination determination.
Once the hole was finished the drill geologist was responsible for placing a marker in the collar of
each hole and labelling it with an aluminium tag. Subsequently the X, Y and Z co-ordinates for
these collar markers were surveyed by RMA. Where the holes contained casing, these casings
were surveyed by RMA for azimuth. Holes without casing were assumed to have azimuths the
same as originally designated at the time of drill set-up. Stabilized core barrels were used for all
drilling and deflections in azimuth and inclination are believed to be minimal and acceptable
considering the scale of the deposit and the drilling density with holes collared on nominal 150 m
centers.
The grid line co-ordinates with respect to the appropriate baseline are shown on the drill logs. The
logs also show the NAD 83 co-ordinates for each of the holes. All previous drill collars (1956,
1967, 1971, 1972) that were located were also surveyed. For collars not located, the collar co-
ordinates were calculated using old grid co-ordinates as recorded on the old logs. WGM has
confidence in these calculated collar locations because the drillholes located in the field were
generally found close to their recorded position.
Descriptive logs include a description of the various geological features noted during examination
of core including lithological and structural description. Lithological coding was generally
according to guidelines supplied by QCM and followed at its Mont-Wright operation. Lithological
coding and general rock type descriptions for the various rock units encountered are compiled in
Section 9.1.
Descriptive logs also record hole locations and all down hole survey data, all sample locations,
iron and sulphur assays, SG and magnetite determinations for each sample.
November 2008
Bloom Lake Project 11-7
Technical Report
The Log II computer program of Log II Systems Inc., Toronto, Ontario was used for descriptive
logging.
The geotechnical logging followed QCM guidelines. Logging was done on a drill run by run basis,
generally at 3 m intervals. The geotechnical logging is based on a digital code system with the
code representative of the drill run as a whole.
Geotechnical data recorded included core recovery as a percentage of recovered core per run;
Rock Quality Designation ("RQD"), a measure of fracture density; type of foliation, i.e., thin
bands, wide bands, undulating, anastomosing, discontinuous or folded; foliation angle with
respect to core axis; friability; colour and granulometry index with values from 1 to 3 with 1
representing aphanitic grains, 2 representing medium grains and 3 representing grains greater
than 2 mm in size. A summary of codes is in the footer to each of the geotechnical logs.
A video record of all core was made as part of the logging process. An 8 mm video camera was
used and the core was photographed tray by tray. Audio highlights were added as appropriate.
Hole number and meterage blocks are clearly legible in the record. The video was subsequently
converted to VHS format
As part of the logging routine, magnetic susceptibility measurements were taken on core from all
of the drillholes as an approximation of the magnetite content. A Mico Kappa KT-5 instrument
distributed by Scintrex was used for the determinations. The unit has a sensitivity of 1 by 10-5 SI
units. Readings were taken every metre (approximate position) on the core's un-split surface
down each of the holes. Readings were taken by the geotechnical logger. The magnetic
susceptibility measurements are listed with the geotechnical log. The readings listed are
"apparent" susceptibility, uncorrected for core size.
After core logging and sampling were completed, core trays containing the reference half core
and the un-split parts of the holes were stacked in core racks. No core was discarded. All core
was sent to the Mont-Wright mine site for storage is racks after drilling was completed.
WGM visited the Mont-Wright mine and the core rack area in August 2005. All the 1998 core
remains intact, in racks and is easily identifiable.
November 2008
Bloom Lake Project 12-1
Technical Report
The demarcation of sampling boundaries was made generally on a geological basis as selected
by the drill geologist during logging. The sampling guidelines required minimum sample lengths of
3 m, with maximum lengths of 4.5 m for NQ core and 7 m for BQ core. This scheme was closely
followed for the most part. In total, 2,529 samples were taken from the 75 drillholes. No samples
were taken from holes 98DN-040 and 98DN-053 because all rock intersected was amphibolite.
The average sample length was close to 6 m as most of the drilling was BQ and most samples
ranged in weight from 5 kg to 12 kg.
All rock estimated to contain at least 10% iron in the form of oxide was sampled. In addition, one
sample on either side of all IF was taken in wall rock to bracket all IF sequences.
Some samples include more than one rock type because of the 3 m minimum sample length
stipulation. This situation most often occurs in sequences of IF alternating with narrow, less than
1 m intervals of amphibolite. In such cases, individual samples may include both amphibolite and
IF.
Sample intervals were marked out by the drill geologist with a china marker during descriptive
logging. Three-part sample tickets, from sample books with unique sequential ticket numbers,
were used to number and label core and subsequently sampled intervals and bagged samples.
Sample numbers and intervals were recorded for later computerization and collation in a sample
database. A second record of sample number and interval was saved with the descriptive log.
One portion of the sample ticket remained in the sample book. One portion was placed under the
last few centimetres of core in the sample interval in the core tray. The third portion was inserted
by the core splitter/sampler into a 40 x 60 cm canvas sample bag with the split core sample. The
sample number was also written on the sample bag.
Core samples were split using a hydraulic core splitter. The second half of the spit core sample
was returned to the core tray. These reference split core segments were put back into the core
trays in the original order and fitted back together as much as possible. Core trays were then
stacked on timber core racks located on site.
Sample bags were stored in the splitting tent until removed for transport to the highway and then
to Mont-Wright for loading onto transport trucks and shipment to Lakefield Research Limited
("Lakefield"), Lakefield, Ontario.
Sample shipments from camp to Mont-Wright were nominally twice per week. Sample bags were
loaded onto H&S tracked vehicles (GT-1,000s) and transported to the highway; a 1 to 1.5 hour
trip. At the highway the sample bags were loaded into 25 gallon steel drums. The sample bags
were as much as possible loaded into the drums in numerical sequence. Each drum held from 10
to 15 sample bags depending on sample and drill core size, i.e. BQ or NQ. Each of the sample
shipments, consisting usually of 4 to 8 drums, was assigned a sequential sample shipment
number and each drum was assigned a consecutive (all-shipments-inclusive) drum number.
Shipment numbers and drum numbers were recorded in the sample database. A list of samples
comprising the sample shipment was placed into the first drum in each shipment.
Sample drums pre-loaded onto a pick-up truck were then sealed and transported to the Mont-
Wright warehouse where they would await next-day transport to Lakefield. The entire sample
shipment procedure from camp to the Mont-Wright mine was carried out by the sampler/splitter
assisted by either a geotechnician or a geologist. Once delivered to the warehouse the samples
were in the hands of Mont-Wright mine warehouse staff.
November 2008
Bloom Lake Project 13-1
Technical Report
All split core samples were sent to Lakefield (now part of the SGS group). Each sample was
weighed, then jaw crushed to 6 mesh and riffle split. A 2 kg split was then passed through a roll
crusher to 100% minus 20 mesh. A 150 g split was then pulverized to minus 200 mesh. A 1.5 g
sub-sample was used for WRA, a 5 g sub-sample for determining magnetic iron and a 30 g sub-
sample was used for SG determinations. These various sub-samples were then subjected to
analysis as described below.
13.2 Assaying
All split core samples were analyzed for a suite of whole rock elements including: SiO2, TiO2,
Al2O3, Fe2O3, MnO, MgO, CaO, Na2O, K2O, P2O5 and loss on ignition ("LOI"). Analysis was done
on lithium tetraborate fused pressed pellets by X-ray Fluorescence ("XRF") following sample
crushing and pulverization. Additional analysis included determining magnetite by the Satmagan
method, and total sulphur by infrared detection analysis using LECO instrumentation following
sample combustion. SG for each sample was determined using an air comparison pycnometer. It
should be noted that this method does not take into account existing porosity in a rock and some
of the IF does contain vugs due to calcite removal. Although the degree of porosity has not been
quantified, it is estimated on the basis of visual examination of drill core to be generally less than
2%.
Total iron was calculated from Fe2O3 by dividing total iron expressed as Fe2O3 by a factor of
1.4295. A flow sheet (Figure 13-1) provides details for the individual procedural steps.
November 2008
Bloom Lake Project 13-2
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 13-3
Technical Report
13.3 QA/QC
In 1998, Lakefield was accredited by the Standards Council of Canada under ISO Guide 25. The
routine quality control program at Lakefield was modeled after guidelines provided by the
International Standards Organization, the Ontario Ministry of Environment and Energy,
Environment Canada and the Canadian Association of Environmental Analytical Laboratories and
included the processing of method blanks, replicate samples and standard reference materials.
Quality control for the routine sample analysis included both Lakefield's own quality control
procedures involving both internal and external checks. Approximately 8% of laboratory
throughput was quality control material, 4% blanks, 2% duplicates and 2% reference material
(standards). These procedures and the QA/QC results are described in the WGM Technical
Report, filed on SEDAR in May 2005, under Internal Checks Section.
Limited checking that was undertaken independently of Lakefield is described in the WGM
Technical Report, filed in SEDAR in May 2005, under External Checks Section.
The Internal Check work showed that precision was excellent for total iron, magnetite and SG.
Duplicate and replicate assays were generally within 1 to 2% of original determination.
External Checks indicated that some inter-laboratory bias was present with respect to total iron
and SG, however, only a few samples were used to assess repeatability of assays between
laboratories.
13.4 Security
The chain of custody of samples has been described previously. There is no reason to believe
that samples or analytical results were tampered with.
November 2008
Bloom Lake Project 14-1
Technical Report
A limited amount of analytical work was undertaken in 1998 to investigate certain problems
related to authenticating, combining and using the analytical data from the old drillholes for the
Mineral Resource estimate.
For the 1998 program, as described previously, drillhole samples were analyzed for total iron by
XRF and magnetite was determined by Satmagan. Total iron was not determined for either the
QC or 71/72 series drillhole samples. The QC and 71/72 series drillhole samples were analyzed
for soluble iron rather than total iron and this soluble iron was likely determined using the
hydrochloric acid-stannous chloride procedure. Furthermore, magnetite in the QC holes
(expressed as magnetic iron) was determined by Davis Tube, while for the 71/72 and 1998
drillholes, magnetite was determined by Satmagan. In addition, although QC samples were
likely analyzed at the Jones & Laughlin laboratory in Negaunee, Michigan under a quality
control situation, neither the analytical and quality control procedures, nor the laboratory
actually responsible for the analysis are documented in reports on-hand. It is known that the
71/72 drillhole samples were analyzed at Lakefield.
Analytical work was undertaken to investigate the relationship between soluble and total iron
analysis as part of the 1998 program. It was believed that this research was required before
analytical data for the QC, 71/72 and the 1998 holes were combined for the purpose of
preparing the Mineral Resource model.
1. Forty-one samples were selected from the 1998 holes and analyzed for both soluble iron
and total iron so that the differences between soluble iron and total iron could be assessed
for a group of samples containing varying amounts of iron silicates.
2. A 1972 drillhole was twinned. Hole 98DN-070 was drilled as close as possible to hole 72-
02. The result was a string of samples for which new assays of total iron and magnetite
were obtained. These assays could then be compared against 1972 assays for soluble and
magnetite for a closely comparable rock sequence.
A statistical summary for the analytical results is provided in Table 14-1. Appropriately the total
iron results are slightly higher than results for soluble iron as shown by the mean value, and
median values. Soluble iron and total iron generally increase in a linear fashion.
November 2008
Bloom Lake Project 14-2
Technical Report
The sample with the largest difference between its total iron and soluble iron concentrations is
sample 100984. This sample was found to contain 76.3% grunerite during X-ray Diffraction
Analysis ("XRD") (Section 15.3.2). Although there is some correlation between the magnitude of
the difference between total and soluble iron and MgO content, the degree of correlation is poor
and not entirely explained by the actinolite content, as reflected by its MgO concentration.
Drillhole Twinning
In Table 14-2, a statistical summary for total, soluble and magnetite results is presented. Hole
72-02 was original assayed for soluble iron. The 1998 hole was analyzed for total iron.
Magnetite in both cases was by Satmagan.
Table 14-2 : Comparison between Iron Assays in hole 72-02 and its Twin 98DN-070
Note: The table only includes assays for that part of hole 98DN-070 from 88.65 m
to 393.8 m
Best efforts were made to drill hole 98DN-070, as close as possible to hole 72-02 and to select
the interval in hole 98DN-070 that represented the same lithological section as intersected in
hole 72-02. The section from 88.65 m to 393.80 m in hole 98DN-070 was selected. WGM does
not believe that the correlation between the two holes is of sufficient quality to allow for a direct
comparison of the two holes on a sample by sample basis.
November 2008
Bloom Lake Project 14-3
Technical Report
The statistical analysis shows that the results for soluble iron are slightly lower than those for
total iron, fitting with the ideal that soluble iron is a partial analysis. The average for magnetite in
hole 72-02 is slightly higher than the average for magnetite in hole 98DN-070 but the medians
show the reverse pattern. The distribution of magnetite results is log-normal and accordingly
the median should be a better estimate of central tendency for magnetite results than the
arithmetic average. The total iron assays have a normal distribution.
WGM concludes that the assays for total iron for the old holes appear to be unbiased quality
data and that the use of unadjusted soluble iron assays for the QC and 71/72 series holes in
the Mineral Resource estimate is appropriate and if anything probably slightly undervalues the
grade of the deposit in terms of total iron content. The magnetite results, for the 71/72 holes,
may be a little less reliable and a bit too high but there are not many of these holes and their
volume influence for the deposit is relatively small.
November 2008
Bloom Lake Project 15-1
Technical Report
The Bloom Lake property is located in a very active mining area, which includes the following
mining operations:
• Mont-Wright Mine, Quebec Cartier Mining (QCM) – 13.5 M tpy iron ore concentrate
(commercial operations started in 1977)
• Carol Lake Mine, Iron Ore Company of Canada (IOC) – about 15.0 M tpy iron ore
concentrate
The three mining operations combined represent the largest iron ore production in North America.
November 2008
Bloom Lake Project 16-1
Technical Report
All the recent test work results are presented in section 16.3, confirmatory testwork.
The initial metallurgical testwork was carried out by Lakefield Research in the period 1973-76 on
17 drill core composites of magnetite-specularite. Nine samples were taken from the “North-East
Extension” and eight from the “West Extension”. Four other composite samples of magnetite-
silicate waste from an area east of the “North-East Extension” were also tested.
All samples were stage crushed to –35 mesh and tested on a Wilfley table to produce a gravity
concentrate. A summary of the results is shown in Table 16-1.
Composite No. Drill Hole Head Table Concentrate Table + Mag Conc.
North-East
Extension
1-5, 12-15 71-1, -2 30.26 13.02 38.1 66.3 83.4 52.8* 66.6* 94.6*
West
Extension
71-3, -6, -
6-10, 19-21 31.4 0.74 38.1 67.9 82.6
8,-9,-10
Mag-silicate
waste
72-2, -3,
11,16-18 16.1 12.5 18.3 67.8 75.2 21.5 68.2 89.2
-5
In 1998, further metallurgical testing was carried out on a total of 1,267 drill core samples for
QCM, who had an option on the claims at this time. The majority of the samples did not provide
acceptable concentrate grades at a grind of -20 mesh using a heavy liquid of 2.95 SG. The low
concentrate grades, generally between 45% and 60% total Fe and with high MgO and CaO, were
attributed to a lack of liberation and low heavy liquid rejection of the actinolite, which has an SG of
3.2. A small number of the samples yielded concentrate grades in the range of 60% to 68% total
Fe, with a weight recovery ranging between 30% and 45%. These samples were primarily from
the West Extension where the MgO, CaO and magnetite contents are low.
November 2008
Bloom Lake Project 16-2
Technical Report
Further small scale liberation tests were carried out on selected samples using either heavy liquid
separation or gravity separation with a Mozley mineral separator. It was concluded that use of a
Mozley shaking table is a better method for predicting weight recovery than a heavy liquid
separation where the specific gravity of the liquid medium is close to that of the mineral actinolite,
(Fe-CaO-MgO silicate), which occurs in localized concentrations of up to 10% in the orebody. The
Mozely results showed that, at a grind of -35 mesh, a concentrate grade of 67.5-68.8% Fe and
1.6 – 2.1% SiO2 could be obtained with a 94% rejection of MgO and CaO.
In mid-2005, a further eleven (11) mini bulk samples were taken from outcroppings on the
property and sent to SGS Lakefield for testing.
Testwork consisted of Wilfley table tests followed by cleaning of the Wilfley concentrate on a
Mozely table. The results of these tests confirmed that in most cases a low silica concentrate
could be produced with a high rejection level of actinolite.
Middlings and tailings from the Wilfley table were combined for each test and ground to a nominal
75% -44 microns (-325 mesh) and passed through a Davis tube to recover fine magnetite as
would be the case in a magnetic separation plant. Of the 11 samples tested, only two provided
sufficient magnetic concentrate for assaying and it was recommended that larger scale tests be
conducted in order to determine the potential magnetite recovery from the tailings.
In order to assess the impact of recycle streams on the concentrate quality and total iron recovery
for the commercial plant flowsheet, a 6-step lock-cycle test program was undertaken. For these
tests, two composite samples were prepared from the eleven (11) mini-bulk samples. Assays on
these samples are given in Table 16-2.
Composite Assay, %
Fe SiO2 MgO Fe2O3 Fe3O4
A (Direct) 34.6 47.1 1.98 34.2 14.7
B (Direct) 31.8 49.4 2.12 33.9 11.2
A (Calc) 31.8 49.9 1.96 30.9 14.1
B (Calc) 33.3 49.4 1.98 36.5 11.4
Figure 16-1 illustrates the lock-cycle procedure followed for each of the composites.
For each step, 15 kg of composite sample were treated on a Wilfley table to produce a rougher
concentrate, which was then treated on a second Wilfley table to produce a final cleaner
concentrate. The rougher middlings and the cleaner tails were then combined with new feed
material and fed to the succeeding roughing stage.
At the end of the six (6) stages, tails from cycles 3 to 6 were combined for magnetic separation
tests and concentrates from cycles 3 to 6 were combined as final gravity concentrate.
November 2008
Bloom Lake Project 16-3
Technical Report
The results of the lock-cycle gravity separation results for composites A and B are shown in Table
16-3.
Feed 1 (15 kg)
Wilfley table
(Rougher 1) Tails 1
Middlings
Cleaner Conc. 1 Wilfley table
(Cleaner 1) cleaner tails Feed 2 (15 kg)
Wilfley table
(Rougher 2) Tails 2
Middlings
Cleaner Conc. 2 Wilfley table
(Cleaner 2) cleaner tails Feed 3 (15 kg)
Wilfley table
(Rougher 3) Tails 3
Middlings
Cleaner Conc. 3
Wilfley table
(Cleaner 3) cleaner tails Feed 4 (15 kg)
Wilfley table
cleaner tails (Rougher 4) Tails 4
Middlings
Cleaner Conc. 4 Wilfley table
(Cleaner 4) Feed 5 (15 kg)
Wilfley table
cleaner tails (Rougher 5) Tails 5
Middlings
Cleaner Conc. 5 Wilfley table
cleaner tails Feed 6 (15 kg)
(Cleaner 5)
Wilfley table
(Rougher 6) Tails 6
Cleaner tails 6
Jeffrey Separator
Magnetic Concentrate
November 2008
Bloom Lake Project 16-4
Technical Report
Comp. B
Concentrate 37.4 43.0 66.1 5.58 0.53 75.5 18.4 85.5 5.01 11.44 91.2 68.5
Tails 50.3 57.9 9.77 78.9 3.06 7.56 6.19 17.0 95.3 89.1 12.3 31.0
Head (Calc) 87.6 100.9 33.8 47.9 1.99 35.6 11.6 102.5 100.3 101 103.5 99.5
* Ht = hematite, Fe2O3; ** Mt = magnetite, Fe3O4
The weight and iron recoveries were respectively 28.4% and 59.9% for composite A, and 43.0%
and 85.5% for composite B. It should be noted that the silica content of composite A concentrate
is significantly lower than that of composite B, while the iron grade is slightly higher.
The effect of iron and silica grades on the overall iron recovery is illustrated by the predicted
performance curves developed by Lakefield shown in Figures 16-2 and 16-3. These curves are
based on the iron and silica grades and recoveries for the individual stages of the lock-cycle
tests.
November 2008
Bloom Lake Project 16-5
Technical Report
In the case of composite A, the curves predict an iron recovery of about 60% for an iron grade of
67%, which is in line with the overall lock-cycle result. If the iron and silica grades are 66% and
5.5% respectively, the curves predict an iron recovery of about 72%. For composite B, the
predicted iron recovery is about 78%, which is lower than the 85.5% determined from the lock-
cycle test. One possible explanation for this is that for lower iron grades, lock-cycle tests
generally give better recoveries than those predicted by batch tests because recycling of
middlings has a bigger impact on iron recoveries.
For each composite sample, approximately 20 kg of the combined tails were passed through a
Jeffrey drum separator to produce a magnetic cobbing concentrate and tails.
To determine the effect of grind fineness on iron recovery and concentrate grade, samples of the
cobbing concentrate for Composite A were ground to pass 250, 270, 325, and 400 mesh and a
20-g sample of each was then passed through a Davis tube to produce a magnetite concentrate
and tails.
Table 16-4 shows the Jeffrey magnetic cobbing separation results for composite A, while Table
16-5 shows the Davis tube magnetic separation results for the 4 different grind finenesses.
November 2008
Bloom Lake Project 16-6
Technical Report
270 53 Conc 5.5 28.4 68.1 4.16 0.18 75.1 2.07 2.28
325 44 Conc 5.1 26.3 69.0 2.66 0.10 71.4 1.21 1.07
400 38 Conc 5.5 28.7 69.0 2.83 0.13 75.2 1.44 1.65
The Davis tube results show that the grind fineness has no impact on iron recovery. However, a
finer grind has a significant impact on the rejection of silica with a slight improvement in iron
grade. The iron grade increases from 67.8% at 250 mesh to 69% at 325 mesh, while the silica
decrease from 4.15% to 2.66%. These results suggest that all of the recoverable iron is liberated
at the coarser grind and that it is not necessary to grind finer than 270 mesh in order to obtain a
high-grade magnetite concentrate.
Based on these results, the overall weight and iron recoveries for Composite A are about 34.7%
and 75%, respectively. The overall weight and iron recoveries for Composite A could have been
significantly higher if the gravity concentrate had been of lower grade. Due to the higher grade of
Composite A, significantly more hematite and magnetite were rejected to the tails than for
Composite B. Consequently, much of the hematite was not recovered by magnetic separation.
In a further series of tests, cobber concentrates for Composites A and B were stage-ground to
100% passing 325 mesh in a laboratory ball mill, followed by three (3) cleaner stages of WLIMS
(wet low-intensity magnetic separators). In the case of Composite A, the weight and iron
recoveries for the cleaner stage were 27% and 72.2% respectively, which were similar to the
Davis tube results. The overall weight and iron recoveries for Composite A were 34.4% and
74.5%. The overall weight and iron recoveries for Composite B were 45.3% and 90.2%.
Table 16-6 shows a complete analysis of the concentrate from the lock-cycle and magnetic
separation tests which indicate that there are no major impurity problems associated with the
Bloom Lake deposit.
November 2008
Bloom Lake Project 16-7
Technical Report
Typical Specification
Chemical Analysis Formula
(%) Min. (%) Max. (%)
Iron Fe 66.0 65.0 68.0
Silica SiO2 4.5 5.5
Alumina Al203 0.15 0.3
Lime CaO 0.25 0.5
Magnesia MgO 0.3 0.5
Titania TiO2 0.02 0.2
Manganese Mn 0.02 0.15
Phosphorus P 0.015 0.03
Sulphur S 0.02 0.04
Soda Na2O 0.018 0.15
Potash K2O <0.01 0.03
LOI 0.02 1.0
In December 2005, Lakefield Research carried out a grindability study using composite samples
of mini-bulk lots 10 and 11 from the west zone of the ore deposit. The grindability study included
JKTech drop-weight tests, Bond ball and rod mill grindability tests, Bond low energy impact tests,
Bond abrasion tests and autogenous mill circuit design simulations using JKSimMet. Two SMC
tests, which are abbreviated low cost drop-weight tests, were also carried out on two other lots to
estimate the ore hardness of other zones of the deposit. In addition, comparative work index
determinations were made on samples of gravity tails, cobber concentrate and cobber tails.
The JKSimMet results for the primary grinding circuit autogenous (AG) mill and the secondary
magnetite circuit ball mill are given in Table 16-7
November 2008
Bloom Lake Project 16-8
Technical Report
Table 16-7 : JKSimMet Simulation results for Autogenous and Ball Mill Circuits
November 2008
Bloom Lake Project 16-9
Technical Report
For the AG simulation, a 10.97 m (36’) diameter x 4.57 m (15’) long mill with an effective grinding
length of 43.46 (13.25’) was assumed. At a throughput rate of 1,700 t/h ore, the simulation
predicts an AG mill power requirement of 4.2 kWh/t for a screen size of 35 mesh. The total
installed power required is 8,952 kW (12,000 HP). The maximum throughput for this mill size,
assuming the same screen opening and a maximum mill charge of 30% by volume, is 2,100 t/h.
The power requirement is 3.8 kWh/t and the installed power is 10,071 kW (13500 HP).
Figure 16-4 shows a plot of the tabling and magnetic separation results of the 17 drill core
samples tested for Republic Steel Corporation in 1975-76. As can be seen from the plot, the
weight recovery for a head grade of 30% Sol Fe ranges from about 38% for gravity separation to
as high as 42% with magnetic separation. It should be noted that the drill core samples used
contained both low and high magnetite. However, the level of MgO and actinolite is not known.
Weight and total iron recoveries for recent gravity separation tests carried out on a Wilfley table
are plotted in Figure 16-5, along with Davis tube magnetic separation results on two (2) of the
eleven (11) mini-bulk lots. Once again, the weight recovery for a head grade of 30% Fe is about
38% for a gravity concentrate of 65-66.5% Fe and about 42% with magnetic separation. The iron
recovery from gravity separation alone is about 83%.
November 2008
Bloom Lake Project 16-10
Technical Report
Based on the results of the eleven (11) mini-bulk samples, the weight recovery versus head
grade relationship for a gravity concentrate of 65-66.5% Fe was established to be:
With the magnetic separation included, the overall weight recovery was estimated to be:
Y = 1.3788X
Both relationships were used in the geological block model and little difference was found in the
economic pit area. Therefore, it was decided that the relationship for gravity separation would be
used in the geological block model and adjustments would be made in the financial analysis to
take into account magnetite recovery. Furthermore, it was recommended that an additional
adjustment be made to take into account the effect of MgO in the feed on weight and iron
recoveries. It was assumed that in the worst case, any iron tied up with MgO in the form of
actinolite would not be recovered. It was determined that this effect would be well within our
experimental precision of ±10% and therefore would never be detected by our testwork. An
explanation of the recommended adjustments to the financial analysis is given below.
Based on the magnetic separation results of two (2) of the eleven (11) mini-bulk samples, it was
estimated that magnetite recovery would increase the overall weight recovery by about 3.2%.
For a head grade of 30% Fe, this would increase the weight recovery from 38.2% to 41.4%. Iron
November 2008
Bloom Lake Project 16-11
Technical Report
recovery would increase from 83% to 90.25%, assuming a magnetite concentrate grade of 68%
Fe (i.e. Fe recovery = ((1700*0.30*.83 + 1700*0.032*0.68)/(1700*0.3))*100%).
As mentioned above, any iron tied up with MgO in the form actinolite, potentially would not be
recovered.
In the 43-101 report from WGM, there is an explanation on the nature of the actinolite as well as
references to the mineralogical work done by Lakefield research. Actinolite grains from 16 drill
core samples from the CMQC drilling campaign were examined by X-Ray diffraction and
electron microprobe analysis. Lakefield confirmed the presence of actinolite in the iron formation.
The actinolite grains contained on average 21.3% MgO and 12.7% CaO and the composition
was quite uniform at plus or minus 10%.
Actinolite is a mixture of two perfectly miscible minerals called tremolite and ferro-actinolite.
Tremolite does not contain iron but ferro-actinolite contains 12.8% iron in the form of FeO. The
amount of iron that can potentially be lost depends on the relative proportions of the two
minerals. Based on the MgO content determined from previous testwork at Lakefield, it was
estimated that the Bloom Lake actinolite contains about 68% tremolite and 32% ferro-actinolite.
Table 16-8 shows that the Bloom Lake actinolite is estimated to contain 5.3% FeO or 4.12% Fe.
This means that for each 1% MgO in the ore, there is 0.194% Fe attached to it.
The Bloom Lake deposit is estimated to contain 2.2% MgO. Therefore, the iron recovery is
expected to be reduced by 0.43% (2.2*0.194%). At a concentrate grade of 65%, this translates to
a reduction in weight recovery of 0.66% (0.43/0.65). Such a small reduction of the weight
recovery is not detectable in our laboratory or piloting testwork.
The financial model is adjusted to take into account a credit for magnetite recovery as well as a
debit for the reduction in weight yield and iron recovery resulting from the loss to tailings of iron
tied up with MgO as actinolite.
where 0.194 is the ratio of Fe to MgO in actinolite, as mentioned in the previous section
November 2008
Bloom Lake Project 16-12
Technical Report
As recommended in the April 2006, 5 Mtpy feasibility study report, a drilling campaign was carried
out by Consolidated Thompson Iron Mines Ltd between November 2006 and January 2007 to
obtain drill core samples for metallurgical and grindability testwork. Thirty-two drill-core samples
for metallurgical testing and 32 drill-core samples for grindability testing were obtained from 12-
bore holes located in the west, central, northeast and southeast areas of the Bloom Lake pit. The
samples were collected at different depths.
The grindability tests confirm that a 36 x 19.8 ft autogenous mill is appropriate for processing
2156 tph of ore. The specific power consumption of the autogenous mill was estimated to be
3.82 kWh/t at the shell. The samples representing the Bloom Lake ore were characterized as soft
to very soft with the presence of some hard material. The SPI (The MinnovEX SAG Power Index)
profile of the Bloom Lake ore is very similar to other iron ores where the majority of the ore is soft,
but a small portion is hard enough to be used as grinding media in a fully autogenous mill. SPI is
the time (in minutes) required to grind a sample from 80% passing 1/2” to 80% passing 10 mesh.
SPI values are used to predict throughputs for SAG/AG mills and in the determination of power
requirements for such mills via the MinnovEX CEET program.
Metallurgical test work was carried out on 32 drill core samples from four areas of the Bloom Lake
pit at different depths. The test work included rougher gravity separation by Wilfley shaking table,
cleaner gravity separation by Mosely shaking table, magnetic separation by Davis tube on
selected Wilfley rougher tails, and Jeffrey cobbing followed by Davis tube cleaning on other
selected Wilfley rougher tail samples.
The gravity separation test results are summarized in Table 16-9. For most samples, the
results of the rougher stage are reported, as the grades and recoveries are high and no
further processing is necessary. In the cases where the silica contents of the rougher
concentrates were about 5% or higher, the results of either the cleaner concentrate or
cleaner concentrate plus middlings are reported, depending on which had better recoveries
while achieving concentrate silica contents of less than 5%. The average composition of the
drill cores tested is 29.8% Fe, 1.94% MgO, and 10.3% Fe3O4, which is similar to the average
ore composition used in the feasibility study carried out in 20061. The average drill core
concentrate composition was 67.7% Fe, 2.76% SiO2, 0.26% MgO, and 25% Fe3O4, while the
average weight and Fe recoveries were 38.8 and 88.3%, respectively.
The concentrate grades and Fe recoveries achieved in these tests were significantly better
than those achieved in the metallurgical tests carried on mini-bulk surface samples in 2005
and 2006. The average concentrate grade and Fe recovery for the mini-bulk samples were
about 65% and 83%, respectively. The average weight recovery was slightly higher than the
38% achieved with the mini-bulk samples tested in 2005 and 2006. In both series of tests,
the ore samples were ground to -35 mesh. The drill core results seem to suggest that the Fe
was well liberated in most cases and may not have required such a fine grind as in the
1
BBA, 5 Mtpy Feasibility Study – Bloom Lake Iron Ore Project, Revision 0, project no. 5743002, May
2006
November 2008
Bloom Lake Project 16-13
Technical Report
earlier tests carried out in 2005 and 20062. The main differences between the two series of
tests are that the mini-bulk samples were surface samples and were taken mainly from the
northeast and west sections of the pit, whereas the drill cores samples were taken in all
areas of the pit and at different depths.
Figure 16.6 shows the weight and iron recoveries as a function iron head grade. Based on
the test results, the weight recovery versus head grade relationship is as follows:
WtR = 1.3015*X
X = Head grade, % Fe
For an average Fe content of 30%, the weight recovery is 39%. The iron recovery is 88.3%
This is better than the mini bulk sample test work which gave a weight recovery of 38.2%
and an iron unit recovery of 83 % for a feed grade of 30%.
2
SGS Lakefield Research Limited, An Investigation into The Beneficiation of Iron Ore Samples from the
Bloom Lake Property, prepared for Watts, Griffis and McOuat on behalf of Consolidated Thompson
Lundmark Gold Mines Ltd., February 23, 2006.
November 2008
Bloom Lake Project 16-14
Technical Report
November 2008
Bloom Lake Project 16-15
Technical Report
110
100
Average Head Grade = 29.8% Fe, 1.94% MgO, 10.3% Fe3O4
90
Average Conc. Comp. y = 0.2498x + 80.875
2
80 % Fe - 67.7 R = 0.083
% SiO2 - 2.8
Wt and Fe recovery %
70 % MgO - 0.26
% Fe3O4 - 25
60
50
y = 1.3015x
2
R = 0.8386
40
30
20
10
0
0 5 10 15 20 25 30 35 40 45 50
Head Grade, % Fe
Head grade vs Fe recovery Head grade vs wt recovery overall Fe recovery (incluing mag sep)
overall wt recovery (incluing Mag sep) Linear (Head grade vs wt recovery) Linear (Head grade vs Fe recovery)
November 2008
Bloom Lake Project 16-16
Technical Report
Magnetic separation results are also shown in Figure 16.6 and will be discussed in
section 16.3.1.2.2.
Figure 16-7 shows the weight recovery relationships by pit area. As can be seen, the
weight recoveries are essentially the same in all areas of the pit.
70
60
y = 1.3028x
2 y = 1.3146x
R = 0.6811 2
R = 0.9038
50
y = 1.3073x
Wt Recovery (%)
2
R = 0.7498
40
y = 1.2734x
30 2
R = 0.5398
20
10
0
0 5 10 15 20 25 30 35 40 45 50
Head Grade (%Fe)
Figure 16-7: Weight recovery versus head grade for the four different areas of the Bloom
Lake pit
November 2008
Bloom Lake Project 16-17
Technical Report
Figure 5 shows MgO rejection by gravity separation as a function of MgO in the head
samples.
100
90
MgO rejection (%)
80
70
60
50
0 1 2 3 4 5 6
% MgO (head)
For an average MgO content of 2% in the ore, the rejection of MgO to the gravity tailings
is about 94%, which is in line with previous testwork. Thus rejection of over 90% of the
actinolite during gravity separation is confirmed for all areas of the orebody.
November 2008
Bloom Lake Project 16-18
Technical Report
Figure 16-9 shows the relationship between magnetite in the head samples versus the
deportment of magnetite to the gravity tails.
90
80
70
60
Magnetite to Tails, %dist
50
40
30
y = 26.928x-0.2036
20 R2 = 0.2636
10
0
0 5 10 15 20 25 30 35 40 45
Magnetite in Ore, %
Magnetite in feed vs magnetite to tails Magnetite in feed vs magnetite to tails (composites) Power (Magnetite in feed vs magnetite to tails)
As can be seen from the graph, the deportment of magnetite to the gravity tails is about 15%
for an ore magnetite content of 5% or greater.
November 2008
Bloom Lake Project 16-19
Technical Report
Figure 16-10 shows the relationship between magnetite in the ore and magnetite in gravity
tails.
18
17
16
15
14
13
Magnetite in Gravity Tails, %
12
11
10
y = 0.263x
9 2
R = 0.7939
8
7
6
5
4
3
2
1
0
0 5 10 15 20 25 30 35 40 45
Magnetite in Tails, %
For an average ore magnetite content of 10%, the magnetite concentration in gravity tails
would be about 2.5%.
Additional Davis tube tests carried out on the cobbing concentrates of samples 3083 and
3100, showed that in order to obtain concentrate silica levels of about 3% or less, the
cobbing concentrate would have to be ground to 53 microns (270 mesh) or finer. This is in
line with previous testwork.
November 2008
Bloom Lake Project 16-20
Technical Report
10
8
y = -0.3004x + 7.0354
2
7 R = 0.3944
% SiO2 in Conc.
6
3
Comp B
2
Comp A
1
0
0 2 4 6 8 10 12 14 16 18 20
% Fe3O4 in Feed
Figure 16-11: Concentrate silica content versus magnetite in gravity rougher tails
90
80
70
% Fe3O4 Recovery in Cobbing Stage
60
50
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10
% Fe3O4 in Rougher Tails
Magnetite in rougher tails vs magnetite recovery in cobbing stage Log. (Magnetite in rougher tails vs magnetite recovery in cobbing stage)
November 2008
Bloom Lake Project 16-21
Technical Report
Based on the recent metallurgical test work on drill core samples, there is sufficient information to
estimate the overall weight and iron recoveries for an average Bloom Lake ore composition of
30% Fe, 1.94% MgO, and 10% Fe3O4. Based on test data, the assumptions used to estimate
overall recoveries for an average Bloom Lake ore are shown in the following table.
Table 16-10: Assumptions to Estimate Overall Recoveries for an Average Bloom Lake Ore
LIMS – Davis 25 97 77
Tube
The average overall weight and iron recoveries were estimated to be 40% and 90.8%,
respectively. Magnetic separation would provide an average additional weight and iron recovery
of 1% and 2.2%, respectively. Therefore, the magnetite concentrate would account for about
2.5% of the total concentrate produced. This is equivalent to the overall weight recovery of 41.4%
and iron unit recovery of 90.3% measured on the minibulk samples. The lower weight recovery is
due to a better average grade acheived on the drill core samples. The average silica level was
2.7 % for the drill core concentrates versus 4.5% for the mini bulk concentrates.
The metallurgical tests confirmed the overall Fe recovery for the Bloom Lake project at 90.8% for
gravity and magnetic separation combined. The average concentrate grade and Fe recovery for
gravity separation was also significantly better than for the previous mini-bulk samples tested.
The average concentrate grade and Fe recovery were 67.8% and 88.3%, respectively.
The relatively high grade and Fe recovery for gravity separation suggests that the ore is well
liberated at 35 mesh throughout the ore body and that it may be possible to perform gravity
separation at a coarser grind.
Due to the high Fe recoveries achieved in the gravity separation tests, only about 15% of the
magnetite in the ore samples reported to the gravity tails. Assuming this is representative of the
Bloom Lake pit, magnetic separation of gravity tails would provide additional weight and iron
recoveries of 1% and 2.2%, respectively.
The weight recoveries in all four areas of the ore body tested is essentially the same as shown in
Figure 16-7. Thus the 35 mesh grind size is appropriate for all zones and ore depth.
November 2008
Bloom Lake Project 16-22
Technical Report
MgO reduction of 90% and over was confirmed for all zones and depth of the ore body. This
clearly shows that the actinolite is rejected with the silica during the gravity concentration process
and does not pose any operating problems for the Bloom Lake concentrator.
November 2008
Bloom Lake Project 17-1
Technical Report
17.1 General
As part of the 1998 exploration program, WGM prepared a “mineral resource” estimate for the
Bloom Lake iron deposit. WGM produced cross sections, level plans and block models for
geology and selected elements and used this model to determine the tonnage and grade of the
deposit at various cut-off grades. For the purposes of its May 2005 report WGM reviewed the
1998 estimate and determined that it was prepared in a manner that was compliant with NI 43-
101, which came into effect in 2002. The remainder of this Section 17, up to Section 17.9 is taken
with minor editing from the WGM Technical Report filed on SEDAR on May 2005.
All pertinent Log II data were converted into Gemcom Software International Inc. ("Gemcom")
format for the estimation procedure. The imported assay data were checked with hard copies
received from the lab and the database was validated within Gemcom to search for errors such
as missing or overlapping intervals, correct hole lengths, azimuths and dips, duplicate samples,
etc. Over the course of the project, meetings and discussions were held with QCM personnel
regarding important elements of the new database and parameters and methodology to be used
for the estimation.
WGM used the previous and new geological data, in conjunction with agreed upon cut-offs and
parameters, to outline the lithology and mineralized zones on sections. The interpretations on the
sections were then transferred to level plans where the final interpretations and refinements were
completed. The block model grades (Total Fe%, Fe3O4%, CaO%, MgO%) were interpolated into
these outlines using an inverse distance squared ("IVD2") method and weighting these by
specific gravity ("SG"). WGM produced an interim tonnage and grade after the Phase I/II drilling
program, and a final block model estimation was completed after Phase III drilling was finished.
The final density model was created by using the actual SGs supplied by Lakefield, or the
calculated SGs, based on the Fe% grades, in the case of the historic sample intervals. Mean SGs
were used for the other geological units.
The Bloom Lake deposit is a complexly folded and metamorphosed sedimentary OIF (see Table
9-1) with abundant intercalated layers and bands of SIF, QRIF, QR, MS and AMP. The OIF
above 15% Total Fe represents the potential economic mineralization, and the remaining lithologies
are considered waste material and were subdivided where possible. While WGM believes that the
Soluble Fe% content in the QC and 71/72 series holes is probably slightly underestimated related
to Total Fe%, no correction has been made to these previous holes to adjust them to a Total Fe%
value (Section 14 – Data Validation). For the digitizing of the geological boundaries and the grade
interpolations, Soluble Fe% and Total Fe% were considered to be equivalent.
Digital topographic data were imported into Gemcom (dxf format) from information supplied by
QCM and data collected by WGM from various sources. A triangulated surface was constructed
from these data and used as the base map for subsequent work.
Cross sections at 100 to 150 m spacing were generated across the strike of the deposit (Figure
11.1). The sections included the intersection of the topographic surface and drillhole traces with
geological codes (Section 9.1) and both Total Fe% and Mag Fe%. The geological interpretations
were drawn on the plotted sections and subsequently digitized, attempting to connect any
continuous units from section to section (Figure 7.5 and 7.6).
November 2008
Bloom Lake Project 17-2
Technical Report
A surface plan was created from the old and new mapping and was used in the projection of the
units to surface. Since the sections were at various orientations, the folding complex in some
areas and numerous discontinuous or isolated waste bands are present, it was very difficult to
build a true 3-D model by correlating every individual band or unit across sections.
The sectional information was transferred to level plans that were generated at 15 m intervals. A
more detailed geological interpretation was prepared on these level plans and the final level
geology was used to build the lithological block model. This was done by projecting each level
outline half-way to the adjacent levels to make solids (or slices) of each defined unit in order to
update the block model matrix. Any narrow or discontinuous bands within the OIF that could not
be considered mineable units (i.e., approximately 6 m or less horizontal width) were included as
internal waste.
Figure 17-1 shows the detailed geological interpretation and resulting lithological block model on
Level Plan 647.5 m, which has been chosen as a representative level.
WGM therefore established controls on the deposit by digitizing an envelope around the OIF at a
cut-off grade of 15% Total Fe, based on the nominal 6 m crude assay intervals. These
constraining envelopes would prevent grades from being smeared along the search directions
and would approximate the actual geological and possible mining controls of the deposit.
17.3 Compositing
The compositing was done within all the lithological units, however, only the OIF units were of
interest for this exercise. Fixed length (6 m) composites were produced starting from the upper
boundary of each of the units. Each composite was flagged with the rock code within that
particular outline. At the base of each unit, the last composite may not be the full 6 m fixed length.
In order for the composite to be flagged as OIF for the grade interpolation, it had to be at least
40% of the fixed length (i.e., 2.4 m).
Total Fe%, Fe3O4%, CaO%, MgO% and SG were composited using this method over the
assayed intervals and were used to build the block model. Only the composites defined as OIF
were used for the grade interpolation within the previously defined Mineral Resource boundaries.
Other elements of interest, if the project progresses further, could also be composited and used in
the block model, as the Mineral Resource intervals are already calculated.
November 2008
Bloom Lake Project 17-3
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 17-4
Technical Report
Using this method of compositing, only the narrow, <6 m horizontal width or isolated bands of QR,
SIF or amphibolite are incorporated into the model as internal dilution. The grades produced for this
model represent an in situ Mineral Resource and do not take into account any external mining
dilution or mining recoveries. Bench compositing would more closely reflect actual mining units and
grade distribution, especially at the upper and lower contacts of the deposit.
The block model was created using Gemcom's PC-Mine and Gem4 Win programs and was used to
estimate tonnes and grade. The block model size at Bloom Lake is set at 10 x 10 x 14 meters in the
(x,y,z) directions, respectively.
The level plan solids generated previously were used to build a 3-D lithological model, and codes
identifying the rock types were assigned to each block that fell within the solids model. For OIF, 40%
or more of the block had to be included in the solids to be identified as OIF, and for waste, 50% or
more of the block had to be included. This model was used as the boundaries for the grade
interpolations, however, grades were only interpolated into the OIF units.
Block sizes used were the same as those used at the Mont-Wright Mine since the deposits are
similar in nature.
Statistics were calculated for the core samples for each rock type and are summarized in Table 9.2.
A histogram, a cumulative frequency plot and a probability plot (Figures 17.2 to 17.4) for Total Fe%,
were produced using the 6 m fixed length composites for the oxide iron formation. The histogram
shows a robust normal distribution (what one would expect from an iron ore deposit), therefore an
inverse distance squared ("IVD2") search appears to be appropriate.
Both the frequency and probability plots indicate that no cutting of high grade Total Fe% values is
necessary. There are few high-grade outliers, which will have negligible effects on the overall grade
distribution of the deposit after interpolation. These values are from composites and WGM believes
that they represent real high-grade areas and should not be reduced. Histograms were also
produced for Magnetite%, CaO% and MgO% for the 6 m composites (Figures 17.5 to 17.7).
Variograms were also constructed and were used for the search ellipse parameters.
The 6 m composite grades calculated within the Mineral Resource zones (based on the previously
stated compositing and identification procedures) were used for interpolation into the grade block
model. Only values with a matching zone designation of OIF were used in the Mineral Resource
block model creation. This avoids the transfer of assay values between unspecified or waste zones
and reduces the smearing effect inherent in block modelling when no such restrictions are imposed.
November 2008
Bloom Lake Project 17-5
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 17-6
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 17-7
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 17-8
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 17-9
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 17-10
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 17-11
Technical Report
The parameters for the grade modelling in the zones were as follows:
Composite Length: 6m
Minimum Samples per Block: 2
Maximum Samples per Block: 12
Maximum Samples per hole: 8
Figures 17.8 to 17.11 show level plans of the interpolated grade blocks for the four elements at
elevation 647.5 m, the same location as the plan showing the geological interpretations and block
lithological model.
A density model was created using PC-Mine and Gem4Win software. The 71/72 and QC series of
drillholes did not have SGs for the assayed intervals. WGM calculated a SG for each interval for the
old holes by using the formula derived from the relationship of SG to total iron content in the new drilling.
While there were a few samples with an abnormally high SG, it was recognized that these samples
had a negligible effect on the overall density model, however, WGM elected to recalculate (using the
formula) any SG over 4.0 for any samples below 50% Fe in the new holes.
November 2008
Bloom Lake Project 17-12
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 17-13
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 17-14
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 17-15
Technical Report
Graphics by WGM
November 2008
Bloom Lake Project 17-16
Technical Report
The calculated and Lakefield SGs were composited using the methodology described above and
these 6 m intervals were used in the IVD2 interpolation for the density model for the OIF. WGM
used average SGs for the remaining geological units as the database was not as complete for the
waste rock.
When the Mineral Resource estimate was prepared in 1998, NI 43-101 had not yet been
implemented. There were, however, draft Mineral Resource and Reserve definitions being
reviewed by regulators at that time and these draft definitions were used by WGM to classify the
Bloom Lake Mineral Resource.
For the purposes of May 2005 report, WGM reviewed its 1998 estimation procedures and
reclassified the Mineral Resource estimate using NI 43-101 guidelines and CIM Standards. The
definitions in effect in May 2005 (they were amended slightly in December 2005) for the CIM
Standards were as follows:
An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or
quality can be estimated on the basis of geological evidence and limited sampling and reasonably
assumed, but not verified, geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drillholes.
An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape and physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic parameters, to support
mine planning and evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration and testing information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drillholes that are spaced closely
enough for geological and grade continuity to be reasonably assumed.
A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape, physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of technical and
economic parameters, to support production planning and evaluation of the economic viability of
the deposit. The estimate is based on detailed and reliable exploration, sampling and testing
information gathered through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drillholes that are spaced closely enough to confirm both geological and grade
continuity.
November 2008
Bloom Lake Project 17-17
Technical Report
The Bloom Lake Mineral Resource classifications are based on drillhole and surface sample
density and confidence in mineralization continuity. Drillhole spacing is nominally at 150 m on and
between sections. A 15% Fe cut-off was used and was based on that employed at operating mines
in the Labrador Trough exploiting deposits similar to Bloom Lake.
Measured Resources are defined as OIF mineralization no greater than 75 m from drillhole
intersections within the interpreted geological boundaries.
Indicated Resources are defined as OIF mineralization between 75 m and 150 m from drillhole
intersections. This mineralization is the deeper OIF and represents larger drillhole spacing and
less confidence in the geological interpretation.
Inferred Resources are defined as OIF mineralization between 150 m and 400 m from drillhole
intersections. This mineralization only occurs on the fringes of the deposit and represents a very
minor amount (about 5%) of the OIF.
Table 17-1 summarizes the results for the final block model Mineral Resource estimation. The
Measured plus Indicated block model Resources at Bloom Lake using a 15% Fe cut-off and an
IVD2 grade interpolation technique total 638 million tonnes grading 29.76% Total Fe and 10.54%
Magnetite.
Table 17-1 : Total InSitu Mineral Resources at a cutoff grade of 15% Total Fe
Resource Volume Tonnage Average Grades
Category bcm* x 1,000 (kt) Total Fe% Magnetite% CaO% MgO%
Measured 141,350 488,465 29.91 10.54 2.32 2.18
Indicated 43,372 149,232 29.29 10.55 2.37 2.15
Total Meas. 184,722 637,697 29.76 10.54 2.33 2.17
Indicated
Inferred 10,322 35,697 30.97 8.47 0.84 0.82
November 2008
Bloom Lake Project 18-1
Technical Report
Pit optimization and pit design were carried out to convert the Mineral Resources into Mineral
Reserves for the deposit.
The original resource model was prepared by Watts, Griffis and McOuat Limited (WGM) in its
Technical Report filed on SEDAR in May 2005. Geostat System International (“Geostat”)
reviewed the WGM original Mineral Resource modeling in January 2006 and concluded that the
Mineral Resource compilation for the Measured and Indicated categories using similar
classification parameters is within 1% of the estimate by WGM based on a cut-off grade of 15%
Fe. BBA has accepted the WGM original Mineral Resource estimate and has created a formula-
based weight recovery model in preparation for open-pit optimization. The weight recovery
formula was developed by BBA and details are presented in Section “Mineral Processing and
Metallurgical Testing” in this Technical Report (Section 16).
In accordance with the regulations governing the preparation of an NI 43-101 report, the pit
optimization has used only ore blocks classified in the measured and indicated categories to
generate revenue. Other mineralized blocks containing inferred resource bear no economic
value, regardless of grade and weight recovery and are treated as waste rock, unless proven
otherwise by additional geological work.
The pit optimization exercise was based on economic parameters derived from an internal
cost model prepared by BBA. A summary of all the LG 3D optimization parameters is
presented in Table 18.1.
November 2008
Bloom Lake Project 18-2
Technical Report
Operating Cost
Mining (ore and waste) 3.03 US$/t rom
Crushing and Processing 1.57 US$/t rom
Transport and Port 3.56 US$/t rom
G/A 0.46 US$/t rom
Others - US$/t rom
Incremental Cost per Bench -
Metallurgy
Weight Recovery As per Block Model %
Pit Parameters
Overall Pit Slope 50o
The economic cut-off grade is used to determine the material inside the pit design as ore or
waste. The economic cut-off grade is based on metallurgical weight recovery or concentrate
yield to cover beneficiation and administration costs.
The cut-off grade for the Bloom Lake project was determined using the data presented in
Table 18.2.
November 2008
Bloom Lake Project 18-3
Technical Report
The detailed pit design work was carried out based on the optimum pit outline obtained from
the LG 3D described above. Detailed mine design has taken into account the following
parameters:
• Haul road gradient, width and location
All in-pit ramps will be 35 m wide to accommodate 240-ton class off-highway dump trucks.
This ramp width is sufficient to support the two-way traffic system required to maintain an
uninterrupted haulage cycle. Based on hauling experience from other mines operating under
similar freezing conditions in winter, the maximum recommended ramp gradient will be 8%
for all mine roads. Temporary ramps will be used in the early years of mine operations to
shorten haulage distances to the primary crushers or to the waste dump. As the pit gets
deeper over the years, a final ramp will be used to access the lower ore.
• Geotechnical pit slope
Due to limited available geotechnical strength data, an overall slope angle of 50o and a face
angle of 70o have been used for the detailed pit design based on experience from similar iron
ore operations in the Labrador – Mont Wright area. Double-benching is also adopted for the
pit arrangement as per operating iron ore mines in the area. Further analysis on pit slope
stability in the hanging-wall will be undertaken to determine whether this is the optimal
configuration with respect to rock structures and properties.
The general layout of the detailed mine design is shown in Figure 18-1. As can be seen in
this drawing, the Bloom Lake ultimate pit design is divided into 2 areas: the West pit and the
Main Pit. Three typical cross-sections, showing the pit profiles and the ore blocks are
presented in Figures 18-2, 18-3 and 18-4.
November 2008
Bloom Lake Project 18-4
Technical Report
November 2008
Bloom Lake Project 18-5
Technical Report
November 2008
Bloom Lake Project 18-6
Technical Report
November 2008
Bloom Lake Project 18-7
Technical Report
November 2008
Bloom Lake Project 18-8
Technical Report
Based on the economic input parameters described in the sections above, the mineral
reserves have been determined and classified in the Proven and Probable categories in
accordance with the criteria of the Canadian National Instrument 43-101 (“CNI 43-101”) for
Standards of Disclosure of Mineral Project of February 2001 and the classifications adopted
by the CIM Council in August 2000 as follows:
A “Probable Mineral Reserve” is the economically mineable part of an Indicated, and in some
circumstances a Measured Mineral Resource demonstrated by at least a Preliminary
Feasibility Study. This study must include adequate information on mining, processing,
metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting,
that economic extraction can be justified.
Table 18-3 provides a summary of the mine-life mineral reserves for the Bloom Lake Iron
Ore Project using a cut-off of 15% Fe.
(*)
For hematite ONLY in block model
Figures may vary slightly due to rounding effects and the number of decimal points used.
The mineral reserve contained in the detailed pit design amount to 463.4 million tonnes of
proven category and 116.2 million tonnes of probable category for a total combined of 579.6
million tonnes at a grade of 30.0% Fe based on a cut-off of 15%. The stripping estimate
(including inferred material) is 563.8 million tonnes for an overall mine-life stripping ratio of
0.97 tonne of waste per tonne of ore.
November 2008
Bloom Lake Project 18-9
Technical Report
The Bloom Lake iron ore deposit will be mined using conventional open pit mining methods
based on a truck/shovel operation. Following drilling and blasting, run-of-mine (ROM) ore will
be delivered to primary crusher located approximately 1000 m to the north-east of pit edge at
about 680 m elevation. The mining equipment will be leased, operated and maintained by
the personnel of Bloom Lake.
For the current expansion study, the mine will be developed to support a nominal capacity of
8-million tonnes of concentrate per annum. Based on the results of the metallurgical testing
and the geological block modeling work, the average calculated weight recovery is 38% in
hematite and 41% with the magnetite recovery plant, equivalent to a concentration ratio of
2.63 tonnes of ROM per tonne of concentrate in the hematite and 2.43 with the magnetite
recovery.
18.1.3.3 Blending
According to the production schedule, the magnetite recovery plant will be built in year 3
following additional test work and will begin operation in 2011 with a production target in
2012. As described in the section on Geology, the Bloom Lake deposit is divided into 2
areas, each with the distinctive geological and quality features as follows:
• The West Pit contains mainly hematite material with a low MgO% and CaO% content
(under 0.03% on average);
• The Main Pit is characterized by up to 10% magnetite in the ore together with higher
MgO% and CaO% contained in the actinolite material.
Considering these conditions, selective mining and blending of material from both pit areas
will be carried out in order to:
• Mine only hematite ore in the first year of operation with magnetite ore in the
subsequent years following the commissioning of the magnetite plant;
• Maintain the MgO and CaO levels under 4.5% in the feed and 0.3% in the
concentrate;
• Ensure that concentrate produced contains less than 4.5% SiO2;
• Optimize the use of high weight recovery ore to maximize the concentration ratio for
project net present value optimization;
• Feed the mill with constant ore hardness for a stable process plant operation.
As the top of the orebody is near to the surface, little pre-production stripping will be required
in preparation for mining. However, sufficient waste rock will be mined during the pre-
production period to build the tailings dam, ROM pad and other general construction work
such as site access roads.
November 2008
Bloom Lake Project 18-10
Technical Report
Generally, the most easily accessible areas of the deposit will be scheduled for development
in the initial years as this will maximize cash flow. However, some less easily accessible
areas may be mined in the initial phase at a slightly higher unit cost to meet blending
requirements. Pit staging using pushback technique will be used as more stripping work
needs to be done with the deepening of the pit in the northeast side. As a general rule, waste
stripping in each mine phase or pushback should be kept relatively constant with respect to
mine fleet requirements due to increasing hauling distance and pit depth.
For blending purposes, it is likely that three to four production faces will be developed in ore
at any one time on 2 to 3 benches. A 20-year mine production has been prepared on an
annual basis in the first 5 years and by 5-year increments in the subsequent years. The
average total combined ore and waste movement is fairly constant, at approximately
30-31-million tonnes per annum during the first 5 years of operation.
Table 18-4 summarizes the 20-year mine production plan for the development of the Bloom
Lake Project.
For reference purposes, pit layouts at the end of years 1, 2, 3, 4, 5, 10, 15 and 20 extracted
from the April 2006 Feasibility Study are shown in Figures 18-5 to 18-12.
November 2008
Bloom Lake Project 18-11
Technical Report
Stripping
Proven Reserve Probable Reserve Total ROM Concentrate Inferred Waste Total S.R.
Year (kt) Tfe FWR MagFe CaO MgO Mag (kt) Tfe FWR MagFe CaO MgO Mag (kt) Tfe WR MagFe CaO MgO Mag AFWR (2) (kt) (kt) (kt) (kt) (t/t)
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
Pre-Prod 9 000 -
3 months 14 116 32.42 39.65 2.24 0.17 0.32 3.10 5 184 32.34 39.55 5.42 1.25 1.36 7.48 4 825 32.40 39.62 3.09 0.46 0.60 4.28 41.50 2 002 61.56 2 158 2 220 0.46
1 (1) 14 116 32.42 39.65 2.24 0.17 0.32 3.10 5 184 32.34 39.55 5.42 1.25 1.36 7.48 19 300 32.40 39.62 3.09 0.46 0.60 4.28 41.50 8 010 246.19 8 632 8 878 0.46
2 12 789 31.93 40.84 6.80 0.68 1.09 9.40 6 511 30.86 39.38 10.57 1.90 2.22 14.62 19 300 31.57 40.34 8.07 1.09 1.47 11.16 41.50 8 010 413.23 10 588 11 001 0.57
3 15 536 31.27 39.60 6.63 1.45 1.74 9.17 3 764 30.30 38.51 9.17 2.26 2.48 12.67 19 300 31.08 39.39 7.13 1.61 1.88 9.85 42.48 8 199 34.22 10 774 10 808 0.56
4 17 181 30.56 38.78 8.98 1.91 1.99 12.41 2 119 29.47 37.19 8.09 2.18 2.26 11.18 19 300 30.44 38.60 8.88 1.94 2.02 12.27 41.58 8 025 5.18 11 575 11 580 0.60
5 17 315 30.56 38.82 9.34 1.89 1.96 12.91 1 985 29.38 37.06 8.49 2.06 2.14 11.73 19 300 30.44 38.64 9.25 1.91 1.98 12.79 41.58 8 026 5.86 11 574 11 580 0.60
6-10 86 096 30.50 38.73 8.37 1.67 1.81 11.58 10 799 29.11 36.39 6.92 2.19 2.31 9.55 96 895 30.34 38.47 8.21 1.73 1.87 11.35 41.47 40 183 29.75 85 277 85 307 0.88
6 17 315 30.56 38.82 9.34 1.89 1.96 12.91 1 985 29.38 37.06 8.49 2.06 2.14 11.73 19 300 30.44 38.64 9.25 1.91 1.98 12.79 41.58 8 026 5.86 14 662 14 668 0.76
7 17 210 30.65 38.98 8.71 1.65 1.81 12.05 2 090 29.14 36.70 7.21 2.18 2.34 9.95 19 300 30.48 38.73 8.55 1.71 1.87 11.82 41.67 8 042 4.25 16 208 16 212 0.84
8 17 142 30.70 39.08 8.31 1.50 1.72 11.49 2 158 29.00 36.49 6.45 2.25 2.45 8.91 19 300 30.51 38.79 8.10 1.58 1.80 11.20 41.72 8 051 3.22 16 981 16 984 0.88
9 17 142 30.70 39.08 8.31 1.50 1.72 11.49 2 158 29.00 36.49 6.45 2.25 2.45 8.91 19 300 30.51 38.79 8.10 1.58 1.80 11.20 41.72 8 051 3.22 18 139 18 142 0.94
10 17 287 29.88 37.70 7.20 1.80 1.85 9.95 2 408 29.00 35.20 5.98 2.23 2.16 8.27 19 695 29.77 37.40 7.05 1.86 1.88 9.74 40.68 8 012 13.20 19 288 19 301 0.98
11-15 87 561 28.77 35.41 6.73 2.36 2.11 8.84 14 269 28.44 33.32 6.35 2.38 1.99 8.78 101 830 28.91 35.35 6.70 2.37 2.10 8.88 39.45 40 173 128.40 82 571 82 700 0.81
11 17 664 27.63 34.42 5.48 2.17 1.98 7.56 2 786 29.01 33.79 5.47 2.21 1.84 7.56 20 450 28.79 35.54 5.64 2.22 2.00 7.80 39.30 8 037 26.50 17 356 17 383 0.85
12 17 664 28.75 35.82 5.67 2.22 2.02 7.84 2 786 29.01 33.79 5.47 2.21 1.84 7.56 20 450 28.79 35.54 5.64 2.22 2.00 7.80 39.30 8 037 26.50 16 742 16 769 0.82
13 17 664 28.75 35.82 5.67 2.22 2.02 7.84 2 786 29.01 33.79 5.47 2.21 1.84 7.56 20 450 28.79 35.54 5.64 2.22 2.00 7.80 39.30 8 037 26.50 16 947 16 974 0.83
14 17 293 29.34 35.50 8.34 2.59 2.27 10.42 2 952 27.62 32.64 7.62 2.63 2.20 10.54 20 245 29.09 35.08 8.24 2.59 2.26 10.44 39.67 8 031 25.32 15 968 15 994 0.79
15 17 276 29.36 35.48 8.46 2.61 2.28 10.53 2 959 27.56 32.59 7.71 2.64 2.21 10.66 20 235 29.10 35.06 8.35 2.61 2.27 10.55 39.68 8 030 23.56 15 557 15 581 0.77
16-20 86 364 29.36 35.48 8.46 2.61 2.28 10.53 14 791 27.56 32.59 7.71 2.64 2.21 10.66 101 155 29.10 34.49 8.22 2.57 2.23 10.38 39.69 40 150 117.81 109 067 109 185 1.08
16 17 276 29.36 35.48 8.46 2.61 2.28 10.53 2 959 27.56 32.59 7.71 2.64 2.21 10.66 20 235 29.10 35.06 8.35 2.61 2.27 10.55 39.68 8 030 23.56 21 830 21 854 1.08
17 17 259 29.36 35.48 8.46 2.61 2.28 10.53 2 956 27.56 32.59 7.71 2.64 2.21 10.66 20 215 29.10 32.21 7.68 2.40 2.08 9.68 39.72 8 029 23.56 22 213 22 237 1.10
18 17 276 29.36 35.48 8.46 2.61 2.28 10.53 2 959 27.56 32.59 7.71 2.64 2.21 10.66 20 235 29.10 35.06 8.35 2.61 2.27 10.55 39.68 8 030 23.56 22 437 22 461 1.11
19 17 276 29.36 35.48 8.46 2.61 2.28 10.53 2 959 27.56 32.59 7.71 2.64 2.21 10.66 20 235 29.10 35.06 8.35 2.61 2.27 10.55 39.68 8 030 23.56 21 426 21 449 1.06
20 17 276 29.36 35.48 8.46 2.61 2.28 10.53 2 959 27.56 32.59 7.71 2.64 2.21 10.66 20 235 29.10 35.06 8.35 2.61 2.27 10.55 39.68 8 030 23.56 21 161 21 185 1.05
Total 336 958 29.99 37.29 7.59 1.96 1.91 10.09 59 422 28.89 35.16 7.33 2.29 2.15 10.13 396 380 29.88 36.91 7.60 2.02 1.95 10.17 40.56 160 774 980.64 330 058 331 038 0.84
(1)
Magnetite Recovery Plant Commissioned by the middle of Year 3
(2)
AFWR: Adjusted Formula Weight Recovery for MgO% content (see details in FS Report)
November 2008
Bloom Lake Project 18-12
Technical Report
November 2008
Bloom Lake Project 18-13
Technical Report
November 2008
Bloom Lake Project 18-14
Technical Report
November 2008
Bloom Lake Project 18-15
Technical Report
November 2008
Bloom Lake Project 18-16
Technical Report
November 2008
Bloom Lake Project 18-17
Technical Report
November 2008
Bloom Lake Project 18-18
Technical Report
November 2008
Bloom Lake Project 18-19
Technical Report
November 2008
Bloom Lake Project 18-20
Technical Report
During the construction period, a quantity of waste equivalent to 1.35 million bank cubic
meters (bcm) of backfill material will be required for site construction, tailings dam and
access roads. Two waste dumps will be built in the early years of pre-production stripping to
prevent water from surrounding two lakes from flowing into the pit. These dumps will be
located at:
The main waste disposal dump will be constructed North of Bloom Lake pit and West of
Mazare Lake. The total waste dump capacity has been estimated at 204.3 million bcm from
563.8 million tonnes of waste rock using an average swell factor of 25% with compaction.
The waste dump can be elevated several meters on the north-western side for additional
capacity if needed.The waste dump capacity has been estimated using a swell factor of
30%.
The selection of the mine equipment for the Bloom Lake mine is made using the following criteria:
• The main loading equipment is the hydraulic shovel with a lifting capacity of 64 tonnes
per bucket (ONK 340).
• The equipment fleet must have a minimum of one (1) front end loader having a lifting
capacity of 45 tonnes per bucket (Letourneau Model L-1850 or similar), as a
supplementary production loading equipment. The flexibility of the loader with its fast
response time in replacing a shovel or for a particular blending requirement, justifies its
use;
• The drills are electric with a capacity to drill 15” diameter blast hole with high pull down
pressure (P&H 120-A or similar);
November 2008
Bloom Lake Project 18-21
Technical Report
The major mine equipment will be leased and operated and maintained by the owner’s personnel.
Average hauling distances and lifts for ROM and waste to primary crusher to dumps respectively
are presented in Table 18-5.
November 2008
Bloom Lake Project 18-22
Technical Report
ROM
Bench 760-705 746-705 732-704 732-704 718-705 704-705 676-705 662-705
Grade
Level 305 460 395 395 489 541 388 570
Uphill 8% 350 525
Downhill 8% 700 525 350 350 175
Downhill 1% 1801 1801 1801 1801 1801 1801 1801 1801
Flat 300 300 300 300 300 300 300 300
Primary Crusher 200 200 200 200 200 200 200 200
November 2008
Bloom Lake Project 18-23
Technical Report
The following service equipment was selected to carry out the routine road maintenance and
other miscellaneous work within and around the mining areas:
a) Track-dozers: one (1) CAT D-10 or equivalent with ripper and one (1) Cat D-9 or equivalent are
used to maintain the waste dumps as well as to perform general work within the mine. Track-
dozers are used on ore stockpiles, waste dumps and in the pit when required;
b) Graders : two (2) Cat 16G or equivalent are used to maintain the roads of the entire mine site;
c) One (1) truck with interchangeable boxes depending on the season: a box to hold crushed stone
for icy road conditions in winter, and one box to carry water for dust abatement in the summer;
d) One (1) truck for fuel and lube will be used to service equipment directly in the mine, preferably
during the lunch breaks;
f) Front-end loaders: two (2) Cat 980 or equivalent are used for road maintenance, blast hole
stemming and snow removal. The units will be complete with quick release couplings to allow
easy changes from one attachment to another. Attachments include a bucket designed for blast
hole stemming and a snow removal bucket;
g) Other service equipment: boom truck, pickup truck, welding truck, fire truck, ambulance, tire
handler and lineman’s truck to insure the proper operation of the mine.
h) A radio communication system to link all the vehicles together and to insure that the equipment
is effectively managed and truck dispatching controlled.
November 2008
Bloom Lake Project 18-24
Technical Report
Drill core and bulk samples indicate that there is little variation in the total iron content of the
deposit but that there are wide localized variations in the percentages of magnetite and of
actinolite. Based on the mineral reserves, an average mill feed grade of 30% total iron and 10%
magnetite content has been used in this study.
November 2008
Bloom Lake Project 18-25
Technical Report
The basic process design criteria directed by the client, taken from testwork or assumed at the
outset of the Feasibility Study were the following:
• Production will be 8-million tons per year of concentrate from a single line but the layout
should allow for future expansion.
• The design mill feed rate is 2372 dry tonnes per hour.
• The plant will operate 365 days a year with 93% equipment utilization.
• Weight recovery for year 1 operation (gravity separation only) will be 38%. Weight
recovery in year 3 onward with gravity and magnetic concentrate production will average
41.4%.
• The power consumption in primary grinding is 4.2 kWh/t of concentrator feed. Power
consumption for magnetite regrinding is 23.8 kWh/t of feed to the regrind circuit (Lakefield
testwork, 2005).
• Half of the magnetite is recovered in the spiral concentrate and half in the magnetite
concentrate.
• Concentrate will be dried to less than 2% moisture in the winter months to avoid freezing
in the railcars.
The process flowsheet is shown in block form in Figure 18-13 below. Detailed process flowsheets
are shown in Figures 18-14 to 18-23.
November 2008
Bloom Lake Project 18-26
Technical Report
RUN-OF-MINE ORE
CRUSHING AND
STOCKPILING
CRUSHED ORE
GRINDING AND
CLASSIFICATION
GROUND ORE
MAGNETIC
TAILS TAILS
GRAVITY CIRCUIT SEPARATION TAILINGS DEWATERING
CIRCUIT AND THICKENING
DENSIFIED
CONCENTRATE CONCENTRATE
TAILINGS
THICKENER
HEMATITE MAGNETITE TAILINGS DISPOSAL OVERFLOW
CONCENTRATE WATER
CONCENTRATE & RECLAIM WATER
FILTRATION
FILTRATION PUMPHOUSE
DECANT
WATER
FRESH WATER
MAKE-UP
TRAIN LOAD-OUT PROCESS WATER
STATION RESERVOIR
WATER TO
PROCESS
November 2008
Bloom Lake Project 18-27
Technical Report
November 2008
Bloom Lake Project 18-28
Technical Report
November 2008
Bloom Lake Project 18-29
Technical Report
November 2008
Bloom Lake Project 18-30
Technical Report
November 2008
Bloom Lake Project 18-31
Technical Report
November 2008
Bloom Lake Project 18-32
Technical Report
November 2008
Bloom Lake Project 18-33
Technical Report
November 2008
Bloom Lake Project 18-34
Technical Report
November 2008
Bloom Lake Project 18-35
Technical Report
November 2008
Bloom Lake Project 18-36
Technical Report
November 2008
Bloom Lake Project 18-37
Technical Report
Ore from the mine will be delivered in 240 t trucks to the gyratory crusher. The crusher will be
provided with two dump points though only one will be used initially. A hydraulic rock breaker will
be installed adjacent to the crusher to break lumps too large to enter the crusher. Crusher,
discharge feeder and belt conveyor parts will be removable for maintenance using a 75 t capacity
overhead crane or a monorail. The crusher building will be enclosed and provided with a venturi-
type wet scrubber and an air make-up unit. Scrubber effluent, floor washdown water and drainage
will be collected in a sump and pumped to the reclaim tunnel sump.
Ore crushed to -200 mm (8”) will be fed by an 1830 mm wide by 6700 mm long apron feeder with
a design capacity of 3900 tones per hour and driven by a 75 HP variable speed hydraulic drive
onto the 1524 mm (60”) wide fixed-speed crushed ore belt conveyor. The conveyor with
walkways on both sides will be enclosed in an unheated gallery and will discharge onto the
crushed ore stockpile. The 26 000-tonne live capacity of the stockpile will be sufficient for an 11-
hour operation..
Ore will be withdrawn from the stockpile by two 1830 mm wide by 7000 mm long apron feeders
(one operating and one standby) located inside a heated reclaim tunnel. The two feeders, each
driven by a 125 HP variable speed drive, will feed crushed ore onto a 1524 mm wide mill feed
conveyor. Each feeder will be able to feed the autogenous (AG) mill at a rate of up to 2600 tones
per hour with an average rate of 2372 tones per hour. A belt magnet will be installed over the mill
feed conveyor to remove scrap steel and protect the belt.
A venturi scrubber and air make-up unit will be installed close to the feeders. Scrubber effluent,
wash down water and drainage water will be collected in a sump and pumped to the autogenous
mill feed chute. Monorail hoists will be installed around the feeders for maintenance of the
equipment.
The 10.97 m diameter x 6.10 m long mill will be driven by dual 5590 kW (7500 HP) motors. The
mill feed tonnage will be controlled electronically by varying the feeder speed with a signal from
the belt scale. A belt magnet will be installed over the mill feed conveyor to remove scrap steel
and protect the belt.
The reclaim tunnel sump pump will pump scrubber effluents, wash down water and drainage
water to the scalping screen undersize pump box.
Both the crushed ore conveyor and the mill feed conveyor will be provided with walkways along
each side. Conveyors and walkways will be enclosed for protection from wind and snow to
facilitate maintenance.
Process water will be added to the mill to maintain a 72 percent solids density at the mill
discharge.
Product discharged from the mill will pass over two scalping screens to remove large material.
The scalping screen undersize material will be collected in pump boxes and pumped together
with the cleaner spiral tailings stream to four vibrating classification screens making a nominal
420 microns (35 mesh) separation. Water sprays will be provided over the screens decks to aid
the separation of fines if necessary. Oversize from the scalping and classification screens will be
collected on conveyor belts and returned to the feed end of the mill. Material passing through the
classification screens will be diluted with the recleaner spiral tailings and pumped to the spirals
circuit.
November 2008
Bloom Lake Project 18-38
Technical Report
An overhead crane will be used for maintenance in the grinding bay with two smaller cranes
provided for maintenance of the screens and recirculating conveyors. A liner handling machine
will be provided to facilitate liner changes.
Spillage and wash-down water in the grinding and screening area will be directed towards sump
pumps and pumped to the scalping screen undersize pump box.
Slurry from the grinding circuit will be distributed to a total of 32 banks of rougher spirals
arranged in four lines. Each bank will have two rows of eight back to back double start
spirals Concentrate from each bank of rougher spirals will be combined and distributed by a
24-way rubber-lined cleaner spiral distributor to feed a bank of twelve double start back to
back cleaner spirals. Concentrate from each cleaner spiral will feed directly to a recleaner
spiral below for final upgrading. In total, there will be 1024 rougher spirals, 768 cleaner
spirals and a similar number of recleaner spirals. Tailings from the recleaner spirals will be
recirculated to the rougher spiral feed through gravity flow to the classification screen
undersize pump boxes. Tailings from the cleaner spirals will return, also by gravity, to the
scalping screen undersize pumpboxes to dilute the feed to the classification screens.
A monorail hoist will be provided over each line of spirals for maintenance.
The concentrate from the recleaner spirals will be dewatered on four horizontal pan filters,
one filter per spiral line. Filters will be fitted with steam hoods to dry the concentrate during
the winter months to facilitate transportation. Vacuum will be provided by four vacuum
pumps connected onto a common header. Space will be left for the future installation of a
fifth vacuum pump. Concentrate will be discharged from the filters to a 1067 mm (42”) wide
belt conveyor and transported to a 24,000 t capacity silo at the train load-out station. The silo
will hold approximately twenty-four hours concentrate production. Railway cars, drawn by a
locomotive, will be loaded through a retractable gate mechanism, whilst in motion at a rate of
6000 tph or or one ralicar per minute. The load-out requirement is for approximately 1 train
per day (240, 100-tonne capacity cars per train).
If the silo is full, filter cake will be discharged to an 80,000-tonne capacity emergency
concentrate stockpile in the load-out area. When the level in the silo is sufficiently low,
concentrate will be reclaimed by the front-end loader and returned to the conveyor feeding
the silo.
In Phase 1 (spiral concentrate production only), rougher spiral tailings will be pumped to
tailings dewatering cyclones. The overflow from these cyclones will be directed to a 31 m
diameter high-rate thickener where flocculant will be added. The clarified thickener overflow
stream will flow by gravity to the process water reservoir and constitute the main source of
process water for the plant’s operation. The underflows from the dewatering cyclones and
the thickener will be combined and pumped to the tailings disposal area where the solids will
be allowed to drain. The decant water will be collected and pumped back to the process
water reservoir for reuse.
Air compressors will provide compressed air for crusher and mill use. Part of the compressed
air supply will be dried for operation of control valves and other instrumentation.
November 2008
Bloom Lake Project 18-39
Technical Report
Process water will be supplied to the mill from an in-ground reservoir by vertical turbine
pumps. The main source of process water (85%) will be the tailings thickener overflow.
Tailings decant water and fresh water make-up will constitute the remainder. Fresh water
make-up will be negligible under normal operating conditions.
Two, light fuel #2 fired boilers will provide steam for concentrate drying and indirectly for
building heating through heat exchangers and a closed-circuit glycol system. The two boilers
will be rated at 23 000 kg/h.
Heavy oil #6 fuel-fired boilers will provide hot water for building heating and steam required
for concentrate drying. Two 735 KW auxiliary hot water boilers burning #2 light oil will
provide steam heat for the crusher building. The #2 light oil will also be used as a back-up
supply to the main boilers, for the mine trucks, emergency generators and operation of the
emergency fire water and fresh water supply pumps.
Stand-by generators will provide emergency power at the concentrator and crusher to
operate critical items of equipment in case of failure of the main power supply.
In Phase 2 of the Project (production of both spiral and magnetic plant concentrates), tailings
from the four lines of rougher spirals will be passed through low intensity magnetic drum
separators to recover any magnetite not picked up in the spirals. The recovered magnetic
material will be pumped to hydrocyclones. Coarse, mixed grains in the cyclone underflow will
be grounded to approximately 80% passing 44 microns (325M) in a ball mill and fed to a set
of rougher drum separators. Rougher concentrate will be fed back to the cyclones. Fine
magnetite in the hydrocyclone overflow will feed a set of finisher magnetic separators to
produce a final magnetite concentrate.
Magnetite concentrate will be collected in an agitated storage tank and pumped to a disc
filter for dewatering. As with the pan filters, the disc filter will also be fitted with a steam hood
for winter operation. A dedicated compressor will be installed to supply air for snap-blow at
the disc filter. Concentrate will be discharged to a collecting conveyor and transferred
together with the spiral plant concentrate to the load-out silo.
The various tailings streams from the magnetite separation plant will be combined and
pumped to the tailings dewatering cyclones used in Phase 1. In Phase 2, the underflow and
the overflow from these hydrocyclones will be handled in the same way as for Phase 1.
Fresh water from Bloom Lake will be stored in the fresh water tank in the Concentrator. From
the tank two distribution pumps, one operating, one stand-by, will pump the water to the
points of use. To reduce fresh water requirements, spent cooling water will be returned to the
gland seal water tank.
November 2008
Bloom Lake Project 18-40
Technical Report
Pump seal water will be taken from the gland seal water reservoir. Two low pressure pumps
will supply seal water to most of the pumps in the plant. Two high pressure water pumps will
supply seal water to the tailings pumps.
Vertical turbine pumps will supply the Concentrator with process water from an in-ground
reservoir. Thickener overflow will be the principal supply of water to the tank. Reclaim water
will be a secondary source. It will also be possible to add fresh water to the reservoir but this
will not be necessary under normal operating conditions.
One air compressor with integral dryer will provide compressed air at the crusher to meet
requirements for service air and for air to operate control valves and other instrumentation.
Two air compressors with integral dryers will provide compressed air for mill service use and
for operation of control valves and other instrumentation. Two low pressure blowers (one
operating) will supply compressed air at 40 kPa pressure to the horizontal table filters to
clean the cloths.
A bob cat and front end loader will be used for clean-up work and material handling around
the mill.
The concentrator will be fully automated with operation controlled from a single control room
adjacent to the primary grinding mill and with minimum operator involvement locally.
For process control and metallurgical accounting purposes, automatic samplers will be
installed in the final tailings stream and on the concentrate collecting conveyor. Because of
the difficulty in sampling material up to 200 mm in size from the mill feed conveyor and the
presence of recirculating loads and flows in the grinding circuit, the mill feed head grade will
be back-calculated from mass flow measurements and samples on the three streams: spiral
feed, cleaner spiral tails and recleaner spiral tails.
During the construction of the magnetic plant, three more samplers will be added to sample
the feed to the magnetic circuit, the magnetic concentrate produced and the combined spiral
concentrate and magnetite concentrate on the concentrate transfer conveyor.
November 2008
Bloom Lake Project 18-41
Technical Report
Weigh scales will be installed on the mill feed conveyor and on the concentrate load-out
conveyor to balance material tonnages into and out of the mill.
Some 230-million metric tonnes of inert mill tailings will be produced over 20 years and will be
stored in a 741 ha area situated on the north side of the pit and west of the plant site. The
topography is characterized by a low, poorly drained, gently undulating surface of overburden
deposits with some bedrock outcrops.
The initial pipeline length will be 2 km but will be extended progressively to 6 km.
Information is presently collected and analyzed for this site and geotechnical parameters will be
used to optimize the design criteria.
The site will be developed so as to optimize the use of the surrounding topography to
accommodate the required tailings and water storage volumes, to maximize the safety of the
installations (for example by locating spillways in rock or natural ground), and to minimize
operating costs.
The site will comply with standard practices for industrial water impoundment and will
• be able to contain and treat, without spilling to the environment, an extreme design flood
event,
• have an emergency spillway that is capable of safely evacuating surplus water flows up to
the Probable Maximum Flood (PMF).
Based on guidelines from the (Ministère des Ressources Naturelles), water dams will have a
minimum safety factor of 1.3 under static loading and 1.1 under dynamic loading.
The average surplus volume of 0.4 Mm3 of water retained annually in the tailings disposal area
will be pumped out of the system during a period of up to 5 months per year. If required, the water
will be treated to remove colour and turbidity before disposal
The retention time required to ensure that the effluent will comply with the environmental
regulations is approximately 30 days and was based on preliminary laboratory test work. This
must be confirmed by laboratory testing once the mill process starts operation.
Additional geotechnical and survey work will be required during the detailed engineering phase of
this project.
18.6.3 Operation
By appropriate utilization of the local topography minimum dyking will be required to retain the
tailings solids for the first twelve years of operation. After this time dykes will be required to
November 2008
Bloom Lake Project 18-42
Technical Report
prevent encroachment of the disposal area on the plant site and to maintain a drainage channel
between the mine waste pile and the deposited tailings.
Surface run-off water and water draining from the deposited solids will be collected into a settling
pond of 2 km long by 27 m high dam. The water level behind this dam will be maintained by
pumping water on a continuous basis back to the process water reservoir at the Concentrator or
by intermittent pumping to a clarification pond with discharge to the environment. Water pumped
to the clarification pond will be treated chemically, if required, to flocculate fine solids and to
remove the red colour typical of iron minerals.
Periodically, the solids which collect on the bottom of the clarification pond will be pumped back
within the tailings disposal area.
The water dams will be made of rock fill with a center till core protected by filter and drain layers.
The tailings dams will be built in lifts using the coarse fraction of the tailings from a starter lift of
rock waste with filter.
A number of ditches will be dug around the tailings disposal area to divert clean surface water
away from the site.
The 2485 m2 (35 m x 71 m) service building attached to the concentrator building will provide the
following services:
• Unloading and warehousing area for parts and supplies; a boiler plant to provide steam
for heating and filtercake drying; electrical/instrument repair shop; a first-aid room; offices
for administration, purchasing, human resources, technical services (engineering and
geology), training and plant operating personnel; a laboratory equipped for metallurgical
testwork, wet and dry assaying; lunchroom, men’s and women’s change rooms, sanitary
and locker facilities; a communications room; compressor room to provide service air and
instrument air to the concentrator; a blower room to supply low pressure air to the
concentrate filters; a fresh water storage tank and water treatment facilities, and an
electrical room.
The steam plant will occupy the full 16.4 m height of the eastern end of the building. The
warehouse and electrical shop will occupy two floors (9.5 m) in the western half of the building.
Services in the remainder of the building will be arranged on three-floor levels.
The warehouse floor area will cover an area of 630 m2 (21 m by 30 m) and will be 9.5 m
high. Trucks to be unloaded will descend a ramp to bring the truck bed level with the loading
dock and floor inside the warehouse. A fenced outdoor warehouse yard will also be used to
stock material.
The 820 m2 utilities area includes the boiler room, fresh water storage tank and water
treatment, blower and compressor rooms and the emergency MCC room. The emergency
generator will be located outside the Service Building
November 2008
Bloom Lake Project 18-43
Technical Report
Two 50 000 #/h capacity fire tube boilers will supply low pressure steam to the concentrate
filters and to the hot water heat exchangers for building heating. At peak load, both boilers
will be in operation. Light fuel oil #2 will be used as fuel.
The emergency vehicle station is sized for an ambulance and one fire truck. The first-aid
station will also be located in this area. Hot and cold water will be provided as well as
emergency power.
18.7.1.5 Laboratory
The laboratory located on the ground floor will have 266 m2 of floor space for the preparation
and analysis of samples by wet methods and XRF.. The preparation area will be equipped
for splitting, drying, crushing, grinding, screening and filtering of samples from both the mine
and the concentrator. A dust collection system will be provided in the preparation area. Fume
hoods will be installed in the wet assay room. A storage room and shelving will be provided
for samples and supplies. There will also be a direct access from the laboratory to the
concentrator.
Systems are designed for outdoor temperatures of -40°C in winter and 17°C in summer and
inside temperatures of 19-21°C. Fresh air changes vary from 1 in the offices to 10 in change
rooms.
The shops, warehouse and concentrator will be heated with steam from the boiler plant by a
central system for each sector, which includes supply fan, return/exhaust fan, steam heating
coil, filter and air/air energy recovery system.
The office, laboratory and lunch room will be air conditioned by a variable volume central unit
with a 700 kW steam heating coil and 40-tonne roof-mounted cooling unit. Heating of cold
perimeter areas will be supplemented by using electrical baseboard heaters.
A steam aerotherm heater will be installed near each garage door in the service building and
concentrator to compensate for the heat loss through air infiltration in winter.
November 2008
Bloom Lake Project 18-44
Technical Report
Hot and cold water will be distributed to all sanitary facilities in the office sector, warehouse
and shops.
Emergency showers and eye-washes will be installed in the laboratory, shops, and
warehouse and at the flocculant preparation area in the concentrator.
Drainage systems from wash bays in the truck shop and warehouse will incorporate sand
and sludge interceptors, oil interceptors and water/soap settling tanks with oil skimmers.
Drainage from shop repair bays will pass through an oil separator only.
Effluents from the wash bays and repair bays will be discharged into the drainage ditch
surrounding the plant site. Water in this ditch will pass through two cleaning basins before it
is discharged into Confusion Lake.
The sole access road to the Bloom Lake deposit will be from Highway 389, between the
Mont-Wright mine and the town of Fermont. This 6 km access road will be provided with a barrier
gate to control passage. A telephone and camera will link the gate with the security station in the
Service Building. Other roads will be constructed from the concentrator to the mine, the crusher,
along the route of the tailings line and to the freshwater pump houses and Bloom Lake.
The major infrastructure required to develop the project is already present in the area. Two 17 km
power lines will be constructed by Hydro-Québec (HQ). The first 11.5 km will run from the HQ
NORMAND station alongside the 389 road to the mine power metering station at the junction of
the 389 road and the plant access road. The second section of 6.5 km will be constructed
alongside the mine access road to complete the circuit to the Bloom 34.5 kV main station. The
power demand anticipated for the project 8 million tonnes per year of concentrate capacity is
40 MW with a power factor of 0.95.
The two Hydro Power Lines will terminate on a 34.5 kV power structure inside the mine main
station and will be fed through a SF-6 gas insulated type 34.5 kV indoor switchgear. The main
switchgear will be used to connect various 34.5 kV power line. A total of 22.5 km of 34.5 kV aerial
lines will be built to supply power to various plant and mine loads such as: Guard gate, Crusher
station, Fresh water pumping station, Reclaim pumping station, Lac Confusion pumping station,
Fire pump station, Loadout station, Explosive storage, Garage station and Mining station.
The main 34.5 kV switchgear will also connect two 34.5-4.16 kV power transformers rated
21/28 MVA equipped with on-load tap changer. The two transformers will feed the main 4.16 kV
switchgear.
The mine site will be supplied at 7.2 kV via two portable substations 34.5 kV to 7.2 kV, 7.5 MVA
located at each end of the pit. The mine load will be connected to a total of five switch houses
throughout the site and fed from a total of 8 km of 7.2 kV power lines. The 7.2 kV power lines will
be built according to the standards applicable for the climatic conditions prevailing in the northern
November 2008
Bloom Lake Project 18-45
Technical Report
region of the province of Québec. In order to meet the safety aspect of the mining code, the
phase-to-ground fault level of the 7.2 kV system will be limited to 25 A. This 7.2 kV system will be
connected to a distinct remote ground mat. This technology has the advantage of limiting the
ground potential rise to a prescribed value whether the ground fault appears on the 34.5 kV or the
7.2 kV systems.
The main 4.16 kV switchgear fed from the two 21/28 MVA transformer will be located in the main
electrical room of the concentrator building. The 4.16 kV switchgear buses will be compensated
to maintain 0.95 PF with the help of two 8 Mvar capacitor banks tuned to the 4.85th harmonic. The
4.16 kV power system phase-to-ground fault level of each will be limited to 25 A for personnel
safety, thus limiting damages to the equipment during a ground fault condition.
The main 4.16 kV switchgear will feed various 4.16 kV motor control centers, 4.16 kV variable
frequency drives (VFD) and 4.16 kV to 600 V substations through the plant. The AG Mill twin
7,500 HP motor will also be connected to the main 4.16 kV switchgear. The AG Mill 7,500 HP
motors are wound rotor motors equipped with liquid rheostat to limit power inrush on startup as
required by Hydro-Quebec. The AG Mill motors will be connected to appreciatively 3 MVA
capacitor bank to help raise the power factor to Hydro-Quebec prescribed level.
Motor loads of 300 HP and higher, using across-the-line starters, will be supplied at 4.16 kV.
Smaller motors and motors with a Variable frequency drive (VFD), with loads up to 1000 HP, will
be supplied from 600 V substations.
The 600 V substations are sized at 2.5/3.3 MVA to feed the various plant loads as follows:
Crusher CD-36, Concentrator CD-31, CD-31A, CD-33, CD-40, CD-40A, Loadout CD-35 and
Service building CD-37.
The various 600 V power supplies will operate with a resistance grounded neutral, limiting the
phase-to-ground fault to 5 A. Such a configuration avoids service outages for a single phase-to-
ground fault and is considered safe for the staff responsible for operations.
The 600/347 V lighting and building services will use small isolating transformers, thus limiting the
600 V fault level to a safe level of less than 10 kA, which allows for the use of distribution of
equipment currently used in large industrial complexes.
Power supply for the workers residential camp will come directly from Hydro-Québec since the
camp will be installed in the town of Fermont.
The emergency power supply for the concentrator and service building will be assured by a
1000 kW diesel generator set which will be installed adjacent to the Service Building and will
supply critical loads such as lighting and the steam plant during a power outage. A 600 kW diesel
generator set will supply emergency power to the crusher building.
Two small 6 kVA UPS will supply the control system units (PLC, DCS, HMI and the servers).
The control system for the Bloom Lake operation will consist of a highly integrated programmable
logic control/human machine interface (PLC/HMI) system. Programmable controllers will be
recent technology offering high performance in an easy-to-use environment. Ethernet
communication will be used in addition to fieldbus networks. Input/output will be distributed
through the installation.
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SCADA software (Supervisory Control and Data Acquisition) will be based on server/multi-user
applications for the supervisory level monitoring and control applications.
Smaller graphic HMI terminals will be installed locally for smaller applications. PLC/HMI will also
be installed for major equipment items (crusher, AG mill and ball mill). PLCs, HMI and graphic
terminals will be linked through the Ethernet plant-based network.
A fibre optic network will be installed across the plant facilities to integrate the various control,
telephone, security and fire alarm systems. Fibre optic cables will be run in cable trays or on
34.5 kV transmission lines.
During the first year of operation, a dedicated historian system will be installed to provide rapid
access to operational data for production reports and other needs.
Fresh water will be required for make-up to the boilers and for domestic consumption. The
average hourly consumption on an annual basis will be approximately 6 m3, the peak
consumption will be approximately 40 m3/h.
Fresh water will be supplied to the fresh water tank at the Concentrator by gravity flow from
Bloom Lake The 1.5 km long, 152 mm diameter HDPE fresh water pipeline will be buried to
prevent the water from freezing in winter.
Reclaim water will be pumped from the decanted water in the tailings retention area. There will be
two vertical turbine type reclaim pumps with 400 HP drives, one operating and one standby. Each
pump will have a capacity of 1385 m3/hr.
The pipeline will be constructed of 610 mm diameter HDPE pipe for the entire length
(approximately 4.5 km) and will be buried. In the event of a power failure, water in the line will
drain back to the decant water pond. No relief valve will be required on the line due to the uniform
slope of the pipe.
The reclaim water line will terminate at the process water reservoir outside the Concentrator. A
branch line will supply reclaim water to the industrial water tank.
The fire protection system will include fire water pumps, a fire water distribution network, fire
water hose stations and water sprinkler systems.
A water sprinkler system will be installed over covered conveyor belts and over the lubrication
and hydraulic systems in the process areas.
Fire water pumps will be located in a pump house at Bloom Lake. There will be three pumps, two
main pumps and one jockey pump to maintain the pressure in the fire water pipe network. One of
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Technical Report
the main pumps will be driven by an electric motor and the other will be a diesel engine driven
with a control panel for automatic start.
Alarm signals will be automatically transmitted to the security station in the service building.
Number 2 light fuel oil and gasoline will be delivered to the site by road tanker.
• Four 50,000 L capacity tanks for light fuel oil #2 for the concentrator heating and steam
generation. The minimum on-site storage capacity is 4 days.
• One 10,000 L tank for light fuel oil #2 for the crusher heating. The minimum on-site storage
capacity is 5 days.
• Two 50,000 L capacity tanks for diesel fuel for the emergency generator and the diesel fire
water pump.
• One 5,500 L capacity tank for gasoline with a storage capacity for 14 days requirements.
Fuel oil tanks will have integral holding sections to retain leakage and prevent contamination of
the ground.
A gasoline fuel station for pick-up trucks and other vehicles will be located close to the storage
tank area.
If the ore in the crushed ore stockpile is frozen and cannot be withdrawn by the apron feeders,
propane burners will be used to thaw the material. Propane will be delivered by tanker to a
22,700 L storage tank. This will be provide for over 22 days of continuous gas supply to the
burners.
The communications system will comprise a vocal radio communication system, a digital radio
communication system from trucks, shovels and drills, a telephone system with a minimum
capacity and modular expansion, an FM broadcast system for music in all vehicles and one
transmitter/receiver station including antenna tower and housing for radio communication
equipment. The location of the tower will be selected to optimize communication transmissions.
Ageing tests were carried out at SGS Lakefield on two shaking table tailings samples to
determine whether water from the Bloom Lake tailings pond would have to be treated prior to
being released to the environment. The tailings slurry samples contained 2.8% and 6.7% solids.
Each slurry sample was divided into several sub-samples. Some sub-samples were treated with a
flocculant and coagulant and others were not. The sub-samples were allowed to settle
undisturbed over several days. Sub-samples were analysed on Day 0, 2, 14 and 30 for total
suspended solids, color, PH, turbidity, conductivity, EMF and heavy metals. .
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After 2 days, the total suspended solids for both slurry samples were well below the Directive 019
limit of 25 mg/L. Heavy metals were also well below the Directive 019 limits. The PH was
consistently around 8. Based on visual observation, all sub-samples were clear after 14 days or
earlier (i.e. no red color). Given that the residence time of the slurry water at the polishing basin of
the Bloom Lake tailings pond will be at least 30 days before being released to the environment, it
is recommended that no treatment of the effluent water be carried out. Based on the Lakefield
results, no water treatment would be required to comply with the Directive 019 limits of MDDEP
and that no colorants would be required for “red water” elimination.
It is recommended that during the initial year of the Bloom Lake operation, no effluent water
treatment facilities will be installed. The polishing basin will be built as originally proposed, but the
monitoring pond will be deferred until after effluent sampling is carried out. If the suspended
solids surpass the allowable limit, preliminary scoping studies indicate that the effluent can be
treated with the coagulant Flomin 45VHM and anionic floculant Flomin 910 SH at dosages of
0.5 ppm and 0.3 ppm, respectively.
Solid waste materials which cannot be recycled and domestic waste will be sent to the Fermont
municipal waste site.
Used oil and lubricants and oil skimmed from ponds will, if possible, be burned in the boiler or
disposed of off-site by a recognized waste disposal company.
Workers in the temporary camp will be housed in trailers with six rooms to a unit. In the
permanent facility, each unit will accommodate eight people at a time in single rooms.
The terrain through which the proposed railway line will pass is low lying with boreal forest,
muskeg and a number of lakes. From an elevation of 700 m at the Quebec-Labrador border the
line will descend to 540 m at the junction. Construction of the line will require the erection of
several bridges and the installation of a level crossing where the railway line traverses Highway
389.
Apart from a short section of the line near Labrador City the railway is remote from any residential
areas.
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Technical Report
Measures will be taken to mitigate disturbances to wildlife, wetlands and water courses by noise,
dust generation or leakage of fuel oil or lubricants during the construction and operating periods.
Empty cars will pass beneath the concentrate load-out silo and will be loaded automatically at a
rate of one car per minute. Loaded cars will be held on a loop line before beginning the outbound
trip. With a mine production rate of 8-million tones per year of concentrates, train frequency will
average 1.0 per day in each direction (240 cars per train, 100 tones of concentrate per car basis).
Other traffic will be variable and consist mainly of track inspection and maintenance vehicles.
Fuel oil and other operating supplies will be brought to the mine site by road.
For the purpose of the study a train operating cycle of 72 hours has been assumed. This cycle
time includes the time of loading and unloading operations, inspection and maintenance, fuelling,
crew changes and miscellaneous delays.
Use of a cable belt conveyor to transport the concentrate from Bloom Lake to load-out facilities
and a short section of track to connect to the QNS&L railway at Labrador City was considered as
an alternative to the 31 km long rail line but was rejected because of logistics.
Concentrate will be unloaded from railcars at the Port of Sept- Îles and either loaded directly onto
a vessel or stored in the yard to be reclaimed and loaded onto a vessel at a later date. New
equipment to be installed will include a car dumper to accommodate 86 iron ore car trains, a
5,500 t/h ship loader and a concentrate reclaim system. In addition space will be required for a ±
1,000,000 t capacity stockyard.
CLM is currently working with the Sept-Îles Port Authority, who is committed to assist and help
develop emerging new companies in the area, mainly by giving access to port facilities and
maintaining these facilities (dredging and dock maintenance).
Docks Q30 and Q31 are owned by the Port of Sept-Îles and are used to accommodate other
users. Wabush Mines presently own and operate two ± 3,500 t/h ship loaders on Dock Q30.
CLM will use the land owned by the Port of Sept-Iles for its facilities (car dumper, stock yard and
ship loader).
CIMA+ and Lassing Dibben are presently working with CLM to develop a concept for car
dumping, stockyard and ship loading facilities (see figures 18-24 and 18-25). The flow sheets for
potential scenarios will be evaluated and reviewed with the Sept-Îles Port Authority and also with
Logistec who are interested in building and operating the required facilities at Pointe Noire on an
operating lease basis. The first phase is planned to be operational by September 30, 2009.
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18.9 Environment
Since the production rate is more than 7000 tonnes per day, the project will be subject to an
Environmental Impact Assessment (EIA) in the Province of Quebec. No separate federal EIA will
be required for the disturbance to water bodies even though within the context of the present
project, 300 ha of fish habitat will be affected.
Construction of the railway line which is subject to authorization from the Newfoundland &
Labrador government will also require an Environmental Impact Assessment. Although
Newfoundland & Labrador’s environmental regulations are not identical to the Quebec
regulations, the procedure and time limits are similar.
The principal environmental issues expected to be addressed in the environmental studies are:
• Land usage
• Air quality and ambient noise
• Destruction of fish habitats
To meet provincial and federal requirements, an on-going program will be implemented during
both the construction and operational periods to monitor the effects of the Project on geotechnics,
water quality, effluents, groundwater, fish population, benthic invertebrate communities and
sediment quality and to include mitigation or compensatory measures as applicable.
A rehabilitation plan will be submitted to the Ministry of Natural Resources and Wildlife prior to the
start of production. Monetary provision will be provided in the first eight years of operations.
Following discussions with ITUM (Innu Takuaikan Uashatmak Mani-Utenam representing the
aboriginal people), an agreement was signed with CLM on May 30, 2008.
The capital cost estimate presented in this report is obtained from the Bloom Lake Iron Ore
8.0 mt/y feasibility study and is based on written budget quotations from equipment suppliers and
other consultants. The hourly labour rate for construction and installation manpower was obtained
from a contractor familiar with the working conditions of the Bloom Lake area. This rate includes
the following costs: salaries, benefits, mobilization and demobilization, operation of construction
equipment, consumables, supervision, miscellaneous and profit. All quotations received in
Canadian dollars were converted to U.S. dollars using an exchange rate of 1.10 $CND/ 1.00 $US.
The capital investment for the Bloom Lake project, including equipment and materials during the
construction period (years 0-1) and working capital, is estimated to be 463.6 million USD. The
total capital investment over a 20-year period is 557.2 million USD
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Other Costs
Schedule Acceleration $9.1 $9.1
Tailings Impoundment Dams & Ditches $14.1 $14.1
Environment (Mitigation) $4.5 $4.5
Preparation Mine Development $5.6 $5.6
Working Capital $16.4 $16.4
Other (Mine garage) $2.7 $2.7
Dams $3.9 $3.9
Deferred capital $0 $65.9
Mining equipment will be leased, and therefore, the leasing cost is included in the operating cost.
Leased equipment will be bought back in year 4. An investment cost during operation is also
considered to cover the replacement of ageing equipment as well as the addition of equipment
required throughout the project life.
The rail line, rail equipment and port facilities will be owned and operated by a sub-contractor.
The costs associated with the use of these facilities are included in the operating costs except for
an initial investment of $95.2 M by CLM.
The owner’s costs consist of salaries and expenses of Consolidated Thompson Iron Mines
Limited (CLM) personnel assigned to the project during the preparation, construction, training,
and start-up phases, costs for core drilling program and metallurgical testing, environmental
impact study, geotechnical study and value engineering studies. The total owner’s cost is
estimated to be about $12.7 million.
Working capital was estimated to be equal to approximately 32 days of operation of the mine.
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Present and historic costs from other operations of similar capacity, vendor quotations,
commercial data bases and BBA’s expertise have all been used to estimate the total Bloom Lake
operating costs.
The average operating costs for the first five years of operation(when in full year operation) are as
follows:
The operating cost for a twenty-year operation is $24.76/tonne concentrate. This average
compares favourably to the three mining operations in the Labrador-Mont-Wright area, Bloom
Lake being situated in the middle of the group.
18.10.1 Manpower
Salaries and wages are typical of similar northern operations. A standard 35% is added for
benefits.
Manpower costs for each area are included in the appropriate sections below.
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18.10.2 Mine
Operating cost estimates for the mine have been developed based on the use of CLM -operated
leased mining equipment.
It is anticipated that all mobile equipment repairs will be performed at the shop, shovels and drills
will be repaired in the mine and major components will be repaired by specialized shops offsite.
Hourly equipment operating costs were obtained from suppliers and adjusted to the conditions of
the Bloom Lake area.
Consumption rates for crusher liners, autogenous and ball mill liners and grinding balls are based
on published rates for similar operations or on experience. Consumption rates for screen cloths
and filter cloths are based on vendor information. Unit costs for all these items are based on
budget quotations.
Three percent of the total mechanical equipment cost is included annually to cover the cost of
other maintenance supplies and parts.
Electrical costs are estimated following application of an utilization factor to the horsepower of
operating equipment.
Fuel oil consumption rates for heating are estimated from building floor areas. Annual fuel oil
consumption figures are estimated assuming a graduated monthly heating load. No fuel is
consumed for the two months of July and August. Fuel oil used to generate steam for concentrate
drying is calculated based on a 5-month drying period.
18.10.4 Administration
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The costs of construction and operation of the railway system to transfer concentrate to the port
will be covered under a construction/operation agreement with a third party. A similar agreement
will be negotiated for the construction and operation of the port facilities.
Port improvements will be covered by the Sept-Iles Port Authority (APSI) at no cost to the project.
The Owners will enter into an initial 20-year lease agreement with APSI for the estimated
150,000 m2 storage area required with provision for renewal at five year intervals..
18.11.1 Introduction
The purpose of this section is to assess the economic viability of the proposed mining project as
described in the previous sections, for the production of 8 million tonnes of iron concentrate per
annum.
The financial evaluation for the Bloom Lake project is carried out by the preparation of a
discounted cash flow model to which the capital and operating cost estimates as well as the
production schedule developed in the mining section are input data. The Internal Rate of Return
(IRR) on total investment and the Net Present Value (NPV) resulting from the net cash flows
generated by the project have been calculated. The payback period is also indicated as a
financial measure.
This section defines the fundamental assumptions that have been incorporated in the financial
model.
The financial evaluation is carried out over a period of 20 years out of a total mine life
reserve of more than 27 years. The construction phase is two (2) years excluding the
construction of the magnetite recovery plant in year 3.
The financial plan assumes owner equity will be utilized to cover 100 % of the capital
requirement.
18.11.2.4 Income Tax
The financial evaluation is carried out on a pre-tax and after-tax basis (a requirement for
mining operation in the Province of Quebec).
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18.11.2.5 Depreciation
No depreciation rate has been considered since the financial appraisal is on a pre-tax basis.
The project financial analysis is carried out using the constant money basis.
For the purpose of the cash flow analysis, all the pre-production capital expenditures have
been assumed to occur in Years -1 and 1, with mining and processing commencing in the
third quarter of Year 1. In addition to the initial capital of $446.9 M for the mine and the mill,
other infrastructures investment amount to $108.9 M for maintenance shops, railway (31km),
port and loadout facilities
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According to international accepted standards, the appropriate price for the iron concentrate
is the moving average of the last 3 years of iron price given as follows:
• 2006: $0.76 per iron unit;
• 2007: $0.834 per iron unit;
• 2008: $1.340 per iron unit.
The resulting FOB moving average for the last three years (2006-2008) is $1.069 per iron
unit. Based on a concentrate grade of 66.5% Fe, the selling price is $71.09/tonne of
concentrate.
Working capital required to meet expenses after start-up of operations before revenue
becomes available is assumed to be equal to approximately 32 days of operating expenses
in a full year operation. The working capital is shown separately on the cash flow schedule in
Year 1 and will be recovered at the end of the life of the project. The working capital has
been estimated at $17.1 million.
The other premises and assumptions applied in the preparation of the financial projections
are outlined below:
18.11.3.1 Determination of Internal Rate of Return & Cumulative NPV Cash Balance
On the basis of the assumptions described above in Section 18.11.2, the IRR and the
cumulative cash balance at various discount rates have been computed and the results are
listed in Table 18-10.
Table 18-10 : IRR and Cumulative Cash Balance
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The calculation of the IRR is essentially an analysis based on the flow of the real resources,
as opposed to financial resources providing the performance indicator related to the total
investment. Therefore, the financial flows, such as financial sources, debt service, dividends
are eliminated in this calculation.
Capital investment criteria must also consider payback. The payback is the time required for
the cash income from the project to recoup the initial investment, i.e. the point in time when
the cumulative undiscounted cash flows become zero. In general, the shorter the payback
period, the more attractive is the investment project.
In the present calculation, the payback period has been established at approximately 2.6
years and 2.7 years after the end of the construction period for pre-tax and after-tax,
respectively.
The three major parameters affecting the net cash flow are sales prices, operating costs and
the initial fixed investment. The sensitivity analysis is the process whereby the IRR is
computed from the variations of these input data in the financial model to determine their
impact on the project profitability. The data elements are changed independently of one
another.
The result of the sensitivity analysis should help in identifying and focusing on the strategic
parameters to improve the overall performance of the project.
The sensitivity analysis on IRR and NPV @ 5% discount rate is summarized in Table 18-12:
IRR
(%)
Item
-20% -15% -10% -5% 0% 5% 10% 15% 20%
OPEX 65.7 64.0 62.3 60.6 58.9 57.2 55.6 53.9 52.3
CAPEX 71 67.6 64.4 61.5 58.9 56.5 54.2 52.2 50.2
SALES 40.6 45.2 49.8 54.3 58.9 63.5 68 72.6 77.2
OPEX 4330 4209 4089 3968 3848 3728 3607 3487 3366
CAPEX 3955 3928 3902 3875 3848 3821 3794 3768 3741
SALES 2464 2810 3156 3502 3848 4194 4540 4886 5232
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The results of the sensitivity analysis on a pre-tax basis of the IRR for iron ore price, capital
cost and operating cost and pre-tax NPV @ 5% discount rate are presented in graphical
form in Figures 18-19 and 18-20, respectively. The analysis shows that the project is most
sensitive to revenue, that being iron ore price, ore grade and weight recoveries.
80
70
60
IRR(%)
50
40
30
20
-20% -15% -10% -5% 0% 5% 10% 15% 20%
Change (%)
Figure 18-27: IRR Bloom Lake Iron Ore Project - Sensitivity Analysis (before tax) - IRR%
November 2008
Bloom Lake Project 18-62
Technical Report
5500
5000
4500
4000
NPV (M$)
3500
3000
2500
2000
1500
1000
-20% -15% -10% -5% 0% 5% 10% 15% 20%
Change (%)
Figure 18-28: NPV Bloom Lake Iron Ore Project – Sensitivity Analysis (before tax)
NPV @ 5% Discount Rate
18.11.4 Discussion
The results of the financial analysis indicate that the Bloom Lake project has a potential before-
tax IRR of 58.9% and a NPV of US$ 6 813 M and US$ 3 847 M at a discount rate of 0% and 5%
respectively. On an after-tax basis, the IRR is 48.6% and the NPV amounts to US$ 4 493 M and
US$ 2 520 M at a discount rate of 0% and 5% respectively. These strong financial indicators
show the excellent economic viability of the project and the sustainability of a good profitability in
the advent of iron price fluctuation
November 2008
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Technical Report
The master schedule for the Bloom Lake project starts in April 2006 and ends with start-up
activities on September 30 2009. A simplified version of the master schedule is shown in Figure
19-1. The total duration is 41 months or three (3) years. The schedule was prepared according to
these major activities:
• Environmental permitting
• Test work program
• Basic engineering, detailed engineering and construction of the concentrator and the
infrastructure.
Laboratory Testwork
Basic Engineering
Construction
Commissioning
The critical path of the project follows the line of these groups of activities; environmental
permitting, construction and commissioning.
CLM received the certificate of authorization in April 2008. Until the certificate was obtained, no
construction activity was underway. However, by mobilizing the contractor and preparing the
access to the site in the winter of 2007-2008, it was possible to start the civil / foundation work for
the concentrator in the spring of 2008, taking advantage of better conditions. Priorities were given
to concentrator and crusher foundations to minimize concrete pours in winter.
Construction of the magnetic separation plant is scheduled for 2011 with start-up the following
year.
Project schedules for the Port and Railway facilities, which were developed by the consultants
CEMA+ and Cantech, are in accordance with the BBA master schedule. In the case of the
railway, the schedule is contingent on permit approval From Newfoundland and Labrador. An
Environmental Review Report was submitted to the Newfoundland and Labrador Government on
August 29, 2008. The authorisation was obtained on October 27, 2008, which will allow the
Construction of the railway to proceed.
November 2008
Bloom Lake Project 20-1
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No other data or information are relevant for the review of the Bloom Lake Project.
November 2008
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Technical Report
The Bloom Lake Iron Ore Project is financially and technically feasible with an estimated capital
cost of $446.9 M for the mine and the mill and $108.9 M for the maintenance shops, railway, port
and loadout facilities. The total of US$555.8 M, excluding US$17.1 M for working capital, results
in an IRR of 58.9% and a simple payback period of 2.6 years before taxes
The level of accuracy of the capital and operating cost estimates is ± 15% and the capital cost
estimate includes a 7% contingency on direct costs. Costs of leased mine equipment are included
in operating costs. Costs for construction and operation of the railway and for capital expenditures
and operation of the Pointe Noire stockpiling facilities will be covered by operating leases and so
are also included in the operating costs.
Based on an estimate of mineral resources produced by Watts, Griffis and McOuat Limited in
compliance with the National Instrument 43-101, the mineral reserves are evaluated at 580
million tonnes and will be sufficient for over 27 years of operation at a production rate of
8,000,000 tonnes of concentrate per year.
All the testwork results to date are consistent with good iron recovery using conventional spirals
and are also in line with the results obtained from the other iron ore producers in the area.
Testwork is currently underway to optimize the magnetic separation flowsheet to increase iron
recovery.
At this point, the concentrator is under construction. The environmental permit for the rail spur line
was approved on October 27, 2008. Construction of the railway can now proceed.
November 2008
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22. RECOMMENDATIONS
The recommendations presented in feasibility study dated April 2006 have been implemented
and included the following:
• A request is made to Hydro-Quebec to begin detailed studies to provide power to the site.
(Done).
• New drill core samples for the confirmation test work and bulk samples for pilot plant test
work have been collected. (Done).
• Preliminary talks with the public common rail carrier have been initiated. (Done)
• Detailed engineering activities for final flowsheet and design criteria selection have started.
(Done).
The status of new recommendations presented in the feasibility study for 7-million tonnes of
concentrate per year dated May 2007 are as follows:
• Start the environmental restoration studies to replace the lakes and river sections affected
by the tailings ponds in the summer of 2007 (underway).
• Finalize the agreements with the mining fleet equipment suppliers (near completion).
• Finalize the leasing agreements with the railway and port operators (underway).
• Perform exploration drilling to expand the reserves on the west side of the pit (underway).
• Perform definition drilling to confirm detailed mining plan for the first 3 years of initial
mining (underway)
November 2008
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Technical Report
BBA, Bloom Lake Iron Ore Project – Bankable Feasibility Study, April 2006
Roche, Bloom Lake Project, Feasibility Study – Environmental Aspects, March 2006
Journeaux, Bédard, Feasibility and Cost Evaluation for Tailings Impoundment, Bloom
Lake Project, February 17, 2006
WGM, A technical Review and Mineral Resource Estimate for the Bloom Lake Iron
Deposit, Labrador Trough, Quebec, May 26, 2006
H.E. Neal & Associates, Preliminary Evaluation, Queco Property, Quebec Cobalt &
Exploration Limited, For Republic Steel Corporation, March 1976
SGS Lakefield Research Limited, Proposed Grinding System for the Bloom Lake Circuit
Based on Small-Scale Data, Prepared for BBA on Behalf of CLM, January 26, 2006
SGS Lakefield Research Limited, Beneficiation of Iron Ore Samples from the Bloom
Lake Property, Prepared for WGM on behalf of CLM, February 23, 2006
SGS Lakefield Research, An Investigation into the Water Quality and Treatability of
Bloom Lake Tailings, Final Report, March 9, 2007
SGS Lakefield Research, Preliminary Grinding Circuit Study for the Bloom Lake Circuit
Based on Small-Scale Data, February 16, 2007
E. Palumbo, Sizing of Pan Filters for 7-million tpy Concentrate, February 5, 2007
J. Dinsdale, Tailings Thickener Sizing for 7 Mtpy Production Rate, February 22, 2007
E. Palumbo, Metallurgical and Grindability Test Results on Drill Core Samples, 21 March
2007
November 2008
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Feasibility Study for 8 Mtpy Iron Ore Concentrate, Bloom Lake Project, report prepared
by BBA inc. for Consolidated Thompson Iron Mines Ltd., September 2008.
November 2008
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25. CERTIFICATES
November 2008
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2. I graduated from Université Laval of Québec, Canada with a B. Sc. in Mining in 1976.
5. I have read the definition of “qualified person” set out in the National Instrument 43-101
(“NI 43-101”) and certify that as a result of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a “qualified person” for the purposes of NI 43-101.
6. I am responsible for the preparation of Section 18.1 and Section 18.11 of the Technical
Report entitled “Bloom Lake Technical Report” based on my knowledge and extensive
experience in mining studies and operation on iron ore projects worldwide. I have visited
the property on November 2, 2008.
7. As of the date of this certificate I am not aware of any changes in fact or circumstances
with respect to the subject matter of this report which materially affects the content of the
report or the conclusion reached.
8. I am independent of the issuer applying all of the tests in Section 1.5 of National
Instrument 43-101.
9. I have read national Instrument 43-101 and Form 43-101F1, and the Technical Report
has been prepared in compliance with that instrument and form.
10. I consent to the filing of the Technical Report with any stock exchange or any regulatory
authority and any publication by them, including electronic publication in the public
company files on their websites accessible by the public, of the Technical Report.
November 2008
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2. I graduated from McGill University of Montréal with a B.Eng. in Metallurgy in 1981, and
M.Eng. in 1986.
5. I have read the definition of “qualified person” set out in the National Instrument 43-101
(“NI 43-101”) and certify that as a result of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a “qualified person” for the purposes of NI 43-101.
7. As of the date of this certificate I am not aware of any changes in fact or circumstances
with respect to the subject matter of this report which materially affects the content of the
report or the conclusion reached.
8. I am independent of the issuer applying all of the tests in Section 1.5 of National
Instrument 43-101.
9. I have read national Instrument 43-101 and Form 43-101F1, and the Technical Report
has been prepared in compliance with that instrument and form.
November 2008
Bloom Lake Project 25-6
Technical Report
I, René Scherrer, residing at 13, rue Nicolas, Sept-Iles, Québec, G4R 5K3, do hereby certify
that:
5. I have read the definition of “qualified person” set out in the National Instrument 43-101
(“NI 43-101”) and certify that as a result of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a “qualified person” for the purposes of NI 43-101.
6. I am responsible for the preparation and review of Sections 7 to 14 and Section 17 of the
Technical Report entitled “Bloom Lake Technical Report” based on my knowledge and
extensive experience in mining, in engineering and operation departments, on iron, gold
and nickel open pit projects over North and South America.
7. I have personally visited the property on May 16, 2006 and on many occasions since
that date.
8. As of the date of this certificate I am not aware of any changes in fact or circumstances
with respect to the subject matter of this report which materially affects the content of the
report or the conclusion reached.
9. I am working for Consolidated Thompson and therefore not independent of the issuer as
defined in Section 1.4 of National Instrument 43-101.
November 2008
Bloom Lake Project 25-8
Technical Report
5. I have read the definition of “qualified person” set out in the National Instrument 43-101
(“NI 43-101”) and certify that as a result of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a “qualified person” for the purposes of NI 43-101.
7. As of the date of this certificate I am not aware of any changes in fact or circumstances
with respect to the subject matter of this report which materially affects the content of the
report or the conclusion reached.
8. I am independent of the issuer applying all of the tests in Section 1.5 of National
Instrument 43-101.
November 2008
Bloom Lake Project
Technical Report
Appendix A
November 2008
CONSOLIDATED THOMPSON IRON MINES LIMITED
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CONSOLIDATED THOMPSON IRON MINES LIMITED FRASER MILNER CASGRAIN LLP
Bloom Lake Property May 18, 2007
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CONSOLIDATED THOMPSON IRON MINES LIMITED FRASER MILNER CASGRAIN LLP
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CONSOLIDATED THOMPSON IRON MINES LIMITED FRASER MILNER CASGRAIN LLP
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CONSOLIDATED THOMPSON IRON MINES LIMITED FRASER MILNER CASGRAIN LLP
Bloom Lake Property May 18, 2007
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Ä
Application for renewal filed with the MNRW on April 11, 2007 and currently pending (file no. 668088).
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CONSOLIDATED THOMPSON IRON MINES LIMITED FRASER MILNER CASGRAIN LLP
Bloom Lake Property May 18, 2007
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CONSOLIDATED THOMPSON IRON MINES LIMITED FRASER MILNER CASGRAIN LLP
Bloom Lake Property May 18, 2007
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