Geology and Exploration

The Mary River project area is located in Northern Baffin Island and is part of the Committee Belt, an assemblage of granite-greenstone terrains, and rift basin sedimentary and volcanic rocks.

GEOLOGY

The Committee Belt extends from southwest of Baker Lake for over 2000 km to northwestern Greenland. Deposits of high grade iron formation, across the Mary River project area are hosted within the Mary River group. The Mary River Group comprises late Archean mixed metasedimentary – metavolcanic successions that are tightly folded and structurally complex.

Geology and ExplorationDetailed exploration drill programs have been completed across the Mary River project area at Deposit No. 1. Over 30 km of drilling, in more than 200 drill holes, have been completed on the deposit. In addition, a bulk sample program was performed during which approximately 130,000 tonnes of high grade iron ore were shipped to Europe.

Furthermore, advanced – grassroots ground exploration programs have been performed including property scale mapping, structural mapping studies, sampling programs and various masters and bachelors theses. Advanced geophysical surveys have been conducted, utilizing industry standard airborne/ground magnetics and ground gravity geophysical surveying methods to identify potential buried resources. Careful interpretation of geophysical data gives insight into buried subsurface structure and geology, an important step towards defining future targets for exploration drilling and the discovery of additional high grade iron ore deposits

Deposit No.1

Mary River’s high grade iron ore was first noted by Murray Watts and Ron Sheardown in July of 1962 during airborne reconnaissance prospecting across central and northern Baffin Island. Deposit No. 1 is currently the largest known deposit of high grade iron ore in the Mary River area. The deposit has a total strike length of ~4 km and comprises the axial culmination of the Mary River synform. Outcrops of high grade iron ore consisting of hematite and magnetite in various proportions, and of specularite, are exposed along the margin and crest of Nuluujak Mountain at elevations ranging from 250 m to over 690 m. The deposit can be divided into a ~3 km long northern portion (“North Limb”), and a ~1 km long southern portion (“Fold Axis” and “South Limb”). Resource estimates to date, in measured and indicated categories, total more than 350 million tonnes at an average grade of 64%.