·'
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
TECHNICAL REPORT
GUNFLINT PROPERTY, THUNDER BAY MINING DISTRJCT, ONTARIO
FOR
CANADA IRON INC.
330 Bay Street, Suite 1500
Toronto, Ontario M5H 2S8
BY
George Sharpe
George C. Sharpe, P.Geo, Limited., QP, MCIM, CGT
Mineral Exploration Geoscientist
APEGS Member#: 09697 with P. to C. (Permission to Consult)
P.Geo. Ltd., APGO Member#: 1639
Certified Geomatics Technologist, Saskatchewan Registration #227
318 - 2125 Osler Street Regina Saskatchewan CANADA S4P 4G9
Phone: 306-525-6013 Fax: 306-525-3688 Mobile: 306-535-1713
August 10, 2011
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 1
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
TABLE OF CONTENTS
Title Page .... . ... ........ . ..... . . . .... . . ........... ......... .. . .. .... ... . . .. ................. ... . . ............ 1
Table of Contents . . .. ... . . .......... . . . .. ... .. . ...... ....... ...... . . . . .... .. ........... . ........ . .. . ..... . . . 2-4
1. EXECUTIVE SUMM.A.RY .. ... . ........ . . . ... .. .. . .. ... ... . .... . ..... .. ....... .. . . . . . ... . .. ... . ........ 5
2.0 INTRODUCTION AND TERMS OF REFERENCE .......................... . ... . .... . ......... S-6
2.1 Introduction ..... .. .. ... ... . . . ...................... ... . ... . .. ............ .. ........ ... .. .. . . . .. ......... 5-6
2.2 Terms of Reference and Units . ..... . ... . .. . ..... . .. ..... . .. ... . . . ...... . .. . . ... . .. . .... . ... . .. ... .... 6-7
3.0 GLOBAL GEOLOGICAL QUALIFICATIONS . ...... . ..... . . .. ... . ... . .... .. . .. . ...... .. . ... . .. . 7-8
4.0 PROPERTY DESCRIPTION AND LOCATION .. . .......................... . . ..... .... . ......... 8-12
4.1 Area and Location . . ................................ . . . ... . .......................... . . . .. ............... 8-11
4.2 Description and Ownership .............. . ... . . .. . . . .. ... .. . ... ................ .. . . . ... .. ... .. ....... 11-12
4.3 Environmental Liabilities ... . .... .. .. . .. . . .. ..... . . ... ... .. ........ . . . .... . . ... ..... .. . ..... ...... . . . .. 12
4.4 Permits . . .... .. .. .. . . ... . . .. ... ...... ....... .. . . . .... . . . . .. ..... ... . . . .. ... .. . . .... . .. .. . .... . . .... .. ... ... 12
5.0 ACCESS, CLIMATE, INFRASTRUCTURE, PHYSIOGRAPHY, NATURAL
RESOURCES AND CORPORATE SOCIAL RESPONSIDILITY ......... .. . .. .............. 12-17
5.1 Access ................... . ... . .... ........ ...... . ... . .... .. ...... . ........................ ... ....... . .... 12-13
5.2 Climate . . ... .. . . . .. . ... ... ... . .. . .. .... . . ... . .. . ... .... . .. . . . .. .. . . .. . .. . . . .. .. . .... .. ....... . .. .. .. . . . ... 13
5.3 Infrastructure . . . . . . .. . . . . . . . ... .. .. ....... ... ...... . . ... ... . . .. . . ............ . . .. . .... . .. . . .. . .. . ..... ... 13
5.4 Physiography ..... .. .. . . .. .......................... . .. . .. ............................ ...... ............ 13-14
5.5 Natural Resources . .... ... .. .................... ... ...... ... . .. . . . .................. ..... . .. . . . . ......... 14
5.6 Corporate Social Responsibility .. . .. .. .... . .. ... . . .. ... ..... . ..... .. ....... . . ... . . . . .. . . .. .... . ..... .. 14-15
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 2
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
6.0 lllSTORY ................................................................................................ 15-16
6.1 Past Production ........................................................................................... 16
6.2 Previous Exploration and Drilling ...................................................................... 16
7.0 GEOLOGICAL SETTING ............................................................................. 17-22
7.1 Regional Geology ........................................................................................ 17-22
7.2 Local and Property Geology ............................................................................ 22
7.3 Geophysics ................................................................................................ 22-24
8.0 DEPOSIT TYPES ........................................................................................ 25-27
9.0 MINERALIZATION ..................................................................................... 27-28
10.0 EXPLORATION ..................................................................................... 28
11.0 DRILLING ................................................................... . ....................... 28
12.0 SAMPLING METHOD AND APPROACH ........................................................ 28
13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ................................... 28
14.0 DATA VER\FlCATION ................................................... . .......................... 28-29
15.0 ADJACENT PROPERTIES ........................................................................ 29-30
16.0 MINERAL RESOURCE ESTIMATE .............................................................. 30
17.0 OTHER RELEVANT DATA AND INFORMATION ........................................... 30
18.0 INTERPRETATION AND CONCLUSIONS ................................................... 30-34
19.0 RECOMMEN.DA TIONS ........................................................................... 34-35
19. 1 Cost Estimate ......................................................................................... 3 5
20.0 SELECTED REFERENCES ....................................................................... 36-37
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 3
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
21.0 CERTIFICATE OF QUALIFIED PERSON ........ Appendix 1
22.0 SIGNATURE PAGE ................................... Appendix 1
23.0 CONSENT OF QUALIFIED PERSON ............. Appendix 1
Appendix 1 ................ Certificate of Qualified Person, Signature Page, Consent of Qualified Person
Appendix 2 ................ Sample Descriptions, Assay Results, and Specific Gravity Results
Appendix 3 ................ Site Visit Photographs
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page4
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
1.0 EXECUTIVE SUMMARY: During the period, July 3rd to 14th, the author undertook a site visit to
the Canada Iron Inc., (CII) Gunflint Property in Jean and Strange Townships, Ontario, at the request of
Gary Handley, the President and CEO. The main purpose of this site visit was to confirm, sample and
evaluate the previously recognized very extensive outcrops and occurrences of the Animikie Gunflint Iron
Formation as it was detected in a VTEM Airborne survey conducted in 2010 by Geotech Ltd. During this
time the author and his assistant undertook to obtain a >500 Kg bulk sample from the best exposure of the
Gunflint Iron Formation, and to visit as much as possible all the other areas of the property. With the
exception of a small isolated area north of the Whitefish River, this was accomplished. Twenty-five other
locations were sampled throughout the Gunflint Property and on July 13 a visit was undertaken to the iron
ranges of Minnesota to obtain a sample of similar type of material from a location that had undergone
extensive past and present mining activity. As well as obtaining this sample from a Taconite ore pile near
Hibbing, Minnesota, a visit was made to the Cliffs Natural Resources Hull Rust Mine on the north side of
the town of Hibbing.
It is well known that the Gunflint Formation is the northern continuation of the Biwabik Formation that is
being mined in Minnesota, and has a past history of mining that goes back more than 120 years. Current
escalating demand for iron ore has generated renewed interest in new sources and supplies of these lower
grade "Taconite" ores.
2.0 INTRODUCTION AND TERMS OF REFERENCE
2.1 Introduction
George Sharpe, the Chief Geologist for Global Geological Ltd., of Saskatoon, Saskatchewan, was
retained by Mr. Gary Handley the President of Canada Iron Inc. of Toronto, Ontario, conduct a site visit
and locate and map out as much of the exposed Gunflint Iron Formation as would be possible to access,
and obtain samples for assay ofthis formation. On July 4th, in the company of Mr. Ken Kukkee, P.Geo,
ofThunder Bay, Ontario, took this author and his assistant, Mr. David Kalik of Thunder Bay, Ontario, to
the best exposure of Gunflint, from which a bulk sample could be obtained and additionally, a well
exposed section of the Upper Gunflint could be examined and studied. On July 5th a >500 Kg bulk
sample was obtained from this road cut exposure in the Divide Ridge area of Mt. Edna.
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 5
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
The property, located in Jean Township, Ontario, approximately 50 Km west of the City of Thunder Bay,
Ontario, Canada, consists 0fthree unpatented 16 unit mining units totaling 820 ha, registered 100% in the
name of Mr. Kenneth Kukkee of Thunder Bay, Ontario. The target commodity is iron ore contained
entirely within the upper and lower Gunflint Formation of the Paleoproterozoic Anikimie Series in the
form of taconite, very similar to what has been mined from the equivalent Biwabik Formation in
Minnesota where mining has been on-going for more than 100 years. The potential exists here to find a
similar type of deposit of similar grades to what is currently being mined in Minnesota.
This report is based on exploration and property information supplied by CII, the results of this author's
site visit and an extensive review of published material carried out by goverrunent geologists and non
published sources from work carried out by previous operators. The purpose of this report is two-fold, (1)
to obtain assessment work credits necessary to keep the CIT claims in good standing, and (2) to supply the
necessary information to CII, for the purposes of presentation to investor groups. The Qualified Person
for this report is Mr. George Sharpe, Chief Geologist for Global Geological of Saskatoon, Saskatchewan,
who visited the property with his assistant, Mr. David Kalik of Thunder Bay, Ontario, between July 3rd
and 14th, 2011.
2.2 Terms of Reference and Units
The Metric System or System International (SI) is the primary system of measure and length used in this
report. Conversions from the Metric System to the Imperial System are provided below and are quoted
where practical. The more recent geological publications and more recent assessment files now use the SI
System, but older assessment work files almost exclusively refer to the Imperial System of measuring.
Metals and minerals acronyms used in this report conform to the mineral industry accepted usage.
Further information is available online from a number of sources including
www.maden.hacettepe.edu.tr/dmmrt/ index.html.
Conversion factors utilized in this Report include: 1 pound (lb.)= 0.454 kilograms (kg); 1 foot (ft) =
0.3048 metres (m); 1 mile (mi) = 1.609 kilometres (km); 1 acre (ac) = 0.405 hectares (ha); and, 1 sq
mile = 2.59 square kilometres. The term gram/tonne or g/t is expressed as "gram per tonne" where 1
gram/tonne = 1 ppm (parts per million)= 1000 ppb (parts per billion). Other abbreviations include ppb
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 6
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
= parts per billion; ppm = parts per million; opt or ozJt = ounce per short ton; Moz = million ounces; Mt
=million tonne; t =tonne (1000 kilograms); SG =specific gravity; lb/t =pound/tonne; and, st =short ton
(2000 pounds). Dollars are expressed in Canadian currency (CAD$) unless otherwise noted. Unless
otherwise mentioned, all coordinates in this Report are provided as UTM datum NAD 83, Zone 15.
2.3 Global Geological Qualifications
Global Geological Services Ltd., is an international consulting company based in Saskatoon,
Saskatchewan, Canada. Global provides a wide range of geological and engineering services to the
mineral exploration and development industry. With its main office in Saskatoon and affiliates and
contacts throughout Canada and overseas, Global is well positioned to service its international client base.
Global Geological Services Ltd. has a mandate to provide professional geological and engineering
services to the mineral exploration and development industry at competitive rates and without
compromise. The services provided include:
• Exploration Project Generation, Design and Management • Data Compilation and Exploration Target Generation • Property Evaluation and Due Diligence Studies • Independent Technical Reports (Nl43-101) Competent Person's Reports • On-Site Engineering and Project Management
In addition, Global has access to the most current software for data management, interpretation, and
viewing, manipulation, and target generation.
The Qualified Person for this report is Mr. George Sharpe, the Chief Geologist for Global Geological
Services Ltd, and is a member in good standing of the Association of Professional Geoscientists of
Ontario, (P .Geo., Limited, # 1639). Mr. Sharpe has over 24 years of experience in mineral exploration
including gold, base metals, iron, rare earths, industrial minerals, diamonds, PGE's and uranium, and has
authored/co-authored Independent Technical Reports (NI 43-101). A Certificate of Qualification for Mr.
Sharpe is provided in Appendix 1.
The background information used for this report was derived from numerous sources, such as published
Ontario Geological Survey, the Geological Survey of Canada, and the University of Minnesota,
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 7
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
assessment files from the Ontario Ministry ofNorthem Development of Mines and Forestry, and data
supplied by Canada Iron Inc. A full listing of these sources of information is listed in the References
Section.
3.0 RELIANCE ON OTHER EXPERTS
The technical report titled "NI 43-101 Technical Report Gunflint Iron Property, District of Thunder Bay,
Ontario" and dated 10 August, 2011, was prepared for Canada Iron Inc. ("CII") by George C. Sharpe, P.
Geo. Limited, a Qualified Person as defined in Part 1, Section 1.1(7) of Companion Policy 43-101CP,
Standards of Disclosure for Mineral Projects. The report was prepared from the author's personal
observations and field investigations, including collecting geologic samples and mapping certain sites of
the subject property during a site visit to the Gunflint Iron Property in the period July 3 to July 14,2011,
and from materials supplied by the client, Canada Iron Inc., and from other sources, including
Government of Canada and Government of Ontario technical papers presented in recognized academic
and technical monographs, journals, from both U.S. and Canadian sources.
The author in preparing this technical report relied upon data that are included in those publications,
technical papers and assessment reports with respect to historic and background information. In all
instances, I believe that the materials quoted or otherwise referred to are reasonable and objective
observations and conclusions by persons suitably experienced and otherwise qualified to discuss such
matters. The author was unable to obtain any of the historic drill cores from the drilling programs
described in this report, for the purposes. No prior NI 43-101 reports have been done on this property and
all of the background information used for this report is from the sources described above.
Source material documents are listed in Section 20 "Selected References".
George C. Sharpe, P . Geo., Limited, accepts responsibility for the contents of the accompanying report.
4.0 PROPERTY DESCRIPTION AND LOCATION
4.1 Area and Location
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 8
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
The three claims described in this report are situated just north of Whitefish Lake, 50 Km west of the City
of Thunder Bay, Ontario, in the Thunder Bay Mining Division, centered around 48 degrees, 15 minutes
north latitude, and 97 degrees, 2 minutes, thirty seconds west longitude in the southern third and eastern
area of Jean Township. Ontario Provincial Highway 622, is just to the south of the claim block.
Table 4-1 Summary of mining claims on the Canada Iron Inc., Gun:flint Property
Claim Recorded Due Units Area (ba) Work Required
3012585 August, 15 2009 August 15, 2011 16 256 $6,500.00
4224787 August, 15 2009 August 15, 2011 16 256 $6,500.00
4224788 August, 15 2009 August 15, 2011 16 256 $6,500.00
TOTAL: 48 768 $19,500.00
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 9
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Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
/ ,·
/
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PRECAMBRIAN
PROlEROZOIC
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~ SoulhemPt~
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• Property Location _
Ontario Iron Put~--.gll,_
A - Kanora - R<ld Lllke
8 - Thunder aey Soulh c-.y -....,
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0- -E- Klrl<land Lake
F Sudbury~)
G- Soulhem Ontario
MoosO<l"".
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Windsor / .
F . s.-ury
Figure 4- 1: G unflint Property Location
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 10
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
I
I I
::t:=l ~101 I "
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7' SOOOF
4.2 Description and Ownership
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Figu re 4-2 : Gunflint Claims Mao
"""'"-< ~· t P.' t •e f >' 4 1 · .. ....
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The Gunflint Property consists of three contiguous sixteen unit claims, numbered 3012585, 4224787 and
4224788.
These three claims are due on August 15, 2011, and each ofthese claims has $6,500 worth of work owing
on it, on or before the above named date. These claims are held in the name of Mr. Ken Kukkee, P.Geo.,
of Thunder Bay, Ont. These three claims are under option to Canada Iron, Inc., of Toronto, Ontario, and
this report is prepared in partial fulfillment of the required work credits of $6,500 for each claim.
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 11
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
4.2 Environmental Liabilities
Currently, there are no outstanding environmental liabilities pending on or within the area of these claims,
to the best of this author's knowledge.
4.3 Permits
At the present time there are no permits required until such time as more advanced exploration work such
as line cutting, ground geophysics, trenching and drilling, at some future date, as market conditions, and
additional funding will permit. When such work is to be undertaken, using the prerequisite funding to be
raised, application will be made to acquire all the require permits from the Ontario and Canadian
ministries as per regulations.
5.0 ACCESS, CLIMATE, INFRASTRUCTURE AND PHYSIOGRAPHY
5.1 Access
Access to this property is, for the most part, quite easy by means of paved highways all the way from
Thunder Bay, and thence via an all-weather gravel and dirt road along the Jean/Strange Townships
boundary, north from Highway 622 a distance of less than three kilometres. Other roads constructed by
the Abitibi Bowater Company in the 1980' s and 1990's, to access their timber permits were constructed
into other parts of this property and can be accessed by 4 wheel drive vehicles or all-terrain vehicle.
Some of these roads and trails are well overgrown and will require re-clearing to be useable for access.
Portions of this property not accessible by any of the trails, can be reached by foot traverses, however
secondary growth and loggers' slash piles can make foot traverses quite problematic in much of this area.
5.2 Climate
The climate is mid-continental, with cold winters and moderate to warm summers. The area
is classified as having a sub-humid high boreal eco-climate. The mean temperatures for
January and July are -21 °C and l8°C, respectively. Temperature ranges from -40°C in the
winter to 30°C in the summer can be expected. Annual precipitation averages about 350 mm
of rain and 1,450 mm of snow. There are on average 119 frost-free days per year. Lakes
begin to freeze in November and thaw in April .
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 12
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
Ground exploration work including diamond drilling can be carried out on the property during most of the
year in most areas of this property, where existing, all-weather access roads and trails can be used. For
swampy locations or adjacent to ponds, activities such as line cutting, ground geophysics, and drilling in
such places can only be accomplished when the ground and lakes are frozen.
5.3 Infrastructure
Thunder Bay, Ontario, (pop: 115,000) is the closest major center to this property and has all the required
services and supplies that would be required by any company undertaking any phase of exploration work
ranging from basic grass roots phase up to advanced exploration and mining production.
(www.cityofthunderbay.com). As such there is a large source of skilled exploration and mining
personnel, as well as mine related services. Thunder Bay offers modem shopping facilities, a full service
regional hospital, numerous medical clinics, as well as all types of social amenities, restaurants, hotels
and other services.
5.4 Physiography
The maximum topographic relief in this area is in the order of 140 metres and this is due to the presence
of large erosion resistant diabase sills that form the tops of the large, round mesas of Mt Edna and Mt.
Marny on the property and other area mesas such as Mink Mountain and Sun Mountain to the west and
Silver Mountain to the southeast. Low areas are formed by swamps, ponds and the two branches of the
Whitefish River. The southern and western areas drain to the south to the Pigeon River, which drains into
Lake Superior at Pigeon Point. To the north, the drainage is into the Whitefish River which drains into
the Kaministikwia River which flows into Lake Superior in Fort William Ward, at Thunder Bay.
Exposures of the Gunflint Formation are most frequent around and just below the diabase capped mesas,
and along river and stream banks. Outcrop exposures are scarce in all ofthe low-lying areas due to
extensive drift cover.
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 13
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
5.5 Natural Resources
In past years from the early twentieth century until the mid-1990's, considerable commercial timber
harvesting was undertaken in this area by the Abitibi Bowater Company Ltd., for use at their Thunder
Bay pulp mill. The timber harvested was primarily red and white pine. Areas on the property that were
untouched by this earlier activity have stands of mature pines over 100 years old with minimal secondary
growth. In low lying regions alders, willows and jackpine predominate. Other areas where there is a
history of logging and/or forest fires, contain stands of poplar, birch, maple, and widespread areas of
dense undergrowth.
Wildlife in this area includes white tail deer, moose, black bears, beavers, otters, martens, mink, foxes,
wolves, raccoons, skunks, squirrels, chipmunks and field mice. A wide variety of bird species exists in
this area, including, ravens, seagulls, pigeons, robins, ducks, Canada Geese, cranes, loons, mourning
doves, and blue jays.
Other natural resources in this immediate area include sand and gravel which has been produced from a
quarry on the west side ofMt. Edna. It is reported that road metal for highway and rail construction was
obtained from pits excavated into the diabase mesas in this area.
5.6 Corporate Social Responsibility
Canada Iron, Inc. (CII) and its consultants, employees and agents are committed to following the
Corporate Social Responsibility (CSR) guidelines as has been set forth by the Prospectors and Developers
Association of Canada. This would include the utmost courtesy and professionalism when dealing with
landholders, local residents, government employees, and to keep all concerned parties appraised at all
times of activities undertaken or to be undertaken by CII on its ground. Where it is deemed necessary
advance meetings with affected stakeholders will be held at a venue of most convenience to them. Any
activities that will affect the environment, surface rights holders, and First Nations will not be undertaken
until all the required permits/permissions have been obtained and the proposed activities have been
approved in advance.
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 14
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
6.0 EXPLORATION IDSTORY
The area described by this report has a long history of exploration for silver, gold, base metals and iron,
dating back more than 100 years. Local residents report that numerous pits, and trenches by silver
prospectors in the period from 1880 to 1910 exist around the base ofMts Edna and Marny, but the dense
secondary growth prevented locating these in the time allotted for the initial site visit. No records of this
early work were found in the assessment files, and based on a report done in Strange Township in 1988
by Ken Germundson for Be lore Mines Ltd., on a site visit to locate silver showings in some of the older
historical workings failed to locate any silver showings and only located small, isolated occurrences of
amethyst.
The first exploration for iron in this area is a limited drilling program in 1924 in Strange Township, but
no records of this work were located in the assessment files in Thunder Bay.
In 1952, L.K. Johnson Explorations Ltd. drilled one 329 foot hole, part of an eight hole regional drilling
program, for which no record has been found to date. A detail of this drilling program is show on pages
46 and 47 of A.M Goodwin's 1960 Report. In 1960, Flintrock Mines undertook a seven hole, 2010 foot
program and in 1962, they undertook another 6 hole, 2,000 foot program. Reported resources based on
the two drilling programs were 270 million tons averaging 26.29% contained in an area of 6,000 by 1,500
feet to a depth of30 feet. (Shklanka, 1968, OGS, MRC #11) Samples obtained from the NW side of
Divide Ridge assayed 34.1 and 33.9% Fe at-200M, with a 30.2 and a 35% weight recovery.
From 1962 to the present time, no further exp I oration work was undertaken on this property.
These reported "resources" are historic in nature and they do not conform to cu"ent N/43-101
standards and should therefore not be relied upon
6.1 Past Production
This section does not apply to this report.
6.2 Previous Exploration and DriJling
No other drilling was undertaken, other than the two Flintrock Mines drilling programs of 1960 and 1962,
mentioned above. Figure 6-1 on the next page is an overlay illustration of the historic Flintrock drilling in
1960 & 1962
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 15
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc .
Ill'.,
~ - _$-."rfL" •
.... ""'""
..• !<; .. _, .
Fi&ure 6-1: Historical Dri II Holes Location (Approximated from 1962 sketch) --------------~
7.0 GEOLOGICAL SETTING
7.1 Regional Geology
The geology of Jean Township was described and mapped by AM. Goodwin (1960). Unless otherwise
noted, the information provided in this section is from this source. All of the consolidated rocks in this
area are of Precambrian age.
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 16
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
The Property lies in the western portion of the Wawa Subprovince, an Archean granite-greenstone gneiss
terrain ranging between 2.6 and 2.8 Ga. (Jackson and Fyon, 1991) which is part of the Superior Province
of the Canadian Shield. Uncomformably overlying this Archean terrain is the paleoproterozoic Anikimie
series of sediments containing the Gunflint Formation, a thick series of iron formation, chert and argillite,
which is in a conformable contact with the overlying Rove shales and argillites. Intruding into the Rove
Formation is the Keeweenawan diabase in the form of dikes and sills.
TABLE 7-1- TABLE OF FORMATIONS
CENOZOIC
Pleistocene and Recent
PRECAMBRIAN
Keeweenawan
Animikie
Till, sand, gravel, and clay
Unconformity
Diabase and related rocks
Intrusive Contact
Rove Formation
Gunflint Iron Formation
Unconformity
Algoman Type (Archean) Granite, granite gniess, with inclusions of
chlorite and mica schist (may contain some
greenstone components)
The following is a brief description of the rock types as they were observed in the field.
The Algoman granite is described by A.M. Goodwin in his 1960 report. This rock type was observed
along the north bank of the Whitefish River. At the location observed this granite was pale pink on a
weathered surface, equigranular, and medium grained. Occasional minor clots and inclusions of chlorite
schist were observed and the granite appeared mostly unaltered and fresh appearing.
Animikie Series: Resting unconformably upon the granite is the Lower Gunflint formation which
consists of a basal conglomerate, a lower algal chert, lower shale, and a lower taconite. In portions of the
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 17
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
exposed Gunflint to the north towards and around Kakabeka Falls the Lower Gunflint is well exposed in
the lower areas of the Kaministikwia River. In such areas the entire portion of the Lower Gunflint is well
exposed. The Lower Taconite is thinner around Kakabeka Falls, and it is here where the Middle Gunflint
Formation can be found, forming the face ofKakabeka Falls. This middle section is a thick sequence of
argillite-tuff, and in this area is thick enough to displace both the upper and lower sections of the Gunflint,
somewhat, indicating a different depositional environment compared to the other areas of the Gunflint in
locations further south and west. The Upper Gunflint Formation is composed of from lower to upper, the
Upper Algal Chert, the Upper Jasper, the Upper Shale, the Upper Shale and the Upper Taconite. A Upper
Limestone unit was noted in L.K. Johnson's hole number 1 of their 1952 drilling program, in the Mink
Mountain area. (A.M. Goodwin, 1960, page 46).
In an area on the west side ofMt. Edna, Mt. Marny and around Mink Mountain, west of the claims, are
exposures of Rove Argillite. These are black in colour, friable, and often contain vugs filled with quartz
and calcite. Quartz-carbonate veining can be found around some of these areas, as well as weak to
moderate gossan, especially near Mt. Marny.
The Keewanawan diabase intrudes the Animikie sediments most often as gently dipping, sills up to 100m
thick capping the Arnimikie Gunflint. This diabase is dark grey to black, medium grained and usually
exhibits weak to moderate magnetism. Where the diabase has been observed in contact with the Gunflint
taconite beds, the magnetite content is markedly higher and a chill margin can be observed in the diabase.
Pieces of this diabase where it is in contact with the Gunflint taconite contain more magnetite than the
usual diabase.
The structural geology of this area is relatively simple, with the Animikie sedimentary rocks resting on a
platform of mostly granitic rocks of low relief. The average dip of the sediments is 5 degrees to the
southeast, throughout this area. There is some local vertical displacement caused by normal gravity
faults, one set trending N70° E, and the other one trending N-S. Where faults transect the Gunflint there
is localized, intense folding and at Mink Mountain Gill, 1924 noted extreme brecciation in the area of
Mink Mountain caused by this faulting. In the SW portion of the Gunflint near to the original type
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 18
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
locality on Hunter Island in Quetico Provincial Park, Parsons, (1916) illustrates with photos and detailed
descriptions, what are most likely strongly faulted and folded Gunflint iron formation beds, which are the
result of considerable faulting. At the time of Parson's report, the Gunflint as well as the American side
of the Gunflint (Then known as the "Vermilion Range"), were included as part of the Keewatin series of
rocks. The age relationships of the rocks in this area were poorly understood at this time .
"':.- ' . ...
-
..... ;... ----
;)to '<I I Z'): IY>~
~"li.l'a: 1.:1· Gunflint Geology (crnodwin. I <J60) "" ith ;ample lc.cations
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS
:;..
Page 19
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
SYMBOLS
I ---1
L j SE!CDiidary FOIJO
[_
L
I . _j Rdowoy
I ~ f rectnr. OQ!Nttt lt<tn.-.rn•.<:;sg•n IIIli'
l fow nS I IIf' l.'tOUtldJ rv __ j
~ ... -'""'·"'j C l i!f / f><Ji ure.
~-~ J (i/l~CI.J/ SIN{If',
[ J Small rrxk outc r op
~-_;_-~_,.. : ·- l fk:>unddty o f •oc 1< n11lcrvo, uult.t<Jp dl(.'<~
~-- ---~ GeoJng ,r,,J lwrur.rl,lry, dppruxtnliUe
~: l GtK'IOQIC,II !l<Jut•d,;Jry, d'i.SI111lf:"d .
1+ L . __ _
I / l __ !!>
' J 5/r,-,c ,. ,,,. 1 t.•tl''· ol r/ln. •Jtft!'r/I(HJ of top unlfnOW'n
L.~ l.SluJ<e rln.l •ho of s... t J•stosdv .
~ -:..,.--:;·-__ 1 •; rokc: ,,,f o~t"f•f i1f ~t h,:.lu:r,.dy .
' l ·< ' ~ lfllo.e <J il t/ t}l/1 vf !}l"l'ISSOSI(y.
~-~ J :::. t n lte o[ vertiChl g n ... •'iSVStly
~~ - ]Fault. ll.liSU'Tll'11, -.oct lfldlcntf'.s dtuvn(f)r()w ..,,dr-.
[~- Jsno/1
/ c c;? J fe-;. 1 p1 t , tr<>-nch. [ __ r 0 OH8 I [Jroif hnle, rllC/IfllJ I IOfl un;..,,, ·.-vn [ __
Q V J Quartz ve1r. .
[~ 1 OutJru-caiC•te ..-eln
I C. V. ) CifiC1le ve'r'
Table 7-1 Geology Legend
LEGEND
PR.ECA .... BRIAN
K E W EENAWAN
INTRUS IVES
IN~LJ.aiV. COoH"TACT Se~ S> s.ndsO:>ne. 5c UmeslontJ. Sd ~. 5e Velned rr:x:M.
AN1M1KI E
ROVE FORMATlON
~~~;~~-~~~:6k~MATI0N Upper and L owM Gunfl i nt named on map face where a.eparable
Ja Ferrvgnous carOOnllte 3/J Cl'7ert 31!1b Thtn-bedcled chert-csrtJorMtlt 3c GranulfJr i ron forma tion rtaconiN)
Hematitic 1ron fonnatron. 3e Arg~ltlfe 3f Chert-camon.tfl br&ccla. 3g B~t~l qu•rtzffe cong#ornenJte. 3h J•.sper 3) Wea theled 1ron formation ~~ R'fJrsta llfze<J iron fOrma tion
3m Algal chert concretions 3n LJtnestone
ALGOMAN TYPE
2a Gn1nlte ,., -yry. a:: Aphte 2rJ Gt~~ntte gnetss.. :a.PegmaJtte. 2f S yenft& and s honkinite 2p L ampropl'rynl.
KEEW A TI N TYP E
Ia /'tl/o .. • la~"O.
1b Oorlte, met&diiJbB.se. lCTutr ld Sh&wed~.sll:lne •Gne= I f Mea a nde3/te 'lg ..._. 1h Trap 1} DkJrltlc amphltx:"IHt8 (l t1}eetfKJJ 1k R8crystallized ~-11 RhyOlite. 1m Amphibolite In BIOfJM diof1te.
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 20
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
7.2 Local and Property Geology
The map shown here covers the area of the claims covered by this report and within the property can be
observed all the rock types previously described. The best exposures of the Gunflint have been found
around Divide Ridge, and Mt. Edna. In the location where the bulk sample was taken, careful attention
was paid to the detailed lithology within the Gunflint, as there is in this location a 35 m high vertical
section of the Upper Gunflint exposed. Other large exposures of the Upper Gunflint were observed
around the north side of Mt. Edna, and along some of the roads and trails on the east side of Divide
Ridge. Where there was reasonable access, these were examined and sampled. Samples were obtained in
some of the lower areas ofthe Lower Gunflint between Mt.Edna!Divide Ridge area and the Whitefish
River. Along the west access trail, north ofMt. Edna, some localized quartz-carbonate vein occurrences
were examined and sampled. The area north of the north branch of the Whitefish River, was not reached
due to washed out bridges. It does appear that the mapping done by A.M. Goodwin is quite accurate in
the area of the claims, and the Gunflint beds do appear to thin out and end in the area of the south branch
of the Whitefish River, as outcrops of basal conglomerate exposures and the underlying granite occur
here. The north boundary of the Gunflint Formation trends at N 30° E.
Other than the iron formation, there does not appear to be any other mineral commodities present here,
with the exception of previously reported small amethyst occurrences.
7.3 Geophysics
The following is a brief overview of this author's interpretation of the airborne geophysical survey done
in 2010 by Geotech Ltd. The strong magnetic highs covering the south area of the property coincide very
closely with the diabase mesas that form the tops ofMts Mamy and Edna, as well as Divide Ridge. The
Gunflint that is exposed beneath these mesas, contains a thick section of magnetite rich beds that upon
examination range from strongly magnetic just below the upper contact, to moderately magnetic, tens of
metres below the upper contact of the diabase. The two very strong east-west EM conductors on Mt.
Mamy that coincide with a strong magnetic "bulls eye", may represent some type of mineralization in
addition to the iron formation. To the north of this conductor along the trail that passes just north of Mt.
Mamy extensive areas of weakly gossanized Rove argillite. This could be indicative of a more robust
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 21
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
type mineralization at depth below Mt. Marny. The magnetic lows adjacent to the strong highs may
represent the Gunflint horizons where hematite-carbonate-jasper-greenalite predominate.
The target anomalies picked out by the author, based upon his interpretation of the airborne geophysics
are described below.
Anomaly "A": Trending eat-west in a curvilinear fashion, and flanking the north side ofMt. Marny, this
anomaly is the strongest magnetic and EM response of the entire airborne survey and it lies just within
and to the east of a roughly circular magnetic "bulls eye", that is clearly indicative of a large quantity of
magnetite. To the south of this anomaly, and within an area of low magnetic intensity, is a short NE
trending EM response, which may or may not be related to the main conductor to the north. Surface
geological indications are that both of these anomaly trends coincide with exposures of the Rove
Formation argillite along the north and south sides ofMt. Marny, which is well known to host most of the
silver bearing vein systems of the area. Samples taken near this anomaly, however, did not indicate any
values of silver, or any other metal for that matter, so the only means to determine with certainty the
cause of this coinciding magnetic and EM high would by a drill hole from the north, collared on the road
in the north side of Mt. Marny. A curious feature of this area, however is the large, angular boulders that
are found just west ofMt. Marny, that were noted by A.M. Goodwin in his 1960 report, and seen by this
author. These boulders were rusty weathering and contained what appear to be football sized concretions
of specular hematite within them. As they do not match any of the in-place rock types of this area at all, it
is uncertain if these boulders are from the immediate area, however, given their angular nature they were
not transported overly far. An area of outcrop containing this material would most likely account for the
cause of a coincident magnetic and EM high.
Anomaly "B": This is a strong northeasterly trending magnetic high that represents the magnetite rich
Gunflint formation that underlies Mt. Edna and it was the main target ofthe Gunflint 1960 and 1962
drilling programs.
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 22
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
Anomaly "C": This is another northeasterly trending magnetic high that flanks the east side of the main
N-S township line road, along the Jean/Strange Township boundary, from which the bulk sample was
obtained. The high magnetite content of the Gunflint at this location, readily accounts for this magnetic
high.
Anomaly "D": This is another strong magnetic response that is indicative of magnetite rich Upper
Gunflint formation, on Divide Ridge East, just off the claims, and this was confirmed with the
observation of magnetite rich outcrops of Gunflint along road cuts in this area.
Anomaly "E": At this location was found flat lying outcrops of the diabase, which was slightly magnetic.
It is possible that a section of magnetite bearing Gunflint would be under this location, but the only means
of confirming this would be to drill here.
Anomaly "F": Located just to the northeast of the claim block, this is a weak EM response with a low
grade magnetic response in an area where exposures of the Lower Gunflint are reported. This area was
not reached by the author during his site visit; however, Mr. David Kalik did get to this area and did
observe some small outcrops of the iron formation in this area.
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 23
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
I
~ \
_-. Ia
8.0 DEPOSIT TYPES
Fi ure 7-2: Gunflint Geology (Goodwin. 1960) with Geophysics & Target Locations
.1> ·-· '', .. , -:':~~:~>: )~ ; ~~<;.,:
col• .,ll
lr.) , .. # 2 ?_
. .: ----:- -·. ~ '~
•ln-.. ~ '.
~..,·
·''
.tm,1
The primary deposit here is a Superior Type Banded Iron Formation ofPaleoproterozoic age, known as
the Gunflint Iron Formation and widely believed to be the eastern extension of the Biwabik Formation of
the Vermilion Range in Minnesota, from which iron has been commercially extracted since around 1880.
Guilbert and Park ( 1986, pp 603 -629) provide a detailed description of banded iron formation, using
illustrations from Ontario and Minnesota. Both the older Algoma Type Oxide Facies and the Superior
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS
i z
"' ' w
~ z
Page 24
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
Type are described in detail, along with various theories as to their origin. Gross, G.A., (1962, pp. 91 and
91) these pages are reproduced as follows:
"Superior Tvoe
This type of iron-formation is characteristically thin-banded cherty rock with iron-rich layers that are typical of the various sedimentary facies. Granules and oolites composed of both chert and iron minerals are a typical textural feature and the rocks are practically free of clastic material, except in the
transitional border zones or in distinct, well-defined members within the formation. The alternate or rhythmic banding of iron-rich and iron-poor cherty layers, which normally range in thickness from a
fraction of an inch to several feet, is a prominent feature. Individual layers may pinch and swell to give a wavy banded member or the uniformity of the layering may be disrupted by nodular or stubby lenses of chert and jasper, by rare occurrences of crossbedding, or by cherty forms resembling in "shape and structure "Collenia" or "Cryptozoan" growths in limestones formed by algae colonies. Tension, syneresis, and desiccation cracks are present in some chert granules and nodules, and stylolites are
common. The textures and sedimentary features of this type of formation are remarkably alike in detail
wherever examined although certain sedimentary features are more prominent in some formations.
The close association of this type of formation with quartzite and black carbonaceous shale, and
commonly also with conglomerate, dolomite, massive chert, chert breccia, and argillite, are recognized throughout the world. Volcanic rocks, either tuffs or flows, are not always directly associated with
Superior-type iron-formation but they are nearly always present somewhere in the succession. The sequence dolomite, quartzite, red and black ferruginous shale, iron-formation, black shale, and argillite, in order from bottom to top, is so common on all continents that some have been led to believe that it is invariable. However, stratigraphic studies have shown that, although there is a persistent association of
these sedimentary rocks, the succession may differ in local areas; it does so for example in the
Labrador geosyncline. Quartzite and red to black shale generally lies below the iron-formation and
black carbonaceous shale above it, but the presence of other sedimentary rocks and their position in the stratigraphic succession may vary from place to place, even in a single range or rock belt.
Continuous layers of the Superior-type iron-formations commonly extend for hundreds of miles
along the margin of a geosynclinal basin. The formations may thicken and thin from a few tens of feet to several hundred feet and occasionally to over 1,000 feet but their persistence is truly remarkable. The rock successions in which the iron-formations occur usually lie unconformably above highly metamorphosed gneisses, granites, or amphibolites, and the iron-formations are, as a rule, in the lower part ofthe succession. In some places they are separated from the basement rocks by only a few feet of
quartzite, grit, and shale, or, as in certain parts of the Gunflint Range, they lie directly on the basement rocks; in most areas however they occur at least some hundreds of feet above the base.
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 25
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
The Superior-type iron-formations are present in late Precambrian rocks in nearly all
parts of the world and also in some early Palaeozoic rocks (O'Rourke, 1961). They apparently formed in fairly shallow water on continental shelves or along the margins of continental
shelves and rniogeosynclinal basins, and consist of sediments derived from the adjacent
landmass and also some material from the volcanic belts within the basin. It is still uncertain
whether the iron and silica in this type of iron-formation were derived from a land or a volcanic source.
This type of siliceous formation is the protore or host rock for the rich hematite-goethite
orebodies of the Lake Superior region, of Quebec-Labrador, and for many other major iron
deposits of the world."
For this area, this iron formation is definitely fits the above description of Gross ' chemically derived
Superior Type of Iron Formation, that exhibits little or no alteration. The Gunflint iron formation is
considered a continuation of the Biwabik Formation of Minnesota, by virtue of its age and near identical
stratigraphy. The Gunflint is very extensive throughout this area, beginning in NE Minnesota as it
emerges from underneath the younger Duluth Gabbro complex, at Gunflint Lake, to continue all the way
northeast to pass underneath the diabase cap of the Sibley Peninisula, east of the City of Thunder Bay.
The Gunflint is mineralogically complex, and exhibits numerous lateral changes in the thickness of the
various beds and facies horizons. Much of these changes can be best observed in the exposures of the
Gunflint along the Kaministikwia River.
9.0 MINERALIZATION
This iron formation is chemically derived, and is a typical taconite situation with an average grade in the
25 to 30% range Fe. It is comparable to grades of the current producing mines in Minnesota and with
past producing mines in Ontario such as the Sherman Mine at Temagami, the Moose Mountain Mine at
Capreol, and the Griffith Mine near Red Lake. Field observations and reports by government and
industry geologists clearly show that the contacts between magnetite and silica in the Gunflint are sharp
and well defined. The historic grades obtained in the drilling done by Flintrock Mines in 1960 and 1962,
show intervals of grades within the 25 to 30% range Fe over intervals exceeding 100m, and these appear
to be the magnetite rich layers of the Upper Gunflint. Historical assays of the jasper, greenalite, and chert
layers in the Gunflint show grades in the >20% range as well. The amount and thickness of the material
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 26
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
most amenable to grinding and concentration would be determined by the thickness and availability of the
magnetite rich layers, as opposed to the more hematite and silica rich layers. Prior drilling indicates a
wide area of this material is in place and it will take new drilling and sampling to defme a 43-101
complaint resource.
10.0 EXPLORATION
The author is not aware of any recent exploration activity completed on the property by the current claim
holder, however there are newly acquired adjacent claims to the west that may indicate current on-going
work or commencement of exploration work in the near future.
11.0 DRILLING
There is no record of any drilling having been done on this property since the last drilling done by
Flintrock Mines in 1962.
12.0 SAMPLING MEIDOD AND APPROACH
This section does not apply to this report.
13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY
This section does not apply to this report.
14.0 DATA VERIFICATION
During the period of the field site visit by this author and his field assistant, Mr. David Kalik, all readily
accessible portions of the property were visited. Priority was given to known exposures of the Gunflint
Taconite outcrops, in particular the one at the Divide Ridge location, where the bulk sample was obtained.
Secondary priority was then given to six identified targets labeled "A" to "F", from the geophysical map
supplied by Mr. Bob Lo, P.Eng., a consulting geophysicist and an advisor to Iron, Inc. Each of these sites
was visited and all outcrops in the area were examined. The last target "E", up in the far northeast of the
property, north of the Whitefish River, was not reached during the time of the author's visit to the
property, but after the author' s departure, David Kalik was able to reach this last target and was able to
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 27
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
observe the outcrops in this area. These anomalies are described in detail in the geophysics section of this
report. Other field activities included visits to adjacent areas to check for additional routes of access to
the property as well as locating other outcrops of the Gunflint Taconites on areas adjacent to the property
described in this report.
During the period of the field site visit by this author and his field assistant, Mr. David Kalik, all readily
accessible portions of the property were visited. Priority was given to known exposures ofthe Gunflint
Taconite outcrops, in particular the one at the Divide Ridge location, where the bulk sample was obtained.
Secondary priority was then given to six identified targets labeled "A" to "F", from the geophysical map
supplied by Mr. Bob Lo, P.Eng., a consulting geophysicist and an advisor to Canada Iron, Inc. Each of
these sites was visited and all outcrops in the area were examined. The last target "E", up in the far
northeast of the property, north of the Whitefish River, was not reached during the time of the author's
visit to the property, but after the author's departure, David Kalik was able to reach this last target and
was able to observe the outcrops in this area. These anomalies are described in detail in the geophysics
section of this report. Other field activities included visits to adjacent areas to check for additional routes
of access to the property as well as locating other outcrops of the Gunflint Taconites on areas adjacent to
the property described in this report. A total of 13 samples were obtained, the first of which was the bulk
sample that was collected into 18 rice bags, and this bulk sample is detailed in Appendix 2. Appendix 3
is the description of the grab samples collected throughout the property, and the assays obtained.
Appendix 4 is the specific gravity results from the bulk sample.
15.0 ADJACENT PROPERTIES
As mentioned previously, there is new staking and possible current exploration in progress to the west of
the Cll Claims that are held by Magma Metals, Inc., of Perth, Australia. To the east two of the claims are
mineral rights patents that have been maintained since the time of the silver mining activity in the district.
Between July 17 and 20, Mr. Dave Kalik has staked a new 16 unit claim #4257213 to cover open ground
that covered part ofMt. Marny, and a four unit claim #4257214, to cover an area of exposed Gunflint
taconite in the Divide Ridge area, occupying a previous area of open ground on Divide Ridge East. To
the southeast in Fraleigh Township, there is another group of claims held by Mr. Ken Kukkee, under the
name "Suomi Fe Prospect'', for which Canada Iron has an option on. Other activity in the general area
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 28
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
has included the former producing Vale loco Shebandowan Ni-Cu-PGE mine, work done on Algoma
Type Oxide Facies Iron Formation in Hagey and Conacher Townships, and current ongoing drilling and
ground geophysics currently underway by Vale loco, on their Ni-Cu property in Devon and Pardee
Townships to the southeast.
16.0 MINERAL RESOURCE ESTIMATE
No defined mineral resource that is compliant with 43- 101, currently exists on this property.
17.0 OTHER RELEVANT DATA AND INFORMATION
All other relevant information and data have been described and reported in this Report. This author is not
aware of any other relevant data and information that would be pertinent to the evaluation of the
Property that is not already contained in this Report, as available in the public domain and/or provided
to the author by err and/or any of its agents.
18.0 INTERPRETATION AND CONCLUSIONS
Within the area of the Gunflint Property there has been confirmed the presence of Gunflint "Taconite"
grade iron formation over an area of several square kilometres, and this formation covers a total area
encompassing several townships in area from within Quetico Provincial Park up to and beyond the City
of Thunder Bay. The vast majority of the current available iron resources remaining to be exploited
world-wide are ofthe taconite grade, that being in the order of25-30% Fe. Much of the current, richer
reserves of the "direct shipping" ore of>SO% Fe grade have either been mined out, or are in remote
locations far from the nearest seaport. For this property, it is one of the closest if not the closest potential
taconite grade to a shipping port (Thunder Bay). The CN Rail Company has maintained its title to the
former track bed that passes through this area and reserves the right to re-lay the tracks. All the claims
covered by this report are recorded 100% in the name of Mr. Ken Kukkee, with the exception of the new
staking done by Mr. David Kalik, and these claims will be transferred to Canada Iron, Inc.
This property can be easily covered with grid lines and surface magnetometer surveys with the addition of
Time Domain EM conducted in the Mt. Marny area. Although the steep topography may present some
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 29
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
challenges, it does appear that the main conductive zones are on or below the top ofMt.Marny. From the
results of this survey, drill holes can be better targeted.
These descriptions, which follow, here, by R.Shklanka ( 1968) very aptly describe the nature, extent and
grade of the Guflint in this area. The Jean Township description is of the main body of the Gunflint Iron
Formation that is on the claims described in this report.
JEAN TOWNSHIP (R.Shklanka (1968, p.386)
Gunflint Range Occurrences
(See Mcintyre Township)
Mink Mountain Prospect
(See Hardwick Township)
Mount Edna Prospect
Class: Iron formation, Superior type, oxide facies.
Location; 1.5 miles N of Whitefish Lake including Mount Edna and W part of Divide Ridge, Jean and
Strange townships. Reference: ODM map 1960i.
Description: Gunflint iron formation bearing magnetite and hematite dips gently to the S and is overlain
by up to 75 feet of Keweenawan diabase.
Economic Features: Estimated that 270 million tons averaging 26.29% Fe are contained in an area 6000
by 1500 feet to a depth of 300 feet.
Samples from the NW face of Divide Ridge assayed 34.1% and 33.9% Fe and gave concentrates of 54.0
and 50.9% Fe at -200M with 30.2 and 35.2% weight recovery.
History: 1952 1 d.d. hole for 329 feet by L.K. Johnson Explorations.
1960 7 d.d. holes for 2,010 feet by Flint Rock Mines Ltd.
References: ODM maps 2065, 19601.
ODM, 1960, Volume LXIX, pt.7, p. 46-8, 57, 62 . Prospectus, 1962, Flint Rock Mines Limited.
Assessment files, Port Arthur.
HARDWICK TOWNSHIP (R.Shklanka (1968, p.391)
Mink Mountain Prospect
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 30
Technical Report, Gunflint Property, Ontario, Canada Iron, Inc.
Class: Iron formation, Superior type, oxide facies.
Location; Between Sandstone Lake and Sun Mountain, NW part of Hardwick and S W part Jean
townships as well as adjacent area to the west. Reference: OEM, 1960, Volume LXIX, pt.7, p. 47.
'Description: Gently dipping (3 to 5 degrees) Gunflint iron formation.
Economic Features; In the Upper Gunflint a magnetite taconite
zone 50 to 60 feet thick 300 to 400 feet wide and 3000 feet long was outlined with an average of28 to
35% Fe.
Beds up to 1.5 feet thick were intersected in the Lower Gunflint containing 50 to 60% Fe as hematite.
A sample from the magnetite taconite assaying 33 .9% Fe gave a concentrate of 56.8% Fe at -200M with a
40.9% weight recovery.
Samples of magnetite taconite from the Lower Gunflint assayed between 22.2 and 26.9% Fe and gave
concentrates at -200M between 54.5 and 62.3% Fe with 11.5 to 15.1% weight recovery.
History: 1943 10 d.d. holes for 2,973 feet by Gunflint Iron
Mines Limited. 1952 1 d.d. hole for 485 feet by L.K. Johnson Explorations.
References: ODM maps 2065, 19601.
ODM, 1960, Volume LXIX, pt. 7,
Assessment files, Port Arthur.
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 31
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
CIT has the opportunity to qualify these historic resources in an NI43-101 compliant Mineral
Resource estimate and it is this author's professional opinion that there exists excellent potential to add
additional resources through further exploration work (diamond drilling, geophysical survey) on the
Property. The current Property owner and this author, through research of published and unpublished data
has identified further strike of iron formation which is understood to not have been included in the
historical resource estimations as are shown for the Mt. Edna.
It is the author's professional opinion that the Property is of merit as an intermediate-stage
exploration project for an Animikie, Gunflint-type of Iron ore deposit and that further work is
warranted on this Property.
-/
• Gunflint Property
_ ... __ .. ----.......- .. ~--- .......... -_ .......... ~.-- ..... .
~
.. .. . .. ....
Jill "'IH H II'\'\ ._,ll \I H '\Ill , \ !II •I f '• II•'-
-----
/ / _.
/
;.-
Figure 18-1: Extent of the Gunflint Range in Ontario (Yell ow) From GSC Map 276A
/
~
J ., ~
. .. ' .
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 32
48'
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
96.
44'
96'
GENERALIZED PRECAMBRIAN GEOLOGIC MAP OF MINNESOTA
60ml l --· J
80km
/ Thrust fault
/ Steeply dipping fault
Paleozoic & Cretaceous Rocks
94. 92.
DESCRIPTION OF PRECAMBRIAN ROCK MAP UNITS Sandstone.
Volcanic rocks, dominantly basalt.
Intrusive rocks. dominantly gabbro and anonh~Ue.
Sioux QuanTile.
lntn~lve rocks of dominantly granitic composition
Graywacke. siltstone. shale.
• Iron-formation with a basal quanz arenite
• Metamorphosed sedimentary ro ks. rnlnor vofcank. rocks, and Iron-formation. --------------
• Intrusive rocks of generally granitic
c: composition.
_5~ SChist (met.lmorphosed graywacke).
< • Greenstone belts.. vole nlc rocks and ----~lat~~cke. ___ _
B ..,c: :;:; ~ • Granitic gneiss. amphibolite ~~ and other high-grade metamorphic rock!.. ~~<
Modified from Morey (1993)
Figure 18-2: Map Showing Mesabi (Biwabik Fm.) and Gunflint Ranges Extent
19.0 RECOMMENDATIONS
To advance the Property, an estimated budget of CAD $626,450 is recommended under the
program presented in Table 19-1. Dollar values as presented are general estimates and may change
going forward as increased level of details in program planning develop and initial results are
interpreted.
It is felt that the ground geophysical surveys should be undertaken ftrst, before any drill holes are spotted,
as it is the more magnetite rich portions of the Gunflint that should be targeted ftrst and foremost.
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 33
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
This budget table represents the minimum requirements to bring in a resource estimate that will be NI 43-
1 01 compliant for this property. It is anticipated that as drilling progresses that additional funds would be
made available to increase the 3,000 metres allocated for the drill program. Depending upon location, the
depth of the drill holes will vary between 200 to 300 metres each, allowing for around 12 holes. Based
upon historical drill records, the granite basement should not be deeper than 200 m, and some of the holes
may be completed at depths of <200 metres.
19.1 Cost Estimate
Table 19-1. Proposed budget for the recommended work on the Canada Iron, Inc. Gunflint Claims
ITEM UNITS COST/UNIT TOTAL
Data Compilation/integration & Modelling 1 $25,000.00 $25,000.00
Reconnaissance prospecting 10 days $12,000.00 $12,000.00
Surface samples (assays/geochemistry) 100 $75.00 $7,500.00
Magnetometer Survey (selected areas) 100 lineKm $200.00 $20,000.00
Diamond Drilling (all in) 3,000 m $150.00 $450,000.00
Reports 1 $30,000.00 $30,000.00
Operating Costs 1 $25,000.00 $25,000.00
Subtotal: Subtotal $569,500.00
1 0% Contingency: $56,950.00
TOTAL $626,450.00
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 34
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
20.0 SELECTED REFERENES
Aubut, Alan, P.Geo., 2011, Sibley Basin Group Geological Services Ltd., Shebandown Mine Area Field
Trip Guidebook and Field Site Visit of Thursday, July 7, 2011
Flintrock Mines, Ltd. 1960 Prospectus, Ministry ofNorthern Development and Mines and Forestry of
Ontario, Mining Assessment File #52B08SW0001
Gill, James E. 1924: Gunflint Iron-Bearing Formation, Ontario, in:
Summary Report, Geological Survey of Canada, 1924, Part C, p. 28-88
Goodwin, A.M. 1960: Gunflint Iron Formation of the Whitefish Lake Area, District of Thunder Bay,
p 41-63 in: Part VII of the Sixty Ninth Annual Report of the Ontario Dept. of Mines
Guilbert, John M. and Parks, Charles, F. 1986, Banded Iron Formations in:
The Geology of Ore Deposits, p 603-629 Waveland Press, Inc. Long Grove, Illinois, USA
Handley, Gary, President, Canada Iron, Inc., personal communication
Kukkee, Kenneth, P.Geo, Consultant 2011, personal communication
Lamppa, Marvin G. 2004: Minnesota's Iron Country, Rich Ore, Rich Lives 276 p
Lake Superior Port Cities Inc.
Mackenzie, George C. 1910: Magnetic Concentration of Low Grade Magnetites, p 154-172 in:
Part I of the Nineteenth Annual Report of the Ontario Bureau of Mines
Morin, James A. 1973: Geology of the Lower Shebandowan Lake Area, District of Thunder Bay
Ontario Department of Mines, 45 p with Map 2167
Parsons, Arthur L., 1916: Iron Deposits of Hunter Island, with notes on the Gunflint Lake, Area in:
Ontario Bureau of Mines, Twenty-Fifth Annual Report, Part I, p. 163-191
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 35
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
Parozan Mines Ltd., 1952: Report on the Gunflint Iron Prospect at Arrow Lake, Thunder Bay District,
Ontario, Ministry of Northern Development and Mines and Forestry of Ontario, Mining
Assessment File #52B01SW0004
Pickands, Mather and Company, 1952: A Report on the Gunflint Situation and the Matawin Iron Range,
District of Thunder Bay, Ontario, Ministry ofNorthem Development and Mines and Forestry of
Ontario, Mining Assessment File #52B01NE0002
Rogers, M.C. 1995: Precambrian Geology Adrian, Marks, Sackville, Aldina and Duckworth Townships
Ontario Geological Survey Report 295, 66 p and 5 maps.
Severson, M.J., Heine, J.J., and Patelke, M.M., 2009, Geologic and Stratigraphic Controls of the
Biwabik Iron Formation and the Aggregate Potential of the Mesabi Iron Range, Minnesota:
University of Minnesota Duluth, Natural Resources Research Institute, Technical Report NRRI/TR-
2009/09, 173 p. + 37 plates.
Shklanka, Roman 1968: Iron Deposits of Ontario, Mineral Resources Circular No. 11
Ontario Department of Mines, 489 p
Shklanka, Roman 1970: Geology of the Bruce Lake Area, Geological Report 82
Ontario Department ofMines, 27 p with Map 2195
Sutcliffe, R.H.: 1991: Proterozoic geology of the Lake Superior area; in
Geology of Ontario, Special Volume 4, part 1p 627-681
Tanton, Thomas, L., 1923: Iron Formation at Gravel Lake, Thunder Bay District, Ontario in:
Geological Survey of Canada, Summary Report 1923, Part C, p 1-75
Tanton, Thomas, L., 1924: Eastern Part ofthe Matawin Iron Range, Ontario, Thunder Bay District,
Ontario, in: Geological Survey of Canada, Summary Report, 1924, Part C, p. 1-27
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 36
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
Tanton, Thomas, L., 1931: Fort William and Port Arthur, and Thunder Cap Map Areas, Ontario in:
Geological Survey of Canada Memoir 167
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 37
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
APPENDIX I
CERTIFICATE OF QUALIFICATIONS, SIGNATURE PAGE,
CONSENT OF QUALIFED PERSON
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 38
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
21.0 CERTIFICATE OF QUALIFIED PERSON
I, George C. Sharpe, P.Geo, (Limited), residing at 318-2125 Osler Street, Regina, Saskatchewan, do
hereby certify that:
1. I am a geological consultant working for Global Geological Services Ltd., which is engaged as
the principal geological consultant for Canada Iron Incorporated.
2. This certificate applies to the technical report titled "Technical Report, Gunflint Iron Formation
Property, Jean Township, District of Thunder Bay, Ontario", with an effective date of August 10,
2011.
3. I am a graduate of the Sault College of Applied Arts and Technology, Sault Ste Marie, Ontario,
(1974) in the Geological Technician Program. I am a geological consultant currently licenced
with the Association of Professional Engineers and Geoscientists of Saskatchewan, (APEGS), as
a Limited Member, License #09697, with Permission to Consult, and as well I am a Professional
Geoscientist (Limited) with the Association of Professional Geoscientists of Ontario, (APGO),
License #1639.
I have read the defmition of"Qualified Person" as set out in National Instrument 43-101 (NI 43-10 1) and
certify by reason 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" (within the
defmed limited scope of my professional practice) for the purposes ofNI 43-101.
My relevant experience for the purposes of the Technical Report is:
• Field Geologist, QGX Mongolia LLC ...................... 1996-1997 & 2002
• Independent Geological Consultant . ... . ....... .. ..... . .... . 1998-1999, 2003-2005
• Senior Geologist Titan Uranium Inc ... . .. .. .... .. .... .. .. . . 2006-2007
• Senior Geologist, Bear Lake Gold ... . ....................... 2007-2008
• Senior Project Geologist, CCIC ............................. 2008-2010
• Chief Geologist, Global Geological Consultants ......... 201 0-present
4. I have visited the Gunflint Iron Property, from July 4 to July 14, 2011.
5. I am responsible for authoring all the sections of this report.
6. I am independent of the Issuer applying the test in Section 1.4 ofNI 43-101
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 39
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
7. My only prior involvement with the Gunflint Iron Property is the field site visit described in (4)
above.
8. I have read NI 43-101 and Form 43-101F1 and this report has been prepared in compliance
therewith.
9. As of the date of this certificate, to the best of my knowledge, information and belief, the
Technical Report contains all scientific and technical information that is required to be disclosed
to make the Technical Report not misleading.
Effective Da e: August 1 0, 201
Signed Date: August 10, 2011
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 40
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
SIGNATURE PAGE
Dated August 10, 2011:
Originally signed by
George C. Sharpe, P. Geo. (Limited)
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 41
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
CONSENT OF QUALIFIED PERSON
Canada Iron, Inc. 1500-330 Bay Street Toronto, Ontario M5H 3S8
British Colombia Securities Commission 5th Floor, 701 West Georgia Street Vancouver, BC V7Y 1K8
Alberta Securities Commission 4th Floor, 300 5th Avenue SW Calgary, AB T2P 3C4
TSX Venture Exchange 650 West Georgia Street, Suite 2700 Vancouver, BC V6B 4N9
Pursuant to section 8.3 of National Instrument 43 101- Standards of Disclosure for Mineral Projects ("Nl 43-101 "):
1. I certify that I am the author of the report titled ''NJ-43-1 01 Technical Report on the Gunflint Iron Property, Thunder Bay Mining District, Ontario" dated August 10, 2011 (the "Technical Report") which is referred to in, and portions of which are reproduced in, the news release of Canada Iron Inc. (the "Company") dated August I 0, 2011.
2. I confrrm I have read the Press Release and that the Press Release fairly and accurately represents information in the technical Report.
3. I consent to the public filing of the Technical Report and to extracts from, or a summary of the Technical Report in the Disclosure.
4. I consent to the use of my name "George C. Sharpe" in the Disclosure.
DATED: August 10, 2011
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 42
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
APPENDIX2
SAMPLE DESCRIPTIONS AND ANALYTICAL RESULTS FROM SITE VISIT
(Includes Specific Gravity Results for the bulk sample)
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 43
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
23612
23613
23623 5350264 720361 461
23624 5348825 72 1043 470
23625
23626
D D D
-
DESCRJPTlON
Upper Gunflint Taconite bulk sample along main access trail, as selected by
Ken K .
Ore grade Gunflint Taconite
Sub grade Gunflint Taconite
No Taconite (Other locations of interest)
Biwabik example from Hibbing, Minnesota
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 44
Technical Report Gunflint Property} Ontario} Canada Iron Inc.
1\CCUR/\S Sl\ Y k ·l r:--i(l~~~·,:_:r:·,: , _.V1
rd~. •St.J"7ll~.::::·:=· 7~.-::
'•'· ~·· '.' • . ,', ·:-•• •, 1 ~~ ·.-, t', . ·-··n LA UG ft AT O AI K S
FIIIIOy. Aalgill;t 5, :l!l11
c.rgcg Iron Inc. 1500-3Jil 11010f Sln!el T CJnlll'b • on. CI'.N
Pll'l: (416) 346-1!11la Fi111JF: (lll6)5~
Emalt~tnot
1741[17
1741 0!1
174109
174111l
17411 1
174112
174113
1741 1 ..
174115
174116
174117
174118
174119
174120
174121
17.4122
174123
17412-o
174125
174126
Clll!n110
(]23512
Dolp (]23612
Dllp (]23612
OUp (]236 12
OUp (]23612
OUp 023512
OUp (]23612
OUp !l23612
OUp 02.1512
OUp 023612
OUp ll23612
OUp (]23612
OUp (]236 12
OUp (]23612
OUp (]2.1512
OUp !l23612
OUp 023612
OUp (]23612
OUp !l23612
OUp 023612
Certificate of Analysis.
D<rlE! Recelvi!<I:D711512011
Dale Cllmplele<l: OM15121l1 1 Jal· ,._ 2 01142637
-..ce: Sampll!lt:1
J\12f13 caD Cl2!l3 Fe2113 1<2.0 MgD Mnll IIJai2ll P2ll6 Slll2 TlC2 Ull TOial
% ,. 'II. 'II. 'II. % ,. .,. .,. "' "' .,. "'
5 .053 2.1131 ll.007 32.467 0.735 2 .2i2D 0.145 1.7 16 il.112 4 9.773 0.315 3.300 9<!_5.oW
5.10 9 2..31)1 0.007 2 9.772 0 .525 2.1122 0.161 0.48.0 !1. 110 5 3..572 0 .362 3 .5011 'Je..725
6.045 2.062 ll.010 311.568 0.~ 2.7 11 0.133 1.1160 0.1 10 5 1.057 0 .350 3 .300 96.77tl
5.1!126 2.15f; ll.006 2 9.766 0.524 2.E57 0.163 0.5 1<1 0.110 53.4G!I 0.354 3 .700 96.51!2
5.2fi8 2A10 0.007 29.276 0 .531 3.11-4- 0.164 0.523 0.1 10 51157 0.310 3.EOD !18.561
7.962 225<1 6.012 211.9116 0 .5<16 3.2111 0.159 1.!141 0.12l4 5 B.092 0.42-4 3.2fl0 91U1 17
5.107 2ll6!1 0.006 3C..I:IZ7 0 .519 2 .706 0.158 0..530 0.112 53.519 0.352 3.SCO 981i2"
5.292 1.!167 0.006 29.6 15 0.538 2.605 0.158 0.55€1 0.112 53.703 0 .364 3.600 98.5 10
5.143 I .!1.15 D.Oil6 Ja!l!l9 0 .502 2.678 0. 155 ·D.600 0.105 53.622 0.335 3.2fl0 98:lll2
5.571! 2.071 0.006 3 D.7fi6 0 .596 2 .7<17 0.137 0..593 0 .11l8 50.753 Ct364 3.3100 97 .0 18
5.257 2..151 0.006 2 9.5115 11.518 2.663 0. 156 0.731 ll. 11l8 53..611 0 .349 3.300 98.539
S.lll92 2231 0 .007 32.396 0.5<10 2.9<10 0 .143 OA99 0.115 51l.~ 0 .370 3.EOD 96.4 12
5.1!.37 2.573 6.009 21lct~ 0.626 3 .271 0.161 0.8 18 0. 110 53. 1!11 11.3!10 3.2fl0 98.35f;
S.ll56 1 .!1 17 n.o1 o 31.478 o .ot6 2 .&34 a. 132 n.601 0.110 5 1.061 o.364 3.sco 96.sn 6 .712 3.491 0 .012 26.296 0.812 2.525 0 .129 0.755 11.1116 5 1.251 11.349 3.300 97.74<1
5.857 2.673 0.018 3 1.1142 0.602 3 .727 0.151 0. 573 0.121 .49.93-3 0.415 3 .JOO !16A1.<1
4.!124 2..321 0.012 32.560 0.513 3..406 0.148 D.572 0.124 511160 11.:!19 3.100 9821!1
4.S1 1 2.313 0 .01 3 32.511 0 .523 3 .354 0.152 0.577 0. 112 53.294 0.397 3 . .CCO 101 AS!l
4..960 2.471 0.012 32.068 0.525 3.~ 0.167 0.555 0.126 5D.220 0 . .412 3.400 98.436
5.160 4.369 0.006 2 !11.166 0 .490 2 .500 0 .147 0.735 0.103 52.832 11.362 2 .!i(JI) 98.776
PROCEDIJHE CODES: AILI'2, Al..\'ffi1,. JILSG 1, AI..W.1
cemecsey: ~>·-~ ....... _;.. .. .. .. ,L,...,,. Thl! - ..-.. cn 11Sreportlti3!e cn.,.ID!IW .__ The OOfllllcal2 or "'"<~~J'I6 """"*~ nat ~ ..,..- l!liiCI!pt 111 M.. ..r11out me wta..n ~ Cf 1ne JaiiCir.I1JJr)'
Page 1 of I AU! I8-1223-()!!.4051201 1 3:04PM
Gunflint Bulk Sample Results. Each Ace# represents an individual rice bag. 18 rice bags made up the
entire bulk sample.
Canada Iron Inc. Assays, p.1
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 45
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
Date Created: 11-07-28 03:29:12 PM Job Number: 201142666 Date Received: 07/14/2011 Number of Samples: 14 Type of Sample: Rock Date Completed: 07/28/2011 Project ID:
Ace#( Lab#) Client ID Ag
ppm
175146 23613 <1
175147 23614
175148 23615
175149 23616 <1
175150 23617
175151 23618 <1
175152 23619
175153 23620
175154 23621
175155 23622
175156 23622
175157 23623
175158 23624
175159 23625 <1
175160 23626
AI
%
2
4
8
1
4
3
5
2
1
5
4
As Ba Be Bi
ppm ppm _ppm ppm
3.02 <2 80 <2
2.16 <2 62 2
2.18 54 45 3
2.15 <2 66 <2
2.71 38 86 2
2.56 9 54 <2
1.86 <2 34 <2
1.66 2 29 <2
1.98 <2 39 <2
1.99 3 118 <2
2.26 <2 119 <2
1.54 2 125 <2
2.29 <2 82 2
2.29 27 63 <2
0.82 4 84 2
8
8
22
8
22
6
7
6
11
12
12
21
32
5
33
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 46
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
Canada Iron Inc. Date Created: 11-07-28 03:29:12 PM Job Number: 201142666 Date Recei\o€d: 07/14/2011 Number of Samples: 14 Type of Sample: Rock Date Completed 07/28/2011 Project ID:
Ca Cd Co
% ppm ppm
0.61 10
0.82 7
2.94 23
0.26 7
1.86 21
0.41 4
2.94 8
>10 6
0.41 10
4.54 12
4.61 13
0.34 17
1.87 24
0.32 4
0.12 26
6
2
5
5
15
7
3
2
3
9
9
7
10
3
33
Cr
ppm
39
15
13
21
27
40
15
11
11
22
22
13
20
52
22
Assays, p. 2
Cu Fe K Li
ppm % % ppm
5 15.38 0.38 <1
3 10.48 0.45 <1
23 35.86 0.39 <1
2 10.62 0.45 <1
16 33.04 0.47 <1
1 6.05 0.55 <1
2 13.21 0.69 <1
4 9.6 0.53 <1
6 15.01 0.61 <1
<1 18.63 0.48 <1
<1 19.39 0.46 <1
<1 26.26 0.47 <1
<1 37.1 0.29 <1
3 5.77 0.35 <1
10 40.16 0.35 <1
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 4 7
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
Canada Iron Inc. Date Created: 11-07-28 03:29:12 PM Job Number: 201142666 Date Received: 07/14/2011 Number of Samples: 14 Type of Sample: Rock Date Completed: 07/28/2011 Project ID:
Mg Mn Mo
% ppm ppm
1.14 981
0.38 770
1.83 1169
0.37 1555
2.66 3251
0.34 453
0.45 1706
0.41 1041
0.52 1043
0.54 1165
0.56 1178
0.66 4499
2.55 2138
0.32 370
0.23 4436
52
42
115
52
93
29
50
34
55
72
74
94
114
33
156
Ni
ppm
37
22
7
34
22
48
20
11
15
21
22
16
16
82
18
Assays, p.3
p
ppm
407
113
500
111
682
123
<100
<100
<100
251
256
471
2042
102
699
Pb
ppm
27
19
56
20
49
11
18
19
25
32
32
40
56
14
64
Sb Se
ppm ppm
13 <5
9 <5
27 <5
12 5
24 <5
7 <5
14 <5
16 6
16 <5
17 <5
14 5
18 <5
27 7
11 5
34 <5
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 48
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
Canada Iron Inc . Date Created: 11-07-28 03:29:12 PM Job Number: 201142666 Date Recei-.ed: 07/14/2011 Number of Samples: 14 Type of Sample: Rock Date Completed: 07/28/2011 Project ID:
Sn Sr li
ppm ppm ppm
<10 77
<10 67
<10 73
<10 52
<10 121
<10 57
<10 62
<10 109
<10 53
<10 256
<10 260
<10 61
<10 107
<10 53
<10 52
330
182
259
176
859
196
149
156
155
349
352
229
590
177
328
ll
ppm
2
5
12
<2
2
5
<2
7
8
6
21
5
6
9
10
Assays , p. 4
v w y Zn
ppm ppm ppm ppm
21 <10 10 26
9 <10 7 13
15 <10 10 55
13 <10 6 17
39 <10 15 52
20 <10 7 12
7 <10 6 17
5 <10 8 17
7 <10 6 22
13 <10 9 27
13 <10 9 27
17 <10 8 34
28 <10 20 60
26 <10 6 12
72 <10 11 78
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 49
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
Canada Iron Inc.
Date Created: 11-07-2211:42:40AM
Job Number: 201142637
Date Received: 07/15/2011
Number of Samples: 1
Type of Sample: Rock
Date Completed:
Project ID:
Accu rassay # Client Tag Specific Gravity
174107 23612 2.99
174108 23612 3.45
174109 23612 3.4
174110 23612 2.73
174111 23612 3.02
Specific Gravity Results for the bulk sample
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page SO
- - -----------------------------------------------------------------------~
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
APPENDIX3
PHOTOS FROM THE SITE VISIT AND IRON ORE SAMPLE PHOTOS
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 51
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
Location of the bulk sample in Upper GunOint
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 52
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
Jasper section, Upper Gunflint, Divide Ridge West area
Magnetite rich section of the Upper Gunflint, Divide Ridge West
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 53
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
Exposures of the Middle and Upper Gunflint, Kakabeka FaDs
Extensive drift cover, north of Divide Ridge
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 54
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
Very dense undergrowth that covers most of the area
View from the top of Silver Mountain in Fraleigh Township
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 55
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
View of Mt. Mamy from the northwest
Samples from the Griffith Mine, which was in operation from 1968-1986. This mine
had a raw ore grade very much the same as noted on the Gunflint
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 56
Technical Report, Gunflint Property, Ontario, Canada Iron Inc.
Gunflint taconite piece, left, Biwabik taconite piece, right. Note the similar texture.
lhn.a.•t'r drUIUta,. f:kfi•or • l'bo•"" •
ItaiM- t•,. acu tn~•<"lk> ur fi•••C'I.AA ...
The ultimate goal for the Gunflint is .....
The iron ore pellets are from the Griffith Mine
George C. Sharpe, Global Geological Services Ltd. 412-619 Saskatchewan Cr. W. Saskatoon, SK S7M OAS Page 57
Thursday, July 28, 2011Certificate of Analysis
Canada Iron Inc.1500-330 Bay StreetToronto , On, CAN
Ph#: (416) 346-1008Fax#: (306) 525-3688Email: [email protected]
Date Received: 07/14/2011
Date Completed: 07/28/2011
Job #: 201142666
Reference:
Sample #: 14
Acc # Client ID Agppm
Al%
Asppm
Bappm
Beppm
Bippm
Ca%
Cdppm
Coppm
Crppm
Cuppm
Fe%
K%
Lippm
Mg%
Mnppm
Moppm
Nippm
Pppm
Pbppm
Sbppm
Seppm
Snppm
Srppm
Tippm
Tlppm
Vppm
Wppm
Yppm
Znppm
175146 23613 <1 3.02 <2 80 <2 8 0.61 10 6 39 5 15.38 0.38 <1 1.14 981 52 37 407 27 13 <5 <10 77 330 2 21 <10 10 26
175147 23614 2 2.16 <2 62 2 8 0.82 7 2 15 3 10.48 0.45 <1 0.38 770 42 22 113 19 9 <5 <10 67 182 5 9 <10 7 13
175148 23615 4 2.18 54 45 3 22 2.94 23 5 13 23 35.86 0.39 <1 1.83 1169 115 7 500 56 27 <5 <10 73 259 12 15 <10 10 55
175149 23616 <1 2.15 <2 66 <2 8 0.26 7 5 21 2 10.62 0.45 <1 0.37 1555 52 34 111 20 12 5 <10 52 176 <2 13 <10 6 17
175150 23617 8 2.71 38 86 2 22 1.86 21 15 27 16 33.04 0.47 <1 2.66 3251 93 22 682 49 24 <5 <10 121 859 2 39 <10 15 52
175151 23618 <1 2.56 9 54 <2 6 0.41 4 7 40 1 6.05 0.55 <1 0.34 453 29 48 123 11 7 <5 <10 57 196 5 20 <10 7 12
175152 23619 1 1.86 <2 34 <2 7 2.94 8 3 15 2 13.21 0.69 <1 0.45 1706 50 20 <100 18 14 <5 <10 62 149 <2 7 <10 6 17
175153 23620 4 1.66 2 29 <2 6 >10.00 6 2 11 4 9.60 0.53 <1 0.41 1041 34 11 <100 19 16 6 <10 109 156 7 5 <10 8 17
175154 23621 3 1.98 <2 39 <2 11 0.41 10 3 11 6 15.01 0.61 <1 0.52 1043 55 15 <100 25 16 <5 <10 53 155 8 7 <10 6 22
175155 23622 5 1.99 3 118 <2 12 4.54 12 9 22 <1 18.63 0.48 <1 0.54 1165 72 21 251 32 17 <5 <10 256 349 6 13 <10 9 27
175156D 23622 2 2.26 <2 119 <2 12 4.61 13 9 22 <1 19.39 0.46 <1 0.56 1178 74 22 256 32 14 5 <10 260 352 21 13 <10 9 27
175157 23623 1 1.54 2 125 <2 21 0.34 17 7 13 <1 26.26 0.47 <1 0.66 4499 94 16 471 40 18 <5 <10 61 229 5 17 <10 8 34
175158 23624 5 2.29 <2 82 2 32 1.87 24 10 20 <1 37.10 0.29 <1 2.55 2138 114 16 2042 56 27 7 <10 107 590 6 28 <10 20 60
175159 23625 <1 2.29 27 63 <2 5 0.32 4 3 52 3 5.77 0.35 <1 0.32 370 33 82 102 14 11 5 <10 53 177 9 26 <10 6 12
175160 23626 4 0.82 4 84 2 33 0.12 26 33 22 10 40.16 0.35 <1 0.23 4436 156 18 699 64 34 <5 <10 52 328 10 72 <10 11 78
PROCEDURE CODES: ALP1, ALMA1
Certified By:
The results included on this report relate only to the items tested The Certificate of Analysis should not be reproduced except in full, without the written approval of the laboratory
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