Projects

Fermont Property
(Graphite-Iron)

Fermont Claims Block Map

The Fermont property consists of 341 claims covering an area of 17,540 hectares (175 km2) strategically located in the southern Labrador Trough in northeastern Quebec, Canada. The claims comprise two major blocks, Fermont and Fire Lake, which are near or adjacent to iron producers ArcelorMittal Mines and Cliffs Natural Resources, and to Champion Minerals’ Fire Lake North project and Focus Graphite’s Lac Knife graphite deposit.

Fermont claim block: graphite potential

In May 2012, the Corporation announced that it had identified strong graphite potential on its Fermont claim block, favourably situated between Focus Graphite’s Lac Knife property (indicated resource of 4.938 Mt at 15.76% Cgr and inferred resource of 3 Mt at 15.58% Cgr) and Standard Graphite’s Carheil property. The Corporation discovered the presence of a large number of electromagnetic anomalies covering the southern part of the Fermont claim block while reviewing an MRNF survey done in 1990.

In the third quarter, the Corporation began exploring the property to confirm the MRNF survey data. The program consisted of identifying graphite conductors on the property using a Beep mat survey and a TDEM helicopter-borne survey. The results were positive, enabling the Corporation to confirm the presence of multiple high-intensity electromagnetic conductors over several kilometres, an excellent indicator of the presence of graphite-rich masses. Furthermore, the geology, which is similar to other properties in the area with recognized graphite potential, is favourable to the presence of graphite mineralization in every respect.

The graphite structures are encased in biotite gneiss. The helicopter-borne geophysical survey indicates that the numerous high-intensity electromagnetic conductors identified are several km long and highly complex, due to folding that produces significant thickening of the graphite structures in places. Visually, the graphite showings appear to have a high proportion of large crystals (>0.25 mm), which makes them more valuable than fine-grained (amorphous) deposits and highly prized by graphite users, particularly for lithium-ion battery production.

The Corporation also did prospecting work, collecting 19 grab samples. Seven samples returned values of from 11.15% Cgr to 22% Cgr. The full results of the prospecting work were as follows:

Sample # % Cgr Sample # % Cgr Sample # % Cgr
I555101 6,26 I555108 11,15 1555115 22,0
I555103 1,94 I555110 15,45 1555901 0.24
I555104 0,02 I555111 1,38 J911130 3,91
I555105 2,57 I555112 2,43 J911131 12,05
I555106 1,78 I555113 5,33
I555107 12,15 I555114 4,97

On February 25, 2013, the Corporation announced the results of its first drilling program on the Fermont property. The best results for the four-hole, 1,065-m program were as follows:

Hole
(#)
From
(m)
To
(m)
Length*
(m)
Cgr
(%)






NV12-01
19,5030,0010,505,39
38,0043,855,852,95
47,6055,608,002,44
213,20216,803,603,34
231,00247,3016,308,65
264,80280,5015,709,97
301,00307,706,704,01
NV12-02114,00144,0030,001,21

NV12-03
194,10

incl. 201,00
214,0019,905,83
207,006,0012,26




NV12-04
13,0523,009,9511,24
28,5048,0019,504,06
84,0093,009,004,48
106,00118,5012,503,39
187,50192,004,503,19
Notes:
* This figure represents core length rather than true width. The host gneiss is highly metamorphized and is folded in places. Multiple holes must be drilled on a given section to determined true width. These formations tend to be essentially subvertical, except in the fold axes.

These very positive drill results are all the more impressive as these are the first four holes drilled on the property. All the holes intersected good-sized intervals and multiple high graphite grades of up to 24.8% Cgr over 1.2 m. The results of the TDEM helicopter-borne survey also indicate that the Fermont property has excellent exploration potential, having identifying more than 20 potential structures ranging in length from 600 m to 5 km. Only two of these conductors have been tested by drilling, over a distance of barely 200 m.

On the basis of the results obtained to date, the Corporation considers that the Fermont property has strong graphite potential that should be further tested by additional drilling.

Fire Lake claim block: iron potential

During the fall of 2011, an airborne high-resolution magnetic survey concurrent with a helicopter-supported prospecting reconnaissance program was realized over an area of 80 x 100 km. The program’s objective was to identify zones where the magnetic signature would indicate the likely presence of iron-rich areas favourable to DSO-type mineralization (Direct Shipping Ore).

The best results were obtained from the Mont-Merry area, where high concentrations of strong magnetic anomalies that correspond to a tightly-folded iron formation continuous with magnetic lows suspected to be caused by the demagnetization of the iron formation occur. The apparent thickness of the iron formation is greater in some folds, and could be as much as 100 meters thick.

The Mont-Merry iron formation is a mineralized body that forms a kilometer-scale, SW-oriented “U-shaped” hematite-dominant horizon that is tightly folded (isoclinal) and 75-100 meters thick locally. It is composed predominantly of hematite in the lower portion, albeit some magnetite occurs in the upper portion. The west side of the “U” appears to be a 50-meter monoclinal iron formation assemblage that dips 15-20° toward the west and strikes north-south. Assay results from iron formation grab samples revealed 20-49% iron oxide content (15% magnetite), with negligible undesirable elements of manganese (Mn), titanium (Ti) and phosphate (P).