TESLA Iron Project

Located in Northern Quebec, the project covers two historically drilled iron occurrences.

Three types of iron formation were identified as 1) hematite-magnetite iron formation; 2) silicate-carbonate iron formation; and 3) spotted silicate-carbonate iron formation. These two iron occurrences were described as strongly folded with moderate to steep dips. At Gossen Hill, a conglomerate with well-rounded pebbles of iron formation was also recognized.

At Gossen Hill, an outcrop of almost continuous massive iron-formation is exposed over 1,500 metres long by 975 m wide and contains two mineralized zones: Gossen Hill No. 1 and Gossen Hill No. 2. The historical resources estimates for the Gossen Hill deposit reported 112.67 million tons at 24 per cent iron, 1.5 per cent manganese and 34.7 per cent of insolubles for Gossen Hill No. 1 and 61.17 million tons at 33 per cent Fe, 2.60 per cent Mn and 34.30 per cent of insolubles.

The Red Hill deposit is located four km south of Gossen Hill and includes a historical resource of 147.67 million tons at 24.50 per cent Fe, 1.52 per cent Mn and 29.82 per cent insolubles for Old Red No. 1 and 100.17 million tons at 32.7 per cent Fe, 2,21 per cent Mn and 35.35 per cent of insolubles for Old Red No. 2. The total historical reserves for the two deposits are estimated to 421.68 million tons.

Readers are cautioned that the above-quoted estimates date back to 1955 and were compiled in a document that was prepared in 1971, prior to the implementation of National Instrument 43-101 and related policies and before the establishment of Canadian Institute of Mining, Metallurgy and Petroleum standards and guidelines for valuation of mineral properties. Therefore, all estimates mentioned above are historical and should not be treated as current resource estimates as they do not comply with NI 43-101 standards.

Qualified person

Isabelle Robillard, PGeo, a qualified person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information