- Initial NI 43-101 inferred resource of 7.2 billion tonnes of 29.2% total iron.
- PEA expected in June 2013.
Block 103 covers an area of 20,690 hectares, located 30km northwest of the mining town of Schefferville, Quebec, Canada. Block 103 is on strike to Tata Steel/New Millennium "NML" magnetite deposits of KeMag & LabMag, which have a combined Resource of over 8 billion tonnes.
Block 103 hosts an initial National Instrument 43-101-compliant resource of 7.2 billion tonnes with a grade of 29.2% total iron. Mineral resources which are not mineral reserves, do not have demonstrated economic viability. Additional information regarding the resource estimate can be found in the news relase dated February 4, 2013.
In June Cap-Ex selected BBA to complete the Preliminary Economic Assessment of Block 103, which is expected to be released in H1 2013.
The 2012 exploration program included 22,300 metres of diamond drilling in 72 holes as well as additional surface sampling, focused primarily on the continued investigation and definition of mineralization in the Greenbush Zone. Intersected intervals ranged up to 291 metres of 26.7% to 35.5% total iron. Metallurgical results indicate a magnitite recovery of 93.7% and an iron concentrate grade of 70.0%. Click here to view the complete drill assay results.
Greenbush Zone - New Discovery
Based on the publicly disseminated 2011 drill results and airborne geophysical programs, the following interpretations can be formulated regarding the Greenbush Zone:
The area with strong magnetite mineralization is at least 26 square kilometres in size. This Zone features very strong, coincident magnetic and gravimetric airborne anomalies, which show remarkable reliability as drilling targets. 2011 drilling encountered ore grade mineralization from 45 to 265 metres.
The average length of core intercepts of magnetite mineralization encountered in the 26 holes drilled in the Zone is 118 metres. This number is based on assays from 21 holes and the visual estimation of magnetite content in the remaining holes. It is important to note that a number of drill holes ended in mineralization, and consequently the mineralization is open at depth. The drilling depth will be extended in the 2012 season to delineate the increase in average thickness of the magnetite mineralization.
The average grade of the mineralization is 30.5% iron and the Davis Tube concentrate grades average 68.2% iron and 4.7% silica.
Specific Gravity ("SG") of 3.3 is used at this time, which is the same used for the surrounding deposits.
The mineralization starts near surface in most of the holes and is open in all directions
Block 103 -- "Northwest Zone" Discovery:
The "Northwest Zone", also on Block 103, was discovered from the 2011 drilling campaign. This second zone is flat lying, mostly near surface striking NE to SE approximately 2 kilometres west of the Greenbush Zone, in the northwest region of Block 103.
This zone was diamond drill tested by 6 holes over 5.3 kilometres of strike, with drill spacing ranging from 300 metres to 2,100 metres. The presumed width between Kivivic Lake and the western boundary of Block 103 is between 0.5 and 1.5 kilometres. The western and northern extensions appear to continue onto ground held by Tata Steel/New Millennium Iron Corp.
Edward Lyons, P.Geo., is Chief Geologist of the Company and a Qualified Person as defined by National Instrument 43-101 for the above mentioned project. The QP is a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia (APEGBC) and the Professional Engineers & Geoscientists Newfoundland & Labrador (PEGNL) as a registered Professional Geoscientist (P.Geo.). Mr. Lyons has reviewed and approved the technical information disclosed above
The Mineral Resource estimate for the Block 103 Property is based on results from 81 diamond drillholes totaling 23,735 meters and is effective as of February 4, 2013. Mr. Michael Kociumbas, P.Geo., and Mr. Rick Risto, P.Geo., both with independent firm WGM, are Qualified Persons as defined by NI 43-101. Mr. Risto has reviewed and approved the underlying sampling, analytical and test data used for the estimate and Mr. Kociumbas is responsible for auditing the in-house Mineral Resource estimate as supplied by Cap-Ex and has approved the technical data contained above. WGM is of the opinion that the iron mineralization delineated on the property will be amenable to open pit mining. The estimate is classified as an Inferred Mineral Resource, consistent with the CIM definitions referred to in NI 43-101. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. Cap-Ex is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other issues which may materially affect its estimate of Mineral Resources.