The Magpie Mines Inc.
The Magpie Deposit pictured below is located in Quebec's distinctive North Shore region and is the precursor to the creation of the privately owned Canadian company, The Magpie Mines Inc., in which Fancamp holds majority interest. The Magpie Deposit is among the world's largest undeveloped titaniferous magnetite deposits.
The deposit is located on Quebec's North Shore, east of Sept Iles, about 130 kilometres or 81 miles north of tidewater, and at the time of writing (October 2018), is now accessible by a Hydro Quebec road beneath the Romaine 4 powerline corridor, passing some 3.2 km or 2 miles north of the original Magpie Camp. (The Romaine 4 dam itself, lies some 40km or 25 miles east of the deposit and is scheduled for completion in 2020.) The titaniferous iron ore of the deposit is generally massive, remarkably homogeneous, and carries small, but significant chromium and vanadium values.
The deposit consists of four individual segments of titaniferous magnetite numbered Deposit 1 through 4 going from North to South over a strike distance of about 8 km or 5 miles. The general trend of these segments is North-South with sub-vertical to west dipping contacts to the west and shallower, west dipping (45°-50°) contacts to the east. The deposits are hosted within granitic gneisses with the hanging wall and the footwall contacts being relatively sharp. Possible depth extensions remain to be tested.
Deposit number two is the largest of the four segments and has a total strike length of 5.3 km or 3.3 miles, with widths varying from 200 m or 655 ft to 450 m or 1,475 ft and a depth of up to 450 m or 1,475 ft.
An extensive drilling program in 2011 totaled 8,143.7 m in 31 holes, over a 3.4 km strike length of number two.
The Mineral Resources tabulated, seen in the image below for the Magpie Deposit #2 was modeled in compliance with the CIM Definitions and Standards on Mineral Resources and Mineral Reserves, December 11, 2005. National Instrument 43-101 reporting standards and formats were followed in this document in order to report the Mineral Resource in a fully compliant manner.
Footnotes; (1) The current Mineral Resource estimates were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions.
(2) Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The mineral resource estimate may be materially affected by environmental, permitting, legal, title, taxation, socio‐political, marketing, or other relevant issues.
(3) The quantity and grade of estimated Inferred Resource reported herein are uncertain and there has been insufficient exploration to categorize them as an Indicated or Measured Resource. It is uncertain if further exploration will result in reclassification of Inferred Mineral Resources to the Indicated or Measured Mineral Resource categories.
(4) P&E utilized a $1.00 Cdn/US exchange rate, a mining cost of C$1.90/tonne and C$9.50/tonne for the processing, G&A, and freight costs. The process recovery, estimated to be 82%, and an Iron ore price of US$1.85/dmtu were used to complete the Whittle pit optimization with 50 degree overall slopes to estimate the in‐situ Mineral Resources.
(Reference: P&E Mining Consultants Inc. Page 3 of 105 Magpie Mines Inc. Magpie Deposit #2 Technical Report No. 242 , June 6th 2012. (Amended Technical Report and Resource Estimate on the Magpie #2 Iron-Titanium Deposit of the Magpie Property, Quebec, Canada)