SUMMARY REPORT
MAGPIE PROPERTY
Leclaire Township, Ontario, Canada
ESSAR STEEL ALGOMA INC. 105 West Street,
Sault Ste. Marie, Ontario, Canada P6A 7B4
Date: March 13, 2013
Prepared By:
CARACLE CREEK INTERNATIONAL CONSULTING INC.
Zsuzsanna Magyarosi, Ph.D., P.Geo.
Magpie Property, Leclaire Township, Ontario, Canada Essar Steel Algoma Inc.
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1.0 HIGHLIGHTS
Essar’s Magpie Property consists of a ~117 ha area covering the Magpie Iron Range and is road
accessible from Wawa.
The Property covers a strike of ~640 m of iron formation with a width between 12 and 18 m and
is composed mostly of chert and siderite with small amounts of magnetite.
It was mined intermittently between 1911 and 1924 and the last exploration in 1951 to 1953 with
the drilling of four drill holes.
Reserves at the Magpie Mine were last estimated in 1917 at 634,900 tons.
An average of 157 samples from the Magpie Mine returned 36.79% Fe, 5.7% SiO2, 0.78% S,
0.012% P, and 2 to 3% Mn (Shklanka, 1968).
The last exploration drilling returned ~4.6 m of 43.37% Fe, 9.66% S and 16.05% Si at ~274 m
vertical depth.
There are several iron ranges within 5 km of the Property boundary that are connected or merge
into one another forming an arcuate belt.
There are also two gold, silver and lead occurrences less 1 km from the Property hosted in veins,
and a diamond occurrence 2 km from the Property.
No modern exploration on the Property.
No exploration for anything other than iron.
2.0 LOCATION AND TENURE
The Magpie Property is located approximately 25 km north-northeast of Wawa, northeastern Ontario, in
Leclaire Township. The approximate center of the Property in UTM coordinates is: 669657m E,
5342542m N, Zone 16, NAD 83 and in geographic coordinates: 84° 42’ 58.06” W, 48° 12’ 48.27” N.
The Magpie Property consists of nine (9) freehold patents totaling 116.553 ha (Table 2-1, Figure 2-1).
Essar holds 100% of both surface and mining rights on the patents. The patents have no expiry date and
the only obligation is to pay land tax on them. All patents are subject to reservations in Crown Grant.
Magpie Property, Leclaire Township, Ontario, Canada Essar Steel Algoma Inc.
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Table 2-1 Essar’s tenure for the Magpie Property MNDMF patent number
Land Registry Pin No.
MPAC Roll Number
Township Ownership Area (ha)
Name
JL62 (SSM1042) 31138-0011 LT 579913600004800 LECLAIRE S&MR* 24.864 Magpie JL63 (SSM1045) 31138-0012 LT 579913600004800 LECLAIRE S&MR 12.675 Magpie JL64 31138-0008 LT 579913600004800 LECLAIRE S&MR 4.524 Magpie JL65 31138-0010 LT 579913600004800 LECLAIRE S&MR 12.440 Magpie JL66 31138-0009 LT 579913600004800 LECLAIRE S&MR 9.020 Magpie JL67 (SSM1047) 31138-0014 LT 579913600004800 LECLAIRE S&MR 20.416 Magpie JL68 (SSM1228) 31138-0007 LT 579913600004800 LECLAIRE S&MR 14.322 Magpie JL69 (SSM1229) 31138-0007 LT 579913600004800 LECLAIRE S&MR 13.606 Magpie JL74 31138-0013 LT 579913600004800 LECLAIRE S&MR 4.686 Magpie
Total 116.553
*S&MR = surface and mining rights
Magpie Property, Leclaire Township, Ontario, Canada Essar Steel Algoma Inc.
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Figure 2-1 Tenure map for the Magpie Property
3.0 ACCESS AND INFRASTRUCTURE
The Magpie Property can be accessed by road following the Trans Canada Hwy. north from Wawa for
~34 km, then following a network of smaller roads to the east for an additional ~12 km (MNDM MDI).
The Property can also be accessed from the town Magpie through a network of smaller roads and a trail.
The nearest airport is in Wawa and the closest railway track is approximately 10 km south-southeast of
the Property.
The town of Wawa has restaurants, hotels, hospital, and Ontario Provincial Police Station. The town of
Wawa could supply most of the needs of an exploration program at Magpie. Wawa has an urban
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population of 2,634 people in 2011 (Statistics Canada: http://www.citypopulation.de/php/canada-ua-
ontario.php?cityid=394).
4.0 EXPLORATION HISTORY
Exploration on the Property started in the early 1900’s by Lake Superior Corp. (Algoma) and it
concentrated on iron. The Magpie mine operated intermittently between 1911 and 1921. There is no
record on any exploration on the Magpie Property since 1953. Table 4-1 summarizes the exploration
history on the Property.
Table 4-1 Summary of exploration on the Magpie Property Year Company Source of data Type of work Results 1909-1910 Lake Superior
Corp./Algoma Sage (1993), Iron Ore Committee (1924, p.160)
trenching, stripping, test-pitting, diamond drilling, sinking of a shaft
deposit consists of siderite, some portions altered to magnetite
1911-1913 Lake Superior Corp./Algoma
Sage (1993), Iron Ore Committee (1924, p.160)
erection of a roasting plant
iron content ~35%, low S content, operation of roasting plant
1914 Lake Superior Corp./Algoma
Sage (1993), Iron Ore Committee (1924, p.160)
new roasting plant mine closed due to low iron prices
1914-1921 Lake Superior Corp./Algoma
Sage (1993), Iron Ore Committee (1924, p.160)
mining approximately 1.5 million tons of ore were mined
1951 Jalore Mining Company Ltd.
Sage (1993) detailed geological mapping
no public record of any results
1952-1953 Algoma Sage (1993) 4 drill holes totaling ~1680 m
best intersection was ~4.6 m of 43.37% Fe, 9.66% S and 16.05% Si at ~274 m vertical depth
5.0 GEOLOGY
The Magpie Property occurs within the Wawa Subprovince of the Superior Providence. The Wawa
Subprovince is an aggregation of Archean greenstone belts and granitoid plutons (Williams et al., 1991).
The greenstone belts are composed of metamorphosed komatiite, basalt, dacite and rhyolite and
associated metasedimentary rocks dispersed in a sea of granitoid rocks. It is composed of two linear
greenstone belts: one along its northern border with the Quetico Subprovince and another in the
Mishibishu-Michipicoten-Gamitagama area.
The Magpie Property is located within the Michipicoten greenstone belt, which is approximately 140 km
long and reaches a maximum width of about 45 km (Williams et al., 1991). Regional mapping delineated
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three discreet episodes of volcanism: the Hawk assemblage, the Wawa assemblage and the Catfish
assemblage.
The iron formation on the Magpie Property is located within intermediate to felsic volcanic rocks of the
Wawa assemblage (2.75 Ga) (Figure 5-1). The rocks overlying the iron formation are composed of
chloritic schist that grades into intermediate metavolcanic rocks. A distinct silicified volcanic breccia unit
underlies the iron formation.
Magpie Property, Leclaire Township, Ontario, Canada Essar Steel Algoma Inc.
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Figure 5-1 Local geology map for the Magpie Property (modified from MRD126)
6.0 MINERALIZATION
The Magpie Property covers approximately 2 km strike length of the Magpie Iron Range that extends
from the Iron Knob at the east end, where it bends sharply and becomes the Alice Iron Range (Sage,
1993, MNDM MDI). The northwest end of the iron range extends just west of a diabase dike that cuts the
iron formation. Smaller segments of iron formation occur to the northwest. The Magpie and Alice iron
ranges may define a minor fold.
The Magpie Iron Range consists of almost entirely carbonate (siderite) facies iron formation, or its
metamorphosed equivalent, which is the bottom facies of the typical Michipicoten-type iron formation
(Sage, 1993). The upper sulphide, chert, magnetite and graphite facies are missing (MNDM MDI). The
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Magpie Iron Range has a strike length of approximately 2,100 feet (~640 m) and a width between 40 (~12
m) and 60 feet (~18 m). The central portion of the Iron Range contains the most amount of siderite and
the least amount of magnetite. The presence of magnetite decreases the value of the ore.
The Magpie Mine operated intermittently between 1911 and 1921. The main product was siderite, but the
exact amount of siderite produced from the mine is not known. Sage (1993) estimated that the amount of
raw siderite probably did not exceed 1.5 million tons. Reserves at the Magpie Mine were last estimated in
1917 at 634,900 tons. The sintered product after roasting graded 50.10% Fe, 9.14% Si and 2.74% Mn
(MNDM MDI). An average of 157 samples from the Magpie Mine returned 36.79% Fe, 5.7% SiO2,
0.78% S, 0.012% P, and 2 to 3% Mn (Shklanka, 1968).
Between 1951 and 1953 one drill hole by Algoma intersected ~4.6 m of 43.37% Fe, 9.66% S and 16.05%
Si at ~274 m vertical depth.
7.0 ADJACENT PROPERTIES
The adjacent properties are patents and there is no public information on any exploration on them.
There are several iron ranges within 5 km of the Property boundaries including the Alice and Reynolds
Lake iron ranges to the south-southeast, the Godon and Finger Lake iron ranges to the north-northwest,
and the South Evans Creek Iron Range to the northeast (MNDM MDI) (Figure 5-1). All of these iron
ranges are interpreted to be part of one iron formation forming an arcuate belt or merge into one another
(MRD 126). Most of these iron ranges are oxide facies composed of chert and magnetite with minor
siderite, pyrite and pyrrhotite, except the Godon Lake that consists of chert and siderite, similar to Magpie
(Sage, 1993 and MNDM MDI).
Other occurrences include the discretionary mineral occurrences Bingham-Holliday Showing North (Au,
Ag, Pb) (MNDM MDI42C02NE00120) and Bingham-Holliday Showing South (Pb, Ag, Au) (MNDM
MDI42C02NE00121) located 0.85 km and 0.63 km east-northeast of the Property. Mineralization is
hosted in quartz ± carbonate veins.
The Magpie Diamond Property is located ~2 km southeast of the Property and it is hosted in mafic to
intermediate breccias with clasts of carbonate, mafic and gneissic country rocks (MNDM
MDI42C02NE00136). Eight microdiamonds were found in a 32.02 kg sample.
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8.0 REFERENCES
MNDM MDI: Ministry of Northern Development and Mines Mineral Deposit Inventory.
Ontario Geological Survey (2011): 1:250 000 scale bedrock geology of Ontario; Ontario Geological Survey, Miscellaneous Release---Data 126-Revision 1.
Ontario Iron Ore Committee (1924): Magpie Mine, Report of the Ontario Iron Ore Committee with Appendix 1923, 306p.
Sage, R.P. (1993): Geology of Abotossaway, Corbiere, Leclaire and Musquash townships and part of Dunphy Township, District of Algoma; Ontario Geological Survey, Open File Report 5587, 308p.
Shklanka, R. (1968): Iron Deposits of Ontario; Ontario Department of Mines, Mineral Resoruces Circular No. 11, 489p.
Williams, H.R., Stott, G.M., Heather, T.L., Muir, T.L. and Sage, R.P. (1991): Wawa Subprovince, Chapter 12, in Geology of Ontario, Ontario Geological Survey, Special Volume 4, Part 1, p. 485-
542.
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April 23, 2013 Essar Steel Algoma Inc. McAuley Property Zsuzsanna Magyarosi, Ph.D., P. Geo. Location and Access Essar’s McAuley Property consists of four (4) patents covering 63.535 ha ( and Figure 1). It is Table 1located approximately 20 km north-northeast of Sault Ste. Marie, Ontario. The nearest international airport is in Sault Ste. Marie, Ontario. The access from Sault Ste. Marie is by 30 km of paved road and 3 km of unpaved road following the Trans-Canada highway to north and Road 556 to east, towards Searchmont ski resort. The property has bush road access and PIN 31354-0003 surrounds a small lake. The small lake is owned by the Crown. Essar owns the mining and surface rights of the patents. The patents have no expiry date and the only obligation is to pay land tax on them. The patent is subject to reservations in Crown Grant. Table 1 Tenure of Essar’s McAuley Property
MNDMF patent number
Land Registry Pin No.
MPAC Roll Number
Township Area (ha) Name Rights
SSM1201 31352-0184 LT 572703000132100 AWERES 15.58 McAuley S&MR* SSM1203 31352-0183 LT 572703000132100 AWERES 15.58 McAuley S&MR SSM1199 31354-0001 LT 572704000001300 JARVIS 16.633 McAuley S&MR SSM1200 31354-0003 LT 572704000001200 JARVIS 15.742 McAuley S&MR
Total 63.535
*S&MR=Surface and mining rights
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Figure 1 Land tenure map of Essar’s McAuley Property
Geology The McAuley Property is underlain by an Archean granitic intrusion in the east and Proterozoic rocks of the Huronian Supergroup in the west. The Proterozoic rocks are composed of mafic to felsic metavolcanic rocks of the Thessalon Formation and clastic sediments of the Livingstone Creek and Aweres formations. The McAuley iron occurrence is located in the centre of the property and consists of titaniferous magnetite in Proterozoic rocks. One sample returned values of 39% Fe, 5.4% SiO2, 0.37% S and 4.25% TiO2 (MNDM Mineral Deposit Inventory).
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March 22, 2013 Essar Algoma Steel Inc. Nipigon Forest Reserve Property Zsuzsanna Magyarosi, Ph.D., P. Geo. Essar’s Nipigon Forest Reserve Property consists of one patent covering 16.187 ha ( and Figure Table 11). It is located approximately 16 km northeast of Beardmore, Ontario, and has road access. The nearest international airport is in Thunder Bay, Ontario, which is approximately 250 km from the Property. Essar owns the mining and surface rights of the patent. The patent has no expiry date and the only obligation is to pay land tax on it. The amount of mining land tax in 2012 was $ 64.75 CDN. The patent is subject to reservations in Crown Grant. Table 1 Tenure of Essar’s Nipigon Forest Reserve Property
MNDMF patent number
Land Registry Pin No.
MPAC Roll Number
Township Area (ha) Name Rights
HF11 62408-0055 LT NA IRWIN 16.187 NIPIGON FOREST RESERVE
S&MR*
*S&MR = surface and mining rights
Figure 1 Land tenure map of Essar’s Nipigon Forest Reserve Property
SUMMARY REPORT
WAWA MAIN SITE AND LOONSKIN LAKE PROPERTIES
Wawa, Ontario, Canada
ESSAR STEEL ALGOMA INC. 105 West Street,
Sault Ste. Marie, Ontario, Canada P6A 7B4
Date: March 13, 2013
Prepared By:
CARACLE CREEK INTERNATIONAL CONSULTING INC. Stephen Wetherup, B.Sc., P. Geo.
Zsuzsanna Magyarosi, Ph.D., P.Geo. Julie Selway, Ph.D., P.Geo.
Summary Report Wawa and Loonskin Properties, Wawa, Ontario
Essar Steel Algoma Inc.
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1.0 HIGHLIGHTS
A large land package (~3450 ha) consisting of 206 mineral patents and 7 leases covering three
Michipicoten Iron Ranges and more than 7.8 km of iron formation strike length,
The Property borders the Wawa, Ontario town limits and has direct rail, power and highway
access as well as a network of gravel roads throughout,
Two former operating iron mines on the Property, Helen/MacLeod and Sir James Mines, with
remaining historical siderite resources of ~ 89 Mt, and open to depth.
Johnson Iron Range which lies between the Helen/MacLeod and Sir James Mines has not been
mined.
Siderite portion of the iron formation has been the main focus of previous exploration and mining
yet significant iron remains in other styles of iron mineralization (e.g., hematite and magnetite).
Extensive drilling and mining data available.
2.0 LOCATION AND TENURE
The Wawa Properties are comprised of two separate claim blocks; one called the Wawa Property and the
second the Loonskin Lake Property (Figure 2-1 and Figure 2-2).
The Wawa Property is located immediately to the northeast of Wawa, northeastern Ontario, in McMurray,
Chabanel and Lendrum Townships. The Wawa Property is approximately 13 km long along the north
shore of Wawa Lake and up to 5 km wide. The approximate center of the Property in UTM coordinates is:
669593 m E, 5322298 m N, Zone 16, NAD83 and geographic coordinates: 84º 43’ 30.15” W and 48º 1’
53.18” N.
The Loonskin Lake Property is located 10 km northeast of Wawa, northeastern Ontario in Esquega
Township. The Loonskin Lake Property is approximately 3.8 km long along the south shore of Loonskin
Lake. The approximate center of the Property in UTM coordinates is: 675225 m E, 5326916 m N, Zone
16, NAD83 and geographic coordinates: 84º 38’ 51.64” W and 48º 4’ 17.16” N.
The Wawa Property consists of 196 patented claims totaling 3,282.130 ha and 7 leases totaling 30.926 ha
in Chabanel, McMurray and Lendrum townships (Figure 2-1, and Table 9-1, Table 9-2 and Table 9-3).
The patents have no expiry date and the only obligation is to pay land tax on them. The expiry date of all
Summary Report Wawa and Loonskin Properties, Wawa, Ontario
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leases is May 31, 2014. One patent in McMurray Township and parts of two patents in Chabanel
Township are leased by Essar to other companies. Essar owns the mining and surface rights of most
patents and only the surface rights on some of the patents (see Table 9-1 to Table 9-3). All patents are
subject to reservations in Crown Grant.
The Loonskin Lake Property is comprised of 10 patented claims totaling 137.688 ha in the Esquega
Township (Figure 2-2 and Table 9-4). Essar owns the surface and mining rights on all patents. The
patents have no expiry date and the only obligation is to pay land tax on them. All patents are subject to
reservations in Crown Grant.
For 2012 for both Wawa and Loonskin Lake Properties, the total Wawa property tax was $76,327, the
Mining Land tax was $12,108 and the Provincial Land tax was $1,087 for a grand total of $89,522/year.
The Wawa property tax includes $15,354 for the land with the sinter plant station.
Summary Report Wawa and Loonskin Properties, Wawa, Ontario
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Figure 2-1 Tenure map of the Wawa Property
Summary Report Wawa and Loonskin Properties, Wawa, Ontario
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Figure 2-2 Tenure map of the Loonskin Property
3.0 ACCESS AND INFRASTRUCTURE
The main Wawa Property is located along the north shore of Wawa Lake and borders the town of Wawa
on the west, north, and east sides of the town limits. There is road access throughout and the Algoma
Central Railway connects Sault Ste. Marie to Wawa and railway tracks occur along the entire northern
boundary of the Wawa Property with a spur connecting to the old Sir James Mine on the east end of the
Property (Figure 2-1). The Loonskin Lake Property lies ~ 1 km northeast of the Wawa Property and is
serviced by a forestry road on its westernmost margin (Figure 2-2).
Summary Report Wawa and Loonskin Properties, Wawa, Ontario
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The town of Wawa is serviced by the Trans-Canada Highway and has restaurants, hotels, hospital, and
Ontario Provincial Police Station. The town of Wawa could supply most of the needs of an exploration
program at Wawa as it services several active gold mines and advanced exploration programs in the area.
Wawa has an urban population of 2,634 people in 2011 (Statistics Canada:
http://www.citypopulation.de/php/canada-ua-ontario.php?cityid=394).
4.0 EXPLORATION HISTORY
This history section has been compiled through a search of public data and from the few remaining files
onsite at Essar Steel Algoma Inc. In 1998 upon the closing of the MacLeod Mine, all of the exploration
files from Algoma Ore Properties Division of the Algoma Steel Company were given to the Timmins
Regional Resident Geologist’s office. The records include both unsolicited property descriptions and
evaluations sent to the company, as well as exploration records for work conducted by the exploration
division of the Algoma Steel Company. Information contained within the records spans the years from
1899 to the mid-1970’s when the company ceased to conduct exploration (Atkinson, et al, 1999).
Although Essar does not have many of the files for the Wawa Properties, they appear to still have a
complete set of mine plans and sections for the Helen, McLeod and Sir James Mines.
4.1 Wawa Property
There are three ‘Iron Ranges”, the Helen, Johnson and Eleanor Iron Ranges and two historical mines on
the Wawa Property: the Helen/MacLeod Mine (Helen Iron Range) and the Sir James Mine (Eleanor Iron
Range).
4.1.1 Helen/MacLeod Mine
Multiple ore zones of the Helen Iron Range have operated at different times under a variety of names by
the Algoma Steel Corporation and affiliated companies.
1899-1918: Open pit mining of hematite/goethite ore; a total of 2,823,365 tons of 53% hematite
ore was shipped during this time (Rupert, 1979).
1937-1946: Helen Mine re-opened to exploit siderite ores from surface in the Helen and Victoria
open pits.
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1945: Underground mining initiated with No. 3 shaft to 256 m depth
1953-1956: Algoma Ore Properties – Expansion of underground operations where No. 4 service
winze and No. 5 shaft was started and reached 630 m vertical depth (eventually the MacLeod
production shaft), surface diamond drilling and construction of new sintering plant (Rupert,
1979).
1957-59: Algoma Ore Properties - underground tramway extended to 4,877 feet (=1,486.5 m),
surface diamond drilling.
1960: Algoma Ore Properties - production from old Helen ore body ceases, production from G.
W. MacLeod Mine begins.
1998: G. W. MacLeod Mine closes, and mine rehabilitation begins (Atkinson, et al., 1998), total
production from MacLeod Mine 58.7 Mt @ 32.5% Fe
The Helen Iron Range has a total of 387 drill holes within a 500 m radius of the iron range in Ontario
Ministry of Northern Development, Mines and Forestry’s (“MNDMF”) drill hole database, but there are
more holes in the drill reports (Figure 4-1).
4.1.2 Sir James Mine
1877: Part of mining locations issued to J. W. Johnston.
1948: Algoma Ore Properties - acquisition of property, diamond drilling (17,879 m) delineating a
resource of 80 M tons to ~915 m depth; 7 M tons of this resource available to open pit mining
(Shklanka, 1968).
1956-1957: Algoma Ore Properties - stripping of deposit, building of railroad spur and
construction of surface facilities.
1958-1967: Algoma Ore Properties – open pit mining where a total of 7.7 M tons of ore (siderite)
shipped (Rupert, 1979).
1966: Algoma Ore Properties - incline started on north side of pit in preparation to recover
underground reserves; no underground production took place.
The Eleanor Iron Range has a total of 183 drill holes within a 500 m radius of the iron range in
MNDMF’s drill hole database, but there may be more (Figure 4-1).
Summary Report Wawa and Loonskin Properties, Wawa, Ontario
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4.1.3 Johnson Iron Range
The Johnson Iron Range lies between the Helen and Eleanor Iron Ranges and exploration work by
Algoma Ore Properties occurred sporadically in this area between 1941 and 1966 in conjunction with
work on the Helen and Sir James Mine with little descriptive work provided. Below is a summary of the
known drill programs.
1941: A single189 m drill hole below Wallbank Lake to test the faulted offset of the Helen Iron
Range.
1948-1950: 38 drill holes along most of the strike of the Johnson Iron Range totalling 5,925 m
1952: An additional 3 drill holes below Wallbank Lake totalling ~254 m.
1953: One hole totalling 48 m.
1966: Four drill holes totalling 371 m.
The Johnson Iron Range has a total of 43 drill holes within a 500 m radius of the iron range in MNDMF’s
drill hole database, but there may be more drill holes (Figure 4-1).
4.1.4 Mammoth Metals Occurrence
The Mammoth Metals Occurrence is a Pb, Zn and Ag occurrence with minor Au between Wawa Lake
and the Johnson Iron Range (MDI42C02SE00109). An overview of the exploration history includes:
1927: G. Christie and W. Soulier - discovery.
1927: Dome Mines Ltd. - trenching, sampling 3 diamond drill holes (500 ft = 152.4 m).
1928-29: Mammoth Metals Ltd. - 2 shafts sunk, inclined shaft to 65 feet (=19.8 m) and 165 feet
(=50.3 m) of drifting completed.
1967: Algoma Ore Properties - mapping, magnetometer and EM surveys.
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4.2 Loonskin Lake Property
The Loonskin Lake Property has been explored sporadically since 1949 for iron formation along the
contact between the Wawa and Catfish assemblages. Also, there has been some exploration for Cu-Ni in
peridotite rocks on the southeastern portions of the Property.
1949-50: Prospecting and regional geological mapping in the area with the discovery of an iron
formation (pyrite breccia) outcrop south of Loonskin Lake.
1953: One drill hole 293.2 m below a pyrite/pyrrhotite showing and one hole totalling 174 m into
peridotite.
1962 to 1963: Ground magnetic and EM survey and geological mapping (Gray, 1963)
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Figure 4-1 Location of historic drill holes on the Wawa and Loonskin Lake Properties (hole locations from MNDMF’s drill hole database).
5.0 GEOLOGY
5.1 Regional geology
The Wawa Property occurs within the Wawa Subprovince of the Superior Providence. The Wawa
Subprovince is an aggregation of Archean greenstone belts and granitoid plutons (Williams et al., 1991).
The Wawa Property is located within the Michipicoten greenstone belt that is approximately 140 km long
and reaches a maximum width of about 45 km (Williams et al., 1991). Regional mapping delineated three
discreet episodes of volcanism: the Hawk assemblage (the oldest episode), the mafic to felsic volcanism
(Wawa assemblage) and the mafic volcanism (Catfish assemblage). The iron formation horizon on the
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Wawa Property is located at the boundary between the intermediate to felsic volcanic rocks of the Wawa
assemblage (2.75 Ga) and the mafic metavolcanic rocks of the Catfish assemblage (2.70 Ga) (Figure 5-1).
Five main facies have been identified and include carbonate (dominantly siderite), sulphide (dominantly
pyrite), chert-magnetite, chert-wacke and argillite-graphite-pyrite. In the region, the iron formation
horizon has been subdivided into zones along the horizon or “ranges” of which there are 32 that make up
the Michipicoten Iron Formation and three of these are on the Wawa Property, the Helen, Johnson and
Eleanor Iron Ranges (Figure 5-1).
5.2 Local Geology of Iron Ranges
The Helen Iron Range is terminated by the Talbot Lake Fault at the west end and the Wallbank Lake
Fault at the east. The great thickness of the iron formation at its west end is due to tectonic activity along
the Talbot Lake Fault which thickened the iron formation by drag folding. It strikes roughly east-west
dips 80o to the south and is ~ 4 km long. All five Michipicoten Iron Formation facies occur in the Helen
Iron Range of which the chert-magnetite and chert-wacke units are up to 300 m thick and average ~ 100
m in thickness, the pyrite member ~ 3 to 15 m thick and the most significant economically the siderite
member is up to 100 m thick.
The Johnson Iron Range is an east-west to WNW-ESE striking iron formation that is 3 km long and ~ 40
m wide with lenses of siderite up to 8 m thick (Rupert, 1979). This Range lies between the Helen and
Eleanor Iron Ranges but iron formation is nearly continuous between separated from these ranges by the
Wallbank Lake Fault to the west and the Mildred Lake Fault to the east.
The Eleanor Iron Range is the eastern extension of the Helen Iron Range and occurs in a wedge-shaped
block bounded on the west and east by branches of the Mildred Lake Fault and on the south by the Wawa-
Hawk-Manitowik Lakes fault. It consists of three members, banded chert, pyrite member and the
carbonate (siderite) member, the latter of which has been the focus of most production. The Eleanor Iron
Range is 790 m long and 76 m wide vertically oriented and northward younging sequence (Gross, et al.,
1991).
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Figure 5-1 Local geology for Wawa and Loonskin Lake Properties
5.3 Mammoth Metals Occurrence (Pb, Zn and Ag)
The Mammoth Metals Occurrence lies close to the contact between a quartz diorite (mafic intrusive) and
an intermediate to felsic metavolcanic (rhyolite) (MDI42C02SE00109) (Figure 5-2). The quartz diorite is
a subvolcanic intrusive. The quartz vein lies within a shear zone within a quartz diorite. The quartz vein is
heavily mineralized with galena, sphalerite and arsenopyrite. The vein strikes at approximately 70º, dips
30 to 50º and varies from 12 to 15 inches in width (Sage, 1993). The occurrence consists of at least three,
roughly parallel veins.
Grab samples have returned varied assays. Grab samples from the quartz vein have returned values
ranging from 5.2 oz/t Ag and 6.38% Pb to 23.8 oz/t Ag and 51.95% Pb. Grab samples collected by OGS
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returned 27.1 % Zn from coarse sphalerite in milky quartz vein and 53.6 % Pb from coarse galena in
milky quartz vein, 39.88 oz/ton Au from coarse gained galena in quartz vein (Sage, 1993).
5.4 Gold Potential
The Wawa and Loonskin Lake Properties have been explored exclusively for iron, but gold
mineralization is known to occur between the Mildred and Helen Iron Ranges. There are four gold
mineral occurrences between the Mildred and Helen Iron Ranges just northeast of Essar’s Wawa Property
(see Adjacent Properties section 7.0). Gold mineralization in Esquega and Chabanel Townships is related
to quartz veins and shearing in association with pyritization, carbonatization and silicification (Sage,
1993).
Figure 5-2 Iron and gold occurrences in the Wawa area.
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Occurrences are from MNDMF’s Mineral Deposits Inventory (MDI) database.
6.0 REHABILITATION OF WAWA PROPERTY
The former Wawa Property MacLeod/Helen mines were closed in 1998. A mine closure plan was
submitted in 2006 and accepted by the Ministry of Northern Development and Mines (“MNDM”) in
January 2008. The Property is presently under care and maintenance. Water sampling/ testing is
conducted quarterly. Two out of three water retaining concrete bulkheads called for in the closure plan
were installed at Service and Cable Belt tunnels in 2010 to contain mine water and prevent it from spilling
out onto surrounding lands/waters. The third bulkhead for Ropeway tunnel is to be constructed in 2014.
Also, as part of the mine closure plan, a water treatment plant would be constructed and operational by
2016.
7.0 ADJACENT PROPERTIES
7.1 Gold Occurrences between Mildred and Helen Iron Ranges
There are four gold mineral occurrences between the Mildred and Helen Iron Ranges, just northeast of
Essar’s Wawa Property (Figure 5-2). These gold occurrences are currently owned by private individuals.
1. Gold, zinc, lead occurrence near the west end of Lagarde Lake (MDI42C02SW00025). The
showing consists of a massive vein within a carbonate rich breccia at the contact between mafic
to intermediate and felsic to intermediate metavolcanic rocks. Grab samples collected by Noranda
in 1986 returned values up to 2.26 g/t Au. The Zn mineralization is sphalerite and Pb
mineralization is galena.
2. Gold occurrence near Cardiac Hill known as the Magpie Gold Occurrence
(MDI42C02SW00021). The showing consists of a pyritic-silicified carbonate zone consisting of
up to three separate narrow and closely spaced gossan zones. These zones are hosted within felsic
tuffs which are heavily silicified in the vicinity of the showing. Quartz eyes, tourmaline and
silicification are prominent in the vicinity of the showing. Pyrite is the most common sulphide
present and occurs in up to 10% of the zone. Minor pyrrhotite and arsenopyrite are seen locally.
Where pervasive silicification is the most intense, pyrite content reaches 30% and consists of
disseminated and semi-massive crudely banded pyrite and arsenopyrite. Veins consist of ankerite
and quartz. Channel samples collected by Noranda returned values ranging from 1.32 g/t Au over
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3 m to 4.56 g/t Au over 1 m. Gold values up to 6.6 g/t Au and silver values up to 14.3 ppm Ag
have been found within the alteration zones in samples collected by Hutteri.
3. Gold occurrence near the west end of Lagarde Lake known as Lagarde Lake East Showing
(MDI42C02SW00024). Mineralization is hosted by a silicifed shear zone at the contact between
the intermediate-mafic and the intermediate-felsic metavolcanic rocks. The veins consist of quartz
and siderite. Grab samples collected by Noranda in 1986 returned assays up t0 3.26 g/t Au.
4. Gold occurrence near the west end of Lagarde Lake known as the Boliden Syndicate Claims
(MDI42C02SW00005). Between 1986 and 1990, Noranda Exploration Co Ltd drilled 3 holes for
a total of 282 m in the area. Mineralization is hosted within narrow sulphide-bearing shear zones
in rhyolitic fragmental rocks. Drilling also indicated the presence of quartz porphyry units. No
relationship between the quartz porphyry and the mineralization was observed. Random veinlets
of quartz are present which may comprise 20% of the veins. Ankerite alteration is common. The
best gold values were obtained in areas rich in arsenopyrite. Pyrite and arsenopyrite occur as
disseminated grains in the carbonate. Visible gold was reported in 1936. Grab samples collected
by Noranda returned values up to 11.64 g/t Au.
8.0 CONCLUSIONS
The Wawa Main Site Property is in an area with excellent mining infrastructure and close proximity to a
major steel producer in Sault Ste. Marie with direct rail access. The Property covers a large strike length
of Michipicoten iron formation (> 7.8 km) which even though there has been a significant iron mining
history on the Property there are known resources remaining and much of the strike has not been touched
by mining. Furthermore, the historical mining has focussed almost exclusively on the siderite member of
the iron formation while most of the iron formation remains.
There is also abundant exploration and mining data on the Wawa Property all of which is in paper maps,
drill logs and sections and has not be interrogated by modern computer compilation and 3D modelling
techniques to find additional resources.
In addition to the iron mineralization on the Wawa Property, there is also Pb, Zn and Ag mineralization at
the Mammoth Metals Occurrence with sphalerite, galena and arsenopyrite in quartz veins. Between 1928
and 1929, two shafts were sunk on this Occurrence.
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The Wawa and Loonskin Lake Properties have been explored exclusively for iron, but gold
mineralization is known to occur between the Mildred and Helen Iron Ranges. There are four gold
mineral occurrences between the Mildred and Helen Iron Ranges just northeast of Essar’s Wawa
Property. Gold mineralization in Esquega and Chabanel Townships is related to quartz veins and shearing
in association with pyritization, carbonatization and silicification.
9.0 REFERENCES
Atkinson, B.T., Hailstone, M.H., Pressacco, R.,Wilson, A.C., Draper, D.M., Hope, P.,Morra, P.M. and Egerland, D.C., 1999: Report of Activities 1998, Resident Geologist Program, Timmins Regional Resident Geologist Report: Timmins and Sault Ste. Marie Districts; Ontario Geological Survey, Open File Report 5990, 100p.
Gray, J.E., 1963: General Report, Loonskin Lake Claims, November 1963; MNDM Asssessment Files 42C02SE0086.
Gross, G.A., Donaldson, J.A., Berusco, E., Brisbin, D., Cook, R., Garrett, R.G., Kelley, V., Lovell, H.L., Oliver, L.K., Roos, and P., Sage, R.P., 1991: Iron Formation and Metalliferous Sediments in Central Canada, Field Trip 8; eds. G.A. Gross and J.A. Donaldson, 8th IAGOD Symposium Field Trip Guidebook, Geological Survey of Canada, Open File 2163.
Rupert, 1979: Geology of McMurray Township and parts of Surrounding Townships, District of Algoma; Ontario Geological Survey OFR 5283, 170p., 8 Tables, 3 Figures, Geological Map (uncoloured) in back pocket.
Sage, R. P. 1993. Geology of Chabanel, Esquega, Lastheels and McMurray townships, District of Algoma; Ontario Geological Survey, Open File Report 5586, 462p.
Shklanka, R. (1968): Iron Deposits of Ontario, Ontario Department of Mines, Mineral Resources Circular
No. 11, 489pp.
Williams, H.R., Stott, G.M., Heather, T.L., Muir, T.L. and Sage, R.P. (1991): Wawa Subprovince, Chapter 12, in Geology of Ontario, Ontario Geological Survey, Special Volume 4, Part 1, p. 485-542.
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Appendix 1 – Tenure
Table 9-1 Essar’s tenure for the Wawa Property in Chabanel Township MNDMF patent number
Land Registry Pin No.
MPAC Roll Number
Township Ownership Area (ha)
Name Comments
DJ20 31158-0144 LT 577600001723601 CHABANEL S&MR* 16.188 Helen
DJ21 31158-0110 LT 577600001725200 CHABANEL S&MR 7.879 Helen
DJ22 31158-0110 LT 577600001723601 CHABANEL / MCMURRAY
S&MR 12.545 Helen
DJ23 31158-0111 LT 577600001723601 CHABANEL / MCMURRAY
S&MR 13.355 Helen
DJ24 31158-0111 LT 577600001723602, 577600001723601, 577600001723603
CHABANEL / MCMURRAY
S&MR 11.331 Helen some parcels are leased
DJ25 PT 31158-0110 LT 577600000329500, 577600000329501, 577600000329502
CHABANEL / MCMURRAY
S&MR 12.505 Helen some parcels are leased
DJ26 31158-0110 LT 577600001722600 CHABANEL / MCMURRAY
S&MR 11.210 Helen
DJ27 31158-0110 LT 577600001722500 CHABANEL / MCMURRAY
S&MR 11.898 Helen
DJ28 31158-0110 LT 577600001721600 CHABANEL S&MR 8.175 Helen
DJ29 31158-0110 LT 577600001605301 CHABANEL / MCMURRAY
S&MR 11.898
DJ30 31158-0110 LT 577600001606200 CHABANEL / MCMURRAY
S&MR 18.069
DJ31 31158-0110 LT 577600001606301 CHABANEL / MCMURRAY
S&MR 13.294
DJ32 31158-0110 LT 577600001722400 CHABANEL S&MR 11.068 Helen
DJ33 31158-0110 LT 577600001722300 CHABANEL S&MR 9.348 Helen
DJ34 31158-0110 LT 577600001721800 CHABANEL S&MR 7.811 Helen
DJ35 31158-0110 LT 577600001722200 CHABANEL S&MR 9.146 Helen
DJ48 31158-0110 LT 577600001722900 CHABANEL S&MR 23.958 Helen
DJ49 31158-0110 LT 577600001723200 CHABANEL S&MR 20.032 Helen
DJ50 31158-0110 LT 577600001724000 CHABANEL S&MR 17.037 Helen
DJ51 31158-0110 LT 577600001724600 CHABANEL S&MR 14.168 Helen
DJ52 31158-0110 LT 577600001724900 CHABANEL S&MR 18.332 Helen
DJ53 31158-0110 LT 577600001725500 CHABANEL S&MR 19.393 Helen
DJ54 31158-0110 LT 577600001726300 CHABANEL S&MR 15.795 Helen
DJ55 31158-0110 LT 577600001726400 CHABANEL S&MR 21.360 Helen
DJ56 31158-0110 LT 577600001724700 CHABANEL S&MR 16.475 Helen
DJ57 31158-0110 LT 577600001724800 CHABANEL S&MR 15.459 Helen
DJ58 31158-0110 LT 577600001726200 CHABANEL S&MR 16.066 Helen
DJ59 31158-0110 LT 577600001725800 CHABANEL S&MR 13.274 Helen
DJ60 31158-0110 LT 577600001725300 CHABANEL S&MR 10.765 Helen
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MNDMF patent number
Land Registry Pin No.
MPAC Roll Number
Township Ownership Area (ha)
Name Comments
DJ61 31158-0110 LT 577600001605300 CHABANEL / MCMURRAY
S&MR 9.470
DJ62 31158-0110 LT 577600001606401 CHABANEL / MCMURRAY
S&MR 9.154
JL104 (SSM487)
31158-0117 LT 577600001725700 CHABANEL S&MR 20.498 Alexander
LOC 10 31158-0077 LT 577600001727900 CHABANEL S&MR 118.979 Johnson Loc
LOC 11 31158-0077 LT 577600001728000 CHABANEL S&MR 121.002 Johnson Loc
LOC 12 31158-0077 LT 577600001728100 CHABANEL S&MR 129.501 Johnson Loc
LOC 13 31158-0077 LT 577600001728200 CHABANEL S&MR 64.750 Johnson Loc
LOC 14 31158-0075 LT 577600001728300 CHABANEL S&MR 32.375 Johnson Loc
LOC 9 31158-0076 LT 577600001727800 CHABANEL SRO** 124.547 Johnson Loc
PT TWP portion no 10
31158-0003 LT NA CHABANEL Algoma Central Railway
R725 31158-0114 LT 577600001722800 CHABANEL S&MR 10.724 Helen
R726 31158-0114 LT 577600001723300 CHABANEL S&MR 13.759 Helen
R727 31158-0114 LT 577600001723800 CHABANEL S&MR 12.060 Helen
R728 PT 31158-0112 LT 577600001724100 CHABANEL S&MR 10.522 Helen
R729 31158-0114 LT 577600001722700 CHABANEL S&MR 9.793 Helen
R730 31158-0114 LT 577600001723601 CHABANEL S&MR 9.551 Helen
R731 PT 31158-0113 LT 577600001724500 CHABANEL S&MR 9.308 Helen
R732 31158-0115 LT 577600001724500 CHABANEL S&MR 15.985 Helen
R733 31158-0115 LT 577600001725000 CHABANEL S&MR 14.569 Victoria
R734 31158-0115 LT 577600001725400 CHABANEL S&MR 13.152 Victoria
R737 31158-0138 LT 577600001723601 CHABANEL S&MR 11.331 Helen
SSM12654 31158-0116 LT 577600001725201 CHABANEL S&MR 4.872 Helen
SSM13682 31158-0073 LT 577600001710600 CHABANEL S&MR 19.421 Siderite Hill
SSM13685 31158-0042 LT 577600001710900 CHABANEL S&MR 18.996 Siderite Hill
SSM13688 31158-0027 LT 577600001711400 CHABANEL S&MR 18.790 Siderite Hill
SSM15595 31158-0101 LT 577600001714800 CHABANEL S&MR 17.074 Siderite Hill
fee simple qualified
SSM15596 PT 31158-0101 LT 577600001715300 CHABANEL S&MR 13.735 Siderite Hill
fee simple qualified
SSM15596 PT 31158-0105 LT 577600001715300 CHABANEL SRO Siderite Hill
SSM15597 31158-0101 LT 577600001714900 CHABANEL S&MR 18.365 Siderite Hill
fee simple qualified
SSM15598 PT 31158-0101 LT 577600001715200 CHABANEL S&MR 16.803 Siderite Hill
fee simple qualified
SSM15598 PT 31158-0105 LT 577600001715200 CHABANEL SRO Siderite Hill
SSM15647 31158-0041 LT 577600001727301 CHABANEL S&MR 3.464 Siderite
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MNDMF patent number
Land Registry Pin No.
MPAC Roll Number
Township Ownership Area (ha)
Name Comments
Hill
SSM15843 31158-0101 LT 577600001714700 CHABANEL S&MR 16.511 Siderite Hill
fee simple qualified
SSM15844 31158-0101 LT 577600001715400 CHABANEL S&MR 14.800 Siderite Hill
fee simple qualified
SSM15845 PT 31158-0101 LT NA CHABANEL S&MR, except shoreline
12.424 Siderite Hill
fee simple qualified
SSM17355 31158-0157 LT 577600001714600 CHABANEL S&MR 16.050 Siderite Hill
fee simple qualified
SSM17356 31158-0157 LT 577600001713900 CHABANEL S&MR 17.321 Siderite Hill
fee simple qualified
SSM17357 PT 31158-0157 LT 577600001713800 CHABANEL S&MR, except shoreline
11.186 Siderite Hill
fee simple qualified
SSM17648 PT 31158-0155 LT ? CHABANEL S&MR, except shoreline
2.590 Siderite Hill
fee simple qualified
SSM17649 PT 31158-0156 LT 577600001713100 CHABANEL S&MR 0.978 Siderite Hill
fee simple qualified
SSM17945 PT 31158-0105 LT 577600001715100 CHABANEL SRO 13.715 Siderite Hill
SSM17945 PT 31158-0149 LT 577600001715100 CHABANEL S&MR 16.511 Siderite Hill
fee simple qualified
SSM17946 31158-0149 LT 577600001715000 CHABANEL S&MR 16.511 Siderite Hill
fee simple qualified
SSM21170 PT 31158-0146 LT 577600001713000 CHABANEL S&MR 1.323 Siderite Hill
SSM22088 31169-0459 LT 577600001607000 CHABANEL / MCMURRAY
S&MR 16.167 Helen
SSM22713 PT 31158-0040 LT 577600001709700 CHABANEL S&MR 16.321 Siderite Hill
SSM22715 31158-0038 LT 577600001710100 CHABANEL S&MR 16.722 Siderite Hill
SSM22716 31158-0070 LT 577600001710000 CHABANEL S&MR 13.990 Siderite Hill
SSM22717 31158-0019 LT 577600001709900 CHABANEL S&MR 13.318 Siderite Hill
SSM22720 PT 31158-0058 LT 577600001710700 CHABANEL S&MR, except shoreline
14.063 Siderite Hill
SSM22723 PT 31158-0057 LT 577600001710800 CHABANEL S&MR, except shoreline
9.441 Siderite Hill
SSM22724 PT 31158-0059 LT 577600001711500 CHABANEL S&MR, except shoreline
12.930 Siderite Hill
SSM22725 31158-0068 LT 577600001712200 CHABANEL S&MR 18.846 Siderite Hill
SSM22727 31158-0069 LT 577600001711700 CHABANEL S&MR 17.155 Siderite Hill
SSM22728 PT 31158-0061 LT 577600001711600 CHABANEL S&MR, except shoreline
9.721 Siderite Hill
SSM22729 31158-0066 LT 577600001709800 CHABANEL S&MR 16.216 Siderite Hill
SSM23019 31158-0041 LT 577600001727400 CHABANEL S&MR 8.608 Siderite Hill
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MNDMF patent number
Land Registry Pin No.
MPAC Roll Number
Township Ownership Area (ha)
Name Comments
SSM23020 31158-0072 LT 577600001716000 CHABANEL S&MR 15.297 Siderite Hill
SSM23021 31158-0020 LT 577600001716100 CHABANEL S&MR 24.213 Siderite Hill
SSM23022 31158-0045 LT 577600001726700 CHABANEL S&MR 11.178 Helen
SSM23066 31158-0062 LT 577600001717000 CHABANEL S&MR 15.220 Siderite Hill
SSM23067 31158-0021 LT 577600001717500 CHABANEL S&MR 16.944 Siderite Hill
SSM23068 31158-0063 LT 577600001717600 CHABANEL S&MR 15.119 Siderite Hill
SSM23069 31158-0054 LT 577600001717700 CHABANEL S&MR 18.713 Siderite Hill
SSM23070 31158-0053 LT 577600001717800 CHABANEL S&MR 17.956 Siderite Hill
SSM23639 31158-0037 LT 577600001725900 CHABANEL S&MR 10.299 Helen
SSM23640 31158-0035 LT 577600001726100 CHABANEL S&MR 10.749 Helen
SSM23641 31158-0034 LT 577600001726000 CHABANEL S&MR 11.712 Helen
SSM23865 PT 31158-0018 LT 577600001715900 CHABANEL S&MR, except shoreline
4.804 Siderite Hill
SSM23866 PT 31158-0145 LT 577600001716400 CHABANEL S&MR 0.073 Siderite Hill
SSM23867 PT 31158-0017 LT 577600001717200 CHABANEL S&MR, except shoreline
6.346 Siderite Hill
SSM23868 31158-0052 LT 577600001716700 CHABANEL S&MR 16.410 Siderite Hill
SSM23869 31158-0016 LT 577600001718200 CHABANEL S&MR 12.392 Siderite Hill
SSM23870 31158-0032 LT 577600001723900 CHABANEL S&MR 11.161 Siderite Hill
SSM23871 PT 31158-0018 LT 577600001715800 CHABANEL S&MR, except shoreline
5.172 Siderite Hill
SSM23872 PT 31158-0064 LT 577600001716300 CHABANEL S&MR, except shoreline
9.037 Siderite Hill
SSM23873 PT 31158-0065 LT 577600001716600 CHABANEL S&MR, except shoreline
9.275 Siderite Hill
SSM23874 31158-0051 LT 577600001718500 CHABANEL S&MR 14.747 Siderite Hill
SSM23875 31158-0050 LT 577600001718600 CHABANEL S&MR 14.112 Siderite Hill
SSM23877 31158-0047 LT 577600001716200 CHABANEL S&MR 17.199 Siderite Hill
SSM23879 31158-0046 LT 577600001718300 CHABANEL S&MR 18.357 Siderite Hill
SSM23880 PT 31158-0030 LT 577600001723100 CHABANEL S&MR 11.801 Siderite Hill
SSM23912 31158-0022 LT 577600001718100 CHABANEL S&MR 11.327 Siderite Hill
SSM5337 31158-0107 LT 577600001727200 CHABANEL S&MR 15.378 Wallbank
SSM5338 31158-0107 LT 577600001727100 CHABANEL S&MR 14.974 Wallbank
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MNDMF patent number
Land Registry Pin No.
MPAC Roll Number
Township Ownership Area (ha)
Name Comments
SSM5339 31158-0107 LT 577600001727001 CHABANEL S&MR, except shoreline
8.498 Wallbank
SSM5344 31158-0108 LT 577600001726800 CHABANEL S&MR 13.759 Wallbank
SSM5374 31158-0106 LT 577600001727300 CHABANEL S&MR 8.498 Wallbank
SSM5418 PT 31158-0143 LT 577600001727000 CHABANEL S&MR 8.903 Wallbank WPLA 65***
SSM5419 PT 31158-0143 LT 577600001726900 CHABANEL S&MR 8.498 Wallbank WPLA 65
SSM5537 (SSM7218)
31158-0150 LT 577600001726500 CHABANEL S&MR 15.702 Wallbank
SSM5683 / SSM7120
31158-0109 LT 577600001716900 CHABANEL S&MR, except shoreline
19.020 Wallbank
SSM5684 / SSM7117
31158-0109 LT 577600001716701 CHABANEL S&MR 20.720 Wallbank
SSM5756 / SSM7118
31158-0109 LT 577600001725600 CHABANEL S&MR, except shoreline
28.328 Wallbank
SSM7121 31158-0150 LT 577600001726600 CHABANEL S&MR 7.487 Wallbank
SSM72133 PT 31158-0136 LT NA CHABANEL S&MR 30.926 Talbot Lake
leasehold, expires May 31, 2014
SSM72133 PT 31158-0153 LT NA CHABANEL S&MR Talbot Lake
leasehold, expires May 31, 2014
SSM72134 PT 31158-0136 LT NA CHABANEL S&MR Talbot Lake
leasehold, expires May 31, 2014
SSM72134 PT 31158-0153 LT NA CHABANEL S&MR Talbot Lake
leasehold, expires May 31, 2014
SSM72134 PT 31158-0154 LT NA CHABANEL S&MR Talbot Lake
leasehold, expires May 31, 2014
SSM72135 PT 31158-0153 LT NA CHABANEL S&MR Talbot Lake
leasehold, expires May 31, 2014
SSM72135 PT 31158-0154 LT NA CHABANEL S&MR Talbot Lake
leasehold, expires May 31, 2014
Total 2154.111
*S&MR=surface and mining rights
**SRO=surface rights only
***WPLA 65=Water Power Lease Agreement
Summary Report Wawa and Loonskin Properties, Wawa, Ontario
Essar Steel Algoma Inc.
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Table 9-2 Essar’s tenure for the Wawa Property in McMurray Township MNDMF patent number
Land Registry Pin No.
MPAC Roll Number Township Ownership Area (ha) Name Comments
BLK A PL M129 31169-0048 LT NA MCMURRAY SRO** n.d.****
BLK B PL M229 31169-0592 LT NA MCMURRAY n.d.
DJ38 PT / SSM8806 31169-1908 LT 577600000330505, 577600000330100
MCMURRAY SRO 0.372 Sinter Plant Station
leased
SSM8619 PT 31169-0449 LT NA MCMURRAY MRO*** 2.570
LOT 11 PL M229 31169-0592 LT NA MCMURRAY MRO 0.000
LOT 1333 31169-0967 LT 577600000306902 MCMURRAY SRO 0.011
LOT 1347 31169-0044 LT 577600000310801 MCMURRAY SRO 0.020
PARKING COURT 31169-0046 LT 577600000306901 MCMURRAY SRO 0.360
PLAYGROUND 31169-0045 LT 577600000305101 MCMURRAY SRO 0.190
SSM10527 31169-2206 LT 577600001609400 MCMURRAY SRO 7.689 Wawa Flats
SSM10529 31169-2206 LT 577600001609500 MCMURRAY SRO 17.300 Wawa Flats
SSM10530 31169-2206 LT 577600001627101 MCMURRAY SRO 1.574 Wawa Flats
SSM10531 PT 31169-2206 LT 577600001627700 MCMURRAY SRO 9.915 Wawa Flats
SSM10532 31169-2206 LT NA MCMURRAY SRO n.d. Wawa Flats
SSM10533 31169-2207 LT NA MCMURRAY SRO n.d. Wawa Flats
SSM12655 31169-0395 LT 577600001604200 MCMURRAY S&MR 22.974 Helen
SSM14944 PT 31169-0473 LT NA MCMURRAY n.d.
SSM14948 PT 31169-0473 LT 577600001609900 MCMURRAY 14.828
SSM14949 31169-0473 LT 577600001609901, 577600001609900
MCMURRAY SRO 1.485
SSM16028 31169-0473 LT 577600001608700 MCMURRAY S&MR* 13.780
SSM192 577600001608200 MCMURRAY 16.835
SSM20542 PT 31169-1048 LT 577600001605600 MCMURRAY S&MR 20.809 Helen
SSM20543 31169-1049 LT 577600001605400 MCMURRAY S&MR 11.445 Helen
SSM20544 PT 31169-1059 LT 577600001605900 MCMURRAY S&MR 16.216 Helen
SSM20545 31169-1058 LT 577600001606000 MCMURRAY S&MR 17.762 Helen
SSM20546 31169-1056 LT 577600001606600 MCMURRAY S&MR 15.431 Helen
SSM20547 31169-1057 LT 577600001606500 MCMURRAY S&MR 19.830 Helen
SSM20548 PT 31169-1055 LT 577600001611100 MCMURRAY S&MR 16.277 Helen
SSM20549 31169-1054 LT 577600001606700 MCMURRAY S&MR 19.207 Helen
SSM20554 PT 31169-1020 LT 577600001603200 MCMURRAY S&MR 2.096 Helen
SSM20555 PT 31169-1065 LT 577600001603400 MCMURRAY S&MR 10.255 Helen
SSM20556 31169-1021 LT 577600001604100 MCMURRAY S&MR 11.789 Helen
SSM20557 PT 31169-1022 LT 577600001604000 MCMURRAY S&MR 8.280 Helen
SSM20558 PT 31169-1023 LT 577600001603500 MCMURRAY S&MR 7.434 Helen
SSM20559 PT 31169-1024 LT 577600001604400 MCMURRAY S&MR 8.842 Helen
SSM20560 31169-1025 LT 577600001604300 MCMURRAY S&MR 29.300 Helen
SSM20561 31169-1027 LT 577600001605200 MCMURRAY S&MR 27.398 Helen
SSM20562 PT 31169-1028 LT 577600001605100 MCMURRAY S&MR 10.137 Helen
SSM21156 31169-1029 LT 577600001606900 MCMURRAY S&MR 19.340 Helen
SSM21157 31169-1030 LT 577600001606800 MCMURRAY S&MR 17.984 Helen
SSM21158 31169-1026 LT 577600001607200 MCMURRAY S&MR 16.224 Helen
SSM21159 31169-1015 LT 577600001607100 MCMURRAY S&MR 15.164 Helen
SSM21160 31169-1016 LT 577600001607700 MCMURRAY S&MR 11.890 Helen
SSM21161 31169-1019 LT 577600001607600 MCMURRAY S&MR 7.256 Helen
SSM21162 31169-1017 LT 577600001607800 MCMURRAY S&MR 16.592 Helen
SSM21163 31169-1018 LT 577600001607900 MCMURRAY S&MR 15.386 Helen
SSM21164 31169-1051 LT 577600001608400 MCMURRAY S&MR 22.327 Helen
Summary Report Wawa and Loonskin Properties, Wawa, Ontario
Essar Steel Algoma Inc.
March 13, 2013 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 22
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MNDMF patent number
Land Registry Pin No.
MPAC Roll Number Township Ownership Area (ha) Name Comments
SSM21165 31169-1052 LT 577600001608500 MCMURRAY S&MR 18.596 Helen
SSM22578 31169-1036 LT 577600001610800 MCMURRAY S&MR 13.258 Helen
SSM22579 31169-1053 LT 577600001607300 MCMURRAY S&MR 13.986 Helen
SSM22580 31169-1050 LT 577600001610000 MCMURRAY S&MR 15.220 Helen
SSM22581 31169-1045 LT 577600001608100 MCMURRAY S&MR 11.327 Helen
SSM22582 31169-1044 LT 577600001608600 MCMURRAY S&MR 16.402 Helen
SSM22583 31169-1043 LT 577600001608300 MCMURRAY S&MR 13.387 Helen
SSM22595 31169-0036 LT 577600001611200 MCMURRAY S&MR 0.028 Helen
SSM24285 31169-1047 LT 577600001606100 MCMURRAY S&MR 23.699 Helen
SSM24286 31169-1046 LT 577600001605500 MCMURRAY S&MR 20.676 Helen
SSM5420 PT 31169-0329 LT 577600001603300 MCMURRAY S&MR 6.475 Wallbank
Total 657.628
*S&MR=surface and mining rights
**SRO=surface rights only
***MRO=mining rights only
****n.d.-not determined
Summary Report Wawa and Loonskin Properties, Wawa, Ontario
Essar Steel Algoma Inc.
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Table 9-3 Essar’s tenure for the Wawa Property in Lendrum Township MNDMF patent number
Land Registry Pin No.
MPAC Roll Number
Township Ownership Area (ha)
Name Comments
CK85 PT 31169-0477 LT NA LENDRUM / MCMURRAY
S&MR* 141.454
JC435 31169-2191 LT 577600001900400 LENDRUM S&MR 63.807 Sinter Plant Station
fee simple qualified
DJ94 31169-2192 LT 577600001900400 LENDRUM / MCMURRAY
S&MR 13.798 Sinter Plant Station
fee simple qualified
DJ36 31169-2193 LT 577600001900400 LENDRUM / MCMURRAY
S&MR 14.994 Sinter Plant Station
DJ37 31169-2193 LT 577600001900400 LENDRUM / MCMURRAY
S&MR 14.783 Sinter Plant Station
SSM10673 31170-0051 LT 577600001900700 LENDRUM / MCMURRAY
S&MR 84.637 Wawa Flats fee simple qualified
SSM10674 31170-0051 LT NA LENDRUM S&MR 31.570 Wawa Flats fee simple qualified
SSM10675 31170-0051 LT 577600001900600 LENDRUM S&MR 42.492 Wawa Flats fee simple qualified
SSM11087 31170-0052 LT 577600001900400 LENDRUM S&MR 17.373 Sinter Plant Station
fee simple qualified
SSM11088 31170-0052 LT 577600001900400 LENDRUM S&MR 17.325 Sinter Plant Station
fee simple qualified
SSM11089 31170-0052 LT 577600001900400 LENDRUM S&MR 15.382 Sinter Plant Station
fee simple qualified
SSM11090 31170-0052 LT 577600001900400 LENDRUM S&MR 15.819 Sinter Plant Station
fee simple qualified
SSM11091 31170-0052 LT 577600001900400 LENDRUM S&MR, except along river
18.142 Sinter Plant Station
fee simple qualified
SSM10477 31170-0056 LT 577600001900400 LENDRUM / MCMURRAY
S&MR 9.738 Wawa Flats fee simple qualified
Total 501.317
*S&MR=surface and mining rights
Summary Report Wawa and Loonskin Properties, Wawa, Ontario
Essar Steel Algoma Inc.
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Table 9-4 Essar’s tenure for the Loonskin Lake Property MNDMF patent number
Land Registry Pin No.
MPAC Roll Number
Township Ownership Area (ha)
Name Comments
SSM17345 31159-0205 LT 572748000120000 ESQUEGA S&MR* 17.195 Siderite Hill WSM 4008**
SSM17346 31159-0206 LT 572748000120800 ESQUEGA S&MR 6.702 Siderite Hill WSM 4008
SSM17347 31159-0206 LT 572748000120700 ESQUEGA S&MR 20.623 Siderite Hill WSM 4008
SSM17348 31159-0206 LT 572748000120600 ESQUEGA S&MR 16.568 Siderite Hill WSM 4008
SSM17349 31159-0206 LT 572748000120500 ESQUEGA S&MR 11.080 Siderite Hill WSM 4008
SSM17350 31159-0204 LT 572748000120400 ESQUEGA S&MR 17.624 Siderite Hill WSM 4008
SSM17351 PT 31159-0203 LT 572748000120300 ESQUEGA S&MR 5.014 Siderite Hill WSM 4008
SSM17352 PT 31159-0202 LT 572748000120200 ESQUEGA S&MR 12.667 Siderite Hill WSM 4008
SSM17353 31159-0201 LT 572748000120100 ESQUEGA S&MR 14.589 Siderite Hill WSM 4008
SSM17354 31159-0200 LT 572748000119900 ESQUEGA S&MR 15.625 Siderite Hill WSM 4008
Total 137.688
*S&MR=surface and mining rights
**WSM 4008=area administered under the Ontario Mining Act
SUMMARY REPORT
EAGLE ISLAND PROPERTY
Lake St. Joseph, Ontario, Canada
ESSAR STEEL ALGOMA INC. 105 West Street,
Sault Ste. Marie, Ontario, Canada P6A 7B4
Date: May 13, 2013
Prepared By:
CARACLE CREEK INTERNATIONAL CONSULTING INC.
Julie Selway, Ph.D., P.Geo.
Summary Report Eagle Island, Lake St. Joseph, Ontario
Essar Steel Algoma Inc.
May 13, 2013 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 1
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1.0 HIGHLIGHTS
Essar’s Eagle Island Property is located on three islands in the western part of Lake St. Joseph,
northwestern Ontario, approximately 108 km northeast of Sioux Lookout.
The Property consists of three (3) freehold patents with a total area of 23.901 ha
Algoma Steel Inc. has mining rights only on the Property
Lake St. Joseph Iron Limited completed two drill holes claim PA17195: J-19 completed in 1958
and J-33 completed in 1959 for a total of 390.14 m. Both holes intersected magnetite and
hematite banded beds.
To the best of Caracle Creek’s knowledge, no exploration has been completed on Essar’s Eagle
Island Property since 1959.
Essar’s Eagle Island is immediately adjacent to Rockex’s iron ore property which is at the
preliminary economic assessment stage. It is assumed that the iron formation on Rockex’s
Property extends westward onto Essar’s Property, but due diligence geological mapping is
required to confirm this.
2.0 LOCATION AND TENURE
Essar’s Eagle Island Property is located on three islands (Islands 371, 334 and 183) in the western part of
Lake St. Joseph, northwestern Ontario, approximately 108 km northeast of Sioux Lookout and 80 km
south of Pickle Lake in Trist Lake Area Township. The approximate center of the Property is in UTM
coordinates is: 627477 E, 5646923 N, Zone 15, NAD 83 and in geographic coordinates: 91º11’5”W and
50º57’35”N.
The Eagle Island Property consists of three (3) freehold patents which are merged into two (2) Land
Registry Property Identification Numbers (“PIN’s”) with a total area of 23.901 ha (Table 2-1). Algoma
Steel Inc. has mining rights only on all of the patents and all of the PIN’s are owned 100% by Algoma
Steel Inc. The patents have no expiry date and the only obligation is to pay land tax on them. The amount
of mining land tax in 2012 was $ 95.59 CDN. The patents are subject to reservations in Crown Grant.
Private individuals have the surface rights on Essar’s Eagle Island Property (Table 2-2).
Summary Report Eagle Island, Lake St. Joseph, Ontario
Essar Steel Algoma Inc.
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Table 2-1. Tenure table for Essar’s Eagle Island Property MNDMF patent number
Land Registry Pin No.
Township Area (ha) Owner Name Rights
PA17192 PT 42034-0689 LT Trist Lake 9.887 Algoma Steel Inc. MRO* PA17193 PT 42034-0689 LT Trist Lake 8.146 Algoma Steel Inc. MRO PA17195 PT 42034-0690 LT Trist Lake 5.868 Algoma Steel Inc. MRO
Total 23.901
*MRO = mining rights only
Table 2-2 Tenure table for the surface rights on the same PIN’s as in Table 2-1. MNDMF patent number
Land Registry Pin No.
Part of PIN Township Owner Name Rights
PA17192 PT 42034-1634 Part 1 Trist Lake Scot Gerald Davidson, Marvin Mervyn Shepard, Timothy Andrew Davidson, Robert Allen Richardson
SRO*
PA17192 PT 42034-1635 Part 2 Trist Lake Michael Robert Jackson SRO PA17192 PT 42034-1636 except Part 1 & 2 Trist Lake Michael Robert Jackson SRO PA17193 PT 42034-0684 NA Trist Lake Michael Robert Jackson SRO PA17195 PT 42034-0685 NA Trist Lake Lake St. Joseph Iron Inc. SRO
*SRO = surface rights only
Summary Report Eagle Island, Lake St. Joseph, Ontario
Essar Steel Algoma Inc.
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Figure 2-1 Tenure map for Eagle Island Property
3.0 ACCESS AND INFRASTRUCTURE
Essar’s Eagle Island Property is located on three islands in the western part of Lake St. Joseph,
northwestern Ontario, approximately 108 km northeast of Sioux Lookout and 80 km southwest of Pickle
Lake in Trist Lake Area Township. The Eagle Island Property is about 51 km west of Highway 559 and
has boat access or float plane access via Sioux Lookout or Pickle Lake. The nearest international airport is
in Thunder Bay, Ontario, which is approximately 330 km south of the Property. There are no powerlines
or railway on the Property.
Summary Report Eagle Island, Lake St. Joseph, Ontario
Essar Steel Algoma Inc.
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Sioux Lookout is located halfway between Thunder Bay and Winnipeg
(http://www.siouxlookout.ca/community/profile). The Town has over 5,500 residents and is called the
“Hub of the North” as it provides essential services to 30,000 people in 29 remote First Nation
communities. It has a new Hospital and MNR Fire Management Center. Sioux Lookout is connected to
other urban centers by Highway 72 and 642 which link to Highway 599; Canadian National Railway;
float plane air charter services and Sioux Lookout Municipal Airport which is serviced by Bearskin
Airlines and Wasaya Airways. Sioux Lookout also has hotels and restaurants.
4.0 EXPLORATION HISTORY
Iron formation has been known to exist in the Lake St. Joseph area since the early 1900’s, although little
serious exploration took place until the late 1950’s (Breaks et al., 1979). At that time, the magnetite-
hematite iron formation was outlined on Eagle, Wolf and Fish Islands (to the east of Essar’s current
property).
The Lake St. Joseph deposit was staked in 1955 by Lake St. Joseph Iron Limited and at that time
consisted of 26 patents. Development work consisted of trenching, diamond drilling and benefication
testing. Lake St. Joseph Iron Limited completed two drill holes claim PA17195: J-19 completed in 1958
and J-33 completed in 1959 for a total of 390.14 m (MNDMF assessment file: 52J14NE0013). Both holes
intersected magnetite and hematite banded beds which were hosted by green schist in J-19 and tuff and
slaty sediments in J-33.
Table 4-1 Summary of historic drilling on Essar’s Eagle Island Property. drill hole number location claim azimuth (º) dip (º)
length (m)
date completed mineralization
J-19 about 121.92 m NW of witness post No. 1 PA17195 60 SW 45 S 195.07 15-Mar-58
magnetite, hematite
J-33 lake shore, NE end of mainland PA17195 N 95 E 30 N 195.07 25-Mar-59
magnetite, hematite
total 390.14
In September 1962, Lake St. Joseph Iron Limited owned 84 claims from Island 17 in the east to Island
334 in the west for an approximate length of 13 km (Clifford 1969). Lake St. Joseph’s Property included
Wolf, Fish and Eagle Islands.
Summary Report Eagle Island, Lake St. Joseph, Ontario
Essar Steel Algoma Inc.
May 13, 2013 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 5
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Algoma signed an agreement to lease 73 mining claims from Lake St. Joseph Iron Limited. Algoma
agreed to expend not less than $500,000 by the end of the 5-year option extending from November 1,
1973 to October 31, 1978 (Kociumbas et al., 2011). In 1974-1975, Algoma carried out diamond drilling
and pilot plant test work focusing on Eagle Fish Island (Kociumbas et al., 2011). Algoma estimated a
historic resource on Eagle, Fish and a west extension. On November 1, 1978, Algoma exercised its option
and leased the property. In 1978-1979, Algoma focused its exploration on Fish Island with two drill holes
and geological mapping.
Claims were dropped by Algoma in 2006, 2007 and 2008 and new claims encompassing Eagle, Fish and
Wolf Islands were staked on behalf of Pierre Gagné and are now owned by Rockex Limited (“Rockex”)
(Kociumbas et al., 2011).
Late in 2009, Rockex acquired Algoma’s 1974 and 1975 archived drill core and project files from Essar
(Kociumbas et al., 2011). Full-scale hand-coloured geological maps for the Property completed by
Algoma were also obtained by Rockex from Essar. The drill core and files were transported to Rockex’s
storage area and offices in Thunder Bay for inventory. In early 2010, Rockex contracted a geologist to re-
log and sample selected drillholes to validate Algoma’s work as due diligence for Rockex’s mineral
resource estimate. Caracle Creek does not know if Essar had files on Island 371, 334 and 183 and if the
files existed, were they given to Rockex at this time.
5.0 GEOLOGY OF WESTERN LAKE ST. JOSEPH
5.1 Regional geology
The Uchi Subprovince is a tabular, eastward-trending region of metavolcanic and lesser metasedimentary
rocks forming a semicontinuous supracrustal network interweaving around granitoid batholiths and
plutons (Stott and Corfu, 1991). The collage of assemblages in the subprovince shows a general
southward younging. The southern half of the Uchi Subprovince consists of episodic crustal additions to a
microcontinent along its leading edge in the form of arc and marginal basin complexes and associated
plutons. The southern boundary with the metasedimentary-plutonic English River Subprovince is the
Sydney Lake – Lake St. Joseph Fault (Figure 5-1).
Summary Report Eagle Island, Lake St. Joseph, Ontario
Essar Steel Algoma Inc.
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5.2 Local geology
The stratigraphy of the western part of Lake St. Joseph greenstone belt has been subdivided into four
volcanic cycles: Blackstone Cycle 1, Western Lake St. Joseph Cycle 2, Carling Cycle 3 and Brodribb
Cycle 4 (Figure 5-1) (Stott et al., 1987). The first three volcanic cycles are folded about a major east
trending anticline that faces eastward away from the Bamaji-Blackstone granite batholith. The thickest
portion of each cycle and the most intense carbonization occurs in the vicinity of this fold hinge (near
Eagle Island). Each of the first three cycles comprises a bimodal suite of lower basaltic flows and upper
dacite-rhyolitic pyroclastic deposits. In western Lake St. Joseph, a folded sequence of magnetite
ironstone and clastic metasediments infills a major basin along the southern margin of the volcanic belt.
These metasediments are exposed on Eagle Island and the chain of islands to the west. The
metasediments were deposited uncomformably within a basin that was carved out subsequent to both the
deposition of the first three volcanic cycles and an eastward tilting of the volcanic stratigraphy. The
sediments form a basal suite of volcaniclastic material derived mainly from the felsic volcanics of the
upper Western Lake St. Joseph Cycle 2. This was followed by a largely quiescent period during which
much of the ironstone was deposited with intervening wacke beds. This stage was blanketed by the
development of a major submarine fan deposit that prograded southward away from the volcanic pile. The
late Bamaji-Blackstone batholith is typically composed of quartz-phyric granodiorite to monzogranite.
The large Bamaji-Blackstone batholith imposed a 1.5 km wide contract strain aureole upon the
Blackstone basalts along its eastern margin.
The overall tectonic history involves the general sequence:
1. Deposition of volcanic cycles
2. Regional eastward tilting of the volcanic stratigraphy in western Lake St. Joseph
3. Erosion of volcanic pile to produce Eagle Island ironstone-lined basin and submarine fan deposits
4. Regional north-south compression that produced the major folds and the penetrative foliation.
5. Emplacement of Bamaji-Blackstone granitic batholith
6. Regional oblique compression along northwest-southeast axis to produce a major dextral
transcurrent shear zone (i.e., Lake St. Joseph fault) along the southern margin of the greenstone
belt and into the English River subprovince.
Summary Report Eagle Island, Lake St. Joseph, Ontario
Essar Steel Algoma Inc.
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North of the Lake St. Joseph fault zone, clastic metasediments typically contain chlorite-muscovite-
biotite-quartz-albite and south of the fault the assemblage of garnet-staurolite-sillimanite occurs locally in
the metasediments (Stott et al., 1987).
5.3 Property Geology
According to Ontario Geological Survey’s map M2158, Essar’s Property on Island 371 consists of silicic
tuffs and cherty iron formation (mostly magnetite) (Clifford, 1968).
Essar’s Property on Island 334 consists of basaltic to andesitic flows, lapilli tuff, arkosic-greywacke-
argillite metasediments and cherty iron formation (mostly magnetite) (Clifford, 1968). Clifford (1969)
describes the geology of Island 334 as mafic and felsic volcanic rocks are interlayered with volcaniclastic
rocks. Also present is iron oxide-bearing beds and conglomerates with are later that the volcanic and
volcaniclastic rocks.
Essar’s Property on Island 183 consists of arkosic-greywacke-argillite metasediments and cherty iron
formation (mostly magnetite) (Clifford, 1968).
5.4 Mineralization
Very little is mentioned in literature about the iron mineralization on Essar’s three islands. It is assumed
that mineralization on Essar’s Property is similar to that on Rockex’s adjacent Property, but due diligence
geological mapping is required to confirm if this is true.
According to Shklanka (1968), mineralization on Eagle and Fish Islands on Rockex’s Property consists of
magnetite-hematite-quartz Algoma type iron formation up to 500 ft wide with a broad easterly trend for
6.5 miles hosted by Archean sediments. Minor amounts of siderite and pyrite are present.
Iron-carbonate ± quartz pods, veins and veinlets characterize the mafic metavolcanics east of the Bamaji-
Blackstone batholith (Stott and Sanborn, 1987). The carbonate contains local stringers of pyrite. The
veins are notably abundant on the islands west of Eagle Island.
The magnetite to hematite ratio is 1:1 at Eagle Island on Rockex’s property according to Watts, Griffs and
McOuat’s (“WGM”) observation of Algoma historic drill core and Rockex’s 2008 drill core and assays
from 5 drill holes (Kociumbas et al., 2011). Most of the mineralization observed by WGM consists, on a
Summary Report Eagle Island, Lake St. Joseph, Ontario
Essar Steel Algoma Inc.
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macro scale, of a near massive and intimate mixture of hematite and magnetite. In historic reports, gangue
is described as consisting of silica, sericite, mica, carbonate, chlorite with some hornblende and apatite.
WGM noted that the Eagle Island deposit (on Rockex’s property) is essentially in the form of an east to
northeast-trending, steeply plunging syncline with superimposed, less extensively developed, coaxial
anticlines. The iron formation is repeated by folding. West of Eagle Island, the steeply dipping north and
south limbs of the iron formation sequence have been traced for over 10 km. The south limb extends
through Fish and Wolf Islands and still further west (i.e., extends onto Essar property).
Figure 5-1 Local geology map for Western Lake St. Joseph
Summary Report Eagle Island, Lake St. Joseph, Ontario
Essar Steel Algoma Inc.
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6.0 ADJACENT PROPERTIES
6.1 Rockex’s Eagle Island Property
Rockex’s Eagle Island property is 100% owned by Rockex Mining Corporation (“Rockex”). Rockex’s
Property is immediately adjacent to Essar’s Eagle Island Property (Figure 2-1) (Rockex’s website:
http://www.rockexmining.com/s/Home.asp). The actual Eagle Island belongs to Rockex and Essar’s
Property consists of Islands 334, 371 and 183. Rockex has a NI 43-101 compliant iron resource on Eagle
Island of: 590,847,000 tonnes at 28.8 % soluble Fe indicated and 415,757,000 tonnes at 29.5 % soluble Fe
inferred both to a depth of 300 m (Rockex’s website: http://www.rockexmining.com/s/Home.asp). They
also have historic non-compliant iron resources on Fish Island, Doran Lake and Soule’s Bay. Rockex is
planning to complete a Preliminary Economic Assessment on Eagle Island in 2013.
7.0 REFERENCES
Breaks, F.W., Bond, W.D., Stone, D. and Desnoyers, D.W. (1979): Operation Miniss-Tully Lakes, Lake St. Joseph-Miniss Lake Sheet, Districts of Kenora and Thunder Bay; Ontario Geological Survey, Preliminary Map P.2216, Geological Series, Scale 1:63,360 or 1 inch to 1 mile, Geology 1976.
Clifford, P.M. (1968): Blackstone Lake Sheet, Kenora District; Ontario Geological Survey, Map 2158, scale 1:31,680, Geology 1963-1964.
Clifford, P.M. (1969): Geology of the Western Lake St. Joseph Area Kenora and Thunder Bay Districts, Geological Report 70, Ontario Department of Mines, 61 pp.
Kociumbas, M., Risto, R. and MacFarlane, G.R. (2011): Technical Report and Mineral Resource Estimate on the Western Lake St. Joseph Iron Ore Project, Ontario, Canada, prepared by Watts, Griffs and McOuat for Rockex Limited and Rockex Mining Corporation, dated January 28, 2011.
Shklanka, R. (1968): Iron Deposits of Ontario, Ontario Department of Mines, Mineral Resources Circular No. 11, 489pp.
Stott, G.M. and Corfu, F. (1991): Uchi Subprovince; in Geology of Ontario, Ontario Geological Survey, Special Volume 4, Part 1, p. 145-238.
Stott, G.M., Kay, S.V. and Sanborn, M.M (1987): Precambrian Geology of the Lake St. Joseph Area, West Half, Districts of Thunder Bay and Kenora (Patricia Portion); Ontario Geological Survey, Map P.3050, Geological Series Preliminary Map, scale 1:50,000, Geology, 1985.