Cartier Iron Corporation’s Gagnon Holdings consist of 5 iron-rich mineral concessions, totalling approximately 315 square kilometres in the Gagnon Terrane of northeastern Québec, located in the southern part of the Labrador Trough. The properties are centred 240 kilometres north of the Port of Sept-Îles and 110 km southwest of the town of Wabush, which has air and rail connections to local and regional destinations.
The properties host magnetite/hematite-rich members of the Sokoman (iron) Formation, which is the source of all the iron deposits in the Labrador Trough. The Gagnon Holdings include Round Lake (amalgamated Penguin Lake, Black Dan and Aubrey-Ernie properties), Silicate-Brutus, Aubertin-Tougard, Three Big Lakes and Jeannine Lake. The Gagnon Holdings are in close proximity to hydroelectric-, road-, and rail-networks that connect to port facilities at Sept-Îles and Port-Cartier, on the Gulf of St. Lawrence.
Cartier Iron’s first phase of exploration began with a ten-hole, 3,315 metre, diamond-drilling campaign that was completed in early 2013 on the Penguin Lake Project. This drilling intersected a total of 1600 m of iron formation having an average grade of 29.5% Total Iron (FeT), that included a 300 m intersection grading 33% FeT, in hole PL13-10. A Table of composite assay results from the drill programme can be found at the link below. These ten holes formed the basis of the inital Inferred Mineral Resource which was announced in December 2013.
On December 19, 2013, Cartier Iron announced an Initial Inferred Mineral Resource of 531 million tonnes grading 33% Total Iron for the Penguin Lake Deposit, located within the consolidated Round Lake Property, one of Cartier Iron’s Gagnon Holdings.
Cartier Iron intends to continue increasing shareholder value by advancing its Gagnon Holdings and it has commissioned a Preliminary Economic Assessment (“PEA”) of its Penguin Lake Project.
Cartier Iron signed an option and joint venture agreement with Champion Iron Mines Limited, a wholly-owned subsidiary of Champion Iron Limited (ASX: CIA, TSX: CIA), on December 10, 2012, whereby Cartier Iron has been granted an option to earn a 65% interest in the Gagnon Holdings.
Cartier Iron can earn a 65% interest in the properties at its option by expending $6 million in staged exploration and development work expenditures on the properties, making cash payments to Champion totaling $1 million and issuing 2.5 million shares to Champion – all over a four year period. Once Cartier Iron completes its earn-in, Champion and Cartier Iron will form a joint venture (reflective of their proportionate ownership interests in the properties) to explore and develop the retained mineral concessions. Cartier Iron will retain a right-of-first-refusal on any part or all of Champion’s proportionate interest in each of the mineral concessions comprising the properties.[/toggle]