Gagnon Holdings

*The Mineral Resources referred to are strictly historical in nature and are non-compliant to NI 43-101 Mineral Resources and Mineral Reserves standards, and should therefore not be relied upon. A Qualified Person has not done sufficient work to upgrade or classify these historical Mineral Resources as current NI 43-101 compliant.
**Total historic reserves at Silicate-Brutus amount to 345 Mt @ 29.4% Fe; however, 50% of the reserves lie outside the current Property boundary


Based on historical drilling and recent geophysical-survey data, a 2012 in-house calculation to 250 m depth yielded a volumetric potential of 1.0 Billion tonnes for the Penguin Lake Project. With the latest exploration results in-hand, a 43-101 Mineral Resource Estimate has been commissioned for the Penguin Lake Project and is expected in early Q3, 2013.

Cartier Iron intends to continue increasing shareholder value by aggressively drilling priority targets on the Gagnon Holdings in order to further identify and delineate potential iron resources.

History – Option and Joint Venture Agreement with Champion Iron Mines Limited

Cartier Iron signed an option and joint venture agreement with Champion Iron Mines Limited 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 $1 million and issuing 2.5 million shares to Champion – all over a four year period. On December 10th, 2013, the first anniversary of the option agreement, Cartier Iron will have paid 750,000$ and issued 1.5 million shares to Champion. 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.

Geology of the Gagnon Holdings

The Gagnon Holdings are within the Gagnon Terrane, which encompasses the southern domain of the Labrador Trough, host to extensive iron-formations. The area is underlain chiefly by rocks that form the western, miogeosynclinal part of the Paleoproterozoic fold and thrust belt which marks the collision between the Archean Superior Province and the Rae Province (i.e., the Hudsonian Orogeny: 1.82 to 1.79 Ga).