Duncan

Surface :

5 848 hectares  (± 58 square km)

% held by Augyva :

49 % (Augyva)  -  51 % (Century) - JV agreement

Location :

Directly accessible by road, the property is located 580 km North of Matagami and 45 km South of Radisson, on the James Bay Territory, in the province of Quebec (Canada). The Duncan Lake Iron Ore Property is located where local infrastructures are in place in close proximity to the property.  Other favourable conditions to the development of the Project exist, such as a well trained labour force and abundant inexpensive power supply (Robert-Bourassa and La-Grande-2A hydroelectrical powerhouses).

Commodity :

Iron (Fe)

Geological Environment :

The project is located at the Western Part of the La Grande Greenstone Belt and represents an iron ore deposit of the algoma type, hosted by a volcanosedimentary sequence.

About the Duncan Lake Iron Ore Project

The Duncan Lake Iron Ore Project “DLIOP” was discovered in the 1960s, and explored sporadically until 1976.  In 2005, Augyva acquired the DLIOP and initiated field reconnaissance, magnetic field surveys, and grab samples of iron ore occurrences in 2006, mainly on Deposit 1. The DLIOP consists of six (6) different blocks or deposits identified as Deposits 1 to 6. A magnetic field survey was carried out systematically on all deposits, followed by a major drilling campaign consisting of 52 diamond drill holes totalling 10,456 meters, which was initiated in 2008 and completed in 2009. The drilling program was carried out on five (5) of the blocks or deposits. The program covered mainly Deposit 1.  The objectives of the 2008-2009 drilling program were to validate historical results from boreholes drilled in 1973, to increase the mineral resources on all the Deposits, to convert historical mineral resources into NI 43-101 compliant resources and to identify additional potential tonnage.  Augyva followed a systematic QA/QC program in its sampling method and approach.

In the fall of 2009, Augyva retained Met-Chem Canada Inc. of Montreal, Quebec, to prepare an independent NI 43-101 compliant technical report on the mineral resources of the DLIOP which was completed and filed on SEDAR on March 4, 2010. The NI 43-101 Report is also available on our web site.

NI 43-101  -  Resources estimates

On June 19, 2009, the Company announced its final results from the first phase drilling. In total, 10,456 meters of drilling was completed. Five magnetite deposits were tested; Duncan 1, 2, 3, 4 and 5 within a radius of 20 km from the Duncan 1 deposit. The cumulative strike length of magnetite iron formation tested by drilling is 10.6 km. Highlights of the results include: 226.46 meters at 25.45 % Fe in hole 33; 90.18 meters at 27.12% Fe in hole 39; 75.67 meters at 28.8% Fe in hole 49 and 130.91 meters at 26.79% Fe in hole 52.

Metallurgical tests were carried out by COREM (Quebec, Canada). Davis magnetic tube test analysis completed on 218 representative core samples produced a magnetic concentrate with an average grade of 66.92% iron for all 5 zones from an average feed grade of 27.76% iron. Satmagan tests results indicate an average of 96.62% of the total magnetite is recovered in the magnetic concentrate.

The mineral resource estimate was established by Met-Chem Canada Inc. The qualified person (QP) as defined under NI 43-101, responsible for the resource estimate is Raynald Jean, geo, Principal Geologist at Met-Chem. The following is a summary of the mineral resource estimate based on the Company’s 2008-2009 drilling program, using a cut-off grade of 16% Fe:

Potential Additional Tonnage

In addition to the Inferred mineral resource category, a simulation of the additional ‘’potential tonnage’’ was carried out on the lateral and in-depth continuities of the deposits using a magnetic susceptibility tool, as illustrated in the table below. Simulation of the potential quantity and grade is conceptual in nature because there has been insufficient exploration to define a mineral resource under NI 43-101.  Also, it is uncertain if further exploration will result in the discovery of a mineral resource. The ‘’potential tonnage’’ has been completed by applying a geological interpretation on sections, based on drilling results, linked with a new ground magnetic survey profile interpreted on sections. The results of this survey were adjusted using intensity profile and shape of the magnetic susceptibility compared with the previous drilled and known drilled sections to interpret the polygonal ore lenses on sections. This type of data and information are insufficient to classify any tonnage as a Mineral Resource under NI 43-101 and should not be considered as such. The term “potential tonnage” is not a Mineral Resource category under NI 43-101 nor is it a CIM classification. The additional ‘’potential tonnage’’ is in a range of 400 to 500 million tonnes.

Perspective for 2011

Based on Met-Chem’s recommendations, the Duncan Lake deposits have been relatively well outlined by drilling and geophysical surveys completed to date. However, additional drilling will be required in order to convert Inferred Resources into the Measured or Indicated Mineral Resource category.  In addition, there is potential to define additional tonnage in the extensions of the deposits.

Phase II of the drilling program (minimum 8,000 metres) announced on December 7, 2010, is designed to define additional tonnage in the extensions of deposits 4, 6 and mainly deposit 3 and to convert Inferred Resources into the Measured or Indicated Mineral Resource category.

The Company has also engaged Met-Chem Canada Inc. to perform an opportunity study of the Project to analyse it on a pre-scoping basis and Roche Ltd to perform an environmental scoping study (ESS). The objectives of the ESS are to identify early on, key environmental and socio-economic issues, constraints and opportunities for the development of the project. These studies will further advance the Project by providing valuable data and analyses which will be keys in developing it to the next stage.