All-Canadian royalty portfolio
Julienne Lake Iron Ore (NL, Canada)
Altius' Julienne Lake Iron Ore property effectively encompasses an Exempt Mineral Land ("EML") held by the Province of Newfoundland and Labrador. The Julienne Lake iron deposit on government land has a reported resource of 867 Mt at 33.7% iron (Measured + Indicated) and 299 Mt at 34.1% iron (Inferred) and is ideally located in the heart of Labrador West mining district, approximately 23 km northeast of the Iron Ore Company of Canada's Carol Lake operation. Altius has conducted geophysical work and exploration drilling on its adjacent mineral claims that confirms the extension of the deposit onto Altius claims.
On April 16, 2014 the Province of Newfoundland and Labrador (the “Province”) announced that it had selected the JL Alliance proposal, to which Altius is a member, to enter into exclusive final stage negotiations for the award of mineral rights held by the Province over the Julienne Lake iron ore deposit (http://www.releases.gov.nl.ca/releases/2014/nr/0416n03.aspx). This decision comes after a competitive, two-stage call for proposals process.
JL Alliance Background
To assist in its efforts to acquire the portion of the deposit being offered by the Province, Altius formed the JL Alliance with two integrated Chinese iron ore and steel producing companies, which presently import large volumes of sea-borne iron ore into China.
Altius acquired mineral land rights that are contiguous with those of the Province several years ago and has since completed its own drilling and other exploration work. This work has demonstrated that a potentially significant part of the mineral deposit (not currently defined to NI 43-101 standards) extends onto these Altius lands. A summary of the Altius drilling results is provided in the table located to the right as well as further information including drill locations, complete assays and land tenure.
Altius has agreed to contribute its surrounding mineral rights to the JL Alliance upon successful award of the mineral rights being offered by the Province. Altius’s consideration for the contribution of its mineral rights will be to retain both a royalty and a minority project interest in the consolidated mineral rights package.
The proposal of the JL Alliance to the Province was to evaluate the consolidated potential of the Julienne Lake deposit as a larger, longer life project than would be possible on a non-consolidated basis. As part of its bid the JL Alliance completed a Concept Study that indicated favorable preliminary economic potential for the consolidated project and that recommended proceeding to more detailed feasibility studies.
Should the JL Alliance successfully reach an agreement with the Province for the Julienne Lake EML mineral rights it will proceed immediately to initiate the recommended pre-feasibility studies, environmental assessment studies and to begin co-operative stakeholder engagements.
Carol Seymour, P.Geo., Senior Geologist, is the qualified person as defined by NI 43-101 guidelines responsible for the technical data presented herein.