- Historical drilling in 1950s defined a non-NI43-101-compliant historical resource of 315 million tons at 32% Fe (iron) at the company’s El Sol project.
- The El Sol project is located near existing infrastructure (railway, port, electricity grid) and can be exploited through low-cost open pit mining.
- Iron Deposits of Ontario report (authored by R.S. Shklanka) references a non-NI43-101-compliant historical resource estimate of 270 million tons averaging 26.29% Fe at the Gunflint project. Same report also mentions samples from surface with 33.9% and 34.1% Fe content.
EL SOL PROJECT
Raytec owns 100% (subject to a 2% Net Smelter Royalty) of the El Sol iron ore project located in the Red Lake mining district of Northern Ontario. The project is situated approximately 75 kilometres north of Red Lake, Ontario and is accessible by good-quality road to within a few kilometres of the property and quad trails directly to the property. Two hydroelectric power generating stations are located approximately 40 km from the site and easy rail access to global markets via Thunder Bay (approx. 700 km) or to Algoma Steel in Sault Saint Marie (1,000 km).
Past Exploration Work
Extensive exploration and metallurgical testing conducted from 1956 to 1957 resulted in the definition of a historical estimate of 315 million tonnes at 32% Fe.
During 1956, airborne and ground magnetic surveys identified two large parallel zones (‘A Zone’ & ‘B Zone’) of magnetic anomalies with several smaller zones in close proximity. The A Zone measures over 4 km in length while the B Zone, lying approximately 600 metres to the southwest, measures over 2 km in length. Several additional magnetic anomalies remain to be tested.
A total of 67 diamond drill holes with a combined length of 34,000 feet (10,365 meters) were drilled on these two zones and identified a reserve of 312,550,000 tonnes grading 32.4% Fe to a depth of 305 meters (H. Brodie Hicks, PEng, 1958). The two holes that penetrated below the 300 m level showed no significant changes in grade. The other remaining smaller zones have yet to be drilled and could expand the reserve.
Metallurgy
Analytical results of a composite of 69 reject samples from the El Sol property was reported in 1958 by Lakefield Research Limited as follows: Fe (total) 33.860 per cent; Fe (acid soluble) 31.200 per cent; Cu 0.016 per cent; S 0.260 per cent; P 0.084 per cent; and Ti02 0.210 per cent. Currently available metallurgical data suggest that a premium pellet could be produced by magnetic concentration and pelletization, and that 85 to 90 per cent of the iron could be recovered with a concentrate grade of 70 per cent (a concentration ratio of 2.5:1).
Mining
During the 1950s, it was stated that the width of the deposit would limit open pit mining down to a depth between 122 and 135 meters below surface while maintaining a stripping ratio of 0.85:1. With much better efficiencies in modern equipment and methodologies (i.e. ground control, conveyors, etc.) the effective depth of the open pit could increase by at least 10%. This would translate to an open pit reserve in excess of 198 million tonnes. Present and developing underground mining methodologies should offer favourable economics to fully exploit this deposit at current product prices.
2008 Work Program
Raytec intends to commence a drill program in Fall 2008 to complete an updated NI43-101-compliant technical report. Currently, line cutting and geophysics are being completed and a sampling and mapping program is to follow.
Raytec holds a 100% interest in the TB3012585 group mineral claims, known as the Gunflint property, located in Jean Township, within the Thunder Bay Mining District, Ontario. The Gunflint property consist of 16 claim units totalling approximately 640 acres, and is located in close proximity to both existing roads and the city of Thunder Bay, Ontario.
Past Exploration Work
Previous work on the property includes diamond drilling performed in the 1950s and 1960s, and more recently, surface sampling. Information provided to Raytec by the vendor includes reference to a report filed with the Ontario Department of Mines, Mineral Circular No. 11 on Iron Deposits of Ontario, authored by R.S. Shklanka, which references an estimated resource of 270 million tons averaging 26.29% Fe (Iron). The same report also indicates samples from surface containing 34.1% and 33.9% Fe.
It is important to note that these reports, being historic in nature, cannot be verified by the Company, do not comply with modern reporting standards (NI 43-101), and therefore should not be relied upon.
2008 Work Program
The Company intends to commence a work program as soon as possible in order to verify sample data, prepare for a winter/spring drill program, and to complete a NI43-101 compliant report.
BRULE IRON ORE PROJECT
Raytec holds a 100% interest in the Brulé property located in Adrian and Conmee Townships, within the Thunder Bay Mining District, Ontario. The Brulé property consists of 44 claim units totalling approximately 1,760 acres in one grouping, and 80 claim units totalling approximately 3,200 acres in a second grouping.
2008 Work Program
The project is early stage and work to date has consisted of surface sampling and regional aeromagnetic survey. The Company intends to commence a work program as soon as possible in order to verify sample data, prepare for a winter/spring drill program, and to complete a NI43-101 compliant report.
