AP 1948-01 THE NEW QUEBEC AND IRON ORE PROJECT TRH NEW QUEBEC AND LABRADOR

IRON ORE PROJECT

by

J.A. RETTY

FOREWORD

The following descriptive notes are for the information

of individuals who may wish to learn of developments,

past and present, in the iron ore field of New Quebec

and labrador. They are rarely factual and are not in-

tended as a story.

1L--2041 GENIUS, INFORMATION

Location and Area

1. Newfoundland-Labrador Concession

A: Location

The concession is located in the upper basins of the Ha- milton and Naskaupi rivers which drain into . Its approximate central point is Latitude 54° N. and Longitude 65°W.

B: Area Approximately 20,000 square miles.

2. New Quebec lioeased Area

A: Location That part of the country lying to the northwest of the .northwestern part of the Labrador concession. It includes the upper basin of the Swampy Bay River and part of the upper basin of the Whale River; both of which drain into Ungava Bay. The approximate central point is Latitude 55° 251 N. and Longitude 67° W. B: Area Approximately 3,90G square miles.

Access The area is reached most conveniently as follows:

I. Via Mont Joli, Quebec.

1. By Canadian National Railways, an overnight journey from Mont- real - Distance 359 miles.

2. Thence to the leading strip in the interior - Distance 432 miles. II. Via Seven Islands, Quebec. 1. By Canadian National Railways to Rimouski (339 miles) or .Matane (395 miles).

2. Thence by boat to Seven Islands, Que. 3. Thence by air to landing strip 317 miles north. - 2 -

III. Directly by air from Montreal- By charter flight only - Distance: 716 miles north-north- east.

Mining Companies

Newfoundland-Labrador The 20,000 square mile concession is owned by Labrador Mining and Exploration Company Limited.

Quebec The 3,900 square mile license is owned by Hollinger North Shore Exploration Company Limited.

Combined Area: Approximately 24,000 square miles.

Control Both of the above-named companies are oontrolled by Hol- linger Consolidated Gold Mines Limited with The M. A. Hanna Co. of Cleveland holding a minority interest.

HISTORY

1893-94 Dr. A.P. Low of the Geological Survey of in the course of rapid reconnaissance work along the main •ratereourses outlined the "Labrador trough" roughly. He reported iron formation as ore, but did not actually find any iron ore deposit, as a study of his report.,re- veals. Low's work did not °over any of the localities at which iron orb deposits have been found, but it did give a very valuable r` 11.;.e to the favorab lè oharaoter ôf the country for the occurrence of ore.

1927 By a decision of the Privy Council, England, the coast of Labrador was awarded to Newfoundland: This area included the headwaters of the Hamilton River and part of the area where the iron ore field lies*

1929 The New Quebec Company was formed in Toronto to explore the iron ore potentialities of concessions north of the Newfoundland area. Drs. W.F. James and J.E. Gill were in charge of the- expedition. During the course of vrork, they discovered iron ore in the Ruth Lake area in Newfound- land Territory, but the wcrk was not continued, when they were unable to tie up the ground,

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1933

Dr. J.E. Gill examined some gold discoveries in the south- west part of the area. These ,did .ot prove•to be of economic interest. 1936

Labrador Mining and Exploration Company Limited was form- ed to take over the prospecting rights held by Weaver (Minerals) Limited. The prime mover in this picture was A.H. McKay of Montreal. A conces- sion covering 20,000 square miles in Newfoundland-Labrador was'Obtaine4 and field work was begun. The work was in charge of Dr. J.A. Retty, who has been associated with the company since that time and is now its Chief Geologist. The main objective was to investigate the area for gold and base metals, as iron ore in Labrador was of no interest at that times

1937

Mathiau Andre, an Indian trapper who is now chief of the Montagnais tribe at Seven Islands, Que., brought out a sample of high grade iron ore. Andre was taken into the area by aeroplane and conducted J.A. Retty to what is now known as the Sawyer Lake deposit.

1938 Surface work at the Sawyer Lake orebody revealed the pre- sence of high grade iron ore. This same year iron ore was first discov- ered in New Quebec by J.A. Retty close to Burnt Creek which he named and where the inland base is now located. He recommended to his principals. that an area in New Quebec lying to the northwest of the Labrador_conces- sion be licensed from the Quebec Government, this area to include the iron ore discovery which had been made. 1939

Stephen Royce and Dr. A.W. Leith of Pickands Mather and Company of Cleveland examined the ore deposits that had been discovered ,in Newfoundland-Labrador.

Pilot C. Frechette lost his way on a return journey_,to Seven Islands and despite a lengthy search he and radio operator Gaynor starved to death.

A license in New Quebec was obtained by a private group,•. headed by A.H. McKay. This license covered the area now held by Hollin- ger North Shore Exploration Co. Ltd. Field work ,vas begun that year-and one ore deposit was found at Denault Lake and an additional showing at Burnt Creek.

1940, 1941

Field work was suspended, Only the radio station was. op- erated in 1940. In 1941, the guardians were removed from the Sandgirt. Lake base. - 4 -

1942

Hollinger Consolidated Gold Mines Ltd, acquired control of Labrador Mining and Exploration Co. Ltd. A license covering the area in New Quebec was obtained and Hollinger North Shore Exploration Co. Ltd. incorporated. Field work was resumed.

1943

Many iron ore bodies were discovered. Diamond drilling of base metal showings was begun and one deposit was partly outlined.

1944

Sawyer Lake iron orebody drilled. Several sulphide amasses were sampled with x-ray drill machines.

1945

Drilling Iras suspended. Trenching was conducted on several of the iron ore deposits. As a result, the surface dimensions were great- ly enlarged and the potentialities of the area realized. A preliminary reconnaissance of the railroad route was undertaken and the route photo- graphed from the air. 1946 Winter freighting by land planes using a runway on ice was first undertaken. Drilling of the iron deposits was resumed. A temporary camp was established at Burnt Creek. Ruth Lake No. 3 and Burnt Creek No.5 deposits were partly drilled. The site for a landing strip was chosen. The preliminary railroad reconnaissance was completed.

1947 J.A. Little was appointed field manager. The drilling pro- gramme was greatly enlarged. Approximately 700 tons of freight was moved by air to the interior. A permanent base was established at Burnt Creek. Fifty miles of secondary roads were built. A number of deposits were drill- ed and 140,000,000 tons of iron ore proven up. The preliminary survey of the railroad route was partly completed and harbor surveys were undertaken at Seven Islands, Que. A landing strip was constructed' approximately eight miles east of the Burnt Creek camp. The Quebec North Shore and La- brador Railway Company and The Ungava Power Company were incorporated. 1948 Durrell was appointed general manager. A large drill- ing programme has been undertaken. The final railroad location survey will be completed north from Seven. Islands, Que., a distance of approximately 100 miles. Geological and geophysical surveys, prospecting and aerial photography will also be oonduoted. Hollinger Ungava Transport Limited was incorporated to supply air transportation for all subsidiaries. - 5 -

Physical Features of the Country

The surface of the country between the Gulf of St. Law- rence and the interior presents a very sharp oontraet in topography. For a distance of 100 miles the land is very rugged. The country has been markedly incised by fast-running streams. Canyons as much as 1,000 feet deep are present along the Moisie and other rivers flowing south. A range of hills having a maximum elevation of approximately 5,200 feet crosses the country in an easterest direction approximately 50 miles north of Seven Islands, Que. This gradually slopes northward to approx- imately 1,800 feet at a distance of 100 miles from the Gulf, where the topography becomes relatively flat and comparable in local relief, to. Northwe s tern Quebec.

Three chains of hills having local elevations of from 600 to 1000 feet traverse the area in a northwest direction. Less prominent ridges occur throughout the northern part of the area giving the land surface a corrugated appearance in the vicinity of the ore deposits along the Hamilton River-Swampy Bay River watersheds.

The region is dotted by an abundance of lakes, some large, some small. Many parts are drift-covered, the surface of the drift being generally hummocky. Red soils resulting from the weathering of iron- bearing rocks are a very common feature in the northwest portion :of the area, where the iron ore deposits occur.

Climate

The climate is much less rigorous than one would expect. Cold weather comes earlier in the fall and remains for a longer period in the spring, but weather records indicate that the extremes of winter tem- perature are not lower than in Northwestern Quebec, although the snowfall is greater.

Timber The vegetation is a continuation of that which covers the mining areas of northwestern Quebec. Going north, the trees gradually be- come smaller and the species fewer. Hardwood is entirely absent in the northern part of the area. Stunted, sparse black spruce occurs in the low- lying sections, -with the omnipresent caribou moss. Occasional stands of fair timber are found in the sheltered valleys. The high hills are destitute of all vegetation except spo- radio patches of dwarf birch and, where outcrop is not present, the usual coating of caribou moss. Sufficient timber may be obtained to erect buildings and for fuel, but the quantity present is very limited. Agriculture

The possibilities. for agriculture are nil. In many places, there is no soil and where soil is present, it is so mixed with boulders that it would be valueless for farming. Moreover, the growing season is very short, July being the only month in which there is no frost.

Inhabitants Some eighty families of 'tuontagnaus" (Mountaineer) Indians spend the winter trapping in the region. Since 1942, the Canadian Govern- ment has maintained a Meteorological Station at Sandgirt Lake in New- foundland-Labrador (Lat. 53055' N., Long. 65° 20' W.). Labrador Mining and Exploration Co. Ltd. maintains a small crew at the Burnt Creek camp over the winter months. There are no permanent settlements in the region. Three posts of the Hudson's Bay Company locAted on'Ashuanipi, Petitsikapau and Michikamau Lakes were abandoned about 1873.

Fish and Game Game is very scarce in the area. A few woodland caribou are present during the winter. Ptarmigan are plentiful. Wild geese and ducks are observed occasionally. Fish are abundant in the lakes. Except- ionally fine brook trout have been caught in great numbers in many of the streams. Fur-bearing animals of many kinds are trapped by the Indians. but the catch varies considerably from year to year.

Ferly Developments When exploration was first undertaken in 1956, the only published map of the area was `hat prepared by. A.P. Low in 1895. It show- ed only the main watercourses and gave only a rough, general id'3a of th geology. The numerous lakes of this vast area had to be first sketched and than mapped. Since that time, extensive geological and topographical surveys have been conducted by the company, work which is normally done by Government branches. The object of the work was to examine the area and gradually eliminate unfavorable or less favorable prospecting ground. With this object in view, geological mapping was first undertaken in the southwest part of the area and gradually projected north- ward, while simultaneously prospecting was carried out. In this manner, the picture was gradually built up with the result that at the end of 1946, thirty-six iron ore occurrences and one base metal occurrence had been found, Drilling was begun in 1943, continued in 1944, suspended in 1945 and resumed in 1946. However, the big drilling programme was not initiated until 1947. The first base camp was established at the north end of Ashuanipi Lake in 1936. It was moved to Sandgirt Lake in 1937 amid to Hollinger Lake in 1946. In 1946 a temporary drill camp was established - 7 -

at Burnt Creek and in 1947, the permanent base was transferred there. Ob- viously, the base must be located close to the locality where work is conducted.

The tidewater base most used har been Seven Islands, Que., or the immediate vicinity. In 1937, however, Northwest River on Hamilton Inlet was used extensively, and in 1942 most of the flying was done from Havre St.•Pierre on the Gulf of St. Lawrence, north of the island of An- t400sti.

During the early stages of exploration there was no inter- est in iron ore. The main objective was the discovery of gold and base metals and the work was conducted with this in view. The discovery of iron ore was incidental to the general search. Not until 1945, when trench- ,ing and test-pitting was done on the iron ore showings, were the potent- ialities of the region as a source of iron ore truly realized.

The extent and excellence of the iron ore occurrences and the happy coincidence that they were uncovered at a time when the reserves of cheaply-mined, open-pit ore of. the Mesabi Range are being rapidly de- pleted, led to the present developments in New Quebec and Labrador.

PRESENT ORGANIZATION AND RECENT DEVELOPMENTS

Introduction

In 1942, Hollinger Consolidated Gold Mines Limited bought control of Labrador Mining and Exploration Co. Ltdo That same year, Hol- linger obtained from the Quebec Government a special license covering the area previously held by the MoNay group 4n New Quebec and incorporated Hollinger North Shore Exploration Co. Ltd. to carry on work. Finances have been furnished by Hollinger Consolidated Gold Mines Limited with The M.A. Hanna Company of Cleveland participating on a minority basis.

Because of the unity of control, the field work in Labra- dor and New Quebec is conducted as a single operation, the charges being apportioned to Labrador Mining and Exploration Company Limited and. Hol- linger North Shore Exploration Company Limited, on the basis of direct costs applicable to eaoh company.

Company Executives

J.R. Timmins, President of Hollinger Consolidated Gold Mines Limited and all subsidiaries operating in Labrador sne'. Now Queeo o Mr. J.R . Tim ins is a member of the famous Timmins miming family. His father, the late L.H. Timmins, and his uncle, the late N.A. Timmins, were pioneers of the Cobalt camp and owners of the Larose mine. After selling their interest in this mine in 1907, they pioneered in the Porcupine area a.nd developed the well-known Hollinger Mine. The town of Timmins, Ont., the site 'of the mine, bears the name of this family of pioneers.

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.H. Durrell, General' Manager, well known engineer, who has been in charge of many project6, the most outstanding of which has been the construction of Goose Bay airport and other work in Newfoundland-Labrador during the past war. John Knox, Consulting Engineer, former general Manager of Hollinger Consolidated Gold Mines Ltd. and Labrador Mining and Exploration Co. Ltd.

Field Staff

J.A. Little, Manager, former manager of Normetal Mine, a base metal producer in Northwestern Quebec.

J.A. Betty, Chief Geologist, formerly Geologist of Geo- logical Survey of Canada and the Quebec De- partment of Mines, who was in charge of all the pioneer work, having been associated with the company since 1936.

A.E. Moss, Geologist, who has conducted work in the La- brador area since 1942. General Personnel

A total of 180 men are employed during the peak of the field season. These consist of office and technical staff, drillers, drill help- _ ers, ,sludgemen, mechanics, truok and tractor operators, radio operators, miners .and laborers,

In addition, some eighty men are employed on the railroad survey.

Flzring

Flying has played a very important part in the Labrador ,project, There is no navigable watercourse into the area and the canoe rouge is slow, difficult and imrsoticable Without the aeroplane the deposits would in all pr'oba.bili' y have remained undiscovered Despite Lrwas ?."epo: t on the favorrtil e goology publieli in 1E135, prospectors did not work actively iii the a as until 1929, shortly after the advent of the aeroplane in mineral exploration.

. Until 1,944. small float-eouiped aircraft were used for the transportation of men and eauipped to, the area and for the provisioning, inspection and m veinent of fw::l-3 p?rties on •the job. Beginning in 1944, when a large flying boat torrs purnh^,oed by Labrador Mining and. Eàcp1crat o_i Co. Ltd. large air :e hay ,,sen u_ed for freighting by air to the areas The construotion of airports at Mont Joli. and Seven Islands during the war has been of great assistance to the project. Until 1948, Canadian Pacific Air Lines Ltd. did the bulk of the heavy freighting. Recently, however, Hollinger Ungava Transport Ltd. was incorporated to-supply the flying requirements of the following operating companies: Labrador Mining and Exploration Co. Ltd., Hollinger North Shore Exploration Co. Ltd., Quebec-North Shore and Labrador Rail- way Company and Ungava Power Co.

Two Douglas C-47es and one Norseman aircraft have been purchased. C.W. Hoyt is operating superintendent of the 'air line. He is an ex-wing commander of the R.C.A.F, and was commanding officer of squad- ron 164, based at Moncton which flew freight and personnel to Goose Bay, Labrador, and to Newfoundland during the war. Associated with him is an outstanding group of veteran transport squadron personnel, thoroughly ex- perienced with flying conditions in the region.

All modern flying aids have been installed and almost every difficulty connected with air transport in former years has been eliminated, as standard air line procedure is now followed.

It is of interest to record that the rate for air trans- port to the area has been as much as 73/ per pound (1943). Translated into terms of commodity prices, this means an air freight charge of $7.30 per gallon for gazoline and $73.00 for a 100-1b. bag of flour over and above the purchase price and the boat freight from Montreal to the take- off point on the Gulf of St. Lawrence (Seven Islands, Que.). The resultant over-all cost of maintaining a crew of men in the area during the early days of exploration is obvious, as everything had to be and still must be transported by air.

Radio

Since the inception of operations in 1936, radio has been used for communications with outside points. At present there is a station at the Knob Lake landing strip close to the inland base and an intermedi- ate station at Ashuanipi Lake. The aircraft are all radio-equipped and -may communicate with any of the ground stations. In addition, the main outlying camps are equipped with trans-receivers and contact base camp at regular intervals.

Weather observations are taken frequently at the ground stations and complete reoords are kept by the Company.

Air Freighting

During the winter of 1947, a runway was made on. the ice at Knob Lake which lies but three and one-half miles from the inland base. Considerable air freighting was done prior to break-up. Most of the heavy equipment and many of the crew were taken in at that time A total of 700 tons was moved during 191.7 and it is anticipated that the freight to bo moved in 1948 will also be quite substantial. • 10--

Interior Base • The base is"lbeated at Burnt Creek in New Quebec; 320 miles north of Seven Islands. Burnt Creek was chosen as the site because -of its proximity to the iron ore deposits.

In the spring of 1947, a permanent camp was erected to house the greatly increased personnel rind-to provide other facilities for the expanded programme of work. Four Quonset huts were taken in by • air and a• number of buildings erected from wood sawn locally. Since that tine,• the camp has 'gradually expanded.

It is equipped with electric lights, a recreation hall, a guesthouse, a modern machine shop and a chemical laboratory for the anal- ysis of iron ore. There is, of course, a cookery, sleeping quarters, stuff quarters and an office. A rural telephone system has been installed and extends east to the landing strip, eight miles distant, and west to the Forriman No. 1 iron are deposit, two miles distant.

Three camps at outlying drill sites are r_ow in operation.

-Landing atrip

Reference has been made to the landing strip in the- area. The site was•seleeted in the summer of 1946 and in the spring of 1947, construction was undertaken. It is approximately eight miles east-of the Burnt Creek camp (approximate position:. Lat. 540 50' N. and Long. 660 401 W.) . The site was first used on September 25th, 1947, and aircraft are now landing there almost daily. It is kr..own as "Knob Lake Landing Strip".

Possible Townsite

There' is a oompâratively flat stretch of land immediately to the north of Itrob Lake .rich would serf '. as an ideal site for the de- tablshmer.+ cf a c^mmty0 T e soil is candy End with little work the ground could be olca_'ei and prnpaned for the construction of a town for the -personnel who will be employed by the mining companies.

The location is about three miles east of the Burnt Creek camp and five miles west of the Knob Lake landing strip.

I.Iechanical Equipment

Many types of mechanical equipment are now being used. This consists of -churn :'rills, dieronddrills, rock (':rills, compressors, tractors, bulldozers, dozereehovels; scrapers, light trucks, heavy trucks, dump trucks, jeeps, half tracks' and snowracbles. The .project might -be' aptly termed• "mechanized mineral'er_ploration". Road Building

Same 50 miles of secondary roads have been constructed mostly in 1947. The main road runs along the ore zone to a point 30 miles northwest of the Burnt Creek camp and is so located that all iron ore de- 11

posits along the route aro easily accessible.from it. The south part of the road has been extended four miles eastward from Knot Lake to the land- ing strip. Branch roads_ make up the remaining mileage

Prospecting and Geological Mapping

As the Main objective of last yearts work was to prove up tonnage on the known deposits, both, prospecting and outside geolagioal mapping were greatly curtailed. One ;geological party did detailed mapping close to base camp and one prospecting party operated along Menihek Lake. However, geologists were used extensively to direot the drilling campaign. This season one additional.geologieal. party will begin mapping the eastern group of deposits.

Geophysical Investigations

Some experimental work was conducted on the known orebodies using both the gravimeter and the magnetometer. The results have been en- couraging and it is felt that geophysical work may prove to be a useful tool in searching for new bodies of iron ore. Additional geophysical surv- eys are now being made.

Geology of the Region

The rocks of . the . area are, of Precambrian age. The two great subdivisions of the Precambrian are representet.: the Arohaeozaic consist- ing of a series of ancient gneisses and crystalline limestone. This series is of "Grenville" type and may be the;. equivalent of the Grenville series of other parts of the Canadian shield,

The Proterozoic is represented by the rocks of the "Labra- dor Trough". They are for the most part well-bedded sediments which rest =conformably upon the upturned edges of= the ancient gneisses and contain the iron formation in which the iron ore, deposits are found. To the northeast of the younger series, there occurs a wide area of lavas with minor sediments, The age of this assemblage is unknown. They contain numerous sulphide masses consisting of pyrite and pyrrhotite. One small base metal deposit has been found within them.

Iron Ore Deposits

The iron ore deposits occur geologically within the "Labra- dor Trough". This trough is from 10 to 60 miles wide and extends from the southwest part of the Labrador concession to the Koksoak River -, a distance of 350 miles. Its northern boundary has not yet been delimited.

The deposits are found within iron formation which is a member of the sedimentary series. This series has been Strongly thrust- faulted and as a result the :iron formation has been repeated many times, Although originally deposited horizontally, it now outcrops as a number of vertical or steeply-dipping bands or in fold3 which "ribbon" the terrain discontinuously. This mode of occurrence differs from that of the Mesabi Range,, Lake Superior Region where the formation lies. as a single, gently- dipping bed having 'a length of 110 miles. • Thd rook assemblage of the iron ore field of Labrador and New Quebec strongly resembles the succession of ,the Marquette Range of. the Lake Superior Region. The majority of the iron ore deposits are found around Lat. 54° 50' N. and Long. 660 501 W. either lying across or in the vicin- ity of the Quebec Labrador boundary. This boundary has not yet been surv- eyed, but its approximate position is known. The above mentioned group of •deposits which lie in a northwest-southeast direction along a distance of 50 miles is known as the main ore zone. Surface work and drilling has been confined to this zone. To the northeast and a distance of 12 miles from the main ore zone, there is a parallel group of six ore occurrences along a diet- anoe of 30 miles. No work has been r.,e on any of these.

From the northwesternmost deposit (Eclipse) to the south- easternmost deposit (Sawyer Lake) the distance is 90 miles.

Technical Assistance on Drilling from The M.A. Hanna Co. Although The M.A. Hanna Company did not take an active part in the prospecting. or geological mapping, the advice and direction given by their technical staff have been exceedingly valuable in drilling the iron ore deposits, because of their lengthy experience in the mining and marketing of iron ore.

Type of Deposit Drilled Only those deposits that have open-pit dimensions are be- ing drilled'at the present time. Deposits Drilled

1. In Newfoundland-Labrador

The following deposits were drilled: Ruth, Lake No. 3, Ruth Lake No. 5, and gleming No. 1. The first two are situated close to the Burnt Creek base, while Fleming No. 1 lies approximately 12 miles northwest.

2. In New Quebec

The following deposits were drilled: Burnt Creek Nos. 3, 5 and 6, and Ferriman Nos. 3 and 5 which are close to the Burnt Creek base. Fleming No. 5 which lies 9 miles northwest of the base and the Good- wood deposit which lies some 30 miles northwest were also drilled. Method of Drilling

Diamond drilbs are used to chop the ore. Rods ,are cut at an angle of 45°, hardened and the ore is' penetrated by the impact of the pointed rod. All holes are cased. When necessary electric blasting is used to break the ground so that the casing can be driven behind.

There is no core recovery in this type of drilling. Sludge samples are the only type collected. The sludge is caught in boxes spec- ially built for the purpose and samples are taken at even five-foot in- tervals. In 1947, light Kirk-Hillman churn drills were used for pene- trating the overburden. Towards the end of the 1947 season, a Bucyrus-Erie 22T churn drill was used experimentally in testing the deposits. The per- formance was very satisfactory. As a result one.additional 22T, and two 27T Bucyrus-Erie churn drills are being used this-season. Diamond drills will serve generally to deepen the churn drill holes.

Drilling Objectives The objective of the drilling campaign is to prove up a sufficient tonnage of open-pit ore, to warrant commerical development. • Present plans are to start production at a rate.of 10,000,- 000 tons per year with the possibility of increasing eventually to 20,000,- 000 tons per year.

Canadian furnaces would have first call on the ore, but con- sumption would have to increase substantially in Canada for the industry to absorb the quantity required to•bring the field into production.

Research work is now being done on the electric smelting of iron ores. Processes such as the Tysland-Hole and the Wiberg are al- ready in use. With the large amount of undeveloped waterpower in Labrador and New Quebec, consideration may eventually be given to smelting some of the iron ores electrically. Results of Work

1. Labrador Mining & Exploration Coe Ltd.

Tonnage .. Grade Pe . %MAL, .. . %P •%i°2 15,964,000 62.7 , _.0.21 .030 8.11 (Bessemer) 20,996,000 59.5 0.66 .145 - 4.92 (Nôn-Besssnier)

6,166,000 50:i4- 8.14 ' ' .174 5.61(Manganiferous) 41,126,000 long tons 14 -

2. Hollinger North Shore Exploration Co. Ltd.

Tonnage - • Grade %Fe %kin. roF A i02 47,117,000 61.9 0.44 0.030 6.85 (Bessemer)

40,464,000 57.6 0.59 • 0.106 7.80 (Non-Bessemer)

11,111,000 52.1 6.85 0.121 6.23 (Manganiferous ) 38,692,000

The above analyses were made in the laboratories of The M.A. Hanna Co. at Iron River, Mich. They are "dry" analyses. The Company has established a laboratory at Burnt Creek, but this is used only for making rapid checks on iron and. silica.

Adits (Tunnels) In order to investigate the physical and chemical charact- eristics of the iron ore and to check the drill results, some underground work was conducted. This consisted of driving an adit into two of the ore deposits.

1. Labrador On Ruth Lake No. 3 deposit an adit was driven 225 feet into the orebody at a point 100 feet below the surface and a winze was sunk to a depth. of 40 feet below the adit floor.

2. Quebec An adit was also driven into Ferriman No. 3 deposit to a distance of 165 feet, at a point 100 feet below the surfaces The sampling and other results were entirely satisfactory.

Future Possibilities for Iron Ore Discoveries

Practically all deposits discovered to date have been found as surface outcrops. Their dimensions have been enlarged by trench- ing and test-drilling. Large areas are covered by light overburden and the oft-repeated iron formation lies beneath it. Henceforth, the search will be based' on geophysical data, but` the possibility of hidden ore bodies is obviously great. When it is recalled that very few of the 522 mines found in the Lake Superior Region resulted from the discovery of surface out- crops, the possibilities of making additional discoveries appear to be ex- cellent. -15-

In this connection, it is of interest to note, that in testing a light churn-drill at the. Burnt Creek camp, iron ore was en- countered at a depth of two feet. Its presence had not been suspected, as the ore is covered with overburden and due to a fault. The deposit was subsequently drilled to a depth of 367 feet and the drill was still in ore when the hole was stopped. The average dry analysis of the hole was 66.3% iron.

Possibilities for Mineral Deposits other than iron.

Reference has been made to the predominantly voloani.î ser- ies of rocks of unknown age which parallels the iron bearing series on the northeast. Numerous masses of pyrite and pyrrhotite ocour within them. One base metal deposit was found which is 660 feet long and 13 feet wide. The grade is 6.75% zinc, 1.32% copper and $2.00 in precious metals. Small showings of lead, zinc, nickel and. copper have also been found at other points.

The outstanding feature of this part of the are% is that ore-making conditions occur and it is quite probable that additional pros- pecting and detailed work on the sulphide masses will yield other discov- eries of base metals.

Railroad

Mr. D.A. Livingston, formerly of the engineering staff of Canadian Pacific Railway, is chief locating engineer of the railway survey.

In 1945, preliminary reconnaissance was conducted and the route was photographed from the air. In 1946 the preliminary examination was completed. In the spring of 1947, Quebec North Shore and Labrador Rail- way Company was incorporated and a charter vas _obtained from the Dominion Government empowering the Railway Company to construct a line to the iron ore deposits, and permission has since been obtained for construction of the line through Newfoundland territory*

In the suummer. of 1947, three parties were placed in the field to conduct a preliminary survey of the route. its approximate length will be 360 miles to the south part of the iron ore field. The south term- inus will probably be Seven Islands, Que. From there northward the route will follow the to the mouth of the Wacouna River and thence northward along the Wacouna to the height of land; thence along Ashuanipi and Menihek lakes to the north of Astray Lake where it will reach the iron ore area.

During the present season, it is planned to make the final location survey from Seven Islands to the' height of land between the Wa- couna and Ashuanipi watersheds, a distance of approximately 100 miles.

From the recozn aissance work and preliminary•surveys, it is known that no major difficulty will be encountered in the construction of the railroad. There are several short stretches along the Maisie and the Waoouna valleys where there will be heavy rock work, but once the height of land is reached construction will not be difficult because the country -16 -

becomes reasonably flat and because of the presence of Ashuanipi Lake, which is 4Q miles. long' and Ilenibsk Lai tioh -is 60 miles long will both afford water transportation for the movementof-ten and materials along the route.

Harbor • There is an ideal harbor on tidewater at Seven Islands, Que., the probable southern terminus of the railway. The Admiralty Charts s; Vw that there is ample, water for the largest of ocean-going vessels.. During the summer of 1947, preliminary surveys of the ground were under- taken to determine its suitability for the construction of ore docks. The results are under study.

. Waterpower

There is ample waterpower within the area to meet all min- ing requirements. Grand Falls, one of the largest undeveloped waterpower sites in the world, is located within the Labrador concession. The site lies 140 miles southeast of the iron ore area. A preliminary survey indi- cates a potential of 1,250,000 horsepower. In Quebec•, Eaton Canyon on the Kaniapiskau River is also a large possible source of power. It is located 22 miles northwest of the northwesternmost ore deposit (Eclipse).

Recently the Ungava Power Company was formed to develop and distribute power for the operations..

Moneys Spent

Since the inception of work in 1946 and up to the end of 1946 some 0,500,000.00 will have been spent on geological work, prospect- ing,drilling and other activities associated with the pro;,.eot, and on rail- road surveys. Since 1942, the finances have been furnished, by Hollinger Consolidated Gold Mines Ltd., with The M.A. Hanna Co. participating on a minority basis. By far the greater proportion of the money has been spent in 1946, 1947 and 1948. When it is recalled that in 1940 and 1941, it was impossi- ble to interest anyone in financing the venture and that Labrador Mining and Exploration Co. Ltd. was on the verge of bankruptcy, the courage of the present controlling groups in entering the picture is evident. Future Financing The amount of money, needed to build the railroad, the ore docks, develop hydro-electric power, build a town., and prepare the deposits for mining is obviously great. Estimates on the requirements very consid- erably, and it is still too early tc hazard a guess. The management has not yet made public its plans for' financing the various projects.

Montreal, P.Q. July' 1, 1948. -17 _

APPENDIX i Ore Objective Attained

Over 400,000,,000 long; tons of iron ore were proved by drillirE and field operations at the end of 1951.

Idontreali P.Q. November 5th, 1951