KAMISTAITUSSET IRON ORE PROJECT

The Kamistiatusset iron ore property is located in the heart of the iron ore mining district in western Labrador, Canada. The 2,125 hectare property was staked by Altius in 2004 on the basis of known iron ore prospects discovered by Labrador Mining and Exploration Company (LM&E) in the late 1940's and 1950's. 

2009-November Update - Project Agreement Executed
Altius entered into an agreement with a private company with respect to its Kamistiatusset iron ore project in November 2009. A primary condition of the agreement is that the private company is obligated to form a new public company (“Newco”) that will focus on the western Labrador iron ore mining district of Canada. Newco is wholly responsible for the recruitment of a Management and Board acceptable to Altius. Organization of the board, management and capital structuring of Newco is presently underway and will be reported upon once completed.

Altius will retain a 100% interest in the Kamistiatusset project until such time as Newco incurs $5 million in exploration expenditures on the property. At that time Altius will transfer its 100% interest in the project to Newco in exchange for a 3% gross sales royalty and for an initial 50% equity interest in Newco.

Exploration Results
In 2008, a 6008 meter, 24-hole, diamond drilling program was conducted in three principal target areas (Mills Lake, Mart Hill and Rose Lake) to test zones of iron formation associated with coincident gravity and airborne magnetic anomalies. Iron mineralization was encountered at all 3 targets, however, the widest intervals of iron mineralization were noted in the Rose Lake area. Iron formation at Rose Lake has now been traced by drilling for ~1.2 kilometres along a portion of an interpreted major regional scale fold structure (syncline) and the coincident magnetic anomaly extends for more than one kilometre wide at the widest point and more than four kilometres long. Only eleven drill holes positioned 200 metres to 400 metres apart have been drilled in this large target area, thus additional drilling is required to fully test this target area and to provide a basis for a resource calculation.

Click here to view the entire Table of Drill Hole Results from the Kamistaitussett Property

Altius is encouraged by the results of the 2008 drill program as the indicated grades and iron formation thicknesses in this area compare favourably with producing iron ore mines and development projects in the district. These encouraging drill results indicate the significant iron ore potential on the property.

Table illustrating gradeS of iron ore deposits in Labrador West

Deposit

Fe %

magnetite

MgO %

CaO %

Mn %

IOC average1

38.9

19.0

1.42

2.07

0.33

Wabush Mines2

35.8

3.6

n/a

n/a

< 1.44

Bloom Lake3

29.76

10.54

2.17

2.33

n/a

1 Cotnoir et al., 2002.
2 Farquharson et al., 2006
3 Allaire et al., 2007

Preliminary Metallurgical Tests (2009)
Altius recently received positive metallurgical results from a test program of the beneficiation characteristics of magnetite-rich iron formation from the Kamistiatusset project. Please see the following link to the final report (Click Here) from SGS Lakefield regarding the bench-scale testing of a single sample from the property that includes results of preliminary grindability and beneficiation through low-intensity magnetic separation and Mozley gravity separation on one 150 kilogram mini-bulk sample representing the magnetite-rich zone in iron ore. 

A complete review of the 2008/09 program is ongoing in order to devise a follow up program for 2010.

Also see the following links below to a summary document and PowerPoint presentation of the Kamistiatusset project results.

- Summary Document (October 9, 2009)

- PowerPoint Presentation (Summer 2009)

*Altius employs a stringent industry standard of QA/QC protocols.  For further information please see the following link - QA/QC