Buena Vista Iron Project

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description

Prefeasibility Study Technical Report

Transcript of Buena Vista Iron Project

Page 1: Buena Vista Iron Project

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"#$%&!'()*&!+,-%!.,-/$0*1!2$3&4&1!567!

.,$8$&)(9(:(*;!6*#4;!<$0=%(0&:!>$?-,*!

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@99#425<#'A%2#:' BB'C42-(#"'BDEF'

G0%1595#&'!#"/-./:''''''H8%""-.'H)1<#/2#"''''''*=I'J!I#-'ED3EBK'

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Page 2: Buena Vista Iron Project

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P0#.%'U5/2%'="-.'!"-V#423';#<%&%3'WH*' !%6#''55'Q#48.54%1'J#$-"2'X'C42-(#"'BDEF'

<&9:$!-8!@-%*$%*)!

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A 6#BB&,;!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!A

ERE =.2"-&0425-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E

ERB >-4%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'B

ERF CY.#"/85$'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'F

ERS I#-1-6)'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'S

ERK +5.#"%15M%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'S

ERZ !"-V#42'H2%20/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'K

ER[ +5.#"%1'J#/-0"4#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'Z

ER\ +5.#"%1'J#/#"<#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'Z

ER] @4-.-?54'*//#//?#.2'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'Z

ERED ,-.410/5-./'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'[

EREE J#4-??#.&%25-./'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'\

EREERE J#/-0"4#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'\

EREERB +5.5.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'\

EREERF +#2%110"6)'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'\

D +%*,-4#0*(-%!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!E

BRE H4-$#'-9'28#'J#$-"2'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR']

BRERE =.2"-&0425-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR']

BRERB J#/-0"4#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR']

BRERF +5.5.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ED

BRERS !"-4#//5.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ED

BRERK @4-.-?54'@<%10%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EE

BRB H52#'U5/52/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EE

BRBRE J#/-0"4#/'G0%1595#&'!#"/-.'NG!O'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EE

BRBRB +5.5.6'G!'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EE

BRBRF +#2%110"6)'G!'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EE

BRBRS @.<5"-.?#.2%1'G!'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EE

BRF !"5.45$%1'H-0"4#/'-9'=.9-"?%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EE

BRS G0%15954%25-./'%.&'@^$#"5#.4#'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EE

BRK J#/$-./5(51525#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EB

BRZ *(("#<5%25-./'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EF

BR[ I1-//%")'-9'Q#"?/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ES

F >$:(&%0$!-%!G*=$,!HI?$,*)!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!AJ

K .,-?$,*;!L$)0,(?*(-%!&%4!M-0&*(-%!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!AN

SRE >-4%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZ

SRB +5.#"%1'Q#.0"#'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E[

SRBRE C<#"<5#Y'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E[

SRBRB A#2%51/'-9'+5.5.6',1%5?/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'BD

SRBRF +5.5.6',1%5?/'X'H#$2#?(#"'S3'BDEF'*6"##?#.2'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'BK

SRBRS A#2%51/'-9';#Y'H0"9%4#'%.&'+5.5.6',1%5?/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'BK

SRF !"-V#42'CY.#"/85$'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'FF

SRS J-)%125#/'%.&'@.40?("%.4#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'FS

SRK @.<5"-.?#.2%1'>5%(51525#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'FK

SRZ C28#"'H56.5954%.2'L%42-"/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'FK

Page 3: Buena Vista Iron Project

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P0#.%'U5/2%'="-.'!"-V#423';#<%&%3'WH*' !%6#''555'Q#48.54%1'J#$-"2'X'C42-(#"'BDEF'

J 700$))(9(:(*;1!@:(B&*$1!M-0&:!>$)-#,0$)1!+%8,&)*,#0*#,$!&%4!.=;)(-O,&?=;!CCCCCCCCCCCCCCCCCCCCCC!FN

KRE Q-$-6"%$8)'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'FZ

KRB !"-V#42'*44#//'%.&'!"-^5?52)'2-'!-$01%25-.',#.2"#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'FZ

KRF !8)/5-6"%$8)'%.&',15?%2#'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'F[

KRS U#6#2%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'F[

KRK _-"`9-"4#'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'F\

KRZ =.9"%/2"0420"#'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'F\

KRZRE J%51'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'F\

KRZRB !-Y#"'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'F\

KRZRF _%2#"'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'F\

KRZRS Q%515.6/'%.&'_%/2#'J-4`'A5/$-/%1'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'F]

KRZRK J-%&/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'F]

N P()*-,;!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!KQ

ZRE 75/2-"54%1'!"-&0425-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'SD

ZRB @^$1-"%25-.'%.&'A#<#1-$?#.2'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'SE

ZRBRE @^$1-"%25-.'!"-6"%??#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'SE

ZRBRB' 75/2-"54%1'=.9-"?%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'SE

ZRBRF 75/2-"54%1'I#-$8)/54%1'@^$1-"%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'SB

R S$-:-O(0&:!6$**(%O!&%4!T(%$,&:(U&*(-%!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!KF

[RE J#65-.%1'I#-1-6)'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'SF

[RB !"-V#42'I#-1-6)'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'SS

[RF +5.#"%15M%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'SK

[RFRE _#/2'%.&'H-028',#.2"%1'A#$-/52'N.-Y'?-&#1#&'%/'_#/2O'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'SK

[RFRB @%/2'A#$-/52'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'SK

[RFRF H#425-.'K'A#$-/52'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'SZ

[RS I#-$8)/54%1'H56.%20"#'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'SZ

V L$?-)(*!<;?$)!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!KR

\RE >528-1-654%1',-.2"-1'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'S\

E HI?:-,&*(-%!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!KE

]RE' @^$1-"%25-.'75/2-")'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'S]

]RERB' C28#"'@^$1-"%25-.'=.9-"?%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'KE

]RERF I#-$8)/54%1'@^$1-"%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'KE

]RB ,-.2#?$-"%")'A"5115.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'KE

AQ L,(::(%O!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!JD

EDRE 75/2-"54%1'%.&',0""#.2'@^$1-"%25-.'_-"`'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'KB

EDRB A"5115.6'+#28-&/'%.&'@a05$?#.2'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'KB

EDRF ,-"#'A"5115.6'%.&'H%?$15.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'KF

EDRS A"5115.6'G0%152)'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'KF

EDRK A"5118-1#'!"-6"%??#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'KK

EDRZ J#/012/'9"-?'A"5115.6'!"-6"%??#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'KK

EDR[ A"5118-1#/'=.410&#&'9-"'+5.#"%1'J#/-0"4#'@/25?%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'KZ

AA 6&B?:(%O!.,$?&,&*(-%1!7%&:;)$)!&%4!6$0#,(*;!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!NK

EERE H%?$1#',-11#425-.'T'BDED'%.&'BDEB'A"5115.6',%?$%56./'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ZS

EERB H%?$1#'!"#$%"%25-.'T'BDED'%.&'BDEB'A"5115.6',%?$%56./'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ZS

EERF H%?$1#'*.%1)/5/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ZS

Page 4: Buena Vista Iron Project

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P0#.%'U5/2%'="-.'!"-V#423';#<%&%3'WH*' !%6#''5<'Q#48.54%1'J#$-"2'X'C42-(#"'BDEF'

EERFRE *.%1)/5/'-9'BDEB'H%?$1#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ZS

EERFRB *.%1)/5/'-9'BDED'H%?$1#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ZK

EERFRF *.%1)/5/'-9'H%?$1#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ZK

EERS G0%152)'*//0"%.4#'%.&'G0%152)',-.2"-1'NG*bG,O'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ZK

EERSRE ,#"2595#&'J#9#"#.4#'+%2#"5%1/'N,J+c/O'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ZK

EERSRB >%(-"%2-")',8#4`'*//%)/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'Z[

EERSRF !01$'A0$154%2#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'Z\

EERSRS QY5..#&'7-1#/'*.%1)/5/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'Z\

EERSRK H0??%")'-9'd#)'G*bG,'J#/012/'%.&'J#4-??#.&%25-./'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'[[

AD L&*&!'$,(8(0&*(-%!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!RE

EBRE H4-$#'-9'H52#'U5/52'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'[]

EBRB A%2%',-?$51%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'[]

EBRBRE A%2%'!"-<5&#&'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'[]

EBRBRB A%2%'U#"5954%25-.'%.&'A%2%'*&#a0%4)'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'[]

EBRBRF Q-$-6"%$8)'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'\D

AF T(%$,&:!.,-0$))(%O!&%4!T$*&::#,O(0&:!<$)*(%O!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!VA

EFRE =.2"-&0425-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'\E

EFRB Q#/2'Y-"`'()'H-028#".'!%45954'%.&'+5.#"%1'+%2#"5%1'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'\E

EFRF Q#/2Y-"`'()'WH'H2##1'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'\K

EFRFRE A%<5/'Q0(#'Q#/25.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'\K

EFRFRB P01`'H%?$1#'Q#/25.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'\]

EFRS Q#/2Y-"`'()',R=QC7'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR']D

EFRSRE Q#/25.6'()'A")'>=+H'%2'%$$"-^5?%2#1)'ED'??'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR']E

EFRK Q#/2Y-"`'()';#<%&%'="-.'>5?52#&'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'][

EFRKRE +%6.#254'H#$%"%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'][

EFRKRB =?$0"525#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EDB

EFRKRF P-.&'_-"`'=.&#^'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EDF

EFRKRS ed'Q#48'H+,'H*I'I"5.&%(5152)'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EDK

EFRKRK Q854`#.5.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EDZ

EFRKRZ ,-.4#.2"%2#'L512"%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EDZ

AK T(%$,&:!>$)-#,0$!H)*(B&*$)!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!AQV

ESRE A"5118-1#'!"#$%"%25-.'%.&',-?$-/525.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ED\

ESRERE H%?$1#'L1%665.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ED\

ESRERB H%?$1#',-?$-/525.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EEF

ESRERF ,-?$-/52#'>#.628'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EES

ESRERS ,-?$-/525.6'H2"%2#6)'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EEZ

ESRB @^$1-"%25-.'A%2%'*.%1)/5/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EEZ

ESRBRE W.5<%"5%2#'H2%25/254/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EEZ

ESRBRB 75/2-6"%?/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EE\

ESRF J#/-0"4#'+-&#1'!"#$%"%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EBF

ESRS U%"5-6"%$8)'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EBK

ESRK I"%&#'@/25?%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EBZ

ESRKRE C"&5.%")'d"565.6RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EBZ

ESRKRB H#%"48';#568(-"8--&'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EBZ

ESRKRF H#%"48'@115$/#'C"5#.2%25-./'X'@/25?%25-.'A-?%5./RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EB[

ESRKRS AQJf'@/25?%25-.'9-"'BDEB'A"5118-1#'A%2%'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EB\

ESRKRK ,%1401%25-.'-9'Q-2%1/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EFD

ESRKRZ *.4511%")'@/25?%25-.'!#"9-"?%.4#'A%2%'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EFD

Page 5: Buena Vista Iron Project

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P0#.%'U5/2%'="-.'!"-V#423';#<%&%3'WH*' !%6#''<'Q#48.54%1'J#$-"2'X'C42-(#"'BDEF'

ESRZ A#./52)'@/25?%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EFD

ESR[ +-&#1'U%15&%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EFD

ESR[RE U5/0%1'U%15&%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EFD

ESR[RB I1-(%1'P5%/',8#4`'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EFF

ESR[RF >-4%1'P5%/',8#4`/'NHY%28'!1-2/O'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EFF

ESR[RS C28#"'H2%25/254%1'U%15&%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EFF

ESR[RK H0??%")'-9'U%15&%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EF]

ESR[RZ J#/-0"4#',1%//5954%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EF]

ESR\ J#%/-.%(1#'!"-/$#42'-9'@4-.-?54'@^2"%425-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ESD

ESR] +5.#"%1'J#/-0"4#'@/25?%2#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ESD

ESR]RE +5.#"%1'J#/-0"4#'H2%2#?#.2'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ESD

ESR]RE I"%&#'Q-..%6#',0"<#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ESB

ESRED A5/40//5-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ESF

AJ T(%$,&:!>$)$,3$!H)*(B&*$)!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!AKK

EKRE +5.#"%1'J#/#"<#'H2%2#?#.2'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ESS

EKRB !52'C$25?5/%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ESS

EKRBRE Q8#-"#254%1'P%4`6"-0.&'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ESS

EKRBRB !52'C$25?5M%25-.'*//0?$25-./'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ESK

EKRF !52'C$25?5/%25-.'J#/012/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ES]

EKRFRE _#/2'A#$-/52'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'ES]

EKRFRB H#425-.'K'A#$-/52'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EKB

EKRS !52'A#/56./'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EKS

EKRSRE !52'H8#11'+%2#"5%1'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EKS

EKRSRB A#/56.'!%"%?#2#"/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EKS

EKRSRF !52'A#/56.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EKK

EKRSRS ,-?$%"5/-.'-9'A#/56.'!52/'2-'C$25?5M#&'!52'H8#11/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EKZ

AN T(%(%O!T$*=-4)!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!AJV

EZRE +5.5.6'+#28-&'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EK\

EZRB !"-&0425-.'H48#&01#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EK\

AR >$0-3$,;!T$*=-4)!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!AND

E[RE !"-4#//5.6'A#/4"5$25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZB

E[RB L1-Y/8##2'%.&'@a05$?#.2'>5/2'A5/40//5-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZF

E[RBRE !"5?%")',"0/85.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZF

E[RBRB L5.#',"0/85.6'%.&',-((5.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZS

E[RBRF L5.#'C"#'H2-"%6#'%.&'+5115.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZS

E[RBRS !"5?%")'_#2'>-Y'=.2#./52)'+%6.#254'H#$%"%25-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZK

E[RBRK H#4-.&%")'I"5.&5.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZK

E[RBRZ H#4-.&%")'>=+H',5"4052'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZK

E[RBR[ A#Y%2#"5.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZK

E[RBR\ !"-&042'A5/$-/%1'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZZ

E[RF @.#"6)3'_%2#"'%.&'C28#"'!"-4#//'+%2#"5%1/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZZ

E[RFRE @1#42"54%1'!-Y#"'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZZ

E[RFRB !"-4#//'Y%2#"'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZ[

AV .,-/$0*!+%8,&)*,#0*#,$!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!ANR

E\RE I"5&'!-Y#"'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZ[

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AE T&,W$*!6*#4($)!&%4!@-%*,&0*)!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!ANV

Page 6: Buena Vista Iron Project

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DQ H%3(,-%B$%*&:!6*#4($)1!.$,B(**(%O!&%4!6-0(&:!-,!@-BB#%(*;!+B?&0*!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!ANE

BDRE @.<5"-.?#.2%1'>5%(51525#/'%.&'!#"?5225.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZ]

BDRERE J#a05"#&'!#"?52/'%.&'H2%20/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZ]

BDRERB @.<5"-.?#.2%1'!#"?52/'5.';#<%&%'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'EZ]

BDRB ,-?$15%.4#'H2%20/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E[B

BDRF @.<5"-.?#.2%1'>5%(51525#/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E[B

BDRS +5.#',1-/0"#'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E[B

DA @&?(*&:!&%4!G?$,&*(%O!@-)*)!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!ARF

BERE ,%$52%1',-/2'@/25?%2#'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E[F

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BERERF ,1-/0"#',%$52%1',-/2/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E[S

BERERS +5.5.6',%$52%1',-/2/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E[K

BERERK +5/4#11%.#-0/',%$52%1'@^$#.&520"#RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E[\

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BERBRB +5.5.6'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E\D

BERF @.<5"-.?#.2%1',-./5&#"%25-./'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E\Z

DD H0-%-B(0!7%&:;)()!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!AVN

BBRE =.2"-&0425-.'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E\Z

BBRB =.$02'!%"%?#2#"/'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E\\

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BKRE +5.#"%1'J#/-0"4#'RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR'E]B

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DR >$8$,$%0$)!CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC!AEN' '

Page 7: Buena Vista Iron Project

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Page 8: Buena Vista Iron Project

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Page 9: Buena Vista Iron Project

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Page 10: Buena Vista Iron Project

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3Z ENB ;; KF\ BCIE JRMOERDEE B5REJ5RD5J ORNIDLDM

3Z ENJ ;; Z\] BCIE JRMOBRJEB B5REJIREE5 OROEDLIC

3Z ENN ;; SB[ BCIE JRMOBRNE5 B5REJ5RBCO ORNDOLDM

3Z ENO ;; Z]B BCIE JRMOBRNCB B5REJ5RCO5 OROOOLOD

3Z EN5 ;; S\] BCIE JRMOER5OB B5REJ5R5JC ORNJ5LOE

3Z ENI ;; FD\ BCIE JRMOERNNC B5REJ5R5OC ORNBBL5E

3Z ENM ;; [EB BCIE JRMOERNDE B5REJ5RDBC ORNJMLEB

3Z END ;; [DK BCIE JRMOERCCO B5REJ5RC5J ORNCNLJN

3Z ENC ;; KB\ BCIE JRMOJRBBD B5REJ5RJCM OR5JJLOE

3Z EOE ;; [EB BCIE JRMOER5ME B5REJ5RMNE ORNNNLNC

3Z EOB ;; FBK BCIE JRMOEROMC B5REJ5RBBD ORNEJLEI

3Z EOJ ;; KEB BCIE JRMOERIMC B5REJ5REII ORJDILDM

3Z EON ;; ZD[ BCIE JRMOBRMOD B5REJNRCCO ORNOCL5E

3Z EOO ;; FK\ BCIE JRMOBRC5B B5REJNRCCN ORNMMLCJ

3Z EO5 ;; SE[ BCIE JRMOERIDJ B5REJ5RE5C ORJDMLED

3Z EOI ;; KE\ BCIE JRMOEROOC B5REJORCEO ORJC5LJB

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1

Ground Control Engineering Pty Ltd

PO Box 893

MALANDA QLD 4885

ABN 98 124 668 542

Friday 11 January 2013

Attn: Mr Declan Franzmann

Managing Director

Crosscut Consulting

PO Box 101

Arana Hills QLD 4054

Dear Mr Franzmann,

RE: GEOTECHNICAL REVIEW OF REPORT: “PRELIMINARY BENCH FACE ANGLES – SECTION 5 PIT,

PROPOSED BUENA VISTA MINE”

Ground Control Engineering Pty Ltd (GCE) have completed a geotechnical review of the report titled

“Preliminary Bench Face Angles – Section 5 Pit, Proposed Buena Vista Mine” by Kleinfelder West Inc.

(Kleinfelder) dated 7 September 2012.

This memo report aims to provide Crosscut Consulting with a greater understanding of the level of

analysis completed, and subsequent results obtained, by Kleinfelder, and to provide recommendations

for further geotechnical assessment that may be required.

We trust that this report meets your requirements. Should you require further clarification, please do

not hesitate to contact the undersigned.

Yours sincerely,

GROUND CONTROL ENGINEERING PTY LTD

Joel Anders Cameron Tucker

Geotechnical Engineer Principal Geotechnical Engineer

M +61 422 808 344 M +61 400 449 845

E [email protected] E [email protected]

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GCE_BuenaVista_Geotech_Review_DRAFT_01 2

Report Review

The following comments are made by GCE in relation to the headings from the section they appear in

Kleinfelder’s report. Italicised text indicates sections from Kleinfelder’s report, while the standard text

that follows are comments by GCE in relation to that section.

Project Understanding

The limits and dimensions of the proposed pit have not yet been established (for the applicable area). The

maximum depth of the pit is anticipated to be around 600 feet below the existing ground surface.

Kleinfelder were requested by their client (Nevada Iron LLC) to utilise their planned exploration borings

(“drill holes”) as much as possible to minimise exploration costs. Kleinfelder also proposed additional

borings to assist in slope stability evaluation.

Without knowledge of pit limits, it is difficult to design a geotechnical investigation that achieves the

desired targets in terms of relevance of geotechnical data and sample size. Although it is often the case

to utilise exploration drilling to provide additional geotechnical information, this information should be

used as a supplement to primary geotechnical data that is specifically targeted to geotechnical design.

Field Exploration

Diamond core borings were drilled to lengths between 120 and 800 feet.

The results of the logging and geomechanical analyses based on the logged data will be included in the

geologic discussion and stability analyses as part of the geotechnical report to be provided at a later date.

Televiewer surveys were not performed immediately after completion of the borings due to field

activities. Therefore, the depth of the televiewer survey varied from the drilled depth of each boring due

to hole collapse, obstructions encountered down hole during the surveys, and various other reasons.

Without knowledge of pit limits, the suitability of the drill hole locations cannot be determined. It is

common (and best) practice to locate geotechnical drill holes to target final pit walls in order to gain the

most relevant and accurate information for the walls under assessment. Furthermore, it is unclear if the

borings reached the desired drill depths (i.e. below the base of the proposed pit).

In relation to the televiewer surveys, it is unclear if target depths appropriate for pit walls up to 600 feet

were still achieved (despite hole collapse, etc.).

Kleinfelder state geomechanical and stability analyses will be included as part of the geotechnical report

to follow. GCE recommends Crosscut Consulting discuss with Kleinfelder if the results presented as

preliminary bench face angles are likely to change materially if a more detailed analysis is completed.

Markland Analyses

The Markland Analysis does not consider a cohesion intercept when modelling the strength of

discontinuities. This method also assumes that the discontinuities are continuous and through going with

no “bridging” within the discontinuity.

A discontinuity friction angle of 32 degrees was assumed for the rock mass based on the geomechanical

information collected in the field, laboratory testing, experience with similar rock types and guidance

from ‘The Rock Slopes Reference Manual’ (FHWA, 1998). For each section a dip direction was selected

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GCE_BuenaVista_Geotech_Review_DRAFT_01 3

then the dip angles were ranged from 45 to 76 degrees. The steepest slope angles (were derived) for each

section with a low potential for failure.

In the opinion of GCE, the method and application of the Markland Analyses by Kleinfelder is sound.

However, GCE note a number of issues regarding the input data and results.

Providing slope angles from this single analysis method alone means the results are based purely on

kinematics and geometry, and do not take into account rock mass characteristics.

The analysis assumes all discontinuities are continuous. However, in reality discontinuities may typically

extend for a few metres, but not tens of metres. Based on previous experience, a mean discontinuity

length of 3 to 5m is regarded as reasonable. This indicates the likelihood of rock bridges existing between

structures that would in turn increase shear strength of the rock mass. Furthermore, the planarity of the

discontinuities over space (i.e. scale greater than drill core size) is an important factor. Over the extent of

a bench face the profile of a discontinuity can vary, which could induce a ‘locking up’ effect in some

structures.

These factors highlight the need for more comprehensive geotechnical analysis utilising a combination of

assessment methods to determine optimum slope design parameters.

Applying the same friction angle across the whole analysis does not take into account variations in shear

strengths that would normally occur across discontinuity sets. In methods used by GCE, discontinuity sets

would be assigned to specific lithologies or geotechnical domains, and specific friction angles derived for

each set within that domain. Where possible discontinuity friction angles should be determined from

laboratory testing and a range of values that are most representative of site conditions would be used.

The results of the laboratory testing mentioned by Kleinfelder are not included in the report, and

therefore cannot be commented on by GCE.

The dip directions of wall sectors assessed appear to be assumed by Kleinfelder, not based on actual pit

wall orientations. Therefore, if the pit walls are orientated differently to what has been assessed, then

the analysis, and provided slope angles, would be invalid.

The bench face angles presented by Kleinfelder are based on “a low potential for failure”. GCE would

assume this is based on a given percentage of discontinuities that will day light in the slope face,

however no value, or explanation of this is provided. When employing similar analysis techniques, GCE

generally use an industry accepted, probability of sliding of 30% as a design criterion for batter scale

design. This approach provides a comparative indication of the degree of day lighting discontinuity sets.

Preliminary Bench Face Angles

These preliminary bench face angles are based on limited data collected from the televiewer surveys and

Kleinfelder’s logging of the borings.

GCE are uncertain of the value in presenting bench face angles alone. By supplying only bench angles,

with no other slope design parameters such as berm widths and inter ramp slope angles, it is difficult for

final toe position and pit crest to be determined for mine design.

Bench face angles and berm widths need to be designed to take into account the potential for bench

scale failures on pervasive structure sets. Although small failures will typically occur, the bench face

berm configurations should be designed to limit the impact such failures may have on safe operations.

Inter ramp slope angles are designed to account for the potential for multi bench face scale failure, and

are usually based on a combination of rock mass strength and the existence of major structures (e.g.

faults, shear zones, etc.). Identifying any large, continuous structures is a crucial aspect of any slope

stability assessment.

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GCE_BuenaVista_Geotech_Review_DRAFT_01 4

The discontinuity data has been used to derive face angles for entire wall sectors up to 784 feet high. It is

highly likely that a number of different lithologies will be exposed in each wall sector. Discontinuity sets

are generally contained to a specific lithology or geotechnical domain. Therefore by applying the derived

discontinuity sets to entire wall sectors is misleading as there may be large extents of pit walls where

these sets do not occur. This can result in slope angles being on the conservative side.

Furthermore, in GCE’s experience the slope design process is more applicable when data is incorporated

into geotechnical domains, not based on spatial regions of the mining area only (i.e. north, south, east,

and west). In the opinion of GCE, the method involving geotechnical domaining is considered best

practice and provides the most effective slope design parameters

General Comments

The following general comments are made in relation to the report by Kleinfelder and the nature of the

geotechnical assessment:

It is assumed that the scope of work agreed upon between Kleinfelder and their client was to provide

preliminary bench face angles based on a limited kinematic analysis.

GCE have not completed a review of the technical data used in Kleinfelder’s analysis. To comment

more conclusively on the technical information presented in the report, GCE would require the drill

hole logs, the raw and interpreted structural data and laboratory testing results.

The quality, location and sample size of geotechnical data is critical in determining the level of

confidence in the geotechnical assessment, and in turn the associated level of study (i.e. scoping,

pre feasibility, etc.). By designing a geotechnical drilling program based around anticipated pit

design, the collection of geotechnical data is made more relevant to the design.

Furthermore, by undertaking a suitable geotechnical drilling program, one has the opportunity to

obtain the required level of information to complete most levels of study. The geotechnical

assessment can then be completed at the client’s discretion based on the level of detail required.

This aims to eliminate the need to complete further, costly geotechnical drilling and data collection

later on.

The slope angles provided by Kleinfelder can be optimised with more detailed analysis to provide a

suite of slope design parameters (bench face angle, berm widths, inter ramp slope angles). This

would include review of all existing data including drill logs, geology reports and pit designs. The

slope design parameters would be based on geotechnical domains and applicable to specific pit wall

sectors

Identification of the likely failure mechanisms is usually the first step in any slope stability

assessment. From there, the type and nature of analyses can be geared to provide in the most

appropriate slope design parameters. For example, if the primary failure mechanism was to be

failure through the rock mass, then slope angles based on structures alone is completely inadequate,

and other analysis methods would be required.

The results of the Markland Analyses are highly sensitive to the assigned friction angle. In this case,

only one value for friction angle has been used, and the derivation of this value is not clear to GCE.

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GCE_BuenaVista_Geotech_Review_DRAFT_01 5

References

Kleinfelder West Inc. 2012, “Preliminary Bench Face Angles – Section 5 Pit, Proposed Buena Vista Mine,

Churchill County, Nevada”, (internal file no. 124847.08), 7 September 2012.

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GCE_BuenaVista_Geotech_Review_DRAFT_01 6

DOCUMENT INFORMATION

Status DRAFT

Version 01

Print Date 13 September 2013

Author(s) Joel Anders

Reviewed By DRAFT – Internal review only

Pathname

File Name GCE_ BuenaVista_Geotech_Review_DRAFT_01.doc

Project No.

Distribution PDF to client, for review and comment

DOCUMENT CHANGE CONTROL

Version Description of changes/amendments Author(s) Date

01 Draft report J. Anders 11/01/13

DOCUMENT REVIEW AND SIGN OFF

Version Reviewer Position Signature Date

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124847.08.2/REN12L0403 Page 1 of 9 September 7, 2012 Copyright 2012 Kleinfelder

September 7, 2012

File: 124847.08

Mr. Chris Tanner

Nevada Iron LLC

204 West Spear Street No. 2961

Carson City, NV 89703

Subject: Preliminary Bench Face Angles

Section 5 Pit

Proposed Buena Vista Mine

Churchill County, Nevada

Dear Mr. Tanner:

This letter presents Kleinfelder’s preliminary assessment of bench face angles in the

Section 5 Pit at the Buena Vista Mine in Churchill County, Nevada. The purpose of this

letter is to provide an initial assessment of the maximum bench face angles for

preliminary pit layout and design by others. Additional slope stability analyses are

required as design of the Section 5 Pit progresses.

The preliminary bench face angles provided in this letter are based on stereonet

projections and Markland analyses and utilize the available discontinuity measurements

obtained from the core logging and televiewer survey results. The analyses of the

bench face angles did not consider groundwater, seismic conditions, rock quality, or

global stability based on pit geometry. These conditions will need to be considered to

finalize bench face angles, evaluate Inter Ramp angels and Overall pit angles, and

support the development of the final pit design. An explanation of the pit wall

terminology used in this letter is presented on Plate 1.

Project Understanding

Nevada Iron identified an area of ore that will be extracted as part of the overall mine

plan at the Buena Vista Mine. This area is referred to as the Section 5 Pit. Site plans

were provided by TEC Civil Engineering Consultants (TEC) and provide the basis of

Kleinfelder’s understanding for the location of the proposed pit. The limits and

dimensions of the proposed pit have not yet been established for this area. However,

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124847.08.2/REN12L0403 Page 2 of 9 September 7, 2012 Copyright 2012 Kleinfelder

Kleinfelder understands the maximum depth of the pit is anticipated to be around 600

feet below the existing ground surface and the limits of the pit are roughly defined by the

extent of the explorations.

Nevada Iron developed and executed a resource-based drilling program to evaluate the

iron ore content of this area to support the development of a mining plan by others. A

Site Exploration Map is presented on Plate 2. Nevada Iron subcontracted a drilling

company to complete diamond cores (DIA) and air percussion hammer (RC) boreholes

in the Section 5 Pit. The diamond core holes were selected by Nevada Iron to assess

the quality of the ore body. The RC hole locations were selected by Nevada Iron to

evaluate the extents of the ore body.

Nevada Iron requested Kleinfelder to utilize their planned borings as much as possible

to minimize exploration costs. Nevada Iron authorized some of Kleinfelder’s proposed

additional borings to assist with the slope stability evaluation. More borings would yield

additional information for the analyses, and thereby possibly reduce the associated risk

and uncertainty in the stability evaluation, and potentially increase recommended slope

angles.

Field Exploration

The drilling program began in May 2012 and was completed in July 2012. The air

percussion and diamond core borings were inclined at angles between 60 and 90

degrees from horizontal on a bearing (azimuth) of approximately 175 to 200 degrees.

Diamond core borings were drilled to lengths between 120 and 800 feet. The RC

borings were not tracked or recorded by Kleinfelder.

Core run lengths and recovery were measured in the field by others and provided to

Kleinfelder. Recovered rock core was transported to a field office by Nevada Iron for

review by Kleinfelder. Kleinfelder engineers and geologists logged the recovered rock

core from diamond core borings 2BB, 4C, 5F, 5Z, 6C, 6F, and 12B; the rock type and

rock quality information were recorded. The results of the logging and geomechanical

analyses based on the logged data will be included in the geologic discussion and

stability analyses as part of the geotechnical report to be provided at a later date.

Norcal Geophysical (NORCAL), Kleinfelder’s subcontractor, performed optical and

acoustic televiewer surveys of boring locations listed in Table 1 to map the geometry of

fractures and discontinuities. The surveys were performed by lowering an optical

(OPTV) video camera down previously drilled boreholes. Lights at the bottom of the

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124847.08.2/REN12L0403 Page 3 of 9 September 7, 2012 Copyright 2012 Kleinfelder

televiewer tool reflect off the walls of the borehole, enhancing the image recorded by the

camera. The captured images are referenced to magnetic north based on provided

deviation data. Where cloudy water was encountered, the OPTV could not be used. In

these cases, Norcal utilized an acoustic (BHTV) televiewer tool. The BHTV is an

ultrasonic send and receive device. Images of the borehole sidewalls are produced by

measuring variations of two-way travel times and amplitudes of reflected ultrasonic

pulses as the device is moved up the borehole.

Televiewer surveys were coordinated with Nevada Iron field personnel and were

performed over several mobilizations. The surveys were not performed immediately

after completion of borings due to field activity logistics. Therefore, the depth of the

televiewer survey varied from the drilled depth of each boring due to hole collapse,

obstructions encountered down hole during the surveys, and various other reasons.

Table 1 – Televiewer Surveys

Boring1 Boring

Type2

Depth3

(ft)

1B RC 585

2BB DIA 781

4C DIA 299

5G RC 448

5Z4 DIA -

6F DIA 559

7D DIA 784

8F RC 133

12B DIA 328

KF3 RC 577

KF4 RC 144

KF5 RC 316

KF6 RC 473 Notes:

1. Locations shown on Plate 2 were surveyed and provided by TEC 2. RC = Percussion hammer borings, DIA = Diamond core borings

3. Actual depth of televiewer access in boring (i.e. not corrected for inclination) 4. Televiewer was attempted in 5Z, but boring collapsed and televiewer tool was stuck

Page 361: Buena Vista Iron Project

124847.08.2/REN12L0403 Page 4 of 9 September 7, 2012 Copyright 2012 Kleinfelder

Stereonet Projections

Using the discontinuity data collected from the borings by the televiewer surveys,

Kleinfelder constructed pole plots on equal area stereonets using the computer program

Dips® Version 5.0. A pole represents an individual discontinuity. Stereonets provide a

two-dimensional representation of the three-dimensional discontinuity data. The Dips®

program contours the discontinuity data to identify trends in the data. Next, we outlined

pole clusters or contoured populations of discontinuities. The pole clusters represent

major discontinuity sets, which generally strike in a similar direction. Great circles, or

the projections of the corresponding planes, were then plotted for each major pole

cluster. Appendix A provides a “how-to” guide for reading stereonets and example

Markland analyses.

Based on the locations of the televiewer surveys, Kleinfelder divided the proposed pit

area into four sections, primarily north, south, east, and west. Because of variations in

the data and the spread of televiewer data across the site, all of the collected

discontinuity data was not plotted together. Borings were selected based on their

general area within the proposed pit to provide a better analysis for each section; the

following borings were utilized for the respective section:

North Section – Borings KF3 and KF6

South Section – Borings 5G, 7D, 8F, and KF5

East Section – Borings 12B and KF4

West Section – Borings 1B, 2BB, and 4C

The contoured pole plot stereonet for the North Section, shown in Plate 3a, estimates

five discontinuity sets that range in dip angle from 35 to 59 degrees. The contoured

pole plot stereonet for the South Section, shown in Plate 4a, estimates five discontinuity

sets that range in dip angle from 26 to 79 degrees. The contoured pole plot stereonet

for the East Section, shown in Plate 5a, estimates six discontinuity sets that range in dip

angle from 09 to 70 degrees. The contoured pole plot stereonet for the West Section,

shown in Plate 6a, estimates five discontinuity sets that range in dip angle from 01 to 81

degrees.

The great circles represent the average dip angle and dip direction for each

discontinuity set. As shown by the spread of the contoured populations on the Plates,

there are some minor variations in the discontinuity sets’ dip directions and angles.

Page 362: Buena Vista Iron Project

124847.08.2/REN12L0403 Page 5 of 9 September 7, 2012 Copyright 2012 Kleinfelder

Markland Analyses

To analyze the impact of the rock mass structure on stability, Markland Analyses were

performed to estimate the kinematic potential for rock blocks to fail out of the proposed

pit walls. The procedure of the analysis is summarized in the following paragraphs,

additional information regarding Markland analyses is provided in Appendix A.

The information required to perform an analysis are the design slope dip angle and

direction, the orientation of the discontinuities within the rock mass, and the friction

angle of the discontinuities. A kinematically potential wedge failure is identified when a

point, defining the line of intersection of two planes, falls within the area included

between the great circle defining the slope face and a circle defined by the angle of

friction. A planar failure is a specialized form of a wedge failure that follows the same

criteria above and also must fall within ± 20 degrees of the dip direction of the slope

face.

The Markland Analysis does not consider a cohesion intercept when modeling the

strength of discontinuities. This method also assumes that the discontinuities are

continuous and through-going with no “bridging” within the discontinuity. The effect of

“bridging” would provide a tensional component (or cohesion intercept) to the

discontinuity strength.

The Markland analysis assumes that the factor of safety of individual rock blocks may

be estimated as follows: (1) When the dip of a discontinuity or the plunge of the line of

intersection of discontinuities defining a wedge is greater than the friction angle, the

factor of safety is less than 1.0; (2) When the dip of a discontinuity or the plunge of the

line of intersection is less than the friction angle, the factor of safety is greater than 1.0;

and (3) In either case, the dip or plunge has to be less than the dip of the slope face or

the structure will not daylight in or intersect the slope.

The orientations of the discontinuities from the borings for the respective sections

(North, South, East, and West) were plotted on stereonets using the computer program

ROCKPACK III by C. F. Watts (2001). A discontinuity angle of friction of 32 degrees

was assumed for the rock mass based on the geomechanical information collected in

the field, laboratory testing, experience with similar rock types, and guidance from The

Rock Slopes Reference Manual (FHWA, 1998). For each section a dip direction was

selected then the dip angles were ranged from 45 to 76 degrees (1H:1V to 0.25H:1V).

The steepest slope angle for each section with a low potential for failure is plotted on

plates 3 through 6 and discussed in the following paragraphs.

Page 363: Buena Vista Iron Project

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Results

The results presented in the following paragraphs are based on Kleinfelder’s

engineering judgment and the available data and are subject to the limitations

presented in this letter. It should be noted that for each section there are random

discontinuities present that could create a planar or wedge-type failure. However,

because a major discontinuity set was not observed in the data, the potential for these

types of failures is preliminarily judged to be low for the slope geometry analyzed.

North Section

Presented on Plate 3

Sector Azimuth 360o, south-facing slopes

Analyzed for a dip direction of 180 degrees (due south)

Recommended preliminary bench face angles of 76 degrees

Low potential for toppling-type failures resulting in rockfall

South Section

Presented on Plate 4

Sector Azimuth 180o, north-facing slopes

Analyzed for a dip direction of 0 degrees (due north)

Recommended preliminary bench face angles of 60 degrees

Low potential for toppling-type failures resulting in rockfall

There is a potential wedge-type failures that dip out of the slope to the north at

about 45 degrees. The preliminary stability analyses of this potential wedge (to

be included in the design report) indicate a factor of safety of about 1.0. When

the Markland analysis is performed for a 45 degree cut slope, the potential for

planar and wedge-type failures is reduced.

East Section

Presented on Plate 5

Sector Azimuth 90o, west-facing slopes

Analyzed for a dip direction of 270 degrees (due west)

Recommended preliminary bench face angles of 55 degrees

Potential for toppling-type failures resulting in rockfall for a bench face angle of

60 degrees

There is potential for wedge-type failures that dip out the slope to the west at

about 55 and 40 degrees.

Page 364: Buena Vista Iron Project

124847.08.2/REN12L0403 Page 7 of 9 September 7, 2012 Copyright 2012 Kleinfelder

West Section

Presented on Plate 6

Sector Azimuth 270o, east-facing slopes

Analyzed for a dip direction of 90 degrees (due east)

Recommended preliminary bench face angles of 65 degrees

Potential for toppling-type failures resulting in rockfall for a bench face angle of

65 degrees

There is potential for wedge-type failures that dip out the slope to the east at

about 65 degrees.

Preliminary Bench Face Angles

Kleinfelder’s recommended preliminary bench face angles for the various sections of

the Section 5 Pit are presented in Table 2, below. These preliminary bench face angles

are based on limited structural data collected from the televiewer surveys and

Kleinfelder’s logging of the borings. The preliminary bench face angles should be used

by others for preliminary pit layout and design; Kleinfelder should have regular

interaction with the mine designer as design progresses.

Table 2 – Recommended Preliminary Bench Face Angles

Mine

Section

Mine

Sector

Azimuth

(degrees)

Dip Direction

of Proposed

Cut Slope

(degrees)

Preliminary

Bench Face

Angle

(degrees)

Appropriate Depth

To Apply

Recommended

Angles Up To (ft)

North 360 180 76 577

South 180 0 60 784

East 90 270 55 328

West 270 90 65 781

The Markland analyses do not take into account rock quality, groundwater, or seismic

conditions; additionally, global stability incorporating pit geometry has not been

analyzed. The bench face angles may change as design progresses and additional

analyses are performed. Inter Ramp angles and Overall angles for the Section 5 Pit are

required to be analyzed to support the final pit design.

Page 365: Buena Vista Iron Project

124847.08.2/REN12L0403 Page 8 of 9 September 7, 2012 Copyright 2012 Kleinfelder

Limitations

This work was performed in a manner consistent with that level of care and skill

ordinarily exercised by other members of Kleinfelder’s profession practicing in the same

locality, under similar conditions and at the date the services are provided. Our

conclusions, opinions, and recommendations are based on a limited number of

observations and data, developed by others. It is possible that conditions could vary

between or beyond the data evaluated. Kleinfelder makes no other representation,

guarantee, or warranty, express or implied, regarding the services, communication (oral

or written), report, opinion, or instrument of service provided.

The scope of services was limited to the review of a limited number of Nevada Iron’s

borings that were selected to evaluate the ore body, plus the four additional borings

requested by Kleinfelder and authorized by Nevada Iron. The investigation was limited

by the number of televiewer surveys authorized and information obtained from the

surveys that were restricted due to downhole conditions. It should be recognized that

definition and evaluation of subsurface conditions are difficult. Judgments leading to

conclusions and recommendations are generally made with incomplete knowledge of

the subsurface conditions present due to the limitations of data from field studies. The

conclusions of this assessment are based on the limited data recorded from the

recovered rock core, the televiewer survey that was obtained, the laboratory testing

performed, the available information about the Section 5 Pit layout, and Kleinfelder’s

engineering analyses using that data.

Kleinfelder offers various levels of investigative and engineering services to suit the

varying needs of different clients. Although risk can never be eliminated, more detailed

and extensive studies yield more information, which may help understand and manage

the level of risk. Since detailed study and analysis involves greater expense, our clients

participate in determining levels of service, which provide information for their purposes

at acceptable levels of risk. The client and key members of the design team should

discuss the issues covered in this report with Kleinfelder, so that the issues are

understood and applied in a manner consistent with the owner’s budget, tolerance of

risk and expectations for future performance and maintenance.

This report may be used only by the Client and the registered design professional in

responsible charge and only for the purposes stated for this specific engagement within

a reasonable time from its issuance, but in no event later than two (2) years from the

date of the report.

Page 366: Buena Vista Iron Project

124847.08.2/REN12L0403 Page 9 of 9 September 7, 2012 Copyright 2012 Kleinfelder

Closure

We appreciate this opportunity to be of service to you, and look forward to future

endeavors. If you have any questions regarding this letter or need additional

information or services, please feel free to call one of the undersigned in our Reno

office.

Sincerely,

KLEINFELDER WEST, INC.

Chad R. Lukkarila, P.E. Don Adams, P.E. (CA)

Technical Practice Leader – Rock Engineering Project Manager

Attachments:

Plate 1 – Pit Wall Terminology

Plate 2 – Site Exploration Map

Plate 3 to 6 – Stereonets and Markland Analyses

Appendix A – Stereonet and Markland Analysis Explanation

References

FHWA. (1998). Rock Slopes Reference Manual (FWHA-HI-99-007). Wyllie, D., and

Mah, C.W.

Watts, C.F. (2001). Rockpack III, Slope Stability Computerized Analysis Package

Reference Manual, Radford University, 48pp. and Appendices.

Page 367: Buena Vista Iron Project

PLATES

Page 368: Buena Vista Iron Project

BENCHWIDTH

BE

NC

HH

EIG

HT

INTER-RAMP FACE ANGLE

BENCH FACE ANGLE

OVERALL ANGLE(WALL CREST-TO-TOE)

INTER RAMP ANGLE(BENCH-TOE-TO-TOE)

FLOOR

RAMP

RAMP

CREST

• • • • • • •• • •• • • • •• • • ••••••••••••••••••••

SECTOR• • •• • • • •• • • •••••••••••••

SECTOR• • •• • • • •• • • •••••••••••••

• • • • • • •• • •• • • • •• • • ••••••••••••••••••••

EXPLANATION OFWALL SECTOR AZIMUTH

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sources and is subject to change without notice. Kleinfelder makes no representations orwarranties, express or implied, as to accuracy, completeness, timeliness, or rights to the use ofsuch information. This document is not intended for use as a land survey product nor is it

designed or intended as a construction design document. The use or misuse of the informationcontained on this graphic representation is at the sole risk of the party using or misusing the

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Section 5 Anomaly

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PLATE

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September 2012

124847

Pit Wall Terminology

Not to Scale

Page 369: Buena Vista Iron Project

10-B

12B

12BB

12A

11B

11C

KF-4

10D

10C9C

8C

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9B8B7C

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PLATE

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August 2012

124847

Site Exploration MapLegend

RC Percussion Hammer Borings

Dia Diamond Core Borings

Televiewer Logging

0

SCALE IN FEETSCALE: 1" =

600300

300

N

Page 370: Buena Vista Iron Project

3a Pole Plot Stereonet 3b Markland Analysis

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Stereonet and Markland Analysis

Page 371: Buena Vista Iron Project

4a Pole Plot Stereonet 4b Markland Analysis

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Stereonet and Markland Analysis

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5a Pole Plot Stereonet 5b Markland Analysis

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Stereonet and Markland Analysis

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6a Pole Plot Stereonet 6b Markland Analysis

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Stereonet and Markland Analysis

Page 374: Buena Vista Iron Project

APPENDIX A

STEREONET AND MARKLAND ANALYSES EXPLANATION

Page 375: Buena Vista Iron Project

124847/REN12L0403 Page A-1 of A-9 September 7, 2012 Copyright Kleinfelder 2012

STEREONETS AND MARKLAND ANALYSIS

DEFINITIONS

Discontinuity:Any plane of weakness in the rock mass including joints, faults, shears,

beds, foliation, etc.

Dip: A 2-digit whole number from 0 to 90 indicating the angle of inclination of a

planar surface, such as a discontinuity, from horizontal, measured perpendicular to the

strike and in the vertical plane.

Dip Direction: 3-digit whole numbers from 0 to 360 indicating direction in which

the discontinuity is dipping.

Strike: 3-digit whole number 0 to 360 indicating the direction taken by a structural

surface, e.g. a bedding or fault plane, as it intersects the horizontal i.e. the direction of a

horizontal line in a planar surface .

Joint Set: A group of approximately parallel joints of similar dip and dip direction.

Bed Set: A group of approximately parallel beds of similar dip and dip direction.

Planar Failure: Planar failures are those in which movement occurs by sliding on a

single discrete surface that approximates a plane.

Wedge Failure: Wedge failures occur when rock masses slide along two

intersecting discontinuities both of which dip out of the cut slope at an oblique angle to

the cut face, forming a wedge-shaped block.

Toppling Failure: Toppling failures most commonly occur in rock masses that are

subdivided into a series of slabs or columns formed by a set of fractures that strike

approximately parallel to the slope face and dip steeply into the face.

Page 376: Buena Vista Iron Project

124847/REN12L0403 Page A-2 of A-9 September 7, 2012 Copyright Kleinfelder 2012

INTRODUCTION

In general, most rock slope failures occur along discontinuities, or planes of

weaknesses, within a mass of rock (or rock mass). The most common types of failures

include planar, wedge and toppling failures. Stereonets are used to identify the

discontinuities that have the kinematic

potential to develop into these failures.

Furthermore, stereonets can be used to

identify optimum slope geometries during a

design phase of a project.

The following is a basic explanation on the

use of stereonets in identifying potential

failure mechanisms in a rock slope. For a

more comprehensive discussion of the

principles of stereonet analysis for rock slope

analysis the work by Hoek and Bray (1981),

Hoek and Brown (1980), and Goodman

(1976) should be referenced.

STEREONET PROJECTION

Stereonets permit a three-dimensional

analysis of discontinuities to be represented

and analyzed in two dimensions. This allows

the orientations of planes in space to be

accurately represented and easily visualized

as illustrated by Figure 1A & B. In stereonet

analyses, discontinuities are assumed to be

planar. There are three possible

representations of a plane in space on

stereonets. They are poles, dip vectors, and

great circles, as illustrated in Figure 1C.

Traditionally, geologists have used poles to

represent planes on an equatorial stereonet.

A pole is formed by passing a line

Figure 1. A) Illustration of strike and dip of

bedding surface. B) Lower hemisphere

illustration of 3 methods for representing a single

plane in space. C) Stereonet projection of part B

(fromWatts, 2003)

Page 377: Buena Vista Iron Project

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perpendicular to the plane through the center of the reference sphere (Figure 1B). The

point where the line intersects the lower hemisphere is the pole and is projected upward

to the stereonet. The direction of dip of a plane identified by a pole can be established

by drawing a line from the pole through the center and on to the opposite side of the

stereonet. The location where that line intersects the outside of the stereonet is the

orientation of the direction of dip. In other words, on the stereonet the direction of dip of

a plane represented by a pole is 180o from the pole. The amount of dip identified by a

pole increases the closer it appears to the edge of the stereonet.

A great circle is formed by the intersection of the plane in space with the lower half of

the reference sphere (Figure 1B). The stereonet projection of this intersection is an arc

called a cyclographic trace of the plane, but commonly referred to as a great circle

(Marshak and Mitra, 1988).

The dip vector, like the pole is a single point, except that it is plotted in the direction of

the dip located at the midpoint of the great circle representation of the plane (Figure

1C). The relationship between a pole and dip vector is that they are 90o apart from each

other on a stereonet in the orientation of dip of the plane.

A dip vector, conversely from the pole, directly depicts the dip direction and dip value of

the plane in space. Dip direction is identified by drawing a line from the center of the

stereonet through the dip vector to the edge of the stereonet. For the amount of dip the

closer the dip vector is to the center, the steeper the dip.

Each of the representations has its own advantages and uses. Poles and dip vectors

are used to represent individual discontinuities as single points, keeping the stereonet

less cluttered than if large numbers of great circles are used. On the other hand, great

circles are used to represent slope faces so that they stand out clearly and the

relationships between them and the individual discontinuities may easily be examined.

Also, great circles are useful when representing clusters in wedge analyses as

described later.

DISCONTINUITY CLUSTER ANALYSIS

Unless a rock mass is severely fractured, several distinct clusters or discontinuity sets

or populations will be obvious when discontinuities are plotted on a stereonet. The

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orientations of discontinuities in a rock mass are related to its geologic history.

Discontinuity sets have the potential to have considerable range in both dip direction

and amount of dip. Outlier or random discontinuities will be displayed as individual

points. To characterize a discontinuity set contouring of a stereonet is commonly

performed. Contouring of a stereonet is a statistical evaluation of the orientations of

discontinuities that aids in the identification of the concentrated center and extent of a

discontinuity set. An example of stereonet contouring is shown in Figure 2.

Figure 2. (A) Example of a pole plot stereonet. (B) Data set from example (A) contoured into discontinuity sets.

It should be noted that sliding (or failure) can occur along any of the discontinuities in a

discontinuity set. Therefore, while performing a kinematic analysis, discussed later,

variation of orientation of a discontinuity set needs to be considered. This can be

accomplished by evaluating the entire range of values of a discontinuity set, or utilizing

statistical methods, such as assuming that the set is more accurately represented by a

range encompassing the mean one standard deviation from the mean to characterize a

discontinuity set.

(A) (B)

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SLOPE GEOMETRY

The geometry of a slope can be described by a

dip direction and amount of dip. The simplest

manner in which to visualize the geometry of a

slope on a stereonet is with a great circle. Figure

3 illustrates a slope orientation with the use of a

great circle.

ANALYSIS ASSUMPTIONS/PROCEDURES

The stereonet procedure is a "cohesion-equals-

zero" analysis, in which the effects of cohesion

are ignored. When this assumption is made, the

fundamental limiting equilibrium equation for

calculating a safety factor reduces to:

FS = Tan ’/ Tan .

Where ’ and are the friction angle (or angle of internal friction) and dip of the

discontinuity, respectively. The discontinuity frictional angle ( ’) is represented on a

stereonet by placing a circle drawn at a distance measured from the outside of the

stereonet equal to ’. Typically the friction angle would represent the mean base

friction angle for that set of discontinuities. Figure 4

illustrates this friction circle on a stereonet.

If a discontinuity dip vector dips greater than the

friction angle and direction of dip of the

discontinuity is nearly parallel with the dip direction

of the slope, the discontinuity dip vector will plot

within the friction circle and the safety factor

against sliding on the discontinuity is considered

less than 1.0. Whenever the dip value is less than

the friction angle, the safety factor is greater than

1.0 and the dip vector will plot outside of the

friction circle on the stereonet.

Figure 4. Illustration of kinematically

possible planar failure.

Critical

zone

Figure 3. Stereonet illustrating the

orientation of the slope face, friction

circle, and critical zone.

Slope geometry

great circle

Friction circle

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EXPLANATION OF MARKLAND TEST THEORY

Markland's test is an extremely valuable tool for identifying those discontinuity

populations that could lead to failures in the rock mass and for eliminating other

individual discontinuities and population clusters from consideration. However, it should

be remembered that not every discontinuity that plots within the critical zone will result

in a failure. There are many additional factors that can affect stability along

discontinuities. The stereonet analysis is conservative owing to several assumptions

that make the analysis possible. To begin, all of the discontinuities are assumed to be

continuous and through going, when in reality many of them are not. Even a small

percentage of intact rock along a discontinuity can be enough to make it safe from

sliding.

The following is a description on how the Markland Analysis is used to identify potential

plane, wedge, and toppling failures.

PLANE FAILURE- MARKLAND ANALYSIS

For sliding to occur on a single plane, the following geometrical conditions must be

satisfied:

1. The plane on which sliding occurs must strike parallel or nearly parallel (within

approximately ± 20o) to the slope face,

2. The failure plane must “daylight” in the slope face. This means that its dip must

be less than the dip of the slope face,

3. The dip of the failure plane must be greater than the angle of friction of this

plane. and

4. Release surface which provide negligible resistance to sliding must be present in

the rock mass to define the lateral boundaries of the slide.

The first three conditions described above can be represented on a stereonet in the

form of a crescent-shaped zone (Figure 4), commonly referred to as the “critical zone”.

For discontinuity dip vectors, which lie within the critical zone, dip more steeply than the

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friction angle of the rock because they are inside the friction circle. They dip less steeply

than the slope face because they lie outside the great circle representing the slope face.

To easily identify those dip vectors that occur within approximately ±20o of the slope

face, reference lines are placed on the stereonet to aid in visualization. In the examples

shown, the lines are drawn at ±30oof the slope face dip direction.

WEDGE FAILURE – MARKLAND ANALYSIS

Stereonet analyses for potential wedge failures are similar to stereonet analyses for

plane failure. For a wedge failure to occur, the line made by the intersection of the

planes creating the wedge must plunge more steeply than the friction angle and less

steeply than the dip of the slope face and in a direction such that it daylights from the

slope face.

To test for these conditions, a single great circle may be chosen and plotted on the

stereonet to represent the discontinuities of each cluster. If any of the great circles

representing clusters on the stereonet intersect within the crescent-shaped critical zone

then the conditions are met and a wedge failure is kinematically possible (Figure 5). The

intersection point provides the plunge and trend of

the line of intersection and is read from a stereonet

in the same manner as dip and dip direction.

General conditions for wedge failures to be

kinematically possible include:

1. The dip direction of the intersection of the

discontinuities must approximate the dip

direction of the rock cut slope (fall within the

critical zone),

2. The plunge of the line of intersection of the

discontinuities must be less than the dip of

the rock cut slope,

Figure 5. Intersection of great circles

indicating potential wedge failure.

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3. The plunge of the line of intersection of the discontinuities must be greater than

the friction angle.

Note: If the intersections of the great circles are close the boundary of the critical zone

and the cutslope face, the wedges will be small and typically represent random rockfall

and raveling. In contrast, if the intersections of the great circles are close to the outer

boundary or frontier of the critical zone, then it is kinematically possible for a large

wedge failure.

TOPPLING FAILURES – MARKLAND ANALYSIS

Goodman (1980, p. 265) discusses a stereonet procedure for kinematically identifying

potential toppling failures. He states that interlayer slip must occur before large flexural

deformations can develop. If the interlayer slip is controlled by the friction angle ’

toppling will occur if the normals to the toppling layers are inclined less steeply than a

line inclined ’ degrees above the plane of the slope. The zone in which normals meet

that condition is illustrated in Figures 6 (for a pole plot stereonet). In addition, toppling

will occur only if the layers strike nearly parallel to the strike of the slope, typically within

30o. When using a dip vector stereonet, the shaded area for checking for potential

toppling failures is rotated 90 degrees from that shown in Figure 6. Figure 7 is a

stereonet in which shows the triangular and shaded toppling critical zone for

discontinuities plotted as dip vectors. Discontinuity populations within the critical zone

are subject to toppling. Note, these discontinuity populations can also act as release

Figure 6. Kinematic analysis of toppling. Taken from Goodman (1980).

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planes for the planar and wedge conditions above, assuming there is a population

within the critical zone for planar or wedge failure conditions (Figures 4 and 5).

General conditions for flexural toppling failure include:

1. The strike of the discontinuities fall within

30 of strike of the rock cut slope.

2. Normal to the toppling plane ( ) must

display plunge less than the dip of rock cut

slope ( ) and less than the friction angle

(90 - ) = ( - + 90 ).

Figure 7. Check for toppling potential

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C. JOEL & C. LYNN CASBURN

P.O. Box 11266 Zephyr Cove, Nevada 89448 (775) 588-4174 fax (775) 588-7418 [email protected]

Nevada Iron LLC Chris Tanner, Chief Operating Officer P.O. Box 19273, Reno, NV 89511

Subject: Buena Vista Project – Title Report

June 14, 2013

The purpose of this report is to describe the status of and the vestment of record title to owned fee lands (“Owned Lands”), owned unpatented lode mining claims (“Owned Claims”), patented lode mining claims (“Patented Claims”) controlled by Nevada Iron LLC (NI) pursuant to an assignment from Kircher Mine Development, LLC (“KMD”) of an underlying mining lease with RGGS Land & Minerals, Ltd., L.P. (“RGGS”) and mineral rights controlled by NI pursuant to a mineral lease with New Nevada Resources, LLC (“NNR”), all of which comprise the Buena Vista Project (the “Project”) located in Churchill County, Nevada. This title report is written on behalf of Nevada Iron LLC.

A. Description of Property The Project is located in Churchill County, Nevada and is situated in Sections 1, 2, 3,

4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 17 and 24, T24N, R34E, MDB&M; consisting of approximately 6,052 acres. The Property is more particularly described in the attached Exhibit A.

B. Records Examined.

The information contained within this report is based on a record search only; no surface inspection was conducted on the subject property.

This report is based on the public records available for Churchill County located in Fallon, Nevada, effective to 5:00 PM on June 12, 2013. The Churchill County records examined included the following: 1. Recorder’s Office 2. Assessor’s Office 3. Clerk / Treasurer’s Office 4. Deputy Court Clerk’s Office – Tenth Judicial District Court, Churchill County

This report is based upon examination of the mining claim and public land records available online and obtained from the Bureau of Land Management Nevada State Office in Reno, Nevada, effective to 5:00 PM on June 12, 2013. The BLM records examined include the following: 1. The Lead Case Files for the subject unpatented mining claims 2. The “Certificate / Notice of Location” for the subject unpatented mining claims 3. Annual Filings & Receipts 4. Master Title Plats 5. Historical Indexes 6. Geographic / Serial Number indexes of mining claims

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C. Vestment of Title.

1. Record Title

a. T24N, R34E, MDB&M Section 5: Northeast ¼; West ½ of the Southwest ¼; Lots 3 through 12, inclusive

Record Title to the surface rights in Section 5, Northeast ¼, West of Southwest ¼, Lots 3 through 12 inclusive is vested in Nevada Iron LLC, a Nevada limited liability company.

Pursuant to that certain Grant, Bargain and Sale Deed by and between Joe Kircher and Paula Kircher (Grantors) and Nevada Iron, LLC (Grantee), recorded June 20, 2011, as Document No. 421564, Official Records, Churchill County, Nevada; and

Excepting the mineral estate and rights as reserved to Nevada Land and Resource Company, LLC, a Nevada limited liability company, in the deed recorded June 7, 2006, as Document No. 382909, Official Records, Churchill County, Nevada.

The mineral rights to the above described lands, Section 5, T24N, R34E, MDB&M, excluding the Albitross, Wyoming, Rover and Cactus patented mining claims, are controlled by Nevada Iron LLC, a Nevada limited liability company pursuant to that certain Mining Lease Agreement, dated December 1, 2007 by and between Nevada Land and Resource Company, LLC (NLRC), a Nevada limited liability company (Lessor) and Kircher Mine Development LLC, a Nevada limited liability company (Lessee), which was evidenced by a Memorandum of Lease recorded on March 17, 2008 as Document No. 398977, Official Records, Churchill County, Nevada. Thereafter Kircher Mine Development LLC’s leasehold interest was assigned to Nevada Iron LLC, which was evidenced by that certain Assignment and Assumption and Deed with Reservation of Royalty recorded on June 20, 2011, as Document No. 421565, Official Records, Churchill County, Nevada, and that certain Amended and Restated Memorandum of Lease recorded on August 15, 2012, as Document No. 428969, Official Records, Churchill County, Nevada. Subsequently, the NLRC interest was conveyed to New Nevada Resources, LLC, a Florida limited liability company, pursuant to the Grant Bargain and Sale Mineral Deed and Royalty Transfer, recorded on November 30, 2011, as Document No. 424352, Official Records, Churchill County, Nevada.

The Nevada Iron LLC overriding royalty obligation to RGGS Land & Minerals, Ltd., L.P., a Delaware limited partnership, excluding the Albitross, Wyoming, Rover and Cactus patented mining claims, pursuant to that certain Memorandum of Lease recorded on Nov 5, 2007, as Document No. 396222, Official Records, Churchill County, Nevada, is $0.10 per ton of crude Iron Ore. The overriding royalty is applicable to mineral interests acquired after the effective date, October 1, 2007, of the Mining Lease which was by evidenced by the Memorandum of Lease recorded on Nov 5, 2007, as Document No. 396222, for mineral interests located within the “Project Area” as depicted on the map in Exhibit B of the Mining Lease. Under the terms of the Mining Lease pertaining to after acquired mineral rights, RGGS shall have the option to either: A.) acquire such rights from Lessee at the same price and/or terms as acquired by Lessee; or B.) On leased minerals other than Iron ore, Lessee will assign an overriding royalty of 1% of 8/8ths interest to RGGS.

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The Nevada Iron LLC royalty obligation to Kircher Mine Development LLC related to the above described lands pursuant to that certain Assumption and Deed with Reservation of Royalty recorded on June 20, 2011, as Document No. 421565, Official Records, Churchill County, Nevada, is 20%, 1.5% or 0% of the “net operating costs” dependent upon when the option to buy KMD’s royalty interest in the “Royalty Property” is exercised;. Under the terms of the Assumption and Deed with Reservation of Royalty, NI is allowed to deduct certain development costs from the royalty payment.

The Nevada Iron LLC royalty obligation to New Nevada Resources, LLC, a Florida limited liability company, related to the above described lands pursuant to that certain Restated Memorandum of Lease recorded on August 15, 2012, as Document No. 428969, Official Records, Churchill County, Nevada, is 1.5% on base metals, 4% on precious metals and 2% of the gross proceeds on iron products.

The Nevada Iron LLC overriding royalty obligation to New Nevada Resources, LLC, a Florida limited liability company, related to the above described lands pursuant to that certain Royalty Deed recorded on August 16, 2012, as Document No. 428991, Official Records, Churchill County, Nevada, is 1.5% on base metals, 4% on precious metals and .25% of the gross proceeds on iron products. The above describe lands, Section 5: Northeast ¼; West ½ of the Southwest ¼; Lots 3 through 12 inclusive, were conveyed to Central Pacific Railway Company from the United States pursuant to Land Patent No. 649429, dated September 13, 1918. b. T24N, R34E, MDB&M – Surface Estate Section 7: All Section 8: South ½ Section 17: North ½

Record Title to the surface rights in all of Section 7, the South ½ of Section 8 and the North ½ of Section 17 is vested in Nevada Iron LLC, a Nevada limited liability company.

Pursuant to that certain Grant Bargain and Sale Deed by and between New Nevada Lands, LLC, a Mississippi limited liability company (Grantor) and Nevada Iron, LLC, a Nevada limited liability company (Grantee), recorded August 15, 2012, as Document No. 428968, Official Records, Churchill County, Nevada; and

Excepting the minerals as conveyed in the Grant, Bargain and Sale Mineral Deed by and between Nevada Land and Resource Company, LLC, a Nevada limited liability company, and New Nevada Resources, LLC, a Florida limited liability company, recorded November 30, 2011, as Document No. 424351, Official Records, Churchill County, Nevada; and

Grantor reserved and retained a perpetual, nonexclusive roadway, utility and access easement not greater than sixty (60) feed in width, located along existing roads, tracks and trail in a route to be selected by Grantor and Grantee in their reasonable discretion.

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All of Section 7 and the N½ of Section 17 were conveyed to Central Pacific Railway Company from the United States pursuant to Land Patent No. 649429, dated September 13, 1918.

The S½ of Section 8, was conveyed to Southern Pacific Company from the United States pursuant to Land Patent No. 27-67-0054, dated December 13, 1966; subject to a right-of-way for ditches and canals constructed by the authority of the United States.

c. T24N, R34E, MDB&M – Mineral Estate Section 7: All Section 8: South ½ Section 17: North ½

Record Title to the mineral rights in all of Section 7, the South ½ of Section 8 and the North ½ of Section 17 is vested in Nevada Iron LLC, a Nevada limited liability company.

Pursuant to that certain Quitclaim Deed of Mineral Rights and Reservation of Royalty by and between New Nevada Resources, LLC, a Florida limited liability company (Grantor) and Nevada Iron, LLC, a Nevada limited liability company (Grantee), recorded August 15, 2012, as Document No. 428971, Official Records, Churchill County, Nevada; and

Excluding the geothermal estate including but not limited to geothermal steam, liquids or brines, heat, other geothermal resources and rocks of every kind and oil, gas, and other hydrocarbons; and

Grantor reserved and retained a perpetual, nonexclusive roadway, utility and access easement not greater than sixty (60) feed in width, located along existing roads, tracks and trail in a route to be selected by Grantor and Grantee in their reasonable discretion, and

The Nevada Iron LLC royalty obligation to New Nevada Resources, LLC, a Florida limited liability company, related to the above described lands pursuant to that certain Quitclaim Deed of Mineral Rights and Reservation of Royalty recorded on August 15, 2012, as Document No. 428971, Official Records, Churchill County, Nevada, is 1.5% on base metals, 4% on precious metals and 3% of the gross proceeds on iron products.

*Devon Energy Production Company L.P. holds an overriding royalty for oil and gas production on Sections 5 NE¼, W½ SW ¼, Lots 3 through 12 inclusive; Section 7 All, Section 8 S½ and Section 17 N½; pursuant to the Assignment of Overriding Royalty Interest, recorded September 07, 2010, as Document No. 416167, Official Records, Churchill County, Nevada.

d. Patented Claims The 45 Patented Claims are more particularly described in the attached Exhibit A. Record Title to the forty-five (45) patented claims is vested in RGGS Land & Minerals, Ltd., L.P., a Delaware limited partnership.

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Pursuant to that certain Special Warranty Deed by and between United States Steel Corporation, a Delaware corporation, successor (by conversion) to United States Steel LLC and successor to USX Corporation (Grantor) and RGGS and & Minerals, Ltd., L.P., a Delaware limited partnership (Grantee), recorded April 5, 2004, as Document No. 360219, Official Records, Churchill County, Nevada; and

Pursuant to that certain Memorandum of Lease between KMD and RGGS recorded on Nov 5, 2007, as Document No. 396222, Official Records, Churchill County, Nevada, and subsequently the Assumption and Deed with Reservation of Royalty recorded on June 20, 2011, as Document No. 421565 between NI and KMD, Nevada Iron LLC controls 100% of the above described property excluding the 50% undivided interest of Newmont Mining Company, successor to Southern Pacific Land Co. and Santa Fe Gold Mining, in the 96.73 acres encompassed in the Iron Mountain No. 4, 5, 6, 7, 12, 13, 14 and 15 patented claims. Newmont was conveyed the undivided 50% interest pursuant to that Quitclaim Deed between United States Steel Corporation (Grantor) and Southern Pacific Land Company (Grantee), recorded on September 13, 1985, as Document No. 215713 and Book 43, Page 226 and Book 85, Page 199, Official Records, Churchill County.

Exceptions and Reservations subject to the Mineral Patents:

Patent No. 33481, dated February 9, 1901, Mineral Survey No. 1831; excepting and reserving to the United States:

A right-of-way for ditches and canals constructed by the authority of the United States, Act of August 30, 1890, 26 Stat 391; 43 U.S.C., and

Patent No. 33482, dated February 9, 1901, Mineral Survey No. 1832; excepting and reserving to the United States:

A right-of-way for ditches and canals constructed by the authority of the United States, Act of August 30, 1890, 26 Stat 391; 43 U.S.C., and

Patent No. 33483, dated February 9, 1901, Mineral Survey No. 1833; excepting and reserving to the United States:

A right-of-way for ditches and canals constructed by the authority of the United States, Act of August 30, 1890, 26 Stat 391; 43 U.S.C.

Patent No. 33484, dated February 9, 1901, Mineral Survey No. 1834; excepting and reserving to the United States:

A right-of-way for ditches and canals constructed by the authority of the United States, Act of August 30, 1890, 26 Stat 391; 43 U.S.C., and

Patent No. 27-72-0040, dated January 18, 1972, Mineral Survey No. 4880, Iron Mountain No. 4, 5, 6, 7, 12, 13, 14 and 15 Patented Claims; excepting and reserving to the United States: A right-of-way for ditches and canals constructed by the authority of the United States, Act of August 30, 1890, 26 Stat 391; 43 U.S.C., and

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All the geothermal steam and associated geothermal resources in the lands so patented, and to it, or persons authorized by, the right to prospect for, mine and remove such deposits, upon compliance with the conditions and subject to the provisions and limitations of the Act of December 24, 1970, 84 Stat. 1566, and

Patent No. 27-72-0041, dated January 18, 1972, Mineral Survey No. 4881, except Desert View No. 5; excepting and reserving to the United States:

A right-of-way for ditches and canals constructed by the authority of the United States, Act of August 30, 1890, 26 Stat 391; 43 U.S.C., and

All the geothermal steam and associated geothermal resources in the lands so patented, and to it, or persons authorized by, the right to prospect for, mine and remove such deposits, upon compliance with the conditions and subject to the provisions and limitations of the Act of December 24, 1970, 84 Stat. 1566, and

Subject to: A right-of way for tramroad purposes which has been granted to the Southern Pacific Company, its successors or assigns, under the Act of January 21, 1895, 28 Stat. 635, as amended , 43 U.S.C. 956, as to SW¼ SW¼ SW¼ said Sec, 4, T24N, R34E, MD Mer., Nevada., and

Patent No. 27-85-0018, dated December 21, 1984 Mineral Survey No. 4881, Desert View No. 5; excepting and reserving to the United States:

A right-of-way for ditches and canals constructed by the authority of the United States, Act of August 30, 1890, 26 Stat 391; 43 U.S.C., and

Patent No. 27-85-0028, dated March 5, 1985, Mineral Survey No. 4880, Iron Mountain No. 4 and 10; excepting and reserving to the United States:

A right-of-way for ditches and canals constructed by the authority of the United States, Act of August 30, 1890, 26 Stat 391; 43 U.S.C., and

All Leasing Act Minerals in the land above-described and the right of the United State, its lessees, permittees, and licensees to enter upon the land, prospect for, drill, mine, treat, store and remove the same, and to use so much of the surface and subsurface of the land as may be necessary for such purposes, in accordance with the provisions of the Act of August 13, 1954 (30 U.S.C. 521).,

The Nevada Iron LLC royalty obligation to RGGS Land & Minerals, Ltd., L.P., a Delaware limited partnership related to the Patented Claims, excluding the 50% undivided interest of Newmont Mining Company, in the Iron Mountain No. 4, 5, 6, 7, 12, 13, 14 and 15 patented claims, pursuant to that certain Memorandum of Lease recorded on Nov 5, 2007, as Document No. 396222, Official Records, Churchill County, Nevada, is a “base production royalty rate” of $.35 per ton (PPI adjusted) for crude Iron Ore and a production royalty of 4% of the Net Return Values on product obtained from the property. The terms of the Mining Lease allow NI to recover the minimum royalty payments against the production royalty. The Nevada Iron LLC royalty obligation to Kircher Mine Development LLC related to the above described lands pursuant to that certain Assumption and Deed with

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Reservation of Royalty recorded on June 20, 2011, as Document No. 421565, Official Records, Churchill County, Nevada, is 20%, 1.5% or 0% of the “net operating costs” dependent upon when the option to buy KMD’s royalty interest in the “Royalty Property” is exercised;. Under the terms of the Assumption and Deed with Reservation of Royalty, NI is allowed to deduct certain development costs from the royalty payment.

The Nevada Iron LLC overriding royalty obligation to New Nevada Resources, LLC, a Florida limited liability company, related to the above described lands pursuant to that certain Royalty Deed recorded on August 16, 2012, as Document No. 428991, Official Records, Churchill County, Nevada, is 1.5% on base metals, 4% on precious metals and .25% of the gross proceeds on iron products.

e. Unpatented Lode Mining Claims The KMD and NvFe Unpatented Lode Mining Claims are more particularly described in the attached Exhibit A.

Record Title to the one hundred eighty four (184) unpatented lode mining claims is vested in Nevada Iron LLC, a Nevada limited liability company.

The NvFe 1 through 115 Claims and the KMD 10, 57 and 58 claims were located in 2011 and 2012 by Nevada Iron LLC.

The KMD 1 through 70 claims were conveyed to Nevada Iron LLC Kircher Mine Development LLC pursuant the Assumption and Deed with Reservation of Royalty recorded on June 20, 2011, as Document No. 421565, Official Records, Churchill County, Nevada; and the KMD 1 through 70 and NvFe 1 through 8 claims are subject to a royalty of 20%, 1.5% or 0% of the “net operating costs” dependent upon when the option to buy KMD’s royalty interest in the “Royalty Property” is exercised. Under the terms of the Assumption and Deed with Reservation of Royalty, NI is allowed to deduct certain development costs from the royalty payment.

The Nevada Iron LLC overriding royalty obligation to RGGS Land & Minerals, Ltd., L.P., a Delaware limited partnership is $0.10 per ton of crude Iron Ore for unpatented mining claims located within the “Project Area” as depicted on the map in Exhibit B of the Mining Lease between RGGS and KMD as evidenced by the Memorandum of Lease recorded on Nov 5, 2007, as Document No. 396222, Official Records, Churchill County, Nevada.

The Nevada Iron LLC overriding royalty obligation to New Nevada Resources, LLC, a Florida limited liability company for the KMD 1 through 70 and NvFe 1 through 19 claims is 1.5% on base metals, 4% on precious metals and .25% of the gross proceeds on iron products, pursuant to the Royalty Deed recorded on August 16, 2012, as Document No. 428991, Official Records, Churchill County, Nevada

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D. Bureau of Land Management. The Federal land records indicate the land on which the Property is located is administered by the Bureau of Land Management – Nevada State Office, located at 1340 Financial Blvd., Reno NV 89502.

The BLM lists the following as the claimants/claim holders for the Unpatented Claims: 1. Nevada Iron LLC NvFe 1 through 115 Unpatented Claims KMD #10, #57 and #58 Unpatented Claims

2. Kircher Mine Development LLC KMD 1 through 70 Unpatented Claims, excluding KMD#10, #57 & #58.

BLM Filings. 1. The original Certificates of Location and Lode Mining Claim Maps for the subject Unpatented Mining Claims were timely paid for and filed with the BLM. 2. The Federal annual mining claim maintenance fees for the annual assessment year from September 1, 2012 to September 1, 2013 for the subject Unpatented Mining Claims have been properly and timely filed and paid. According to the BLM mining claim records, the Claims are active and in good standing until September 1, 2013, at which time the annual filing will be due.

E. Churchill County Recordings. 1. The original Certificates of Location and Lode Mining Claim Maps for the subject Unpatented Mining Claims were timely and properly recorded in the Office of the Churchill County Recorder.

2. The annual Mining Claim Maintenance Fee Filing and Affidavit and Notices of Intent to Hold Mining Claims for the subject Unpatented Mining Claims have been timely and properly recorded in the Office of the Churchill County Recorder.

F. Churchill County Assessor and Clerk/Treasurer. The current tax bills for the Assessor Parcel Numbers associated with the Buena Vista Project are fully paid and current through June 30, 2013. The 2013/2014 taxes will be billed in July and due on or before August 19, 2013. The Assessor Parcel Numbers for the secured property are as follows:

APN # 000-068-99: RGGS Land & Minerals, Ltd., L.P. APN # 000-069-99: RGGS Land & Minerals, Ltd., L.P. APN # 005-211-11: Nevada Iron LLC APN # 005-211-12: RGGS Land & Minerals, Ltd., L.P. APN # 005-211-13: RGGS Land & Minerals, Ltd., L.P. APN # 005-211-14: RGGS Land & Minerals, Ltd., L.P. APN # 005-211-15: RGGS Land & Minerals, Ltd., L.P. APN # 005-211-17: Nevada Iron LLC APN # 005-211-18: Nevada Iron LLC APN # 005-211-19: Nevada Iron LLC

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9

G. Churchill County Special Use Permit. The Churchill County Planning Commission granted Nevada Iron LLC a Special Use Permit to operate an iron ore mine and materials processing facility; the Notice of Final Action, Decision or Order of the Churchill County Planning Commission was recorded on May 24, 2011, as Document No. 420667, Official Records, Churchill County, Nevada.

H. Adverse Claims and Litigation. An examination of the public records indicated no instruments asserting claims of title against the interests of Nevada Iron LLC, Kircher Mine Development LLC, RGGS Land & Minerals, Ltd., L.P. or New Nevada Resources, LLC related to the Buena Vista Project have been recorded nor have any actions been commenced in the Tenth Judicial District Court in Churchill County.

I. Unpatented Claim Conflicts. On November 13, 2012, Greater Nevada Ranches LLC located the Iron Fist and Iron Clad unpatented lode mining claims that are in direct conflict to KMD 58, 60, 62, 68 and 70. The location dates of the KMD Claims are senior to the location date of the Iron Fist and Iron Clad Claims. Pursuant to the 1872 Mining Law, a discovery of valuable minerals must be located within the boundaries of a claim in order for the claim to be valid. Nevada Iron could challenge the validity of GNR’s claims based on evidence of NI’s prior discovery of valuable minerals on the KMD Claims with the Internal Board of Land Appeals (IBLA).

J. Access. The Buena Vista Project can be accessed via the Coal Canyon Road exit from Interstate Highway 80 just north of Lovelock, NV.

K. Recommended Curative Actions. 1. In order to transfer the ownership of the unpatented KMD claims to NI with the BLM, a

“Transfer of Ownership” is required to be filed with the BLM in Reno in conjunction with the transfer fee of $10.00 per claim and a copy of the Assumption and Deed with Reservation of Royalty from KMD to NI.

Supporting documents related to the research are attached.

Page 409: Buena Vista Iron Project

EXHIBIT A

I. FEE LANDS

SECTIONS LOCATED IN T24N, R34E, MDB&M ASSESSOR PARCEL NUMBER PATENT NUMBER ACRES

Section 5: Surface w/ Mineral Lease Excl Patented Claims APN 05 211 11 649429 516.49

Section 7: All APN 05 211 19 649429 640.09

Section 8: South 1/2 APN 05 211 17 27 67 0054 317.87

Section 17: North 1/2 APN 05 211 18 649429 317.55

10

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EXHIBIT A

(Continued)

II. PATENTED CLAIMS

CLAIM NAME ASSESSOR PARCEL NUMBER PATENT NUMBER MINERAL SURVEY # ACRES

Albitross 005 211 12 33482 1832 13.75

Wyoming 005 211 13 33482 1832 20.21

Rover 005 211 14 33482 1832 20.63

Cactus 005 211 15 33482 1832 19.98

Iron Mountain 15 000 069 99 27 72 0040 4880 20.55

Iron Mountain 14 000 069 99 27 72 0040 4880 20.55

Iron Mountain 13 000 069 99 27 72 0040 4880 20.55

Iron Mountain 12 000 069 99 27 72 0040 4880 20.55

Iron Mountain 7 000 069 99 27 72 0040 4880 20.55

Iron Mountain 6 000 069 99 27 72 0040 4880 19.81

Iron Mountain 5 000 069 99 27 72 0040 4880 17.03

Iron Mountain 4 000 069 99 27 85 0028 4880 20.33

Iron Mountain 10 000 069 99 27 85 0028 4880 15.72

Iron Mountain 1 000 069 99 27 72 0041 4881 18.24

Wild Horse 000 068 99 33481 1831 16.88

Iron Mountain 2 000 069 99 27 72 0041 4881 13.99

Iron Mountain 3 000 069 99 27 72 0041 4881 2.45

Pennsylvania 000 068 99 33481 1831 20.43

Locomotive 000 068 99 33481 1831 20.42

Iron Mountain 000 068 99 33481 1831 20.59

Fairview 000 068 99 33481 1831 19.58

Seagull 000 068 99 33483 1833 19.23

Pelican 000 068 99 33483 1833 19.31

Iron Horse 000 068 99 33481 1831 15.77

Iron Horse 2 000 069 99 27 72 0041 4881 20.19

Chancellor 000 068 99 33481 1831 18.49

Desert View 4 000 069 99 27 72 0041 4881 8.48

Badger 000 068 99 33484 1834 20.20

Badger 1 000 069 99 27 72 0041 4881 13.74

Badger 2 000 069 99 27 72 0041 4881 2.26

Pelican 1 000 069 99 27 72 0041 4881 18.49

Mountain Top 1 000 069 99 27 72 0041 4881 13.79

Desert View 000 068 99 33481 1831 13.60

Desert View 1 000 069 99 27 72 0041 4881 18.08

Desert View 5 000 069 99 27 72 0041 4881 10.00

Pelican 3 000 069 99 27 72 0041 4881 16.65

Mountain Top 2 000 069 99 27 72 0041 4881 19.15

Mountain Top 000 068 99 33481 1831 19.54

Desert View 2 000 069 99 27 72 0041 4881 20.60

Desert View 3 000 069 99 27 72 0041 4881 13.59

Desert View 6 000 069 99 27 72 0041 4881 20.08

Mountain Top 3 000 069 99 27 72 0041 4881 19.63

Mountain Top 4 000 069 99 27 72 0041 4881 19.25

Star 1 000 069 99 27 72 0041 4881 13.64

Star 3 000 069 99 27 72 0041 4881 20.43

11

Page 411: Buena Vista Iron Project

EXHIBIT A(Continued)

III. UNPATENTED CLAIMS

CLAIM NAME BLM SERIAL NUMBER BLM LEAD FILE NUMBER LOCATION DATE ACRES

KMD 1 NMC956471 NMC956471 3/24/2007 13.45

KMD 2 NMC956472 NMC956471 3/24/2007 19.98

KMD 3 NMC956473 NMC956471 3/24/2007 20.61

KMD 4 NMC956474 NMC956471 3/24/2007 20.66

KMD 5 NMC956475 NMC956471 3/24/2007 20.66

KMD 6 NMC956476 NMC956471 3/24/2007 20.66

KMD 7 NMC956477 NMC956471 3/24/2007 20.66

KMD 8 NMC956478 NMC956471 3/24/2007 5.85

KMD 9 NMC956479 NMC956471 3/24/2007 19.32

KMD #10 NMC1049632 NMC1049632 6/14/2011 19.68

KMD 11 NMC956481 NMC956471 3/24/2007 18.83

KMD 12 NMC956482 NMC956471 3/24/2007 18.87

KMD 13 NMC956483 NMC956471 3/24/2007 18.92

KMD 14 NMC956484 NMC956471 3/24/2007 19.07

KMD 15 NMC956485 NMC956471 3/24/2007 16.98

KMD 16 NMC956486 NMC956471 3/24/2007 19.33

KMD 17 NMC956487 NMC956471 3/24/2007 19.21

KMD 18 NMC956488 NMC956471 3/24/2007 20.01

KMD 19 NMC956489 NMC956471 3/24/2007 20.66

KMD 20 NMC956490 NMC956471 3/24/2007 15.39

KMD 21 NMC956491 NMC956471 3/24/2007 20.66

KMD 22 NMC956492 NMC956471 3/24/2007 20.66

KMD 23 NMC956493 NMC956471 3/24/2007 20.66

KMD 24 NMC956494 NMC956471 3/24/2007 20.66

KMD 25 NMC956495 NMC956471 3/24/2007 20.66

KMD 26 NMC956496 NMC956471 3/24/2007 20.66

KMD 27 NMC956497 NMC956471 3/24/2007 20.66

KMD 28 NMC956498 NMC956471 3/24/2007 20.66

KMD 29 NMC956499 NMC956471 3/24/2007 20.66

KMD 30 NMC956500 NMC956471 3/24/2007 20.66

KMD 31 NMC956501 NMC956471 3/24/2007 20.66

KMD 32 NMC956502 NMC956471 3/24/2007 20.66

KMD 33 NMC956503 NMC956471 3/24/2007 20.66

KMD 34 NMC956504 NMC956471 3/24/2007 20.66

KMD 35 NMC956505 NMC956471 3/24/2007 20.66

KMD 36 NMC956506 NMC956471 3/24/2007 20.66

KMD 37 NMC956507 NMC956471 3/24/2007 20.66

KMD 38 NMC956508 NMC956471 3/24/2007 20.66

KMD 39 NMC956509 NMC956471 3/24/2007 20.66

KMD 40 NMC956510 NMC956471 3/24/2007 20.66

KMD 41 NMC956511 NMC956471 3/24/2007 20.66

KMD 42 NMC956512 NMC956471 3/24/2007 20.66

KMD 43 NMC956513 NMC956471 3/24/2007 20.66

KMD 44 NMC956514 NMC956471 3/24/2007 20.66

KMD 45 NMC956515 NMC956471 3/24/2007 20.66

KMD 46 NMC956516 NMC956471 3/24/2007 20.66

12

Page 412: Buena Vista Iron Project

EXHIBIT A(Continued)

III. UNPATENTED CLAIMS Continued

CLAIM NAME BLM SERIAL NUMBER BLM LEAD FILE NUMBER LOCATION DATE ACRES

KMD 47 NMC956517 NMC956471 3/24/2007 20.66

KMD 48 NMC956518 NMC956471 3/24/2007 20.66

KMD 49 NMC956519 NMC956471 3/24/2007 20.66

KMD 50 NMC956520 NMC956471 3/24/2007 20.66

KMD 51 NMC956521 NMC956471 3/24/2007 20.66

KMD 52 NMC956522 NMC956471 3/24/2007 20.66

KMD 53 NMC956523 NMC956471 3/24/2007 20.66

KMD 54 NMC956524 NMC956471 3/24/2007 20.66

KMD 55 NMC956525 NMC956471 3/24/2007 20.66

KMD 56 NMC956526 NMC956471 3/24/2007 20.66

KMD #57 NMC1049633 NMC1049632 6/14/2011 9.65

KMD #58 NMC1049634 NMC1049632 6/14/2011 4.68

KMD 59 NMC979428 NMC979387 12/6/2007 20.66

KMD 60 NMC979429 NMC979387 12/6/2007 12.57

KMD 61 NMC979430 NMC979387 12/6/2007 20.66

KMD 62 NMC979431 NMC979387 12/6/2007 14.05

KMD 63 NMC979432 NMC979387 12/6/2007 20.66

KMD 64 NMC979433 NMC979387 12/6/2007 8.55

KMD 65 NMC979434 NMC979387 12/6/2007 20.66

KMD 66 NMC979435 NMC979387 12/6/2007 8.46

KMD 67 NMC979436 NMC979387 12/6/2007 20.66

KMD 68 NMC979437 NMC979387 12/6/2007 12.68

KMD 69 NMC979438 NMC979387 12/6/2007 20.66

KMD 70 NMC979439 NMC979387 12/6/2007 9.74

NvFe 1 NMC1045283 NMC1045283 5/12/2011 18.78

NvFe 2 NMC1045284 NMC1045283 5/12/2011 20.36

NvFe 3 NMC1045285 NMC1045283 5/12/2011 18.16

NvFe 4 NMC1045286 NMC1045283 5/12/2011 18.02

NvFe 5 NMC1045287 NMC1045283 5/12/2011 17.88

NvFe 6 NMC1045288 NMC1045283 5/12/2011 17.74

NvFe 7 NMC1045289 NMC1045283 5/12/2011 17.59

NvFe 8 NMC1045290 NMC1045283 5/12/2011 15.01

NvFe 9 NMC1068429 NMC1068429 2/17/2012 20.66

NvFe 10 NMC1068430 NMC1068429 2/17/2012 20.66

NvFe 11 NMC1068431 NMC1068429 2/17/2012 20.66

NvFe 12 NMC1068432 NMC1068429 2/17/2012 20.66

NvFe 13 NMC1068433 NMC1068429 2/17/2012 20.66

NvFe 14 NMC1068434 NMC1068429 2/17/2012 20.66

NvFe 15 NMC1068435 NMC1068429 2/17/2012 20.66

NvFe 16 NMC1068436 NMC1068429 2/17/2012 20.66

NvFe 17 NMC1068437 NMC1068429 2/17/2012 20.66

NvFe 18 NMC1068438 NMC1068429 2/17/2012 17.46

NvFe 19 NMC1068439 NMC1068429 2/17/2012 16.93

NvFe 20 NMC1075996 NMC1075996 6/29/2012 6.13

NvFe 21 NMC1075997 NMC1075996 6/29/2012 11.26

NvFe 22 NMC1075998 NMC1075996 6/29/2012 9.53

13

Page 413: Buena Vista Iron Project

EXHIBIT A(Continued)

III. UNPATENTED CLAIMS Continued

CLAIM NAME BLM SERIAL NUMBER BLM LEAD FILE NUMBER LOCATION DATE ACRES

NvFe 23 NMC1075999 NMC1075996 6/29/2012 12.61

NvFe 24 NMC1076000 NMC1075996 6/29/2012 20.66

NvFe 25 NMC1076001 NMC1075996 6/29/2012 20.66

NvFe 26 NMC1076002 NMC1075996 6/29/2012 20.66

NvFe 27 NMC1076003 NMC1075996 6/29/2012 20.66

NvFe 28 NMC1076004 NMC1075996 6/29/2012 20.66

NvFe 29 NMC1076005 NMC1075996 6/29/2012 20.66

NvFe 30 NMC1076006 NMC1075996 6/29/2012 20.66

NvFe 31 NMC1076007 NMC1075996 6/29/2012 20.66

NvFe 32 NMC1076008 NMC1075996 6/29/2012 20.66

NvFe 33 NMC1076009 NMC1075996 6/29/2012 20.66

NvFe 34 NMC1076010 NMC1075996 6/29/2012 20.66

NvFe 35 NMC1076011 NMC1075996 6/29/2012 20.66

NvFe 36 NMC1076012 NMC1075996 6/29/2012 20.66

NvFe 37 NMC1076013 NMC1075996 6/29/2012 20.66

NvFe 38 NMC1076014 NMC1075996 6/29/2012 20.66

NvFe 39 NMC1076015 NMC1075996 6/29/2012 20.66

NvFe 40 NMC1076016 NMC1075996 6/29/2012 20.66

NvFe 41 NMC1076017 NMC1075996 6/29/2012 20.66

NvFe 42 NMC1076018 NMC1075996 6/29/2012 20.66

NvFe 43 NMC1076019 NMC1075996 6/29/2012 20.66

NvFe 44 NMC1076020 NMC1075996 6/29/2012 20.66

NvFe 45 NMC1076021 NMC1075996 6/29/2012 20.66

NvFe 46 NMC1076022 NMC1075996 6/29/2012 17.41

NvFe 47 NMC1076023 NMC1075996 6/29/2012 20.66

NvFe 48 NMC1076024 NMC1075996 6/29/2012 16.84

NvFe 49 NMC1076025 NMC1075996 6/29/2012 20.66

NvFe 50 NMC1076026 NMC1075996 6/29/2012 16.73

NvFe 51 NMC1076027 NMC1075996 6/29/2012 20.66

NvFe 52 NMC1076028 NMC1075996 6/29/2012 16.62

NvFe 53 NMC1076029 NMC1075996 6/29/2012 20.66

NvFe 54 NMC1076030 NMC1075996 6/29/2012 16.51

NvFe 55 NMC1076031 NMC1075996 6/29/2012 20.66

NvFe 56 NMC1076032 NMC1075996 6/29/2012 16.40

NvFe 57 NMC1076033 NMC1075996 6/29/2012 20.66

NvFe 58 NMC1076034 NMC1075996 6/29/2012 16.29

NvFe 59 NMC1076035 NMC1075996 6/29/2012 20.66

NvFe 60 NMC1076036 NMC1075996 6/29/2012 16.18

NvFe 61 NMC1076037 NMC1075996 6/29/2012 20.66

NvFe 62 NMC1076038 NMC1075996 6/29/2012 16.07

NvFe 63 NMC1076039 NMC1075996 6/29/2012 20.66

NvFe 64 NMC1076040 NMC1075996 6/29/2012 15.96

NvFe 65 NMC1076041 NMC1075996 6/29/2012 8.21

NvFe 66 NMC1076042 NMC1075996 6/29/2012 8.43

NvFe 67 NMC1076043 NMC1075996 6/29/2012 9.12

NvFe 68 NMC1076044 NMC1075996 6/29/2012 9.82

14

Page 414: Buena Vista Iron Project

EXHIBIT A(Continued)

III. UNPATENTED CLAIMS Continued

CLAIM NAME BLM SERIAL NUMBER BLM LEAD FILE NUMBER LOCATION DATE ACRES

NvFe 69 NMC1076045 NMC1075996 6/29/2012 20.66

NvFe 70 NMC1076046 NMC1075996 6/29/2012 20.66

NvFe 71 NMC1076047 NMC1075996 6/29/2012 20.66

NvFe 72 NMC1076048 NMC1075996 6/29/2012 20.66

NvFe 73 NMC1076049 NMC1075996 6/29/2012 20.66

NvFe 74 NMC1076050 NMC1075996 6/29/2012 20.66

NvFe 75 NMC1076051 NMC1075996 6/29/2012 20.66

NvFe 76 NMC1076052 NMC1075996 6/29/2012 20.66

NvFe 77 NMC1076053 NMC1075996 6/29/2012 20.66

NvFe 78 NMC1076054 NMC1075996 6/29/2012 20.66

NvFe 79 NMC1076055 NMC1075996 6/29/2012 20.66

NvFe 80 NMC1076056 NMC1075996 6/29/2012 20.66

NvFe 81 NMC1076057 NMC1075996 6/29/2012 20.66

NvFe 82 NMC1076058 NMC1075996 6/29/2012 20.66

NvFe 83 NMC1076059 NMC1075996 6/29/2012 20.66

NvFe 84 NMC1076060 NMC1075996 6/29/2012 20.66

NvFe 85 NMC1076061 NMC1075996 6/29/2012 20.66

NvFe 86 NMC1076062 NMC1075996 6/29/2012 20.66

NvFe 87 NMC1076063 NMC1075996 6/29/2012 20.66

NvFe 88 NMC1076064 NMC1075996 6/29/2012 20.66

NvFe 89 NMC1076065 NMC1075996 6/29/2012 20.66

NvFe 90 NMC1076066 NMC1075996 6/29/2012 20.59

NvFe 91 NMC1076067 NMC1075996 6/29/2012 20.66

NvFe 92 NMC1076068 NMC1075996 6/29/2012 20.45

NvFe 93 NMC1076069 NMC1075996 6/29/2012 20.66

NvFe 94 NMC1076070 NMC1075996 6/29/2012 20.34

NvFe 95 NMC1076071 NMC1075996 6/29/2012 20.66

NvFe 96 NMC1076072 NMC1075996 6/29/2012 20.23

NvFe 97 NMC1076073 NMC1075996 6/29/2012 20.66

NvFe 98 NMC1076074 NMC1075996 6/29/2012 20.12

NvFe 99 NMC1076075 NMC1075996 6/29/2012 20.66

NvFe 100 NMC1076076 NMC1075996 6/29/2012 20.01

NvFe 101 NMC1076077 NMC1075996 6/29/2012 20.66

NvFe 102 NMC1076078 NMC1075996 6/29/2012 19.90

NvFe 103 NMC1076079 NMC1075996 6/29/2012 20.66

NvFe 104 NMC1076080 NMC1075996 6/29/2012 20.62

NvFe 105 NMC1076081 NMC1075996 6/29/2012 20.66

NvFe 106 NMC1076082 NMC1075996 6/29/2012 20.66

NvFe 108 NMC1076083 NMC1075996 6/29/2012 1.36

NvFe 109 NMC1076084 NMC1075996 6/29/2012 19.28

NvFe 110 NMC1076085 NMC1075996 6/29/2012 18.68

NvFe 111 NMC1076086 NMC1075996 6/29/2012 20.66

NvFe 112 NMC1076087 NMC1075996 6/29/2012 20.66

NvFe 113 NMC1076088 NMC1075996 6/29/2012 17.78

NvFe 114 NMC1076089 NMC1075996 6/29/2012 20.66

NvFe 115 NMC1076090 NMC1075996 6/29/2012 20.66

15