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061211-Environmental Screening Report-IMAE.pdf - nirb

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BAFFINLAND IRON MINES CORPORATIONMARY RIVER PROJECTBULK SAMPLING PROGRAMENVIRONMENTAL SCREENING DOCUMENT(REF. NO. NB102-00181/6-1)EXECUTIVE SUMMARYForewordKnight Piésold Ltd. (Knight Piésold), on behalf of Baffinland Iron Mines Corporation (Baffinland), hasprepared this screening document to support permit applications and environmental screening of aproposed bulk sampling program at the Mary River Project. The Mary River Project (the Project) isan iron ore exploration project located at approximately Latitude 71º20’ north andLongitude 79º14’ west, in the North Baffin region of Nunavut.Baffinland is a Canadian mining company that is solely focused on its 100%-owned Mary RiverProject. Baffinland has been conducting mineral exploration on Federal Mineral Leases 2483, 2484and 2485 on a seasonal basis since 2004, consisting of delineation drilling of known high-grade ironore deposits (Deposit Nos. 1, 2, 3, 3A and 4) that were originally staked and explored in the 1960s.Current exploration facilities consist of an 80-person camp located near the Deposit No. 1 in thevicinity of the Mary River. Site access is by air, using two of the three airstrips constructed in the1960s, and by an existing road connecting the Mary River Project site to Milne Inlet. The road iscurrently used in the late winter period to move supplies brought to Milne Inlet by conventionalsealift into the site.Project DescriptionBaffinland is proposing to undertake a bulk sampling program in 2007-2008, involving the extractionof 250,000 tonnes of iron ore from two small open pits in Deposit No. 1, and shipping the iron orebulk sample off site to steel mills in Europe for testing. The bulk sampling program will allowBaffinland to conduct metallurgical testing as well as crusher tests to determine the proportion ofiron ore that becomes lump (approximately cobble sized) compared with fines (sand sized). Theproportion of lump to fines is a major parameter for iron ore projects because one product demandsa higher price than the other. The bulk sampling program is also important in that it will allowBaffinland to provide potential customers with adequate ore to test in their steel mills, an importantstep in establishing marketing contracts that will support project financing.Mining of the bulk sample will involve drilling, blasting and removing weathered rock at the two pitlocations to a storage location adjacent to the two small ore pits. Ore will be extracted by blastingwith pre-packaged explosives and will be excavated from the pits and crushed. The crushed ore willthen be transported by truck over the existing tote road to Milne Inlet where it will be stockpiled. Orewill be loaded on barges and then transferred to ore-carrying ships in Milne Inlet. The ships will thendeliver the cargo to ports in Europe.Page i of xviNB102-00181/6-1Revision 0November 20, 2006

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