the Labrador Trough and Canada's New Iron Rush

VISUAL CAPITALIST THE LABRADORTROUGH & CANADA'S NEW IRON RUSH IRON ORE DEMAND IS GROWING RAPIDLY AND WILL DOUBLE FROM CURRENT LEVELS BY 2035. THIS GROWTH IS DRIVEN BY INDUSTRIALIZATION IN CHINA. CHINA'S IMPORT OF IRON ORE GLOBAL 2015 69% OF GLOBAL EXPORTS GLOBAL 60% OF GLOBAL EXPORTS 2011 EXPORTS (PROJECTED) (977 MILLION TONNESI [680 MILLION TONNES) EXPORTS TO MEET THIS DEMAND, IRON PRODUCTION IS INCREASING WORLD WIDE. IN CANADA, A NEW IRON RUSH IS OCCURRING IN THE LABRADOR TROUGH FORMED MORE THAN 2 BILLION VEARS AGO. THE LABRADOR TROUGH IS A GEOLOGICAL STRUCTURE THAT HAS THE POTENTIAL TO MAKE CANADA A LEADER IN GLOBAL IRON ORE PRODUCTION. QUEBEC CANADA CURRENTLY 45 MILLION THAT 16% PRODUCES APPROX. TONNES ANNUALLY OF GLOBAL DEMAND, DESPITE HAVING 2.9% OF GLOBAL IRON RESOURCES. IS THE 1100 KM TROUGH SWEEPING THROUGH QUEBEC & LABRADOR IS EQUAL IN LENGTH TO FINLAND!I IRON ORE IN THE TROUGH CAN BE SEPARATED INTO TWO BROAD CATEGORIES: DIRECT SHIPPING ORE (DSO) [HEMATITE] BENEFICIATED IRON ORES [TACONITE & MAGNETITE] VERY HIGH GRADES APPROXIMATELY 55% 65% 30% TO REQUIRES MINIMAL PROCESSING BEFORE SHIPPING CHENCE 'DIRECT SHIPPING ORE') MUST BE PROCESSED INTO CONCENTRATES (60% - 70%) THAT CAN THEN BE SHIPPED LESS IMPURITIES DSO MINES ARE GENERALLY THE 1ST PROJECTS DEVELOPED IN A GIVEN AREA. THE LABRADOR TROUGH WAS NO EXCEPTION. HISTORY OF MINING IN THE TROUGH 1894- IRON ORE WAS DISCOVERED IN THE TROUGH. PRODUCTION BEGAN DURING THE POST-WWII ECONOMIC BOOM & SUBSEQUENT HIGH IRON PRICES. IRON ORE PRICE (ADJUSTED FOR INFLATION) 100% THE IRON ORE COMPANY OF CANADA BEGAN MINING A LARGE DSO RESERVE IN 1954. THE IRON GRADES WERE BETWEEN 56-58% & THE MINE PRODUCED 150 MILLION TONNES BETWEEN 1954 &1982. ENOUGH ORE TO CREATE THE STEEL IN 1000 EMPIRE STATE BUILDINGS! MINING 1ST 50% PHASE MINING AS IRON PRICES REMAINED HIGH AND INFRASTRUCTURE IN THE REGION IMPROVED, MORE PRODUCING MINES CAME ONLINE. 2ND -50% PHASE -100% 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 FALLING PRICES IN THE MID 1980'S SLOWED THE RATE AT WHICH NEW PROJECTS WERE LAUNCHED, BUT THIS TREND IS CHANGING. CURRENTLY, THE IRON PRODUCERS IN THE LABRADOR TROUGH ARE: IRON ORE COMPANY OF CANADA ( RIO TINTO) LABRADOR TRON MINES ARCELORMITTAL CLIFFS NATURAL FIRE LAKE (STARTED 1973) & MONT-WRIGHT (STARTED 1975) BLOOM LAKE PROPERTY (2010) & WABUSH MINE (STARTED 1965) CAROL LAKE (STARTED 1962) JAMES DSO PROJECT (STARTED 2011) PRODUCING AT: APPROXIMATE ANNUAL PRODUCTION: 14 MILLION TONNES 12 MILLION TONNES 17 MILLION TONNES 2 MILLION TONNES NEW INVESTMENTS ON TRACK TO INCREASE PRODUCTION TO 24 MILLION TONNES BY 2013 CURRENTLY UNDERGOING $500 MILLION EXPANSION TO INCREASE ANNUAL PRODUCTION TO 22 MILLION TONNES, EXPECTS 5 MILLION TONNES NOTES: PER YEAR BY 2015 APPROXIMATE GRADE 30% 30% 38% 58% FUTURE OF MINING IN THE TROUGH THE QUEBEC GOVERNMENT HAS LAUNCHED THIS AMBITIOUS PLAN TO BUILD PLAN NURD INFRASTRUCTURE AND DEVELOP NATURAL RESOURCES IN NORTHERN QUEBEC. 25% THE FEDERAL GOVERNMENT IS COVERING 25% OF THE $220M EXPANSION OF THE PORT OF SEPT-ILES, WHICH IS THE LARGEST IRON ORE PORT IN NORTH AMERICA. $80 BILLION (IN INVESTMENTS ] THE PLAN WILL CREATE A STRATEGIC, COHERENT TRANSPORTATION NETWORK FOR THE DEVELOPMENT OF NATURAL RESOURCES PRESENT DAY 5 10 15 20 25 YEARS BY 2016: $S1.2B WILL BE SPENT ON TRANSPORTATION INFRASTRUCTURE ALONE ....... THE QUEBEC GOVERNMENT HAS ALSO PARTNERED WITH RAIL MANUFACTURERS TO PROVIDE A NEW RAIL LINE SPECIFICALLY FOR MINING USE. IT WILL RUN 800KM FROM SCHEFFERVILLE TO THE PORT IN SEPT-ILES, LABRADOR. ......... IN 2011 INVESTMENTS & ACQUISITIONS IN THE CANADIAN IRON ORE SECTOR TOTALED THE LABRADOR TROUGH HAS BECOME A HOT BED OF IRON ORE EXPLORATION, AND CANADIAN PROVINCIAL AND FEDERAL GOVERNMENTS ARE TAKING STEPS TO SUPPORT DEVELOPMENT $15B DOLLARS $1 IN EVERY S20 SPENT IN QUEBEC & LABRADOR WAS IN THE IRON MINING SECTOR TOTAL RESOURCES BEING EXPLORED: 15+ BILLION TONNES NI 43-101 INFERRED & ABOVE POTENTIAL PRODUCTION INCREASE: 120 MILLION TONNES PER YEAR OCEANIC IRON ORE CORP ZONE RESOURCES INC. RESOURCES NEW MILLENNIUM ALDERON IRON CAPITAL CORP (& TATA STEEL) CHAMPION MINERALS ADRIANA ORE CORP D MARKET CAP: $50M D MARKET CAP: $3M D MARKET CAP: $100M D MARKET CAP: $100M HOPES ADVANCE PROJECT 358M TONNES INDICATED 872M TONNES INFERRED D MARKET CAP: $240M 32.54% 29.98% D MARKET CAP: $300M MOORE-ROSS PROPERTY DRILL RESULTS: FE OVER 167.1M FE OVER 85.2 M 35.6% GIRARD IRON PROPERTY DRILL RESULTS: 29.2% FE OVER 137.OM LAC OTELNUK IRON PROJECT 4.29B TONNES INDICATED 1.97B TONNES INFERRED 29.5% 29.3% LABMAG PROPERTY 4.59B TONNES MEASURED & INDICATED 1.158 TONNES INFERRED 31.3% 31.2% KÉMAG PROPERTY: 2.5B TONNES MEASURED & INDICATED 1B TONNES INFERRED 58.8% 58.8% 6.8% DSO PROJECT 64.1M TONNES PROVEN & PROBABLE 8.1M TONNES MEASURED & INDICATED 7.2M TONNES INFERRED WITH SURGING IRON ORE KAMI IRON ORE PROJECT DEMAND AND 490M TONNES INDICATED 598M TONNES INFERRED GOVERNMENT SUPPORT, FIRE LAKE NORTH PROJECT THE LABRADOR TROUGH 400M TONNES MEASURED & INDICATED 661.2M TONNES INFERRED BELLECHASSE PROJECT IS POISED TO BECOME 215M TONNES INFERRED HARVEY-TUTTLE PROJECT ONE OF THE WORLD'S 947M TONNES INFERRED MAJOR IRON ORE * MARKET CAP INFORMATION CURRENT AS OF MAY 2012 PRODUCING REGIONS. Visual Capitalist is committed to providing independently researched content for educational purposes. Thanks to Zone Resources for covering the production costs of this project. RESOURCES TSX-V:ZNR Learn about their project in the Labrador Trough at zone-resources.com ZONEK VISUAL CAPITALIST Educating a new generation of investors on resource investing and managment VISUAL CAPITALIST www.visualcapitalist.com TOP 5 SOURCES: US GEOLOGICAL SURVEY (USGS) MINERAL COMMODITY SUMMARIES -IRON ORE: HTTP://MINERALS.USGS.GOV/MINERALS/PUBS/COMMODITY/IRON_ORE/MCS-2012-FEORE.PDF BHP BILLITON IRON ORE – GROWTH AND OUTLOOK 2012: WWW.BHPBILLITON.COM/HOME/INVESTORS/REPORTS/DOCUMENTS/2012/120320_AJMCONFERENCE.PDF ORE IRON – DESCRIBING HEMATITE, TACONITE, AND MAGNETITE ORES: WWW.OREIRON.NET HISTORY OF THE LABRADOR TROUGH BY ZONE RESOURCES: WWW.ZONE-RESOURCES.COM/PROJECTS/HISTORY PLAN NORD – GOUVERNEMENT DU QUEBEC: wwW.PLANNORD.GOUV.QC.CA FOR A COMPLETE LIST OF SOURCES, PLEASE VISIT: VISUALCAPITALIST.COM/SOURCES 30% 30.3 29.1% 30.6% 27.7% 35.8% 29% 23.2%