TECHNICAL REPORT GEOLOGICAL RECONNAISSANCE OF ZEOLITE & BENTONITE DEPOSITS IN THE MCABEE AND PERRY RANCH AREAS

Transcription

1 TECHNICAL REPORT GEOLOGICAL RECONNAISSANCE OF ZEOLITE & BENTONITE DEPOSITS IN THE MCABEE AND PERRY RANCH AREAS Mineral Titles Reference Map & Lat Bentonite Bulk Sample Location Lat Zeolite Bulk Sample Location TENURE NUMBERS , , & Owner James Mikulasik Prepared by Elizabeth Butler-Henderson, Mining Consultant With test interpretations by Dr. William Miles, Miles Industrial Research Lab, Colorado, USA; Richard Gunter, M. Sc., P. Geo; Industrial Minerals Consultant, B.C. December 28,

2 TABLE OF CONTENTS Introduction Page 3 The Property Page 3 Location and Access Page 3 Figure 1-- Location Map Page 3 Regional Geology Page 4 Work Description Page 4 Figure 2 -- Claim Map Page 5 Figure 3 Sample Locations Page 6 Figure 4 Sample Locations Page 7 Figure 5 Sample Locations Page 8 Figure 6 Sample Locations Page 9 Figure 7 Sample Locations Page 10 Figure 8 Prospecting Records Page Figure 9 -- Field Trip Guidebook by B.N. Church Page 13 Figure 10 McAbee area section - Field Trip Guidebook by B.N. Church Page 14 Reliance on Experts Page 15 Conclusions and Recommendations Page 15 Miles Industrial Mineral Laboratory Opinion Letter Page XRD/CEC Table of results Page References Page 21 Statement of Costs Page 22 Statement of Qualifications Dr. W. Miles Page 23 Richard Gunter Page 23 Elizabeth Butler-Henderson Page 23 2

3 INTRODUCTION The search for zeolites was based on previous work by Read (Open File ) and on previous testing done on the Z2 (Ranchlands) deposit by various individuals including the author. Extensive surveys were conducted on deposits on the bluffs above the Perry Ranch and as far east as the McAbee Fossil Bed claims. 31 samples were tested by XRD and for CEC. The purpose of the surveys was to search for clinoptilolite (zeolite) and bentonite in quantities and qualities capable of supporting an industrial mining operation. The results are included here in order to give a complete picture of the geological formations in this area. THE PROPERTY The properties consist of the following claims listed below and owned by James Mikulasik Perry 1 expiring June 12, Perry 2 expiring June 12, Perry 3 expiring August 16, Mack 1 expiring August 16, 2012 LOCATION AND ACCESS Access was obtained by the power line access road for the easterly portion of the claims, whilst the western upper claims were accessed via the Back Valley Road. Map below Figure 1 3

4 Figure 1 Location Map REGIONAL GEOLOGY The geological information below is taken from the Minfile Ranchlands #092INW095 (text-only version appended to this document). The Cache Creek zeolite deposits are located about 4.5 kilometres northeast of Cache Creek. The deposit was discovered by P.B. Read while mapping for the B.C. Geological Survey Branch. The area is underlain by volcanic and sedimentary rocks of the Eocene Kamloops Group. The zeolitized materials in the Cache Creek area outcrop in four locations. These have been divided into two groups: A and B. Group A (Z-1) is zeolitized tuffs which are grey to light grey, competent, with 10 per cent porosity and a minimum thickness of 6 to 8 metres. Group A1, below Group A, comprises light to dark green lithified and zeolitized tuffs. These are competent with 6 to 12 per cent porosity and a minimum thickness of 5 to 7 metres. The contact between the two groups is sharp. The zeolite is clinoptilolite and minor heulandite. Group B (Z-2), near McAbee, is zeolitized rhyolite tuffs, smectite clay, shale and siltstone. Description of deposit taken from Geo File by Peter B. Read Geology & Industrial Minerals of the Tertiary Basins, South-Central B.C. Chapter 7 p. 67 regarding the Z4 deposit behind the Perry Ranch. In the upper third of the western sedimentary lens, zeolitized rhyolite vitric ashes are intercalated with shale and tuffaceous sandstone. Waterlain, zeolitized rhyolite tephra locally underlies the upper 4 metres of the lens, and forms a bed 10 metres thick in the middle of the lens. WORK DESCRIPTION Extensive prospecting was conducted over the last year by Joe Mikulasik, brother to James Mikulasik. All of the above noted claim areas were traversed and samples taken at 31 locations. Testing for bentonite and zeolite was conducted at Miles Mineral Laboratories in Colorado. The test results are appended to this report along with Dr. William Miles valuation of the testing for bentonite and Clinoptilolite/Heaulandite. Dr. Miles is an expert in the field of industrial minerals. 4

5 Figure 2 - Claim Map 5

6 Figure 3 Sample locations Miles Laboratory 6

7 Figure 4 Sample sites Miles Laboratory 7

8 Figure 5 Sample sites Miles Laboratory 8

9 Figure 6 Sample Sites Miles Laboratory 9

10 Figure 7 Sample Sites Miles Laboratory 10

11 Figure 8 -- PROSPECTING RECORDS WITH COORDINATES & HOURS ZEOLITE SAMPLE LIST Date Pin # Coordinates Sample Tag Number Total # of Day Working Hours Aug. 17, Zeol. Boulders F0 F Aug. 18, Aug. 22, B Aug. 29, A Aug. 31, A B C

12 Sept. 2, Sept 7, 2011 Bench tested 33 zeolite samples with ammonia 8 Sept. 12, 2011 Bag zeolite samples for Dr. Miles 8 Sept. 13, 2011 Bag, box and package zeolite samples for Dr. Miles 8 Total hours 64 12

13 FIGURE 9 FRONT COVER FIELD TRIP GUIDEBOOK 13

14 FIGURE 10 MCABEE AREA GEOLOGICAL MAP AND SECTION 14

15 RELIANCE ON EXPERTS Dr. William Miles of Miles Industrial Research Lab also confirmed the presence of zeolites and bentonite in the samples. Dr. Miles runs an industrial mineral research lab in Colorado. Richard Gunter, industrial mineral geologist also agreed with the assessment. CONCLUSIONS AND RECOMMENDATIONS It is concluded there are more than two suitable sites for extraction of Bulk Samples on the Perry/MacAbee claims. As can be extrapolated from reports in the area and from the mineral sampling program, there are two main areas that bulk samples can be extracted: 1) Bentonite zone 2) Perry zeolite zone 1) Bentonite/Zeolite Zone is located between sample location 324B and 326. This is a smectite clay zone with CEC values to.82. This zone is approx. 250 meters by 350 meters with a vertical depth of 120 meters as seen by the exposed cliffs and creek beds. The structure dips NW at about 10%. A Notice of Work for a bulk sample in this zone has been submitted. 2) Zeolite Perry Zone is located near sample 340 and 343. The zone is approx. 300 hundred meters long and contains several layers to 10 meter depth. A bulk sample has been applied for in this zone. As mentioned in Dr. Miles report, a very similar grade of zeolite/bentonite is being mined and sold as kitty Litter and absorbent products from Industrial Mineral Processing located in Kamloops, B.C.. Other uses for the product would be for agriculture purposes as a soil enhancer. It is thought that this zeolite could be used for radiation remediation in both soils and water. The bentonite could also be used in the drilling industry for drilling mud. These bentonite and zeolite deposits have a lot of potential which will be proven once the bulk samples are taken at the two locations. 15

16 Bill for Mineral Evaluation, Consulting Services and Costs ==================================================================== Payment should be made to: Miles Industrial Mineral Research 1244 N. Columbine Street Denver, Colorado Tel: Fax ==================================================================== Persons or entity liable for payment of this invoice: October 27, 2011 James Mikulasik P.O. Box Old Mill Road Ashton, Ontario Canada K0A 1B0 Tel: Invoice #7455 Persons or Entity Ordering Service: James Mikulasik & Joe Mikulasik ==================================================================== Service/Cost Description ==================================================================== 31 Samples from Cache Creek zeolite deposit and claims. Balance Due 1. X-ray diffraction analysis of 28 zeolites; 28 at bulk sales price 2. X-ray diffraction analysis of 3 smectite clay samples; 3. CEC analysis with concentrations of displaced cations; of $85 each (>10 samples) $ at bulk price of $115 each $ at bulk price of $105 each $ Data evaluation and report preparation $ ==================================================================== Net 15 days, 1.5% interest per month Total USA $

17 James Mikulasik P.O. Box Old Mill Road Ashton, Ontario Canada K0A 1B0 Tel: Miles Industrial Mineral Research 1244 N. Columbine Street Denver, Colorado Tel: Fax: October 27, 2011 Re: 31 Cache Creek Zeolite and Bentonite for XRD and CEC Jame Mikulasik: On Thursday September 29, you provided me with your billing and mailing address for the requested analyses of 31 Cache Creek zeolite and bentonite samples. This sample shipment had been received earlier in the week. You requested that each sample be evaluated for mineral composition by x-ray diffraction ( XRD )analysis. You also requested that each sample be evaluated for the exchangeable cations, sodium, potassium, magnesium and calcium. This second analysis is referred to as cation exchange capacity (CEC) in this report. The results of XRD and CEC evaluations are in Table 1 and Table 2 found in the accompanying Excel file for this report. X-Ray Diffraction Mineralogy: Each of the Cache Creek zeolite and bentonite samples was examined for mineral composition by x-ray diffraction analysis. Each sample was initially dried to constant weight at 50 C, then pulverized with a ceramic mortar and pestle to less than 200 mesh for XRD analysis. The XRD range for the pulverized samples is from 3 to 70 2theta with a step scanning goniometer. The Cache Creek zeolite samples are composed of clinoptilolite and/or heulandite, a polymorph of clinoptilolite. Other components of these zeolites included amorphous silica hydrate (Opal), quartz, illite/mica and feldspars. The zeolite XRD results are reported in Table 1. The XRD powder patterns are also included. Three of the samples were examined for expandable smectite clays (bentonite), because smectite clays have similar chemistries, but form at different chemical and geological conditions. In order to determine the presence and identity of any clay minerals, a dilute slurry of each sample was prepared and coated on a glass plate. As a slurry dries, any laminar clay minerals orient parallel to the class plate, enhancing their layer spacing for improved detection and quantification. After XRD evaluation from 2 to 20 2theta of the oriented film, it was exposed to ethylene glycol vapor for a minimum of four hours at 50 C, followed by a second XRD examination. Smectite clay minerals expand their layer spacing to 17 Angstroms with exposure to ethylene glycol. Three of these Cache Creek samples have expandable smectite clays. Each XRD oriented film pattern after exposure to ethylene glycol overlays its oriented XRD pattern for each zeolite. The XRD patterns for these 3 bentonite samples are enclosed. Cation Exchange Capacity: The cation exchange capacity (CEC) of a zeolite contains cations that enter channels to neutralize negative 17

18 charges created within the aluminum silicate zeolite structures of clinoptilolite. These cations are not bound within the zeolite structure and may be replaced with other cations. The CEC cations and concentrations of these zeolites are utilized for applications. Bentonite clays also have negative structural defects that require cations to reach neutrality. Consequently, bentonite also contributes to the total CEC values when it is present. The CEC values were determined by displacement of exchangeable cations with 1 M ammonium acetate solution. This exchange reaction was carried out four times for each zeolite. After displacing other cations with ammonium cations, the decanted solution is analyzed for the major displaced cations: sodium, potassium, magnesium and calcium. The CEC data are reported in units of milliequivalents per gram (meq/g) and are summarized in Table 2. For these Cache Creek samples, the sum of the individual exchangeable cations of a sample ranges from 0.11 meq/g to 0.82 meq/g. Knowledge of the individual cation concentrations can be used to alter the zeolite cation chemistry for various applications. The major exchangeable cations in these zeolites and bentonites are sodium and calcium. Sample E contains 0.21 meq/g magnesium, along with 0.42 meq/g calcium. Only sample E contains a significant potassium concentration of 0.12 meq/g. Potassium at exchangeable zeolite structural sites may hinder CEC applications when these values are significant. One source for cation selectivity is Mineralogy and Geology of Natural Zeolites, F.A. Mumpton, editor, Mineralogical Society of America, Short Courses Notes, vol. 4, Clinoptilolite has the following cation selectivity: Cs>Rb>K>NH4>Sr>Na>Ca>Fe>Al>Mg>Li. One recent use of zeolite selectivity order was to collect cesium (Cs) cations from waste water discharged from a nuclear energy plant in the U.S.A. When the CEC and XRD sample data reported herein are compared with the sample positions and locations, the size and extent of the Mikulasik mineral deposit can be determined. A competitive product by Industrial Mineral Processing ( IMP ) was analyzed by MIMR in 2007 as 0.78 meq/g CEC. The IMP CEC value lies within the range of CEC values for the Cache Creek zeolite resource of up to meq/g. The Cache Creek zeolite deposit has CEC properties that could compete directly with the IMP product. The U.S. Geological Survey ( USGS ) Minerals Yearbook for natural zeolites for the year 2010 has recently been published. World production was estimated to be in the range of 2.8 to 3,3 million metric tons. The price and production trends in the USA are probably comparable in Canada because economies, markets, and lifestyles are similar, but proportional. In the USA, the zeolite production is about 50,000 thousand tons per year. Zeolite production had minor increases from 2009 to 2010 during this global economic recession. USA production is estimated to continue increasing from 1% to 3% annually for the next 3 to 4 years. The major USA markets were in decreasing order of animal feed, pet litter, odor control, water purification, gas absorbent, wastewater cleanup, fertilizer, desiccant, oil absorbent, aquaculture, fungicide or pesticide carrier, and catalyst. Animal feed, pet litter, odor control, and water purification are the major markets, comprising more than 70% of the domestic sales tonnage. The average price for clinoptilolite granules was about USA $145 per ton in large bulk shipments; however consumer products can reach USA $0.50 to $4.50 per kilogram. William J. Miles, Ph.D. 18

19 RESULTS OF XRD/CEC TESTING AT MILES INDUSTRIAL MINERAL LAB Table 1 for MIMR Report Table 1 Mineral Composition of Mikulasik Zeolite Samples by X-ray Diffrraction Analysis Clinoptilolite/ Amorphous Heulandite Smectite SiO2 hydrate Quartz Illite/Mica K- Spars Zeolites Bentonite Opal Feldspars E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E All units are semiquantitative and in percent concentrations. 19

20 Table 2 for MIMR Report Table 2 Cation Exchange Capacity of Cache Creek Zeolite Samples Meq/g meq/g Cations: Na K Mg Ca Sum E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E

21 RICHARD GUNTER COMMENTS RE: MILES LAB TESTING The EXCEL sheet is what you would expect from the Cat Litter Mine, including samples of the bentonite (smectite) layer that underlies the zeolite at the Cat Litter Mine. The high silica layers are also a part of the zeolite system. These tend to be the hosts for the fossil beds. It would have been nice to have had stratigraphic samples as well as random samples but there does not appear to be any disruption in the strata across the various properties. REFERENCES P. Read Open File Map P.B. Read Industrial Minerals in some Tertiary Basins Southern British Columbia pg P.B. Read Industrial Minerals in the Bonaparte to Deadman River Area, Southern British Columbia pg P.B. Read, InCirca97 Zeolite Potential in British Columbia P Industrial Minerals in British Columbia Review and Opportunities by G.J. Simandl, N. Robinson, P. Wojdak, D. Terry, B. Lane, M. Cathro, and T. Schroeter, British Columbia Ministry of Energy and Mines, Victoria, B.C. P. Read, Geotex Consultants Geology and Industrial Minerals of the Tertiary Basins, South- Central British Columbia; Chapter 7, pg IC Zeolite, Perlite, Fullers Earth, Diatomite, Kaolin; Ministry of Energy Mines and Petroleum Resources Geological Survey Branch Indust_minerals.pdf Industrial Minerals Building Block Profile prepared for Economic Development Branch BC Ministry of Sustainable Resource Management with support of Ministry of Energy Mines by Glenn E. Bridges & Associates Inc. Focus on Industrial Minerals, Spring 1995 issue Issue 1 Volume 2, Ministry of Energy, Mines Petroleum Resources MINFILE Number: 092INW095 21

22 STATEMENT OF COSTS Joe Mikulasik. Prospector/Freeminer Prospecting, Grab sampling, bench testing and sorting/bagging samples. 64 hours at $35/hour = $2, Travel time 4x4 pickup - 6 field days, 90km per day, $.55 per Km. = $ Total = $ James Mikulasik. Prospector/Freeminer/Owner Report Preparation 20 hours at $35/hour = $ Miles Industrial Mineral Research X-ray diffraction and CEC analysis Total = US$ Note: Due to a miscalculation in the field, sample number E (ID # 304) has been removed from the costs of collecting, sampling and analysis. Also sample numbers E ( ID # 292), E (ID# 293) and E (ID #294)( all on Perry 1) costs have also been removed from this report as work was done on Aug. 6 th, 2011 which was before claims Mack 1 and Perry 3 were staked on August 16, We have decided to leave these in the report from Miles Industrial Mineral Research because of the inability to remove it from the report because the report is already written. The amount deducted from Miles Industrial Mineral Research invoice is: $ / 31 samples X 4 = $ X 4 samples = $ The cost associated with the collecting and sampling has already been deducted from Joe Mikulasik s time. Liz Butler-Henderson Report costs 35 = $ Total = $ TOTAL COSTS $9,

23 RICHARD GUNTER Professional Geoscientist of the Province of British Columbia and holds a Master's Degree from the University of Windsor, Ontario (1981) and a Bachelors Degree in Geology from Queen's University in Kingston (1977). He has worked continuously in geology since 1980 with an emphasis on Industrial Minerals. DR. WILLIAM MILES Industrial Mineral Research in Denver, CO is a private company categorized under Laboratories-Research and Development. Records show it was established in 1979 and incorporated in Colorado. Dr. Miles has a specialty in testing and evaluating zeolites. ELIZABETH BUTLER-HENDERSON Has been researching zeolites for over seven years and has been a Free Miner since Has worked as a mining consultant for the last eight years preparing exploration & development and maintenance documents for various clients. Spent several years working for an Alberta client specifically in pursuit of zeolite for their oil & gas operations. 23