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MAR 19550001: CLEAR HLLS Received date: Dec 31, 1955 Public release date: Jan 01, 1957 DSCLAMER By accessing and using the Alberta Energy website to download or otherwise obtain a scanned mineral assessment report, you ( User ) agree to be bound by the following terms and conditions: a) Each scanned mineral assessment report that is downloaded or otherwise obtained from Alberta Energy is provided AS S, with no warranties or representations of any kind whatsoever from Her Majesty the Queen in Right of Alberta, as represented by the Minister of Energy ( Minister ), expressed or implied, including, but not limited to, no warranties or other representations from the Minister, regarding the content, accuracy, reliability, use or results from the use of or the integrity, completeness, quality or legibility of each such scanned mineral assessment report; b) To the fullest extent permitted by applicable laws, the Minister hereby expressly disclaims, and is released from, liability and responsibility for all warranties and conditions, expressed or implied, in relation to each scanned mineral assessment report shown or displayed on the Alberta Energy website including but not limited to warranties as to the satisfactory quality of or the fitness of the scanned mineral assessment report for a particular purpose and warranties as to the non-infringement or other non-violation of the proprietary rights held by any third party in respect of the scanned mineral assessment report; c) To the fullest extent permitted by applicable law, the Minister, and the Minister s employees and agents, exclude and disclaim liability to the User for losses and damages of whatsoever nature and howsoever arising including, without limitation, any direct, indirect, special, consequential, punitive or incidental damages, loss of use, loss of data, loss caused by a virus, loss of income or profit, claims of third parties, even if Alberta Energy have been advised of the possibility of such damages or losses, arising out of or in connection with the use of the Alberta Energy website, including the accessing or downloading of the scanned mineral assessment report and the use for any purpose of the scanned mineral assessment report so downloaded or retrieved d) User agrees to indemnify and hold harmless the Minister, and the Minister s employees and agents against and from any and all third party claims, losses, liabilities, demands, actions or proceedings related to the downloading, distribution, transmissions, storage, redistribution, reproduction or exploitation of each scanned mineral assessment report obtained by the User from Alberta Energy Alberta Mineral Assessment Reporting System

901-8th Avenue West Calgary, Alberta January 21st, 1955 Dr N H Grace, Director Research Council of Alberta Edmonton, Alberta Dear Sir: Summary - The exploration that has been done by the Syndicate which financed the operations on ron Prospecting Permits Nos 1, 2, and L, has proven the existence of an extensive iron deposit The deposit however is low grade (35% Fe) with a high silica content The major problem is one of economics but if a process can be developed using the abundant natural gas in the area to produce pig iron near the site of the deposit then the possibility exists of producing this commodity cheaper than anywhere else on the North American continent n this event the adverse factors such as distanóe from large markets, etc are nullified Gene ra:l - have attempted in the following letter to give you a comprehensive statement of the stage at which our investigations are being terminated f you have further questions or wish further elucidation on any point please do not hesitate to request it f can be of assistance in any investigations the Research Council may conduct will be most pleased to do what can The major portion of the work done in the Clear Hills area on and around ron Prospecting Permits Nos 1, 2, and L, is discussed in the "preliminary Report on the Peace River ron Ore" and the "Geological Report - Clear Hills District - Peace River, Alberta", copies of which you have received Additional information has been collected and is discussed below As will be seen the investigations ( to date have been of a preliminary or exploratory) -- - - -----1- Q!11 tn ha nature Tle preliminary èt - completed and the next stage of the investigation involving metallurgical tests, market analysis, etc, remains to be done

DrNHOraoe - 2 - January 21155 Toioraphical Ma -pin - Topographical maps have been prepared on all three permits These maps and accompanying letters from Blanchett, Trorey, and Associates, who did the work on Permits No L and No 2, are herewith submitted The work on Permit No 1 was done under the supervision of Seismic Ventures Limited The accuracy of the work on this permit would be well within 50 feet as elevation control from seismic work was available These maps will be a valuable guide as to where the deposit might occur near the surface and will help outline the eastern extent of the deposit Metallurgy - A sample of the cores weighing about 50 pounds was sent to the Division of Mineral Dressing and Process Metallurgy in Ottawa for testing The reports on this are enclosed As you can see the results were rather discouraging On the other hand what was tried were standard approaches to the problem The tests were far from complete and Ottawa has expressed willingness to continue further testing Several processes for smelting or treating deposits such as this have been suggested by various people: 1 The Swedish have been experimenting with a process using gas Unfortunately have no further particulars on this 2 Dr Wm Armstrong of the University of British Columbia has suggested the Krupp Renn process which apparently is a process for treating ores not too dissimilar to the Peace River deposit 3 The Kaiser organization has acquired a European steel making process that uses oxygen and is called the Braseert Oxygen Process and is apparently used successfully in treating low grade European ores A plant to use this process is under construction in Ontario t appears therefore that a process may exist for treating deposits similar to the Peace River deposit Further, as natural gas is so readily available, a treatment may be found that would smelt or refine the ore near the mine site by utilizing this natural gas and if so, pig iron could probably be produced cheaper here than anywhere else on the North American continent

Dr N H Grace - 3 - January 21155 Prime importance should be given to investigations and development of such a process which would use natural gas under reducing conditions to turn out pig iron at the site of the deposit Conclusions While the syndicate which financed the operations has been forced to conclude the deposit is not economical at this time, yet cannot but feel that at some time in the not too distant future this deposit will be a most valuable asset to the Province of Alberta n order to advance this possibility the following recommendations are respectfully suggested Recommendations 1 The obtaining of a bulk sample from the outcrop described in the Geological Report A geologist, a shooter, a small drill, dynamite and truck would be needed n early winter when the ground is frozen and before the snow is deep a truck can drive within about two miles of the outcrop The cost of this operation should not exceed 2,500 00 2 Further metallurgical tests should be made This can be done by the National Research Council or your own facilities might be preferred Any process currently used in treating similar ores should be closely investigated f any process using natural gas is in existence or any research is being done along this line then this investigation should receive prime priority Thought might be given to the possibility of the Research Council perfecting such a process 3 Topographic mapping should be continued east of the present permits as undoubtedly the deposit extends farther in this direction L A surface geological survey should be made along the eastern edge of the Clear Hills between the Notikewin River and the base of Township 85 at an elevation where an outcrop of the iron formation could be expected The cost of this limited work would not exceed 1,50000 The geologic age of the formation and its correlative position in the stratigraphic section should be determined 5 The oil exploration in the area should be watched - if deep bore holes or shot holes for seismic exploration or core holes are being drilled, a representative of the Research Council should, if possible, accompany the oil crew Re speetfullysubmitted, D B McDougall

ENCLO SURE S 1 2 3 Two copies of a topographical map of part of Permits Moe 1 and L Two copies of a topographical map of Permit No2 Two copies of a topographical map of Permit No1 4 One copy each of two letters describing topographical work done by Blanohet, Trorey and Associates Limited who did the work on Permits No2 and Nok 5 One copy each of nterim Report (June 24, 195) and nterim Report No2 (August 61 1954) from the Mines Branch, Division of Mineral Dressing and Process Metallurgy in Ottawa 66 One copy of letter from myself to G R Haun,tbe permittee of Permit No', outlining the geological thinking and conclusions on this permit S

AbewE" Government This page was inserted by the Coal and Minerals Development Branch, to provide a reference that the enclosure s 1 through 6 mentioned in the assessment report could not be found and therefore not included in the digital copy

-- RON PROSPECTNG PERMT No 4 i CANCELLED Nô"t1 V7,s'1 GLEN ROBBE 4AUN TP UlO- 4th STREET WEST, CALGARY, ALBERTA DATE OF SSUE - APRL 20, 1954 AREA- 68,480 ACRES TP 1 - + + S + + S S + TF 96 95 T '94 -F -F' - -i- -- T P93 R - - -- - - -F - - - - - - -1- - - - ; ----- -: i P92 P91 TP 90 R8 R7 Rb K