1 Canada Fluorspar Inc. 2012 Assessment Report For Canada Fluorspar (NL) Inc. License 018210M, NTS 1L/14 Newfoundland and Labrador Submitted by; Phonce Cooper, P. Eng. James Reeves, P. Geo. Frank Pitman, CET Norman Wilson, P. Eng. Total Expenditure: $1667.50 For: Canada Fluorspar (NL) Inc. January 2012
2 Table of Contents Page No. 1.0 Summary and Recommendations 3 1.1 Introduction 3 1.2 Location 3 1.3 Previous Work 6 1.4 Physiography 7 1.5 Regional Geology 7 1.6 Local Geology 8 1.7 Work Completed 9 1.8 Conclusions and Recommendations 9 Statement of Expenditure References List of Figures Figure 1.0 Location Map of Newfoundland 4 Figure 2.0 Location Map of Property 5 Figure 3.0 Claim Map Showing the Location of the Licence 6 Appendices Appendix 1 List of Personnel
3 1.0 Summary and Recommendations Fluorite mineralization in the St Lawrence area has been known since the late 1800 s. Exploration work, undertaken in the early 1900 s, identified over 35 fluorite veins. The St Lawrence Corporation undertook the first mining operations on the Black Duck Vein in 1933. Mining operations were developed on a number of the larger veins with the Tarefare, Director and Blue Beach veins providing the largest resource. Mine operations were continued with occasional short periods of mine closures until 1990 when the mines were closed. Burin Minerals began work at developing plans to reopen the mines in the St Lawrence area in the early 1990 s. During the past twenty years work continued toward the develop the resource base of the property through the completion of 43-101 reports, Pre Feasibility reports and a diamond drill program. The Canada Fluorspar (NL) Inc. property is comprised of three Mine Leases and six Mineral Claim Blocks. This assessment report documents the progress for Mineral Claim Block 018210M during the year 2011. 1.1 Introduction Canada Fluorspar (NL) Inc. holds the Mineral Claim Block Number 018210M in the St Lawrence area of Newfoundland. Exploration and mining of fluorite in the area has been conducted in the area over the past one hundred years. The industrial demand for fluorite is strong and the assessment and development of properties with known fluorite mineralization continue to be an active part of the mining industry. The work that has been conducted on Mineral Block 018210M during the past assessment period consisted of a review of the technical data in preparation for the 2012 field season. 1.2 Location The St Lawrence property is located near the southern tip of the Burin Peninsula, adjacent to the Town of St Lawrence. The town is located 210 kilometers west of St John s, Newfoundland, Canada (See Figure 1.0). Access to the area is via an all weatherpaved road 350 kilometers distance (via the Trans Canada Highway and Route 220) from St John s to the Town of St Lawrence, Newfoundland (See Figure 2.0). No commercial air transportation or rail service is available to the area. The property is bounded by UTM coordinates (NAD 27, Zone 21) 5,193,500N and 5,194,000N and 617,000E and 617,500E (See Figure 3.0).
4 Figure 1.0
5 Figure 2.0
6 Figure 3.0 1.3 Previous Work Fluorite mineralization was known to exist in the St Lawrence area since the late1800 s but active exploration was not undertaken until the early 1900 s. Mineralization, identified near Blue Beach, lead to the discovery of numerous fluorite veins between 1920 and 1930. The St Lawrence Corporation undertook the first recorded underground mining operation on the Black Duck Vein in 1933 and continued work on this vein until 1941. The American Fluorspar Limited (New Fluor) began operations on the Director and parts of the Tarefare veins in 1936. Alcan purchased the mines in 1942 and produced fluorite from the mines until 1978 when operations ceased due to labor unrest and the lower cost foreign supplies. St Lawrence Fluorite Limited (Minworth-UK) acquired the mine property in the early 1980 s and undertook mining operations 1986 to 1990. Fluorite was produced was from
7 underground operations at Blue Beach and open pit operations in the Tarefare and Director veins. Low fluorite prices resulted in the mine closure in 1990. In 1990, the mining property was returned to the Government of Newfoundland and Labrador. Early in 1996, Burin Minerals Limited (BML) applied the Department of Fisheries and Oceans (DFO) for a new tailings facility at Shoal Cove Pond. Approval was received about a year later. Roscoe Postle Associates Inc completed a review of the diamond-drill hole and underground assay database for the Blue Beach North and Tarefare veins in 1996. A preliminary resource estimate was completed. Following additional drilling in 1999, the resource estimate was subsequently revised in 2000. 1.4 Physiography The area of the mine property is underlain by glacial till covered by varying thicknesses of peat ranging from a few centimeters to over two metres. Outcrop exposure is scarce inland from the coast. Till thicknesses commonly range from 2 to 4 metres in depth. The topography of the mine area consists of gently rolling hills sloping south to the Atlantic Ocean. Steep cliffs characterize the coast with gravel beaches in the sheltered harbours. Vegetation consists of stunted spruce, alder and scrub brush in sheltered areas with numerous marshes and peat bogs. Drainage is poor with terraced bogs and occasional small brooks draining southward into the ocean. 1.5 Regional Geology The St Lawrence fluorite veins are formed within the Avalonian belt of the Appalachian Mountain system in eastern Newfoundland. The Avalonian belt covers an area of over 200 km in width on land and extends for more 400 km offshore. This sequence is characterized by sections of thick, dominantly sub aerial, volcanic rocks and marine to terrestrial clastic sedimentary rocks of late Precambrian age. Shallow marine sedimentary and minor volcanic rocks of Cambrian age overlie these older lithologies. An angular unconformity lies between the Cambrian rocks and the younger Devonian and Carboniferous sedimentary and volcanic rocks. Several late Precambrian and late Devonian to Carboniferous aged granites intruded the Avalonian belt rocks. These magmas were generated and emplaced in a variety of arc and back arc or analogous continental arc settings along the length of the Avalonian belt between 635 Ma and 550 Ma. The calc-alkaline rocks erupted as subaerial; caldera pyroclastic rocks, flows and domes. The felsic-to-intermediate magmas were the most probable source of the heat and fluids for the large, spatially associated, hydrothermal systems. Folding and thrust faulting of the Cambrian and older sequences preceded the intrusion of the Carboniferous age St Lawrence granite (SLG). The St Lawrence granite intrudes the shales and limestones of the Brigus Formation and the Late Proterozoic volcanics of the Burin Series. Van Alstine (1948) described the
8 granite as an alaskite type, derived from a highly differentiated magma that was intruded with very little assimilation of the surrounding country rock. The granite has a typical porphyritic texture with three well-developed joint sets. One set parallels the north-south elongate trend of the granite, a second set is normal to the north-south trend and a third set is horizontal. Quartz porphyry dykes and sills have been observed in the area and appear to have a similar chemical composition and the granite. These dykes and sills are considered to have come from the same source as the granite. The pluton was been radiometrically age dated as 315+/- 10 Ma. This age places the granite in the Lower Pennsylvanian age (Bell and Bleinkensop 1976). Teng (1974) suggests that the granite was emplaced in four separate stages. The first phase introduced the rhyolite sills and dykes to the area. The remaining phases introduced larger volumes of magma with associated volatiles carrying the mineralization and causing the associated alteration. 1.6 Local Geology St Lawrence is hoist to over 40 significant fluorite bearing veins. These veins vary in width from a few centimeters to locally over 30 meters with a strike length ranging up to 3 kilometers. The granite hoist is a porphyritic peralkaline Carboniferous age pluton that has intruded Late Precambrian and Cambrian volcanic and sedimentary rocks. The grain size is characteristic of intrusive rocks and exhibits decreases toward the contact with the older rocks. Within the granite, tufficite, comprised of angular granite fragments in a fine matrix has been observed. Miarolitic structures are present in the granite adjacent to the contacts with the older rocks. Pink quartz-feldspar porphyry dykes are present outside the western margin of the granite intrusion. The fluorite veins in the granite are associated with the jointing and faulting within the batholith. The thicker fluorite veins exhibit features commonly associated with multiple periods of movement and fluid injection. The veins exhibit features that are characteristic of boudinage type structures with a variation in thickness along strike and with depth. The veins contain higher grades pods and varying amounts of mineralized granite breccias along one or both sides of the vein structure. Three major types of fluorite veins have been identified in the area. They are as follows: 1) Low grade veins with an average width of 7m and containing grades varying from 35% to 70% CaF 2. This type includes Tarefare, Director and Blue Beach North and South veins. 2) High grade veins with an average thickness of less than 1m and containing grades averaging 95% CaF 2. This type includes Lord and Lady Gulch, Iron Springs and Canal veins.
9 3) The third type includes veins in the peripheral areas and they contain significant amounts of barite with fluorite. This type includes Meadow Woods, Lunch Pond, Clam Pond and Anchor Drogue veins. Van Alstine, 1948, suggested that the mineralized veins in the peripheral areas of the SLG pluton might extend to greater depth than those in the more central areas due to the affects of erosion. 1.7 Work Completed Work completed during the past year consisted of a review of the available technical data with the objective of designing of a field program to be conducted during 2012. The mineral block lies to the south of the Grebes Nest Vein and southwest of the Tarefare Vein. The area has potential to contain structures containing fluorite mineralization. The limited rock exposure inland from the coast will require the use of geophysical techniques and diamond drilling to assess the mineral potential of the area. 1.8 Conclusions and Recommendations Assessment of the available technical information suggests that the mineral block may have a potential to contain fluorite vein(s). The limited amount of rock exposure in this area will require the use of geophysical techniques to further evaluate the mineral potential of this block. The determination of a suitable geophysical method, followed by a field trial to determine the effectiveness of the system is recommended. Assuming, the geophysical method produces positive results, a grid(s) should be established over selected area(s) and a survey should be undertaken.
11 REFERENCES Alcan archives : Potential references from 14 boxes of files, maps, reports, and correspondence, Department of Natural Resources, St. John's. Buller, A.E. :Report on Cera Fluorite Project on Cera-Nalco Lot 4 in the Mount Margaret Area of the St. Lawrence Area, Newfoundland. NF Miner. (1974). Carr, G. F. :Industrial Minerals of Newfoundland; Department of Mines and Technical Surveys, Ottawa, Report No. 855 Pages 51-60, 1958. Howse, A., Dean, P., Swinden, S., Kean, B., and Morrisey, F. : Fluorspar Deposits of the St. Lawrence Area, Newfoundland: Geology and Economic Potential. Newfoundland Miner. Development Division, Report 83-09, 23 pages (1983). Mason, R.J. : Diamond Drilling Data from the 1973 Diamond Drilling Program to accompany Cera-Nalco Lot Program, Part 2 in the Mount Margaret Area of the Burin Peninsula, Newfoundland. NF Miner. (1973). Robertson D.S. and Associates Limited. : Hydrogeochemical Reconnaissance On Property Of Newfoundland Fluorspar Limited, St. Lawrence Newfoundland. Internal Report for the Aluminum Company of Canada. (1972). Robertson D.S. and Associates Limited. : Geophysical and Geochemical Survey Mount Margaret Area. Newfoundland Fluorspar Works. Internal Report for the Aluminum Company of Canada Ltd., St. Lawrence, Newfoundland. (1974). Strong, D.F., O'Brien, S.J., Taylor, S.W., Strong, P.G., and Wilton, D.H. : Geology of the Marystown (1M/3) and St. Lawrence (1L/14) Map Areas, Newfoundland. Newfoundland Miner. Development Division. Report 77-8, 81 pages (1978). Teng, H.C. : A Lithogeochemical Study of the St. Lawrence granite, Newfoundland. Unpublished M. Sc. Thesis, Memorial University of Nfld. (1974). Teng, H.C., and Strong, D.F. : Geology and geochemistry of the St. Lawrence peralkaline granite and associated fluorite deposits, south east Newfoundland. Canadian Journal of Earth Sciences, Vol. 113, pages 1374 to 1385 (1976) Tilsley, J.E. : Hydrogeochemical Reconnaissance Survey on Property of the Newfoundland Fluorspar Ltd on The St. Lawrence Area, Newfoundland. Newfoundland Miner. Development Division. (1972b). Tilsley, J.E. : Progress Report, Mount Margaret Pond Area, Newfoundland. NF. Miner, Development Division. (1972c). Tilsley, J.E. : Report on Airborne EM and Magnetic Surveys of the St. Lawrence Claims
12 Area, Newfoundland. Newfoundland Miner. Development Division. (1973b). Tilsley, J.E. : Report on Cera-Nalco Fluorspar Exploration program from 1971 to 1974 on Nalco Lot 4 on the Burin Peninsula, Newfoundland. NF. Miner Development Division. (1974). Van Alstine, R.E. : Summary Field Report, St. Lawrence Area, Newfoundland. Newfoundland Miner. Development Division. Internal Report (1939). Van Alstine, R.E. : The Fluorspar Deposits of St. Lawrence, Newfoundland. Economic Geology, Volume 39, No. 2, pages109 to132. (1944). Van Alstine, R.E. : Geology and Mineral Deposits of the St. Lawrence Area, Burin Peninsula, Newfoundland. Nfld. Geol. Survey Bulletin No. 23, 73 pages. (1948).
13 Appendix 1 List of Personnel Name Address Days Worked Phonce Cooper St Lawrence, NL 0.5 James Reeves New Glasgow, NS 2.0 Norman Wilson Little St Lawrence, NL 0.5 Frank Pitman Little St Lawrence, NL 0.5