Elkem Iceland-023114M 16M 17M 18M 19M-2016 · Elkem supplies ferrosilicon to the steel and steel...

✔

✔

✔

013A/0111

Prospecting and sampling of

Three Quartz Veins,

In Pinware Terrane

Southeastern Labrador.

First year assessment report on

Licenses 023114M, and 023116M NTS 13A/1

and

Licenses 023117M, 023118M, 023119M NTS 13A/8

Newfoundland and Labrador

Submitted by

Jon Vidar Sigurdsson

Jamie Meyer

for

Elkem Iceland

May 25 2016

Work year 2015 Total claims: 7

Total expenditures: $ 20,948.98

Jamie Meyer Jon Vidar Sigurdsson Meyer Dunsworth Geological Consulting Geologist – Raw Materials 36 Birchview Drive, Pasadena, NL Elkem Iceland A0L 1K0 Grundarangi, 301 Akranes, Iceland Tel: 709-686-2874 Tel.: +354 4320246 [email protected] [email protected]

1

Table of Contents

Page

Introduction 2 Location and Access 2 Previous Work 4 Geology and Mineralization 4 Prospecting 2015 6 Results 7 Conclusion 8 References 9

List of Figures Figure 1. Location of prospecting area 3 Figure 2. Location of Licenses 3 Figure 3. Regional Geology 5 Figure 4. Hiking toward license 023116M 6 Figure 5. Pale purple, broken quartz vein cut by secondary white quartz veins 6 Figure 6. Sampling from outcrop at license 023119M 7

List of Appendices

Appendix 1. Sample Descriptions 10 Appendix 2. Assay Certificates 10 Appendix 3. Statement of Expenditures 11

2

Introduction Elkem supplies ferrosilicon to the steel and steel related industries. Ferrosilicon is an important additive in the manufacture of steel products, and a wide range of ferrosilicon alloys are available for alloying and de-oxidation purposes in steelmaking processes. It is important for Elkem Iceland to always be looking for new sources of high quality metallurgical quartz for use in the production of ferrosilicon. Any new quartz quarries should be located near tidewater to minimize the costs the shipping back to Iceland, where Elkem has its production facilities. In 1996 Elkem Iceland did a brief study of potential quartz reserves in southeastern Labrador in cooperation with Trinity Resources and Energy Ltd. (Mercer, R., Sigurdsson, J.V. and Hannesson, T. 1997). This reconnaissance investigation consisted of site visits to several of the large quartz veins southwest of Mary’s Harbour, and initial sampling to see if they were of sufficient purity to be considered as metallurgical quartz for the production of ferrosilicon. However, due to remoteness of the area and limited information about the material’s quality and potential reserves, the initial study was not followed up. However the recent construction of the new Trans Labrador Highway (Route 510) has dramatically increased access to Southeastern Labrador, and in particular access to the large quartz veins near Mary’s Harbour. This improved access gives Elkem a reason to carry out a further investigation of the quartz veins in this area. In early 2015, a total of 11 claims in 6 licenses were staked. This report describes the results of the exploration work on 7 of these claims contained in 5 of the licenses:

License Claims

023114M 2 023116M 1 023117M 1 023118M 1 023119M 2

The fieldwork for this report was carried out in August 2015.

Location and Access The five licenses cover portions of three very large, discontinuously exposed, parallel quartz veins in southeastern Labrador. These vein systems are located between 15 and 33 km west to southwest of Mary’s Harbour, and they outcrop 1.5 to 20 km from the Trans Labrador Highway (Figure 1 & 2). The closest vein outcrops were accessed on foot and veins father away were accessed with a helicopter. The rounded hilltops of the veins are treeless and covered by a barren felsenmeer. The upper portions of the steep sides of the ridges are exposed outcrop, gradually becoming covered in a dense tuckamore. The areas in between the ridges are densely forested with fir trees and/or very dense shrubs.

3

Figure 1. Location of the 5 licenses, marked with red points, in Southeastern Labrador.

Figure 2. Topographic map showing the licenses and proximity to Mary’s Harbour and the Trans Labrador Highway, Route 510. Licenses are marked with red squares.

4

Previous Work The three large, discontinuously exposed, northeast-trending quartz veins were originally mapped by K.E. Eade of the Geological Survey of Canada in 1961 (Eade, K. E., 1962). The general geology of this area has been studied in detail and described in an elaborate paper (Gower, C.F., van Nostrand, T. and Smyth, J. 1988). Gower noted the veins and suggested that they were cogenetic with the formation of an Iapetus-related rift basin south of Henley Harbour. Brinco investigated the veins in 1982, when there were initial discussions of developing the Lower Churchill for hydro power. Electrical power lines that would carry this additional hydroelectricity to the island of Newfoundland would potentially run very close to these quartz veins and could open up potential for secondary silicon based industries. The Newfoundland Department of Mines and Energy sampled the veins in 1985 as part of their overall assessment of silica in Labrador (Meyer, J.R. and Dean, P.L.1986). This survey concentrated on the southeastern vein system, with 2 ridges being chip sampled in some detail. A total of 144 samples were taken and geochemical analyses indicated total SiO2 (calculated) at greater than 99.5% in several locations. In 1996 Elkem Iceland did a brief study of potential quartz reserves in southeastern Labrador in cooperation with Trinity Resources and Energy Ltd. (Mercer, R., Sigurdsson, J.V. and Hannesson, T. 1997). Mercer included analytical data, a feasibility study by Icelandic Alloys, and gave a resource estimate of 4.5 million tons of quartz for the vein outcropping known as ‘Sugarloaf”. Rare Earth Elements have also been studied briefly in the same region as the quartz (Chan, L.L. 2012).

Geology and Mineralization The three large quartz veins in Southeastern Labrador are Neoproterozoic in age and are located within the Pinware terrain, which is principally composed of granitoid plutonic rocks (Figure 3). The host rocks of the quartz veins include late Mesoproterozoic, massive to weakly foliated granite and alkali-felspar granite and late Paleoproterozoic and early Mesoproterozoic recrystallized granite, alkali-felspar granite, syenite, alkali-syenite and quartz-syenite.

5

Figure 3. Geology of the region (Gower, C.F., van Nostrand, T. and Smyth, J. 1988). The three quartz veins have been marked in yellow.

6

Prospecting in 2015 Prospecting of the quartz veins was carried out in August 2015, and the work was based out of Mary’s Harbour. The objectives were to walk over all the claims, investigate the geology of the veins to determine the mineralogy, possible impurities, and outline and sample the zones of highest quality quartz. Claims 023116M and 023119M were accessed by foot, hiking in from the Trans Labrador Highway. The traverse into 023116 was slow and difficult due to very dense forest, thick groves of alders and wet ground conditions (Figure 4). With the amount of time it took to reach the quartz ridge, there was very little time left to walk over the barren ridge top and collect representative samples of the quartz. The ridge top itself is covered with barren felsenmeer and badly fractured and broken bedrock (Figure 5). The main quartz vein is pale purple in colour, and cut by thin, white, secondary quartz veins up to a centimeter in width.

Figure 4. Hiking through dense brushes towards license 023116M.

Figure 5. Pale purple, broken quartz vein cut by secondary white quartz veins.

7

Claim 023119M was also accessed by foot, hiking in from the Trans Labrador Highway. The west side of the main vein was granitic and not sampled, while the eastern side was visually more white in colour with less impurities, and several samples were collected.

Figure 6. Sampling quartz from an outcrop at license 023119M.

The original plan was to use a floatplane to access to the remaining three claims, which are farther from the highway. This plan had to be altered since the very dense tuckamore on the flanks of the ridges would have made the walk-up from lakes too time consuming. Thus, a helicopter was hired and used to reach the last three claim locations. The quartz vein outcrops were examined, brief descriptions were made, and chip samples were taken. Hand-held GPS units were used for location control. One of the claims turned out to be granite but not quartz and was therefore not sampled. A total of 15 samples were taken. A list of sample descriptions is in Appendix 1 and assay certificate is in Appendix 2. Expenditures for the work are listed in Appendix 3.

Results The analyses of the samples collected from the four license locations show that the quartz is not pure enough for medium to high grade ferrosilicon production. The use for low-grade ferrosilicon production is also limited due to contaminating elements. Further mapping and sampling would be needed to confirm this.

8

Conclusions and recommendations The conclusion from this prospecting work, and the assays returned from the samples collected, is that the purity of the quartz is not positive enough for the quartz to be useful as metallurgical quartz for ferrosilicon production. It must be noted that the samples collected only represent a fraction of the whole quartz veins. Further mapping and sampling would therefore be needed to confirm this. Respectfully Submitted,

_______________________ ________________________ Jon Vidar Sigurdsson Jamie Meyer Geologist, Elkem Iceland Geologist, Meyer Dunsworth Geological Consulting

9

References Chan, L.L. 2012: First year assessment report on Chateau Pond north property, Chateau Pond

area Pinware Terrane, Southeast Labrador. Assessment File 13A/01/775:1917, 1918, 9 pages plus appendices.

Eade, K. E., 1962: Battle Harbour – Cartwright, Labrador. Geological Survey of Canada, Map

22-1962. Gower, C.F., 2010: Geology of the St. Lewis River area (NTS sheets 03D/04 and 05; 13A/01,

02, 07 and 08), southeastern Labrador. Geological Survey, Mines Branch, Department of Natural Resources, Government of Newfoundland and Labrador, Map 2010-24, Open File LAB/1566.

Gower, C.F., van Nostrand, T. and Smyth, J. 1988: Geology of the St. Lewis River map

region, Grenville Province, eastern Labrador. In Current Research. Newfoundland Department of Mines, Mineral Development Division, Report 88-1, pages 59-73.

Mercer, R., Sigurdsson, J.V. and Hannesson, T. 1997: 1st year assessment report for the

Sugarloaf Mountain property (Project #13A/1-001) NTS 13A/1. Trinity Resources and Energy Ltd. Newfoundland and Labrador Geological Survey, Assessment File 013A/01/0035, 4 pages plus appendices.

Meyer, J.R. and Dean, P.L.1986: Industrial minerals in Labrador. In Current Research.

Newfoundland Department of Mines and Energy, Mineral Development Division, Report 86-1, pages 1-8.

10

Appendix 1. List of Sample Descriptions

Appendix 2. Assay Certificate

Sample no. Location Claim no. Coordinates (WGS 84) Height (m.a.s.l.) Sampling date Sample description

LD-E-9601 East vein. Southernmost knob. 023116M N52°09.552 W056°11.365 333 13.8.2015White and pale pink quartz subcrop. Exposure 25m wide. Mostly

broken. Rusty fractures.

LD-E-9602 East vein. Southernmost knob. 023116M N52°09.525 W056°11.411 342 13.8.2015 Quartz of mixed colours. Large pink shadows. Recrystallization.

LD-E-9603 East vein. Southernmost knob. 023116M N52°09.500 W056°11.432 348 13.8.2015At top of hill near cairn. White quartz veins cutting pink stained

outcrops. Rust in fractures. Mica?

LD-E-9604 East vein. Northernthernmost knob. 023119M N52°20.278 W056°02.715 142 14.8.2015

Very white quartz. No visible grains. Possible traces of sulphites.

Muscovite on cracks? Trace green (organic) minor rust. Very tough

outcrop, No loose material.

LD-E-9605 East vein. Northernthernmost knob. 023119M N52°20.272 W056°02.725 142 14.8.2015

Pint to red quartz. Stained and speckled with reddish, rusty fractures.

White 1-3 mm angular bleach feldspar? Reddish inclusions (rusted

sulphides?). Grading into massive white to SW. 5-8 m to SE is pink

and mixed vein. Small white veins (1-2 mm).

LD-E-9606 East vein. Northernthernmost knob. 023119M N52°20.296 W056°02.701 142 14.8.2015White quartz with grey shadows. Solid material. No grains, no

inclusions. Oxidized fractures (rear). Magnetite or ilmenite?

LD-E-9607 East vein. Northernthernmost knob. 023119M N52°20.305 W056°02.709 136 14.8.2015Pink colour. A little of rusty intrusions and black specs (biotite?).

White feldspar cut by quartz veins. Black specs.

LD-E-9608 East vein. Northernthernmost knob. 023119M N52°20.366 W056°02.617 91 14.8.2015On lower slope of main ridge. Bleached granite. Cut by quartz veins

with lenses up to 5 cm wide. Biotite in granite. Hackly fractures.

LD-E-9621 East vein. Big Pond North. 023114M N52°14.607 W056°06.264 215 15.8.2015Pink quartz. Quartz veins. Red brown oxidized patches (1-5 mm).

Feldspars.

LD-E-9622 East vein. Big Pond North. 023114M N52°14.617 W056°06.219 214 15.8.2015Pink quartz. Green organics. Pale orange stains (feldspars?). White

small feldspars (1-3 mm). Yellow brown fracture coatings.

LD-E-9623 East vein. Big Pond North. 023114M N52°14.886 W056°06.064 213 15.8.2015 Pink/brown quartz. Dark brown fractures. Small oxidized patches.

LD-E-9624 East vein. Big Pond North. 023114M N52°14.929 W056°06.046 208 15.8.2015Grey/white quartz. Vugs with crystal growth. Brown fractures. QZ

crystal growth in vugs.

LD-W-9625 West vein. Suthernmost knob. 023117M N52°18.576 W056°18.021 293 15.8.2015 Grey and pink. Brown fractures. Feldspars cut by quartz veins.

LD-W-9626 West vein. Suthernmost knob. 023117M N52°18.628 W056°17.970 311 15.8.2015 Mixed. Cut by late quartz veins. Red/brown stains.

LD-W-9627 West vein. Suthernmost knob. 023117M N52°18.674 W056°17.916 305 15.8.2015Grey and pink. Green organic material. Feldspar inclusions. Brown

inclusions. Quartz crystal growth in vugs.

Centro de Control de Calidad - ERIMSA Phone: +34.981.13.23.61

Terminal de Mercancías RENFE - San Diego Fax: +34.981.17.04.77

Avda. del ejército, s/n e-mail: [email protected]

15006 La Coruña (SPAIN)

Sample: Quartz Notes: - The samples were prepared and analyzed according

to the approved Erimsa´s procedures (doc. DSC 4/2 series)

Sent by: Jon Vidar Sigurdsson - All the elements were measured by ICP-OES

Receiving date: 14-sep-15

Preparing sample date: 15-sep-15

Analysis date: 16-sep-15

Reference: Al2O3 Fe2O3 TiO2 CaO Na2O K2O MgO MnO P2O5 ZnO V2O5 NiO PbO CuO CoO CdO Cr2O3 S2O3

% % ppm % % % % ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm

LD-E-9601 0,836 0,2587 167,3 0,0165 0,0110 0,2998 0,0303 3,4 44,4 5,5

11

Appendix 3. Statement of Expenditures The prospecting work was done during an expedition that included quartz prospecting work on a total of six licenses in this region staked by Elkem Iceland. Many of the expenditures for the prospecting work are common for the six licenses. However, some costs such as helicopter hire, prospecting time, shipment and assay work of samples vary between the licenses and are divided accordingly. The expenditures for the prospecting work on the 5 licenses in this report, for the year 2015, total $ 20,948.98. The expenditures have been allocated as follows (per license and claim):

License 023114M

License 023116M

Item $

Flights to/from Canada 235,83

Flights within Canada 101,00

Accomodation 401,47

Helicopter-Universal helicopters 2.505,42

Saleries - 2 prospectors, incl. planning and post fieldwork 1.774,75

Vehicle hire + gas 102,17

Maps and areal photos 28,92

Shipment of samples DHL 152,74

Sample analytical work 252,30

Other costs 26,74

Total: 5.581,34

Total per claim: 2.790,67

Item $



Accomodation 401,47






Other costs 26,74

Total: 4.039,51


12

License 023117M

License 023118M

License 023119M

Item $



Accomodation 401,47

Helicopter-Universal helicopters 2.505,42






Other costs 26,74

Total: 5.480,08


Item $



Accomodation 401,47

Saleries - 2 prospectors, incl. planning and post fieldwork 709,90



Other costs 26,74

Total: 1.606,03


Item $



Accomodation 401,47






Other costs 26,74

Total: 4.242,02


Title PageTable of Contents

Elkem Iceland-023114M 16M 17M 18M 19M-2016 · Elkem supplies ferrosilicon to the steel and steel...

Documents

Transcript of Elkem Iceland-023114M 16M 17M 18M 19M-2016 · Elkem supplies ferrosilicon to the steel and steel...