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INTERIM EXPLORATION REPORT

CAL GRAPHITE CORPORATION

GRAPHITE PROPERTY

BUTT TOWNSHIP,. ONTARIO

David C o n s t a b l e H-BSc., F.G.A.C.

loC 3 I- 63.4696

I l I1 I lllllllllllllllllllll l l~llllll 3 1 E I l E B B l I 63.4696 BUTT 8 1 8

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O c t o b e r 30, 1985

A m e n d e d January 27, 1986 I

I 1 I I SUDBURY, ONTARIO I

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CONSTABLE CONSULTING INC.

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IIIIIIIIIIIII~III ~ mm III 31ElllE0011 63.4696 BUTT



GRAPHITE PROPERTY

BUTT TOWNSHIP,. ONTARIO

october 3D, 1985

Amended January 27. 1986 SUDBURY, ONTARIO

Da\7id Constable H.BSc., F.G.A.C.

om8~ ... 128

010

@; CONSTABLE CONSULTING INC.

block of 16 unpatented mining claims s i t u a t e d i n B u t t ~ o w n s h i ~ ,

Ontar io. The group covers approximately 665 a c r e s and is

loca ted 16 a i r -mi les e a s t of t h e v i l l a g e of Sundridge,, Access

i s e x c e l l e n t v i a paved and good q u a l i t y bush roads,

The Cal Graphi te Corporation p roper ty l i e s w i t h i n

t h e G r e n v i l l e S t r u c t u r a l province of t h e Canadian Precambrian

Sh ie ld . ,This i s an assemblage of highly metamorphosed

g n e i s s i c rocks between 2500 and 1250 m i l l i o n y e a r s o l d , I Within t h e s e rocks a r e p e l i t i c horizens con ta in ing g r a p h i t e

c r y s t a l l i n e f l a k e s which have h i s t o r i c a l product ion records .

One major graphi te -bear ing p e l i t i c u n i t occurs on Cal

~ r a p h i t e Corpora t ion ' s B u t t owns ship proper ty , It has been

d r i l l t e s t e d along an 1800-foot s t r i k e length and d i p s a t

0 40 t o t h e sou theas t ,

~ r i l l i n g i n 1981, and Cal G r a p h i t e ' s 1985 diamond

d r i l l program, have confirmed and extended t h e g r a p h i t i c

u n i t . The u n i t ' s t r u e width va r i e s from 46 t o 243 f e e t , The *

g r a p h i t e f l a k e s a r e coa r se with 90.55 percent of t h e g r a p h i t e

I i n an average concen t ra te being +lo0 mesh o r l a r g e r . Th i s is I a premium f l a k e s i z e i n t h e g raph i t e market and y i e l d s a

premium p r i c e i n t h e range of $1000. t o $1200. (U,S.) p e r I i I

t o n of concen t ra te , i ! -


i

) SUMMARY

Cal Graphite Corporation has purchased a contiguous

block of 16 unpatented mining claims situated in Butt Township,

ontario. The group covers approximately 665 acres and is

located 16 air-miles east of the village of Sundridge p Access

is excellent via paved and good quality bush roads.

The Cal Graphite Corporation property lies within

the Grenville Structural Province of the Canadian precambrian

Shield. This is an assemblage of highly ~etamorphosed

gneissic rocks between 2500 and 1250 million years old.

within these rocks are pelitic horizens containing graphite

) crystalline flakes which have historical production records.

One major graphite-bearing pelitic unit occurs on Cal

Graphite Corporation's Butt Township property. It has been

drill tested along an l800-foot strike length and dips at

o 40 to the southeast.

Drilling in 1981, and Cal Graphite's 1985 diamond

drill program, have confirmed and extended the graphitic

unit. The unit's true width varies from 46 to 243 feet. The

graphite flakes are coarse with 90.55 percent of the graphite

in an average concentrate being +100 mesh or larger. This is

a premium flake size in the graphite market and yields a

) premium price in the range of $1000 0 to $1200. (U.S.) per

ton of concentrate Q


-_ ... _--------------

As a result of combining the 1981 and 1985

diamond drill program we have established reserve figures

for the graphite-bearing unit. Proven tonnage (adjusted to

remove the waste rock) totals 6,200,562 short tons averaging

3.71 percent total carbon with another 1,824,709 short tons

averaging 3.49 percent total carbon in the probable cat~egory-

(adjusted to remove the waste rock). The graphite-bearing

unit outcrops at surface and is amenable to open pit mining.

The graphitic zone remains open along strike and down dip.

Recent deeper drilling indicates both width and grade

continuity down dip.

Stripping and bulk sampling have also been

completed on the subject property. Based on the 1985 diamond

drill and surface sampling results we have recommended

proceeding to a Phase 11, and possibly, a Phase 1x1 program

totalling $600,000.

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CONSTABLE CONSULTING IhC.

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ii

As a result of combining the 1981 and 1985

diamond drill program we have established reserve figures

for the graphite-bearing unit. Proven tonnage (adjusted to

remove the waste rock) totals 6,200,562 short tons averaging

3.71 percent total carbon with another 1,824,709 short tons

averaging 3.49 percent total carbon in the probable cabegory.

(adjusted to remove the waste rock). The graphite-bearing

unit outcrops at surface and is amenable to open pit mining.

The graphitic zone remains open 'along strike and down dip.

Recent deeper drilling indicates both width and grade

continuity down dip.

Stripping and bulk sampling have also been

completed on the subject property. Based on the 1985 diamond

drill and surface sampling results we have recommended

proceeding to a Phase II, and possibly, a Phase!!I pr~gram

totalling $600,000.

@; CONSTABLE CONSULTING II .. C.

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31EllhEBBII 63.4696 BUTT 8 1 B C

_ - TABLE OF CONTENTS

PAGE

SUMMARY * . - r * . . m m e . . e . o . m e . o - e e r e . e e . o . ~ , , ~ o - - . ~ e ~ ~ , ~

INTRODUCTION ~ o . . . . . . - . . . . . . . . . . ~ ~ . ~ ~ ~ - ~ ~ ~ - - - - ~ o o o - - -

PROPERTY DESCRIPTION, LOCATION, ACCESS ,.,.......... FIGURES 1 AND 2: PROPERTY LOCATION AND CLAIM MAPS.,

PROPERTY PHYSIOGRAPHY AND F A C I L I T I E S . . . , . . . . . . , . . . . PREVIOUS EXPLORATION HISTORY .....,,.............,., REGIONAL AND PROPERTY GEOLOGY ......,...,........... PRESENT EXPLORATION PROGRAM RESULTS .....,,....,.... GRAPHITE RESERVES .,,.... . . . . . . . , . . , . - o - o - o . . . o - - . - o

CONCLUSIONS ...... , . . . . . . . . . . . . . e ~ * ~ - ~ - - ~ ~ * * - . ~ - ~ * ~ ~

RECOMMENDATIONS AND COST ESTIMATES ......-... ....-..

APPENDIX I : BIBLIOGRAPHY ..,....o. .,..... .,. ,,.,. APPENDIX I1 : CLAIM DATA . ........ . . .O . . . . . . . o .o . . ,

APPENDIX 111: SCREEN ANALYSES ................,.... APPENDIX I V : RESERVE CALCUIATIONS ........ ...*.-.-

J @ CONSTABLE CONSULTING IHC.

~ ----I1II1 " ~ I" IIIIIIII"IIIII~IIIII' 1111 31EllllE0011 63.4696 BUTT

010C ) ------ ------ ----~-

TABLE OF CONTENTS

SUMMARY •••••••••••••• c •••• c ••••••••• c ..... c • • • • .. • • • • i

INTRODUCTION a C •••••••••••••• e· •• .: ••••••• 1111 ••••• 0 • 0 • • • 1

PROPERTY DESCRIPTION, LOCATION, ACCESS •. c... . ... .. . 3

FIGURES 1 AND 2: PROPERTY LOCATION AND CLAIM MAPS.. 3a 3b

PROPERTY PHYSIOGRAPHY AND FACILITIES ••••••••••••••• 4

PREVIOUS EXPLORATION HISTORY •••••••••••••••••••••• 0 5

REGIONAL AND PROPERTY GEOLOGY •••••.•••••••.•••••••• 6

PRESENT EXPLORATION PROGRAM RESULTS ••••••••••••••• 0 10

GRA PHITE RES ERVES •••••••••••••••••••••••••.•••••••• 14

CONCLUS IONS •••••••••••••••••••••••••••••••••••••• 0 • 16

RECOMMENDATIONS AND COST ESTIMATES ••••••••••••••.•• 18

CERTIFICATION ••••••••••••••.••••••• eo 0 ••••••••••••••• 21

APPENDIX I : BIBLIOGRAPHY ••••••• 0 •••••••• • •••• • •• 22

APPENDIX II CIA 1M DA TA 0 •••••••••. -. 0 ••••••• 0 • 0 ••• 24

APPENDIX III: SCREEN ANALYSES" ••••••••••••••••••••• 25

APPENDIX IV: RESERVE CALCULATIONS .0 ••• ••••••••••• 26

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TABLE OF CONTENTS

( c o n t i n u e d )

MAPS I N POCKET

(a ) Map 1: T o p o g r a p h y and D i a m o n d rill H o l e L o c a t i o n P l a n ( S c a l e 1 inch = 100 f e e t )

(b) D i a m o n d D r i l l Sections ( S c a l e 1 inch = 50 f e e t )

v,c, - 1 V.C. - 314 V.C. - 5 V.C. - 6A, 6 B V.C. - 7 V.C. - 8A, 8 B V.C. - 9A, 9B V.C, - 10A, 1 0 B V.C. - 11A, 1 1 B V.C. - 1 2 V.C. - 13 V.C. - 14A, 1 4 B

S e c t i o n Section Section Sec t ion S e c t i o n Section Section Section S e c t i o n Section S e c t i o n Sec t ion

( c ) Map 2: L o n g i t u d i n a l S e c t i o n ( S c a l e 1 i n c h = 50 f e e t )

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TABLE OF CONTENTS

(continued)

MAPS IN POCKET

(a) Map 1: Topography and Diamond Drill Hole Location Pl~n (Scale linch = 100 feet)

(b) Diamond Drill Sections (Scale 1 inch = 50 feet)

v.C. - 1 Section v.c. - 3,4 Section v.c. - 5 Section v.c. - GA, GB Section v.c. - 7 Section v.c. - BA, BB Section v.c. - 9A, 9B Section v.c. - lOA, lOB Section v.c. - llA, lIB Section V.C. - 12 Section V.C. - 13 Section V.C. - l4A, l4B Section

(c) Map 2: Longitudinal Section (Scale linch = 50 feet)

~ CONSTABLE CONSULT NG INC.

INTRODUCTION

This report was prepared at the request of M r .

John Stirling, President of Cal Graphite Corporation, in

order to compile, assess and, if warranted, to recommend

further exploration and development of the Company's Butt

Township graphite property.

The subject property consists of a contiguous

block of 16 unpatented mining claims which lie 12 air-miles

northeast of Burk's Falls, The claims were recorded in

April and June, 1985 in the name of Mr. Ed Blanchard and

were sold to Cal Graphite Corporation. Access to the

property is excellent; and water, timber and power are

present in the area.

The Cal ~raphite property lies in the Grenville

structural Province of the Canadian Precanibrian Shield. The

rocks of this area have been intensely metamorphosed to

gneissic rocks, Crystalline graphite flakes have long

been known within the Grenville Structural Province and in

several instances deposits were brought into production. On

Ca:lL Grapnite Corporation's Butt township property a major

)

j

1

INTRODUCTION

This report was prepared at the request of ~~.

John Stirling, President of Cal Graphite Corporation, in

order to compile, assess and, if warranted, to recommend

further exploration and development of the company's Bui:t

Township graphite property.

The subject property consists of a contiguous

block of 16 unpatented mining claims which· lie 12 air-mlles

northeast of Burk's Fallsp The claims were recorded in

April and June, 1985 in the name of Mr. Ed Blanchard and

were sold to Cal Graphite corporation. Access to the

property is excellent; and water, timber and power are

present in the area.

The Cal Graphite property lies in the Grenville

structural Province of the Canadian Precambrian Shield. The

rocks of this area have been intensely metamorphosed to

gneissic rocks g Crystalline graphite flakes have long

been known within the Grenville Structural Province and in

severa~ instances deposits were brought into production. On

Cal Graphite corporation's Butt township property a major

~----------------------~------~I @; CONSTABLE CONSULTIN~ INC: I

drilling in 1981 has traced the zone along 1800 feet of

strike and indicated true widths of 60 to 180 feet, The

graphite-bearing zone strikes northeasterly and dips 40 0

to the southeast.

On June 15, 1985 this author recommended a two-

phase exploration program on Cal ~raphite corporation's

property totalling $805,000 with a $285,000 first phase.

The first phase consisted mainly of diamond drilling,

stripping and bulk sampling. This phase is nearly complete

and the results will be reviewed in this report.

During the course of this reports' preparation

the author has utilized provincial and federal geological

service reports, maps and files plus industry publications

and company reports. The author has also supervised the work I to date on the Butt township property. I

)

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graphite flake-bearing rock horizon is present. Earlier

drilling in 1981 has traced the zone along 1800 feet of

strike and indicated true widths of 60 to 180 feet. The

graphite-bearing zone strikes northeastE!rly and dips 400

to the southeast.

On June 15, 1985 this author recommended a two-

phase exploration program on cal Graphite corporation's

propE!rty totalling $B05,000 with a $285,000 first phase.

The first phase consisted mainly of diamond drilling,

stripping and bulk sampling. This phase is nearly complete

and the results will be reviewed in this report.

During the course of this reports' preparation

the author has utilized provincial and federal geological

service reports, maps and files plus industry publications

2

and company reports. The author has also supervised the work

to date on the Butt township property.

I

@: CONSTABLE CONSULTING INC_

PROPERTY DESCRIPTION, LOCATION' AND ACCESS

Cal Graphite Corporation's Butt township property

consists of a block of sixteen (16) contiguous, unpatented

mining claims. The claims are further described in Appendix

I1 and shown in Figure 2. All claims are presently in good

standing and were recorded in the name of Mr. Ed Blanchard,

Sudbury. They were sold by Mr. Blanchard to Cal Graphite

Corporation. The group covers approximately 665 acres and

each claim is due for 20 man-days of assessment work on

their first anniversary in 1986. The southern claims lie

in a surveyed area while the balance are in an unsurveyed

area,

Cal ~raphite's property is situated near the

western boundary of Algonquin provincial Park, 16 miles

eaztof the village of Sundridge, More specifically, the

property lies at longitude 7g0 04' 30" west and latitude

45O 43' 30" north (see Figure 1). Access is from Emsdale

village on Highway 11, east on Highway 518 for 10 miles

to Forestry Tower Road. Forestry Tower Road is a good

bush road and the property's centre and Graphite Lake lie

at road-mileage 9.0, Drill and new haulage roads allow

access over the bulk of the property,

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PROPERTY DESCRIPTION, LOCATION' AND ACCESS

Cal Graphite Corporation's Butt township property

consists of a block of sixteen (16) contiguous, unpatented

mining claims. The claims are further described in Appendix

II and shown in Figure 2. All claims are presently in good

standing and were recorded in the name of Mr. Ed Blanchard,

Sudbury. They were sold by Mr. Blanchard to Cal Graphite

Corporation. The group covers approximately 665 acres and

each claim is due for 20 man-days of assessment work on

their first anniversary in 19B6. The southern claims lie

in a surveyed area while the balance are in an unsurveyed

area.

Cal Graphite's property is situated near the

western boundary of Algonquin provincial Park, 16 miles

ea~of the village of Sundridge g More specifically, the

property lies at longitude 790 04' 3~'' west and latitude

450

43' 30" north (see Figure l). Access is from Emsdale

village on Highway 11. east on Highway 518 for 10 miles

to Forestry Tower Road. Forestry Tower Road is a good

bUsh road and the property's centre and Graphite Lake lie

at road-mileage ~.O. Drill and new haulage roads allow

access over the bulk of the property.

@; CONSTABLE CONSUlTIN INC.

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Claim. Location Mop Scale 1:31,680 (I" =2640',

( Fh ure 2 )

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• • • • • • • · • • • • • • • • • • • • • • • • • • • · • • • • • · • • · • • • • • • · • • • • • • · • • • • • · • •

Algonquin

Provincial

Park

--.... (

PROPERTY PHYSIOGRAPHY AND FACILITIES

The sub j ec t property l ies i n an a rea of mod'erate I t o high r e l i e f . Local r e l i e f exceeds 100 f e e t and may !be

severa l hundred f e e t . Graphite Lake l i e s a t approximat~ely

1400 f e e t above mean sea l eve l . S o i l coverage is residlual

and t h in , seldom exceeding 1 0 f e e t deep, Glacia t ion and

erosion has rounded t h e h i l l s and l o c a l g l a c i a l t i l l s aice

present. Most of t h e overburden mate r ia l i s clay. Drainage

i s southwestward v ia Magnetawan River and eventual ly t o t he '

Great Lakes. Local drainage i s qluggish and seasonal wjith

flow from Minnow Lake north t o Graphite Lake. The highltands

a r e covered by a mixture of mature and immature deciduous

t r e e s , mostly maples, w i t h a sparse undergrowth. Outcrop

coverage i s good on t h e h i l l s t o f a i r near lakes and lowlands. I Road access t o t h e Butt township property i s I

excel lent and road-building aggregates a r e ava i lab le nearby. 1 Water and timber a r e abundant on t h e property. Kearney

(15 miles) o r Burkls F a l l s ( 2 5 miles) have housing and labour.

Rai l t r anspor t l i e s a t Emsdale (19 m i l e s ) .

I @ CONSTABLE CONSULTING IHC.

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PROPERTY PHYSIOGRAPHY AND FACILITIES

The subject property lies in an area of mod,erate

to high relief. Local relief exceeds 100 feet and may be

several hundred feet. Graphite Lake lies at approximatlsly

1400 feet above mean sea level. Soil coverage is residual

and thin, seldom exceeding 10 feet deep" Glaciation an(:i

erosion has rounded the hills and local glacial tills are

present. Most of the overburden material is clay. Drainage

is southwestward via Magnetawan River and eventually to the'

) Great Lakes. Local drainage is ~luggish and seasonal wJLth

flow from Minnow Lake north to Graphite Lake. The highlands

are covered by a mixture of mature and immature deciduotls

trees, mostly maples, with a sparse undergro\<1th. outcrc)p

coverage is good on the hills to fair near lakes and lowlands.

Road access to the Butt township property is

excellent and road-building aggregates are available nea~rby.

Water and timber are abundant on the property. Kearney

(15 miles) or Burk's Falls (25 miles) have housing and labour.

Rail transport lies at Emsdale (19 miles).

)


I except 14B, i n t e r sec t ed extensive sec t ions of graphite-hearing I

PREVIOUS EXPLORATION HISTORY

While t h e graphi te showings i n B u t t township have

long been known t h e r e is no record of previous work on the

property p r i o r t o 1979, In 1979 t h e B u t t township property

was staked and t h e vendors optioned t h e ground t o Vesuvius

Crucible Company of ~ i t t s b u r g , Pennsylvania. Vesuvius CIrucible

Company i s a major U , S . cruc ib le maker and u t i l i z e s 6000 tons

of c r y s t a l l i n e f l a k e graphi te per year, Vesuvius was apparently

seeking a good q u a l i t y source of g raphi te f o r i t s own use,

During 1981 and 1982 extensive explorat ion work

was completed on t h e B u t t township property, including

s t r ipping, bulk sampling and t h e d r i l l i n g of 2 0 diamond d r i l l

holes, VC-1 t o VC-14B, t o t a l l i n g 3808 f e e t , A l l t he holes,

p e l i t e , Metal lurgical t e s t s were a l s o performed f o r Vesuvius

Crucible a t Lakefield Labs r e su l t i ng i n recovery of good

qua l i t y c rys t a l l i ne - f l ake with a carbon content i n t h e 94-95

. . percent (LOI) range by simple f l o t a t i o n o r f l o t a t i o n and

tabl ing. In March 1985 the ground came open and was staked

5

)

PREVIOUS EXPLORATION HISTORY

While the graphite showings in Butt township have

long been known there is no record of previous work on the

property prior to 1979. In 1979 the Butt township propE~rty

was staked and the vendors optioned the ground to Vesuvius

crucible Company of pittsburg, Pennsylvania. Vesuvius Crucible

Company is a major U.S •. crucible maker and utilizes 6000 tons

of crystalline flake graphite per year o Vesuvius was apparently

seeking a good quality source of graphite for its own u!~e.

During 1981 and 1982 extensive exploration ~l7ork

was completed on the Butt township property, including

stripping, bulk sampling and the drilling of 20 diamond drill

holes, VC-l to VC-14B, totalling 3808 feet. All the holes,

except 14B, intersected extensive sections of griiiphite-bearing

pe1ite. Metallurgical tests were also performed for VeslUvius

Crucible at Lakefield Labs resulting in recovery of good

quality crystalline-flake with a carbon content in the 94-95

percent (LOl) range by simple flotation or flotation and

tabling. In March 1985 the ground carne open and was staked

by a new party.

)

~ CONSTABLE CONSULTING INC.

6

REGIONAL AND PROPERTY GEOLOGY

Calgraphite Resources Inc.'s Butt township

graphite property lies within the Grenville Province of the

Canadian Precambrian shield, The ~renville Province has been

sub-divided into domains and sub-domains by several peqple I (Wynn-Edwards , 1972 ; Davidson, 1982) , These domains are

differentiated on the basis of differences in structural

style and trends, grade of metamorphism and gross 1itho:logical

assemblages, Boundaries between domains and sub-domains are I generally tectonic in nature. ~algraphite's Butt towns:hip

property lies within the Parry Sound Domain and contains

layered gneiss, chiefly ma£ ic, and contains minor amounts of

marble, The marble encloses bodies of mafic to intermediate I meta-plutonic rock, ~ranulite facies metamorphism dominates

the Parry Sound ~omain except along the western margin where

a broad ductile zone contains bodies of deformed anorthosite

and related metagabbro,

The Grenville Province has, as its oldest succession,

the Ontario ~neiss Segment in the northwest, This consists of

mainly clastic siliceous metasedimentary rocks deposited

between 1800 and 2500 Ma, ago. These rocks are preserved as

small infolded remnants and xenoliths of paragneiss within a

complex suite of int

@ CONSTABLE CONSULTING INC.

6

REGIONAL AND PROPERTY GEOLOGY

Ca1graphite Resources Inc.'s Butt township

graphite property lies within the Grenville Province of the

Canadian Precambrian Shield. The Grenville Province has been

sub-divided into domains and sub-domainfi by several people

(Wynn-Edwards, 1972: Davidson, 1982). These domains are

differentiated on the basis of differences in structural

style and trends, grade of mEttamorphism and gross lithological

assemblages. Boundaries between domains and sub-domain:s are

generally tectonic in nature. Ca1graphite's Butt township

property lies wi thin the Parry· Sound Domain and contain:s

layered gneiss, chiefly mafic, and contains minor amoun'ts of

marble. The marble encloses bodies of mafic to intermediate

meta-plutonic rock. Granulite facies metamorphism dominates

the Parry Sound Domain except along the western margin where

a broad ductile zone contains bodies of deformed anorthosite

and related metagabbro.

The Grenville Province has, as its oldest succession.

the Ontario Gneiss Segment in the northwest. This consists of

mainly clastic siliceous metasedimentary rocks deposited

) between 1800 and 2500 Ma. ago. These rocks are preserved as

small infolded remnants and xenoliths of paragneiss within a

complex suite of intrusive rocks. The intrusive complex was

@; CONSTABLE CONSULTING INC_

and deformation has produced a g n e i s s i c complex. Younger

s t r a t i f i e d rocks known a s t h e Grenv i l l e Supergroup, then

accumulated between 1,250 and 1,500 Ma. ago. These younger

u n i t s of t h e G r e n v i l l e Supergroup a r e composed of metavolcanic,

carbonate metasedimentary and s i l i c e o u s c l a s t i c metasedimentary

rocks. They a r e sepa ra ted from t h e o lde r Ontar io Gneiss

Segment by a nor theas t - t rending zone of t e c t o n i c deformation

i n t e r p r e t e d by Lumbers (1980) a s an unconformity. Lumbers

(1980) a l s o no tes a subsequent succession of i n t r u s i o n s

occurred, i n t r u d i n g t h e ~ r e n v i l l e Supergroup i n t h e foll.owing

order:

a B i o t i t e D i o r i t e S u i t e inc luding t o n a l i t e s , sod ic

g r a n i t e s and s y e n i t e

b ) Anor thos i t e S u i t e with monzonites and g r a n i t e s

C ) Q u a r t z ~ o n z o n i t e S u i t e

d ) A l k a l i c S u i t e wi th nephal ine s y e n i t e , c a r b o n i t i t e s

and c a l c - a l k a l i c s y e n i t e

e ) S y e n i t e - ~ o n z o n i t e S u i t e with q u a r t z monzonite,

a l k a l i c syen i t e , t o n a l i t e and gabbro

A l l t h e s e i n t r u s i o n s a r e concordant with regional

s t r u c t u r e , l a c k c h i l l e d margins and l ack d i scordan t f ea tu res ,

such a s dykes. Only i n a r e a s of g r e e n s c h i s t facies metamorphisq A CONSTABLE CONSULTlNCi INC.

7

intruded between 1,400 and 1,500 Ma. ago. Subsequent mE~tamorphism

and deformation has produced. a gneissic complex. YoungE~r

stratified rocks known as the Grenville Supergroup, then

a:ccumulated between 1,250 and 1,500 Ma. ago. These younger

units of the Grenville Supergroup are composed of metavolcanic,

carbonate metasedimentary and siliceous clastic metasedimentary

rocks. They are separated from the older ontario Gneissl

Segment by a northeast-trending zone of tectonic defor~ltion

interpreted by Lumbers (1980) as an unconformity. LumbE~rs

(1980) also notes a subsequent succession of intrusions

occurred, intruding the Grenville Supergroup in the following

order:

a) Biotite Diorite Suite including tonalites, sodic

granites and syenite

b) Anorthosite Suite with monzonites and granites

c) Quartz Monzonite Suite

d) Alkalic Suite with nephaline syenite, carbonitites

and calc-alkalic syenite

e) Syenite-Monzonite Suite with quartz monzonite,

alkalic syenite, tonalite and gabbro

All these intrusions are concordant with regional

structure, lack chilled margins and lack discordant features,

such as dykes o Only in areas of greenschist facies rnetamorphis~ ~ CONSTABLE CONSULTING INC.

a re narrow thermal aureoles developed. The Grenvi l l ian

Orogeny is composed of two events which culminated 1,000 t o

1,100 Ma. ago and a f fec ted a l l o lder rocks leaving an i'mprint

of amphibolit ic f a c i e s metamorphism throughout t h e a rea except

f o r small a reas of g r anu l i t e f a c i e s i n t h e Ontario Gneiss

Segment and through most of t h e Parry Sound Domain. Also

imprinted on t h e complex is a s e r i e s of deformations with

northeast-trends dominant. Minor Paleozoic sedimentary rocks

unconformably overly t h e Grenvil le rocks t o t h e south and

southwest.

Graphite i n t h e ~ r e n v i l l e has been known s ince 1845.

Limited production took place i n 1840ts , 1870-1896, and from

I 1896-1954 i n Quebec and Ontario. The g raph i t e was genera l ly

1 c r y s t a l l i n e f l ake and it occurred i n p e l i t i c and semipe l i t i c

beds within l a rge r paragneiss sequences. The carbon content

i s thought t o be of primary sedimentary o r ig in , t h e g raph i te f l ake

being formed during t h e metamorphism of carbonaceous shale, I s i l t s t o n e and wacke. The semipe l i t i c gne i ss i n t h e a rea is I genera l ly dark grey and is composed of p lagioclase , quar tz ,

b i o t i t e and var iab le amounts of red garne t s with frequent

hornblende. P e l i t i c gneiss has a f a i n t v i o l e t colour caused

by d i s t i n c t pa l e pink o r mauve garnets and it lacks hornblendes. I CONSTABLE CONSULTING INC.

8 )

are narrow thermal aureoles developed. The Grenvillian

Orogeny is composed of two events which culminated 1,000 to

1,100 Ma. ago and affected all older rocks lQAVing an imprint

of amphibolitic facies metamorphism thrc)ughout the area except

for small areas of granulite facies in the ontario Gneiss

Segment and through most of the Parry Sound Domain. Also

impr inted on the complex is a ser ies of deformations wi,th

northeast-trends dominant. Minor Paleozoic sedimentary rocks

unconformably overly the Grenville rocks to the south and

southwest. )

Graphite in the Grenville has been known since 1845.

Limited production took place in 1840's, 1870-1896, and from

1896-1954 in Quebec and Ontario. The graphite was gene:rally

crystalline flake and it occurred in pelitic and semipelitic

beds within larger paragneiss sequences. The carbon content

is thought to be of primary sedimentary origin, the graphite flake

being formed during the metamorphism of carbonaceous shale,

siltstone and wacke. The semipelitic gneiss in the area is

generally dark grey and is composed of plagioclase, qual:-tz,

biotite and variable amounts of red garnets with frequent

hornblende. Pelitic gneiss has a faint violet colour caused )

by distinct pale pink or maUve garnets and it lacks hornblendes.

@: CONSTABLE CONSULTING INC.

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n

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9

pyr i t e i s a l s o a common assoc ia t ion causing extens ive rusty-

weathering a t surf ace.

Calgraphite Resources 1nc.I~ Butt owns ship

property cons i s t s of a sequence of paragneiss , including

p e l i t e s and semipeli tes . The sequence s t r i k e s nor theas t

0 across t h e property and d ips from 27 t o 58 t o t h e southeast.

(Map 2). Two graphi te- r ich , conformable, p e l i t i c beds occur

south of ~ r a p h i t e Lake, These un i t s a r e d iv ided and surrounded

by f r e s h quartz-feldspar-biot i te-garnet gne i sses which i n places

may a l s o cnnta in 1 t o 2% medium c r y s t a l l i n e f l a k e graphite .

Contacts a r e sharp and conformable. The g r a p h i t i c pe l t t i c

zones a re character ized by extensive r u s t y weathering on

. surface , A t t h e nor th end of t he g raph i te zones, j u s t :south

of Graphite Lake, t h e g raph i te zones appear t o f l a t t e n and

f o l d around a north-northwest-trending a x i s only t o re-fold

around t h e ea s t e rn nose of Graphite Lake, 1984 Reconnaissance

and de t a i l ed mapping by M, Garland of t h e Ontario Geological

Survey reported t h e graphite-bearing p e l i t i c u n i t s occur

thousands of f e e t nor th and south of Graphite Lake. (M.~arland,

per's, comm.).

C CONSTABLE CONSULTING INC. c

)

)

Pyrite is also a common association causing extensive rusty-

weathering at surface.

Calgraphite Resources Inc.'s Butt Township

property consists of a sequence of parasrneiss,inc1uding

pe1ites and semipe1ites. The sequence strikes northeast

o across the property and dips from 27 to 58 to the southeast.

(Map 2). Two graphite-rich, conformable, pelitic beds occur

9

south of Graphite Lake. These units are divided and surrounded

by fresh quartz-fe1dspar-biotite-garnet gneisses which in places

may also contain 1 to 2% medium crystalline flake graphite.

contacts are sharp and conformable. The graphitic pe1i,tic

zones are characterized by extensive rusty weathering Olll

surface. At the north end of the graphit.e zones, just lsouth

of Graphite Lake, the graphite zones appear to flatten c:md

fold around a north-northwest-trending axis only to re-fo1d

around the eastern nose of Graphite Lake. 1984 Reconnaissance

and detailed mapping by M. Garland of the Ontar io Geo10~Jica1

Survey reported the graphite-bearing pelitic units occur

thousands of feet north and south of Graphite Lake. (M.Gar1and,

pel's. corom.).


PRESENT EXPLORATION PROGRAM RESULTS-

This a u t h o r ' s June 15, 1985 r e p o r t on C a l ~ r a p h i t e ' s

B u t t Township p roper ty recommended t h e fol lowing f i r s t ]phase:

Diamond D r i l l i n g (BQ Core) 10,000 f e e t of d r i l l i n g a t $20. p e r f o o t

( Inc ludes moves, mob-demob, and co re boxes) .... $200,000

Samplinq and Assayinq 1000 samples a t $15. p e r sample ....,.,.,,......... 15,000

Trenching, S t r i p p i n q and Bulk Sampling 30 days x $1000 pe r day

( inc ludes 2 men, machinery and f u e l ) ,.......... Geoloqy and ~ r o s p e c t i n q Survey 10 days x $500. p e r day ( inc ludes two men, t r a n s p o r t a t i o n , food, lodging and equipment) ................................... 5,000

~ n q i n e e r i n ~ , Supervis ion, Core loqginq, Consul t inq - 30 days x $300. pe r day ....,..,...,,,.....,,*,..,. 9,000

- TOTAL O F PHASE I , , , , , , , , . , $285,000

1 To d a t e 22 diamond d r i l l ho les have been cornpleted

t o t a l l i n g 5465 f e e t , These a d d i t i o n a l holes have been added I I

t o Map 1 i n t h e pocket of t h i s r e p o r t and onto t h e r e l e v a n t

c r o s s sec t ions . The h o l e s have c o n s i s t e n t l y i n t e r s e c t e d

l a r g e th i cknesses of g r a p h i t e f lake-bear ing rock, I n add i t ion , l it became ev iden t t h a t t h e 1981 diamond d r i l l i n g d i d n o t I

p e n e t r a t e t h e f u l l t h i ckness of g r a p h i t e -bearing rock, but I I - @ CONSTABLE CONSULTING IHC.

)

10

PRESE~ EXPLORATION PROGRAM RESULTS

This author's JUne 15, 1985 report on Cal G:raphite's

Butt Township property recommended the following first phase:

Diamond Drilling (BQ Core) 10,000 feet of drilling at $20. per foot

~Includes moves, mob-demob, and core boxes) .••• $200,000

Sampling and Assaying 1000 samples at $15. per sample ~ •••••••••.••••.•••

. Trenching, Stripping and Bulk Sampling 30 days x $1000 per day

(includes 2 men, machinery and fuel)

Geology and prospecting Survey ln days x $500. per day

. . . . . . . . . . .

(includes two men, transportation, food, lodging and equipment) •••••• ~ ••••••••••••••••••••••••.•••

Engineer~ng, Supervision, Core logging, Consulting 30 days x $300. per day •••• Q ••••••••••••••••••••••

contingencies ( 100/0) ••••••••••••••••••••••••••••

15,000

30,000

5,000

9,000

:26,000

TO~AL OF PHASE I ••••••••••• $2135,000

To date 22 diamond drill holes have been completed

totalling 5465 feet. These additional holes have been added

to Map 1 in the pocket of this report and onto the relevant

cross sections. The holes have consistently intersected

large thicknesses of graphite flake-bearing rock. In addition,

it became evident that the 1981 diamond drilling did not

penetrate the full thickness of graphite -bearing rock, but


stopped s h o r t i n l e n s e s of ga rne t gneiss wasterock. For

example t h e t r u e th ickness of 130 f e e t shown i n t h e 1981

drilling for h o l e VC-12 was found t o be 243 f e e t dur ing our

1985 d r i l l program.

The majo r i ty of t h e 1985 diamond d r i l l program

was in tended a s f i l l i n ho les , however t h e l a s t ho le (CAL-85-7~)

was a deeper h o l e intended t o t e s t t h e down d i p c o n t i n u i t y of

t h e g r a p h i t i c zone, A s can be seen from s e c t i o n VC-7 t h e

downdip c o n t i n u i t y of t h e zone is exce l l en t ,

A l a r g e a r e a has a l s o been s t r i p p e d i n f r o n t of

ho les VC-7 and VC-6A. A t p resen t a 500-ton bulk sample is

being completed, The bulk sample i s being t r anspor ted t o

Sudbury m i l l f a c i l i t i e s , There it w i l l be mi l led i n order

t o a s s e s s o v e r a l l g r a p h i t e grade and t o recover s u f f i c i e n t I g r a p h i t e f l a k e f o r t e s t i n g by end-users t o determine s u i t -

a b i l i t y of t h e f i n a l product f o r d ive r se uses , Severa l

a d d i t i o n a l a r e a s were s t r i p p e d t o expose t h e graphi te-bearing

u n i t a t s e l e c t e d l o c a t i o n s on t h e property.

Core samples were crushed and pulver ized t o

100 pe rcen t - 65 mesh, A 0.50 gram sample was s p l i t from

t h e main sample and a f t e r mixing with f luxes was f e d i n t o a

Leco ins t rument t o be burned. The gas was c o l l e c t e d and a I

I I CONSTABLE CONSULTING INC.

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stopped short in lenses of garnet gneiss wasterock. For

example the true thickness of 130 feet shown in the 19B1

drilling for hole VC-12 was found to be 243 feet durin9 our

1985 drill program.

The majority of the 1985 diamond drill proHram

was intended as fill in holes, however the last hole (CAL-85-7D)

was a deeper hole intended to test the down dip continuity of

the graphitic zone o As can be seen from section VC-7 1:he

downdip continuity of the zone is excellent.

A large area has also been stripped in front of

holesVC-7 and VC-6A. At present a SOO-ton bulk samplE~ is

being completed o The bulk sample is being transported to

Sudbury mill facilities v There it will be milled in order

to assess overall graphite grade and to recover sufficient

graphite flake for testing by end-users to determine sllit-

ability of the final product for diverse uses. Several

additional areas were stripped to expose the graphite-1Jearing

unit at selected locations on the property.

Core samples were crushed and pulverized to

100 percent - 65 meshv A 0.50 gram sample was split from

the main sample and after mixing with fluxes was fed into a

Leco instrument to be burned. The gas was collected arid a I

! ~------------------------------~----------~


which averaged 3.66 percent t o t a l carbon. his i n t e r s e c t i o n

toge the r wi th hole CAL-85-7D t ends t o confirm t h e zone ' s

down d i p con t i nu i t y f o r width and grade,

Appendix I11 shows an average screen analy ,s i s on

g r aph i t e f eed and f l oa t ed concent ra te . Note t h a t i n tlhese

concent ra tes 83,8 percent of t h e f l a k e s a r e +65 mesh s i z e ,

The +lo0 mesh f r a c t i o n of t h e concen t ra te contains 90.55

percent of t h e g raph i t e (by weight ) . These f l a k e s i z e s

demand a premium p r i c e i n t h e g r a p h i t e market (See Constable ' s

January 15, 1985 ~ e p o r t ) .

I

J CONSTABLE CONSULTING INC-

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which averaged 3.66 percent total carbono This intersection

together with hole CAL-85-7D tends to confirm the zone's

down dip continuity for width and grade o

Appendix III shows an average screen analysis on

graphite feed and floated concentrate. Note that in th.ese

concentrates 83 0 8 percent of thef1akes are +65 mesh size o

The +100 mesh fraction of the concentrate contains 90.55

percent of the graphite (by weight). These flake sizes

demand a premium price in the graphite market (See Constable's

January 15, 1985 Report).

)

@: CONSTABLE CONSULTING INC_

GRAPHITE RESERVES

Map 2 i n t h i s r e p o r t i s a l o n g i t u d i n a l s e c t i o n

0 cons t ruc ted by assuming a -40 d i p p lane f o r t h e graphi te -

r i c h zone. ~ i r e c t measurements from di.amond d r i l l holte

i n t e r s e c t i o n po in t s a t t h e bottom of t h e g r a p h i t i c zone

were measured from t h e c r o s s s e c t i o n s . Those ho les which

stopped p a r t way through t h e g r a p h i t i c zone were projelcted

onto t h e long i tud ina l p lane a t r i g h t ang les t o t h e p lane .

Reserve blocks were e s t a b l i s h e d equi -d is tance from surrounding

d r i l l i n t e r s e c t i o n s . Where s e v e r a l i n t e r s e c t i o n s were

c l u s t e r e d toge the r a midpoint was used f o r a t h e o r e t i c a l

s i n g l e i n t e r s e c t i o n with an average t r u e width and a weighted

(by l eng th ) grade average was c a l c u l a t e d f o r t h e e n t i r ' e block,

Each block was planimetered and t h e r e s u l t s a r e compilled i n

Appendix I V P a r t I.

T r u e widths of t h e g r a p h i t e - r i c h gne i s s ra:nged

from 46 t o 243 f e e t . To ta l waste-adjusted proved rese rves

of g r a p h i t i c gne i s s t o t a l s 6,200,562 s h o r t t o n s from slurface

t o a maximum v e r t i c a l depth of 430 f e e t averaging 3.71 pe rcen t

t o t a l carbon. I n add i t ion , t h e r e a r e another 1,824,709 s h o r t

tons of g r a p h i t i c m a t e r i a l i n t h e waste-adjusted probable

category averaging 3.49 pe rcen t t o t a l carbon.

CONSTABLE CONSULTING INC

)

GRAPHITE RESERVES

Map 2 in this report is a longitudinal section

o constructed by assuming a -40 dip plane for the graphite-

rich zone. Direct measurements from diamond drill hole

intersection points at the bottom of the graphitic zon,e

were measured from the cross sections. Those holes which

stopped part way through the graphitic zone were proje1cted

onto the longitudinal plane at right angles to the plane.

14

Reserve blocks were established equi-distance from surrounding

drill intersections. Where several intersections were

clustered together a midpoint was used for a theoretic.a1

single intersection with an average true width and a weighted

(by length) grade average was calculated for the entir,e b1ocko

Each block was planimetered and the results are compi1,ed in

Appendix IV Part I.

True widths of the graphite-rich gneiss ranged

from 46 to 243 feet. Total waste-adjusted proved reserves

of graphitic gneiss totals 6,200,562 short tons from surface

to a maximum vertical depth of 430 feet averaging 3.71 percent

total carbon. In addition, there are another 1,824,709 short

tons of graphitic material in the waste-adjusted probable

category averaging 3.49 percent total carbon.


/~

)

~)

15

The graphite-rich unit is open along strikE~ and

down dip. Stripping ratios of waste to ore begin at 0:: 1 and

at the deepest hole (CAL-85-7D) increases to roughly 2::10


CONCLUSIONS

These s a l i e n t po in t s can be made regarding C a l

Graphi te ' s Butt Township property:

a) A graphite-bearing u n i t occurs on t h e subject

property along a t l e a s t 1800 f e e t of s t r i k e l eng th and t h e

u n i t d ips a t -40° t o t h e southeast .

b ) The g r a p h i t i c un i t is open both along s t r i k e

and down dip.

c ) The g r a p h i t i c rock i s from 46 t o 243 f e e t

wide ( t r u e width) as ind ica ted by 1985 diamond d r i l l i n g ,

d ) The g r aph i t e f l ake s a r e coarse wi th 90,,55

percent of t h e g r a p h i t e i n t he +lo0 mesh f r a c t i o n .

e) Deeper d r i l l i n g (Holes CAL-85-7D and

CAL-85-llD) have i nd i ca t ed t h e g r a p h i t i c u n i t had d i p

c o n t i n u i t y -

f) Based on 1981 and 1985 diamond d r i l l programs

w e can e s t a b l i s h tonnage reserves of graphite-bearing mate r i a l .

Proven r e se rve s (adjus ted t o remove t h e waste) a r e 6,200,562

tons s r ad ing 3.71 percent t o t a l carbon, whi le probable

r e s e rve s (ad jus ted t o remove waste) a r e 1,824,709 tons

grading 3-49 percent t o t a l carbon,

I


,

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16

CONCLUSIONS

These salient points can be made regarding Cal

Graphite's Butt Township property:

a) A graphite-bearing unit occurs on the ,subject

property along at least 1800 feet of st~rike length and the

unit dips at _400 to the southeast.

b) The graphitic unit is open both along strike

and down dip.

c) The graphitic rock is from 46. to 243 feet

wide (true width) as indicated by 1985 diamond drilling.

d) The graphite flakes are coarse with 90.55

percent of the graphite in the +100 mesh fraction.

e) Deeper drilling (Holes CAL-85-7D and

CAL-aS-lID) have indicated t:he graphitic unit had dip

continuity.

£) Based on 1981 and 1985 diamond drill programs

we can establish tonnage reserves of graphite-bearing material.

Proven reserves (adjusted to remove the waste) are 6,200,562

tons grading 3.71 percent total carbon, while probable

reserves (adjusted to remove waste) are 1,824,709 tons

grading 3.49 percent total carbon •


g) The graphi te deposi t i s exposed a t surface

and i s amenable t o open p i t mining.

h) The loca t ion and access of t h e deposi t is

excel lent with roads already present. Water, timber and

o ther resources a r e present e i t he r on t h e property or from

nearby.

@ CONSTABLE CONSULTING INC

17

)

g) The graphite deposit is exposed at surface

and is amenable to open pit mining.

h) The location and access of the deposit is

excellent with roads already present. ~vater, timber and

other resources are present either on the property or from

nearby.

)

I <§; CONSTABLE CONSULTING INC.

RECOMMENDATIONS AND COST ESTIMATES

Based on t h e conf i rmat ion .and ex tens ion of

previous diamond d r i l l results and t h e e x c e l l e n t q u a l i t y of

t h e g r a p h i t e f l a k e , w e a r e recommending t h e commencemeni~ of

t h e second and, p o s s i b l y , t h i r d phases of e x p l o r a t i o n and

development on Cal ~ r a p h i t e Corpora t ions ' s B u t t township

g r a p h i t e p r o p e r t y wi th a t o t a l budget of $600,000.

PHASE II

Surveying of 16 claims f o r Lease 16 c la ims @ $2000. p e r ........................ $ 32,000

Diamond ~ r i l l i n q (BQ Core) 3000 f e e t @ $20. p e r f o o t

I ( i n c l u d e s a l l costs) .......................... 60,000

I S t r i p p i n g of Trees and Overburden on S i t e 1 30 days @ $1500 p e r day

( i n c l u d e s men, equipment and f u e l ) ............ 45,000

Pre-Enqineerinq Surveyinq 1 0 days @ $1000 p e r day ...................... 10,000

M e t a l l u r q i c a l T e s t i n g of Bulk Sample 500 t o n s @ $30. p e r t o n ( i n c l u d e s r e n t a l of m i l l , personnel , reagents) . . 15,000

Graphi te and Carbon Content Analyses ................ 1000 samples @ $15. p e r sample 15,000

I I

CONSTABLE CONSULTlNG ENC.

18

RECOMMENDATIONS AND COST ESTIMATES

Based on the confirmation and extension of

previous diamond drill results and the excellent quality of

the graphite flake, we are recommending the comrnencemeni: of

the second and, possibly, third phases of exploration and

development on Cal Graphite Corporations! I s Butt township

graphite property with a total budget of: $600,000.

PHASE II

surveying of 16 Claims for Lease 16 claims @ $2000. per •••••••••••••••••••••••• $ 32,000

Diamond Drilling (BQ Core) 3000 feet @ $20. per foot (includes all costs) •••••••••••••••••••••••••• 60,000

Stripping of Trees and Overburden on Site 30 days @ $1500 per day {includes men, equipment and fuel) •••••••••••• 45,000

pre-Engineering Surveying 10 days @ $1000 per day ••••• g ••••••••••••••••

Metallurgical Testing of Bulk Sample 500 tons @ $30. per ton (includes rental of mill, personnel,reagents) ••

Graphite and Carbon Content Analyses 1000 samples @ $15. per sample ••••••••••••••••

10,000

15,000

15,000


PHASE I1 i s designed t o b r i n g t h e claims t o l e a s e

and t o extend and upgrade t he g r aph i t e r e s e rve s . It a l s o

allows f o r t e s t -mi l l ing of t h e Phase I bulk sample and

development of a genera l ized f low shee t . The g r aph i t e

concent ra te from t h i s t e s t w i l l be made a v a i l a b l e t o various

g r aph i t e end-users f o r t e s t i n g t o determine t h e product ' s

s u i t a b i l i t y f o r d ive r s e end uses. Phase I1 w i l l al low survey

con t ro l necessary f o r engineering of an open p i t design,

Provisions a r e a l s o made f o r a d d i t i o n a l l a b a n a l y s i s of t h e

g r a p h i t i c mater ia l ,

PHASE III w i l l be dependent on t h e r e s u l t s of

Phase 11; s p e c i f i c a l l y t h e flow shee t , grades and marke tab i l i ty

of t h e graphi te , Phase I11 is intended t o a l low cons t ruc t ion

of an on-s i t e p i l o t p l a n t r a t e d a t 250 t ons pe r day. The

p l a n t w i l l be designed from t h e genera l f low s h e e t developed

i n Phase 11 and subsequently modified according t o end product

test r e s u l t s and opera t ing experience t o a s p e c i f i c flow shee t

f o r a poss ib le f u t u r e production p l an t .

Sudbury, Ontario October 30, 1985

I @ CONSTABLE CONSULTING INC.

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PEASE II is designed to bring the claims to lease

and to extend and upgrade the graphite reserves. It also

allows for test-milling of the Phase I bulk sample and

development of a generalized flow sheet. The graphite

concentrate from this test will be made available to various

graphite end-users for testing to determine the product's

suitability for diverse end uses. Phase II will allow survey

control necessary for engineering of an open pit design.

Provisions are also made for additional lab analysis of the

graphitic materialo

PHASE III will be dependent on the results ()f

Phase II; specifically the flow sheet, grades and marke1:ability

of the graphite. Phase III is intended to allow constrllction

of an on-site pilot plant rated at 250 tons per day. The

plant will be designed from the general flow sheet developed

in Phase II and subsequently modified according to end product

tes:t results and operating experience to a specific flow sheet

for a possible future production plant.

Sudbury, ontario Od:ober 30, 1985

@': CONSTABLE CONSULTING INC.

CERTIFICATION

I, DAVID W. CONSTABLE, c e r t i f y tha t :

1. I am a consul t ing geo log i s t , p r e s iden t olf Constable Consul t ing Inc, , with an officts a t 10 Kingston, Court, Sudbury, Ontario.

2 . I am a 1970 graduate of Mount A l l i son Universi ty , Sackv i l l e , New Brunswick wi th an honours Bachelor of Science (Geology) degree and i n 1970-71 performed one years pos t graduate work a t Oxford University, England. I have been continuously employed s i nce graduat ion i n mineral exp lo ra t ion and development ac ross Canada and p a r t s of t h e Uni tes S t a t e s ; f o r nine years a s a r eg iona l geo log i s t with a major exp lo ra t ion company.

3. I am a Fellow of t h e ~ e o l o g i c a l Associat ion of Canada s i n c e 1975, m e m b e r of t h e Canadian I n s t i t u t e of Mining and Metallurgy and member of t h e n a t i o n a l Prospectors and Developers Associat ion.

4. I have knowledge o f , and experience with Cal Graphite Corpora t ion ' s Butt township p roper ty based on personal proper ty v i s i t s and supervis ion of t h e 1985 exp lo ra t ion program. I have a l s o u t i l i z e d G.S.C. and O.G.S. pub l i c a t i ons and maps p lus company and indus t ry r epo r t s during t h e p repara t ion of t h i s r epor t .

5. I have no i n t e r e s t , d i r e c t o r i n d i r e c t , i.n t h i s proper ty o r i n t h e s e c u r i t i e s of Cal Graphite Corporation nor do I expect t o r e ce ive any. I have d i sc losed i n t h i s r e p o r t a l l information and d a t a which- t o the b e s t of my knowledge, may have a bear ing on my recommendations r e l evan t t o Cal Graphite Corpora t ion ' s But t township property.

Dated i n Sudbury, Ontar io t h i s 3

' CONSTABLE CONSULTING IN;

J

}

CERTIFICATION

I, DAVID W. CONSTABLE, certify that:

1. I am a consulting geologist, president of Constable Consulting Inc., with an officl:! at 10 Kingston Court, Sudbury, Ontario.

2. I am a 1970 graduate of Mount Allison university, Sackville, New Brunswick with an honours Bachelor of Science (Geology) degree and in 1970-71 performed one years post graduate work at Oxford University, England. I have been continuously employed since graduation in mineral exploration and development across Canada and parts of the Unites States 1

for nine years as a regional geologist with a major exploration company.

3. I am a Fellow of the Geological Association of Canada since 1975, member of the Canadian Institute o:f Mining and Metallurgy and member of the nationai Prospectors and Developers Association.

4. I have knowledge of, and experience with Cal Graphite Corporation1s Butt township proper~y based on personal property visits and supervision of the 1985 exploration program. I have also utilized G.S.C. and O.G.S. pUblications and maps plus company and industry reports during the preparation of this report.

5. I have no interest, direct or indirect, in this property or in the securities of Cal Graphi~e Corpora~ion nor do I expect to receive any_ I have disclosed in this report all information and data which. ~o the best of my knowledge, may have a bearing on my recommendations relevant to Cal Graphite Corporation's Butt township property.

Dated in Sudbury, Ontario this 30th 1985.

BSc., F.G.A.C.

@;CONSTABLECONSULTING INC.

APPENDIX I

BIBLIOGRAPHY

Car ter , T.R. and Calvine, A,C, March 1985 CIM B u l l . Paper en t ' i t l ed "Metallic Mineral Deposits of t h e Grenvi l l e Province, Southeastern Ontario."

Davidson, A. 1982, GSC Open F i l e Report 870 e n t i t l e d "Graphite Occurrences i n t h e Algonquin Region, ~ r e n v i l l e Province, Ontario"

Hand, G.P. 1982, Mining Engineering May 1982 Vol 34 No, 5 pp, 561: "Several I n d u s t r i a l Minerals Pas t Production Gains, Some Don't".

Innes, DOG, 1982, A p r i v a t e repor t f o r Murwa Investmerlts Ltd, on t h e i r Ryerson Township ~ r a p h i t e property.

Innes, D O G , 1982, A p r i v a t e repor t f o r Donegal Resources Ltd. on t h e i r Maria Township Graphite Property,

Lakefield Research of Canada Limited, 1982, P ro j ec t No, LOR, 2565, "An Inves t iga t ion of t h e Recovery of Graphite from D r i l l Core Samples".

Lawson, P. 1984, Mineral Commodity Summaries, Bureau of Mines, U. S.. Dept. of t h e I n t e r i o r .

Lumbers, S.B. 1980, Geology of Renfrew County; Ontario ~ e o l o g i c a l Survey Open F i l e Report 5282, 94 p.

Michelmore. P.1982, American Way March 1982 p. 54: " I s Carbon t h e "Metal" of t h e Future?"

Papertzian, V,C. 1982, Unpublished Paper presented a t t h e Eas te rn Regional Indus t r i a l Minerals Seminar e n t i t l e d " ~ r a p h i t e Development Po t en t i a l i :n astern Ontario". 0.M.N.R.

I

I


I ~

I

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APPENDIX I

BIBLIOGRAPHY

carter, T.R. and Ca1vine, A.C. March 1985 CIM Bull. Paper ent'it1ed ,iMeta11ic ~rineral Deposits of the Grenville Province, Southeastern Ontario."

Davidson, A. 1982, GSC Open File Report 870 entitled "Graphite Occurrences in the Algonquin Re~Jion, Grenville Province, ontario"

Hand, G.P. 1982, Mining Engineering May 1982 Vol 34 No. 5 pp. 561:' "Several Industrial Minel~als Past Production Gains, Some Don't".

Innes, D.G. 1982, A private report for Murwa Investments Ltd. on their Ryerson Township Graphite property.

Innes, D.G. 1982, A private report for Donegal Resources Ltd. on their Maria Township Graphite Property.

Lakefield Research of Canada Limited, 1982, Project No. L.R. 2565, "An Investigation of the Recovery of Graphite from Drill Core Samples".

Lawson, P. 1984, Mineral Commodity Summaries, Bureau of Mines, U.S.' Dept. of the Interior.

Lumbers, S.B. 1980, Geology of Renfrew County; Ontario Geological Survey Open File Report 5282, 94 p.

Michelmore. P.1982, American Way March 1982 p. 54: "Is Carbon the "Metal" of the Future?"

Papertzian, V.C. 1982, Unpublished Paper presented at the Eastern Regional Industrial Minerals Seminar entitled "Graphite Development Potential i:n Eastein Ontario". O.M.N.R.


P e t t i f e r , L. 1980, Natura l Graphi te - The Dawn of T igh t Markets, I n d u s t r i a l Minerals, Sept. 1980

Robbins, J. 1984, ~ r a p h i t e - drawing on mixed sources , I n d u s t r i a l Minerals, J u l y 1984, p. 37

~ o b i n s o n , MOW. 1979, P r i v a t e Report f o r Dravo Company of P i t t sburg , Pennsylvania on t h e B u t t Township Graphite proper ty .

Schmidt, Uwe 1985, A p r i v a t e r e p o r t f o r Pr ince ton Res;ources Corporation on t h e i r Maria Township Graphi te Property,

Taylor, H.A. 1980. Minerals Yearbook 1980 Vol. I: Metals and Minerals, U.S. Dept. of t h e I n t e r i o r , Bureau of ~ i n e s .

Wynne-Edwards, H.R. 1972, The G r e n v i l l e Province, i n v a r i a t i o n s i n ~ e c t o n i c S t y l e s i n Canada, G,A.C, Spec ia l paper 11 ed, p r i c e , R,A, and Douglas, R. J.W,

I I CONSTABLE CONSULTING INC.

/

)

Pettifer, L.

Robbins, J.

1980, Natural Graphite - The Dawn of Tight Markets, Industrial Minerals, Sept. 1980

1984, Graphite- drawing on mixed sources, Industrial Minerals, July 1984, p. 37

23

Robinson, M.W. 1979, Private Report for Dravo Company of pittsburg, pennsylvania on the Butt Townslhip Graphite property.

Schmidt, Uwe

Taylor, R.A.

1985, A private report for Princeton ReSiources Corporation on their Maria Township Graphite Property.

1980 c Minerals Yearbook 1980 Vol. I: Met~als

and Minerals, U.S. Dept_ of the Interior, Bureau of Mines.

Wynne-Edwards, R.R. 1972, The Grenville province, in variations in Tectonic Styles in Canada, G.A.C. Special paper 11 ed. Price, R.A. and Douglas, R.J.W.

l ~ CONSTABLE CONSULTING 'NC.

APPENDIX I1

CLAIM DATA

C l a i m Number Recorded Holder A r e a l Recorded D a t e

E.O. 830731 Ed Blanchard 40 A p r i l 3, 1985



E.O. 808729* Ed Blanchard 45 A p r i l 3, 19I35

E.0, 808730* Ed Blanchard 45 A p r i l 3, 1985

E,O. 831525* Ed Blanchard 40 June 3 , 1985

E.O. 831526* Ed Blanchard 45 June 3, 1985


E.0, 831528 Ed Blanchard 40 June 3, 1985

E.O. 831529 Ed Blanchard 40 June 3, 1985


E,O. 831531 Ed Blanchard 40 June 3, 1985



E.C), 831519* Ed Blanchard 40 June 3, 1985


---.-----------------------------------------------------------

1 16 claims *Surveyed A r e a 665 a c r e s

I CONSTABLE CONSULTING INC.

24

I APPENDIX II

CLAIM DATA

Claim Number Recorded Holder AreaL Recorded Dat:e

E.O. 830731 Ed Blanchard 40 April 3, 19135



E.O. 808729* Ed Blanchard 45 April 3, 19135

E.O. 808730* Ed Blanchard 45 April 3, 19135

E.O. 831525* Ed Blanchard 40 June 3, 198!>


E.O. 831527* Ed Blanchard 45 June 3, 198!)



E.D. 831530 Ed Blanchard 40 June 3, 1985






--_._----------------------------------------------------------

~ 16 claims *Surveyed Area 665 acres

)


APPENDIX 111

AVERAGE SCREEN ANALYSIS

i CONSTABLE CONSULTING INC.

25

APPENDIX III

AVERAGE SCREEN ANALYSIS

)

<§; CONSTABLE CONSULTING INC.

CAL GRAPHITE CORPORATION GRAPHITIC MATERIAL

An A v e r a g e S c r e e n A n a l y s i s

FEED

MESH S I Z E (Tyler inches)

1 0 2 0 3 5 6 5

1 0 0 - 1 0 0 TOTAL

% INDIVIDUAL - % CrjMULATIVE % PASSING

CONC .

1 0 2 0 35 6 5

1 0 0 - 1 0 0 TOTAL

FEED

MESH SIZE ('lYler inChes)

·10 20 35 65

100 -100 TOTAL

CONC.

10 20 35 65

100 -100 TOTAL

CAL GRAPHITE CORPORATION GRAPHITIC MATERIAL

An A~erage Screen Analysis

% INDIVIDUAL

2.00 ~9.~2 3~.74

23.74 . 7.55 ~5.85

~OO.OO

.04 2.78

41.75 39.23 6.75 9.45

100.00

% OJMULATIVE % PASSING

2.00 21.12 52.86 76.60 84.15

100.00

.04 2.82

44.57. 83.80 90.55

100.00

98.00 78.88 47.14 23.40 15.85

99.96 97.18 55.43 16.20

9.45

---------------

I @; CONSTABLE CONSULTING INC_

I I Reserve Calculations

Block

- Area True Proven p r o b a b l e P e r c e n t (ft2) Thickness Tons Tons Total

( f t . ) carbon

A 50,520 66 252,600 --- 3.33

B 31,360 71 168,679 --- 3.49

I

P 30,640 116 269,261 --- 3-35


27

APPENDIX IV (Revised)

I Reserve Calculations

Block Area True Proven Probable Percent

(ft2 ) Thickness Tons Tons Total

(ft. ) Carbon

A 50,520 66 252,600 3.33

B 31,360 71 168,679 3.49

C 28,920 84 184,036 3.54

D 33,560 37 94,070 3.66

33,560 63 160,173 3.66

, -----, E 17,840 90 121,636 3.35

F 26,200 82 162,758 3.32

G 15,480 100 117,273 3.42

H 13,040 117 115,582 3.94

I 23,840 56 101,139 3.60 23,840 62 111,976 3.60

J 24,080 133.5 243,536 3.88

K 21,040 118 188,085 3 0 40

L 78,960 120 717,818 3.65

M 21,600 72 117,818 3.59

N 27,160 198 407,400 3.97

0 26,680 222.5 449,720 3.62 ~

p 30,640 116 269,261 3.35

(g CONSTABLE CONSULTING INC.

APPENDIX I V (Revised)

(continued)

Block Area T r u e Proven Probable Percent

( f t 2 ) Thickness Tons Tons Tota l ( f t . ) carbon

CONSTABLE CONSULTING IHC.

28

.I

APPENDIX IV (Revised)

(continued)

Block Area True Proven Probable Percent (ft2 ) Thickness Tons Tons Total

(ft. ) Carbon

Q 31,200 182 430,182 3.83

R 23,240 231 '406,700 3.47

S 47,040 210 748,364 4.06

T 28,640 122 264,703 3.59 28,640 88 190,933 3.59

~ U 6,880 129 67,236 3.47 ! ,

V 24,600 160 298,182 3.78

W 13,320 112 113,018 3.95 13,320 132 133,200 3.95

X 14,320 243 263,618 3.54

Y 27,680 52 109,042 3.03 27,680 198 415,200 3.03

Z 28,200 154 329,000 4.17

AA 22,920 52 90,291 3.17 22,920 83 144,118 3.17

BB 25,960 73 143,567 3.61

CC 31,160 46 108,588 3.45

6,366,084 1,873,418 .. .-

j ./

@;CONSTABLE CONSULTING INC_

APPENDIX I V

( ~ e v i s e d January 27, 1986)

I1 Adjustment of Tonnaqes f o r Waste Content:

Calcula t ion:

Tota l Footage of g r a p h i t i c ma te r i a l d r i l l e d : 5133 f e e t I Tota l Footage of waste rock excluded from

p re sen t reserve ca lcu la t ion : 132.8 f e e t Waste rock r ep re sen t s 132.8 x 100 or

5133 2.6 percent of

t h e proven and probable tonnages.

Adjusted Proven Reserves: 6,366,080 t o n s x 97.4 percent = 6,200,562 tons

Adjusted Probable Reserves:1,873,418 tons x 97.4 percent = 1,824,709 tons

111 Weiqhted ~ r a d e o f ater rial i n Percent Total Carbon:

Proven Reserves: 6,200,562 tons grading an average of 3.71 percent t o t a l carbon -

Probable ~eserves :1 ,824,709 tons grading an average of 3-49 percent total carbon, -

/

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29

APPENDIX IV

(ReV'ised January 27, 1986)

II Adjustment of Tonnages for Waste content:

Calculation:

Total Footage of graphitic material drilled: 51331 feet Total Footage of waste rock excluded from

present reserve calculation: waste rock represents 132.8 x 100

5133 or

132.8 feet

2.6 pe,rcent of

the proven and probable tonnages.

Adjusted ProV'en Reserves: 6,366,080 tons x 97.4 percent = 6,200,562 tons

Adjusted 1?robable Reserves: 1,873,418 tons x 97.4 percen·t: = 1,824,709 tons

III Weighted Grade of Material in Percent Total Carbon:

ProV'en Reserves: 6,200,562 tons grading an aV'erage of 3.71 percent total carbon

Probable Reserves:I,824,709 tons grading an average of 3049 percent tota~ carbon.

(§; CONSTABLE CONSULTING INC.

I V Completion of Hole CAL-85-llD (Shown a s "Dri l l inq" i n Map 2 )

Hole CAL-85-llD averaged 3 .66 percent t o t a l carbon

(across 120,9 f e e t ) from 370.2 feet t o 491.1 f e e t .

N,B, This r e s u l t and l a t e r deep d r i l l i n g are not

included i n t h e s e present reserve calculation.^, -

a CONSTABLE CONSULTING INC-

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IV Completion of Hole CAL-8S-llD (Shown as "Drilling" in Map 2)

Hole CAL-8S-llD averaged 3.66 percent total carbon

(across 120 0 9 feet) from 370.2 feet to 491.1 feet.

N.B. This result and later deep drilling are not

included in these present reserve calculations o

30

~ CONSTABLE CONSULTING INC_

avid Constable

H,BSc,, F,G,A.C,

NTS 3lE/ll


MAPS


GRAPHITE PROPERTY

BUTT TOWNSHIP, ONTARIO

October 30, 1985 David Constable

Sudbury, ontario H.BSc., F.G.A.C.

(§:CONSTABLE CONSULTING INC.

CALI GRAPHITE CORPORATION

REPORT ON STRIPPING AND BULK SAMPLING

BUTT TOWNSHIP PROPERTY

ONTARIO_

I n l a t e September, 1985 a program of overburden s t r i p p i n g

and bulk sampling w a s commenced over Cal- Graphi te Corpora t ion ' s

B u t t Township Graphi te Property. A 3 cu . yd. hydraulic-. shovel

w a s u t i l i z e d f o r overburden s t r i p p i n g and a l l work was completed

on claim E.0, 808729.

The purpose of t h e s t r i p p i n g program was t o e s t a b l i s h

t h e con t inu i ty , grade and i n f e r r e d con tac t s of t h e Main o r

Eas t g r a p h i t i c zone. The s t r i p p e d overburden was dug from

t h e s i d e of t h e h i l l and p i l e d lower on t h e h i l l i n t o a

p r imi t ive roadbed t o al low t h e t racked hydrau l i c shovel-- to

advance ac ross t h e face . Map 1 i n t h e ~ n t e r i m Explorat ion

Report da ted october 30, 1985 and amended ~ a n u a r ~ . 27, 1986

shows t h e s t r i p p e d a r e a s i n blue.

F ina l ly , i n October, I985 t h e shovel reached a f l a t

a rea between diamond d r i l l holes CAL-85-6C and CAL-85-8C where

a l a r g e g r a p h i t i c a rea was c leared . The shovel then proceeded

t o d ip roughly 200 tons of g r a p h i t i c bedrock. This mater ia l

I I @ CONSTABLE CONSULTING INC.

J CAL GRAPHITE CORPORATION

REPORT ON STRIPPING AND BULK SAMPLING

BUTT TOWNSHIP PROPE~

ONTARIO

In late September,. 1985 a program of overburden stripping

and bulk sampling was commenced. over Cal Graphite Corporation's

Butt Township Graphite Property. A 3 cu. yd. hydraulic shovel

was utilized for overburden stripping and all work was completed

on claim E.O Q 808729.

The purpose of the stripping program was to esi:ablish

the continuity, grade and inferred contacts of the Main or

East graphitic zone. The stripped overburden was dug from

the side of the hill and piled lower on the hill into a

primitive roadbed to allow the tracked hydraulic shovel· to

advance across the face. Map 1 in the Interim Explorat:ion

Report dated October 30, 1985 and amended January. 27, 1986

shows the stripped areas in blUe.

Finally, in October, 1985 the shovel reached a flat

area between diamond drill holes CAL-85-6C and CAL-85-8C where

a large graphitic area was cleared. The shovel then proceeded

to dip roughly 200 tons of graphitic bedrock. This material


was then trucked t o Erana Mines, 106 Fie ld ing Road, Lively,

Ontario. There it was stockpiled and u t i l i z e d f o r t e s t i n g

of grade, f l ake s i z e and metalliirgy.

The balance of t h e s tockp i le w i l l be processed

I through a p i l o t m i l l i n order t o obtain product f o r b

I d i s t r i b u t i o n t o g r aph i t i c f l ake end-users throughout t h e

I world f o r t h e i r t e s t requirements.

DATED I N SUDBURY, ONTARIO THIS 25th DAY OF JUNE, 1986. I

Respectful ly submitted

David

was then trucked to Erana Mines, 106 Fielding Road, Lively,

ontario. There it was stockpiled and utilized for testing

of grade, flake size and metallurgy.

The balance of the stockpile will be processed

through a pilot mill in order to obtain product for

distribution to graphitic flake end-users throughout the

world for their test requirements •.

DATED IN SUDBURY, ONTARIO THIS 25th DAY OF JUNE, 1986.

Respectfully submitted

2

F.G.,A.C.

@:: CONSTABLE CONSULTING INC.

3lEllNE0011 63.4696 BUTT


BUTT TWP. GRAPHITE PROPERTY

FEASIBILITY REPORT

OCTOBER 20, 1986

D. W. CONSTABLE, F.G.A.C. L. T. DUNKS, P-ENG.

FINAL COPY

I I

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- L i CONSTABLE CONSUiTlNG !NC.

---

2 0+"3

1111111111111111111 ~III~IIIII 31EllNE0011 63.4698 BUTT

CAL GRAPHITE CORPORATION BUTT TWP. GRAPHITE PROPERTY

FEASIBILITY REPORT OCTOBER 20~ 1986

D. W. CONSTABLE, F.G.A.C.

FINAL COpy

0f't185 -128

L. T. DUNKS, P.ENG.

020

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CONSTABLE CONSULTING !NC.

CAL GRAPHITE CORPOFUITION

BUTT TOWNSHIP

TABLE OF C0NTE:NTS

SECTION I EXECUTIVE SUMMARY

I1 GEOLOGY

I11 ACCESS, TOPOGRAPHY AND ENVIRONMENT

IV MINING

V PRODUCTION AND MINING COSTS

V I METALLURGY

VII ECONOMIC ANALYSIS

CERTIFICATES AND CONSENT LETTER

APPENDICES:

APPENDIX I: METALLURGICAL REPORT

11: PRODUCT PRICES

I I I : CONTRACT SPECIFICATIONS

IV: BIBLIOGRAPHY

V : UNIAXIAL COMPRESSION TESTS

VI: SENSITIVITY GRAPHS

I i

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~\ \~ \,~ I \,~ 1I~ ~ ~ ~1I111 \\~IIIII\ \ nIl 31EllNE0011 63.4696 BUTT 020(:.

-- --- -- ------ --- .------i---- -\

CAL GRAPH ITE CORPORATION BUTT TOWNSHIP

TABLE OF CONTENTS

PAIGE

SECTION I EXECUTIVE SUMMARY 1

II GEOLOGY 16

III ACCESS, TOPOGRAPHY AND ENVIRONMENT 2';1 .-IV MINING 3"1

V PRODUCTION AND MINING COSTS 49

VI t4ET ALL URGY 6" .)

VII ECONOMIC ANALYSIS 69

CERTIFICATES AND CONSENT LETTER 78

APPENDICES:

APPENDIX I: METALLURGICAL REPORT

II: PRODUCT PRICES

III: CONTRACT SPECIFICATIONS

IV: BIBLIOGRAPHY

V: UNIAXIAL COMPRESSION TESTS

VI: SENSITIVITY GRAPHS

@; CONSTABLE CONSULTING INC"

MAP 1 :

FIGURE I:

FIGURE 2:

FIGURE 3:

FIGURE 4:

FIGURE 5:

FIGURE 6:

SECTIONS:

8000E

8 1 00E

8200E

8300E

8400E

8500E

8600E

8700E

8800E

8900E


LIST OF DRAWINGS, FIGURES AND MAPS

PLAN OF PROPERTY

PROPERTY LOCATION PLAN

CLAIMS LOCATION PLAN

PLAN OF PROPOSED U/G CONVEYOR

IDEALIZED ELEVATION VIEW OF U/G CONVEYOR

COPY OF PROPERTY AIR PHOTO MOSAIC

SURFACE PLAN

I I I

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~I

MAP 1:

FIGURE I:

FIGURE 2:

FIGURE 3:

FIGURE 4:

FIGURE 5:

FIGURE 6:

SECTIONS:

BOOOE

8100E

8200E

8300E

8400E

8500E

8600E

8l00E

8800E

8900E

i

I I I I I I I

I

I


LIST OF DRAWINGS, FIGURES AND MAPS

PLAN OF PROPERTY

PROPERTY LOCATION PLAN

CLAIMS LOCATION PLAN

PLAN OF PROPOSED U/G CONVEYOR

IDEALIZED ELEVATION VIEW OF U/G CONVEYOR

COpy OF PROPERTY AIR PHOTO MOSAIC

SURFACE PLAN

9000E lO,OOOE

9100E 10,lOOE

9200E

9300E

9400E 10,400E

9500E 10,500E

9600E 10,600E

9lOOE

9800E

9900E

@; CONSTABLE CONSULTING INC~

ACKIVObiLEDGEI.1ENTS AND BIOGRAPHICAL 1 NFORMATION

The contribution a n d assistance in the preparation of

t h i s study by the following individuals i s recognized and

gratefully acknowledged:

A . G . Slade, P . E n g . ; Former president of Falconbridge Lirnited and presently president of A . G . Slade Associates .

N. Lebedick, P.Eng.; Former p l anni ng engineer for Fa1 conbridge Limited a n d presently a self-employed mining engineer, consulting i n mine engineering s e r v i c ~ s .

3 . de l l ;

A I i i i

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i CONSTABLE CONSULTING INC.

Presently Senior d;raftsnian for Falconbridye L j i s i Led.

Sr-cr? tar - a1 services wer? provided 5y Doro thy Constab1 e .

Authors

L . T. Dunks, P.Eng.; Former chief planning engineer, Sudbury operations of Fa1 conbridge Limited a n d presently provi d i ng mine and i ndustri a1 engineering services through L . T . Funks Associates.

D . W . Constable, F.G.A.C.; Formerly regional geologist for Kerr Addison Mines Limited a n d for the past three years a consulting geologist and president of Constable Consulting Inc.

.,' ......

! ~l

I f

iii

ACKNOWLEDGEMENTS AND BIOGRAPHICAL INFORMATION

The contribution and assistance in the preparation of

this study by the following individuals is recognized and gratefully acknowledged:

A. G. Slade, P.Eng.; Former president of Falconbridge Limited and presently president of A. G. Slade Associates.

W. Lebedick, P.Eng.; Former planning engineer for Falconbridge Limited and presently a self-employed mining engineer, consulting in mine engineering serviCEs.

S. De 11 ; P,"esent ly Sen i or draftsfJliJ.n for Falconbridge L iinited.

Secretarial services were provided ~y Dorothy ~onstable.

Authors

L. T. Dunks, P.Eng.; Former chief planning engineer, Sudbury operations of Falconbridge Limited and presently providing mine and industrial engineering services through L. T. Dunks Associates.

D. W. Constable, F.G.A.C.; Formerly regional geologist for Kerr Addison Mines Limited and for the past three years a consulting geologist and president of Constable Consulting Inc.

I , ~--------------------------------------~~----------~/



EXECUTIVE SUMMARY

1.0 BACKGROUND INFORMATION

2.0 ACCESS, TOPOGRAPHY AND ENVIRONMENTAL

3.0 GEClLOGY

4.0 ORE RESERVES

5.0 MINING

6.0 PlETALLURGY

7.0 ECONOMIC EVALUATION RESULTS


1

~I I

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0


EXECUTIVE SUMMARY

BACKGROUND INFORMATION

ACCESS, TOPOGRAPHY AND ENVIRONMENTAL

GEOLOGY

ORE RESERVES

MINING

r4ETALLURGY

ECONOMIC EVALUATION RESULTS

CONCLUSIONS AND RECOMMENDATIONS


CAL GRAPHITE' CORPORATION

EXECUTIVE SUMMARY


Cal G r a p h i t e C o r p o r a t i o n owns a 23-c la im, c r y s t a l l i n e f l a k e

g r a p h i t e p r o p e r t y s i t u a t e d 16 m i l e s e a s t o f Sundr idge v i l l a g e ,

O n t a r i o and 155 m i l e s n o r t h o f To ron to . S ince t h e s p r i n g o f

1985 t h e p r o p e r t y has been t h e o b j e c t o f an i n t e n s i v e two-

phase e x p l o r a t i o n program. Phase I (1985) c o n s i s t e d o f t h e

c o m p l e t i o n o f 22 diamond d r i l l h o l e s , s t r i p p i n g and b u l k

sampl i n g . Phase I 1 (1986) added 34 d i m o n d d r i l l ho les ,

su rvey ing , 1 and c l e a r i n g and overburde: , removal .

Two d i s t i n c t f l a k e g r a p h i t e - b e a r i n g h o r l z o n s were d e l i n e a t e d

on Cal G r a p h i t e C o r p o r a t i o n ' s p r o p e r t y , t h e Hang ingwal l and

F o o t w a l l Zones. The zones z r a v e r y wide, possess exce l l e n t

q u a l i t y , coa rse c r y s t a l l i n e f l a k e g r a p h i t e . Based on t h e

success o f Phases 1 and I 1 t h i s m i n i n g f z a s i b i l i t y r e p o r t i s

t h e f i n a l s t e p t o a p r o d u c t i o n d e c i s i o n when t a k e n t o g e t h e r

w i t h m a r k e t i n g commitments.

T h i s f e a s i b i l i t y r e p o r t i s based on c o s t s s u b m i t t e d by

c o n t r a c t o r s , O n t a r i o Hydro, B e l l Telephone, c o n s u l t a n t s and

o t h e r e x p e r t s who have had i n p u t i n t o t h e c o s t s and p r i c e s .

The c o s t s and p r i c e s a r e c o n s e r v a t i v e and where more than one

c o s t o r p r i c e was o b t a i n e d t h e average was u t i l i z e d . The

au tho rs c o n s i d e r t h e quoted c o s t s and p r i c e s a r e c o n s e r v a t i v e

and may p o s s i b l y be l o v e r i n p r a c t i c e .

CAL GRAPHITE· CORPORATION

EXECUTIVE SUMMARY


Cal Graphite Corporation owns a 23-claim, crystalline flake

graphite property situated 16 miles east of Sundridge village,

Ontario and 155 miles north of Toronto. Since the spring of

1985 the property has been the object of an intensive two

phase exploration program. Phase I (1985) consisted of the

completion of 22 diamond drill holes, stripping and bulk

sampling. Phase II (1986) added 34 dia~ond drill holes,

surveying, land clearing and overburden removal.

Two distinct flake graphite-bearing horizons were delineated

on Cal Graphite Corporation's property, the Hangingwall and

Footwall Zones. The zones aro very wide, possess excellent

quality, coarse crystalline flake graphite. Based on the

success of Phases 1 and II this mining feasibility report is

the final step to a production decision when taken together with marketing commitments.

This feasibility report is based on costs submitted by

contractors, Ontario Hydro, Bell Telephone, consultants and

other experts who have had input into the costs and prices.

The costs and prices are conservative and where more than one

cost or price was obtained the average was utilized. The

authors consider the quoted costs and prices are conservative

and may possibly be lower in practice.

@: CONSTABLE CONSULTING J~JC.

2.0 ACCESS, TOPOGRAPHY AND ENVIRONMENT

The sub j ec t proper ty i s a cce s s ib l e v i a paved highway 518

East from Emsdale v i l l a g e f o r a d i s t a n c e of 10 miles t o

Fores t ry Tower Road. Fores t ry Tower Road a t mileage 9 i s

loca ted a t McGuire Lake in the c e n t r e of t h e p roper ty and

on t h e g r aph i t e hor izons . ! The local topography i s a re juvenated peneplain a r ea with

young V-shaped va l l ey s and d e t a i l e d r e l i e f up t o 400 f e e t .

Overmature maple t r e e s cover t h e s l opes . Overburden i s 1 i u sua l ly l e s s than 10 f e e t deep and c o n s i s t s mainly of s i l t s I I I and c l ays with small boulder t i l l a r ea s . Drainage i s I - I I

I

i gene ra l l y southward i n t o t h e IYagnetawan r i v e r and thence 1 1 westward as p a r t of t h e Great Lakes Drainage System. Lacal ly , !

d ra inage i s s lugg ish and water flow i s low.

As witn a l l mining ?rejects some d i s tu rbance of t h e environ- I ment i s i n e v i r a b l e and i c i s an t i c i pa t2d t h a t continued 1 I communication with t h e involved m i n i s t r i e s should allow 1 I

organized and s t a b l e evo lu t ion of t h i s mu1 t i -s taged mining

p ro j ec t with minimal environmental impact.

The fol lowing major developnents a r e necessary f o r product ion:

Development Phase

( 1 ) Se l ec t i on and Preparat ion of Mill S i t e

(2) Selec t ion and Preparat ion of Ta i l i ngs S i t e s

( 3 ) Construct ion of New Bypass and In t e rna l Proper ty Roads

(4) Diamond Dr i l l ing on McGuire Lake

( 5 ) Damming of Graphi te Lake

( 6 ) Drai niqg of McGuire Lake

i I

r'

CONSTABLE COFIStiLTlNG !NC.

I i i I

)

- 2 -

2.0 ACCESS, TOPOGRAPHY AND ENVIRONMENT

The subject property is accessible via paved highway 518

East from Emsdale village for a distance of 10 miles to

Forestry Tower Road. Forestry Tower Road at mileage 9 is

located at McGuire Lake in the centre of the property and

on the graphite horizons.

The local topography is a rejuvenated peneplain area with

young V-shaped valleys and detailed relief up to 400 feet.

Overmature maple trees cover the slopes. Overburden is

usually less than 10 feet deep and consists mainly of silts

and clays with small boulder till areas. Drainage is

generally southward into the Magnetawan river and thence

westward as part of the Great Lakes Drainage System. Locally,

drainage is sluggish and water flow is low.

As with all mining projects some disturbance of the environ

ment is inevitable and it is anticipated that continued

communication with the involved ministries should allow

organized and stable evolution of this multi-staged mining

project with minimal environmental impact.

The following major developments are necessary for production:

Development Phase

(1) Selection and Preparation of Mill Site

(2) Selection and Preparation of Tailings Sites

( 3 ) Construction of New Bypass and Internal Property Roads (4) Diamond Drilling on McGuire Lake ( 5 ) Damming of Graphite Lake ( 6 ) Draining of McGuire Lake

@: CONSTABLE CmJSUL TlNG !NC~

Operating Phase

(1 ) Draining of Minnow Lake

( 2 ) Selection of Additional Tailings Sites

( 3 ) Preparation of Additional Tai 1 ings Sites ( 4 ) Construction of Underground Decline

( 5 ) Waste Rock Disposal Site

These developments would require government permits and

careful, detailed, discussions of each procedure prior t;o

implementation. Once development began it would be too

late to evoke radical changes in procedures.

1 - I CONSTABLE CONSULTING INC.

~I I

- 3 -

Operating Phase

(1) Draining of Minnow Lake (2) Selection of Additional Tailings Sites (3) Preparation of Additional Tailings Sites (4) construction of Underground Decline (5) waste Rock Disposal Site

These developments would require government permits and careful, detailed, discussions of each procedure prior to implementation. Once development began it would be too late to evoke radical changes in procedures.

!


3 . 0 GEOLOGY

Cal G r a p h i t e C o r p o r a t i o n ' s B u t t Township P r o p e r t y l i e s w i t h i n

t h e Grenv i 11 e S t r u c t u r a l P rov ince (1800 t o 2500 mi 11 i o n .years)

o f t h e Canadian Precambr ian S h i e l d . S p e c i f i c a l l y , t h e s u b j e c t

p r o p e r t y i s i n c l u d e d i n t h e P a r r y Sound Domain, an assemlblage

o f 1 ayered pa ragne iss and m i n o r amounts o f marb le . Metamor-

phism has reached g r a n u l i t e f a c i e s and t h e f o r m e r amorph~ous

g r a p h i t i c sed imentary r o c k s have been t r a n s f o r m e d by

tremendous h e a t and p ressu re i n t o c r y s t a l l i n e g r a p h i t e f l a k e -

r i c h h o r i z o n s .

S ince t h e 13701s, when a p r o v i n c i a l su rveyo r d e s c r i b e d t h e

presence o f g r a p h i t e on t h e s u b j e c t p r o p e r t y , t h e area has

been t h e o b j e c t o f a few f e e b l e e x p l o r a t i o n e f f o r t s . I n

t h e 1980 ' s e x p l o r a t i o n and development work a c c e l e r a t e d ,

p a r t i c u l a r l y s i n c e t h e s p r i n g o f 1985 when Cal G r a p h i t e

C o r p o r a t i o n a c q u i r e d t h e p r o p e r t y . P r i o r t o 1985 a t o t a l

of 20 d f amond a r i 11 h o l e s (3808 f e e t ) were comple ted on the

Hangi ngwal 1 G r a p h i t e Zone. I n 1985 Cal G r a p h i t e C o r p o r a t i o n

comple ted an a d d i t i o n a l 22 diamond d r i l l h o l e s (5465 f e e t ) ,

m o s t l y on t h e Hangingwal l G r a p h i t e Zone, b u t w i t h m i n o r

a t t e n t i o n t o t h e F o o t w a l l G r a p h i t e Zone wh ich i s a l s o p r e s e n t

on t h e s u b j e c t p r o p e r t y . I n 1986 Cal G r a p h i t e C o r p o r a t i o n

d r i l l e d 34 diamond d r i l l h o l e s (15,744 f e e t ) w i t h a l a r g e

p r o p o r t i o n of t h e s e h o l e s t e s t i n g b o t h F o o t w a l l and Hanging-

w a l l G r a p h i t e Zones.

I ~I -4 -

3.0 GEOLOGY

Cal Graphite Corporation's Butt Township Property lies within

the Grenville Structural Province (1800 to 2500 million years)

of the Canadian Precambrian Shield. Specifically, the subject

property is included in the Parry Sound Domain, an assemblage

of layered paragneiss and minor amounts of marble. Metamor

phism has reached granulite facies and the former amorphous

graphitic sedimentary rocks have been transformed by

tremendous heat and pressure into crystalline graphite flakerich horizons.

Since the 1370's, when a provincial surveyor described the

presence of graphite on the subject property, the area has

been the object of a few feeble exploration efforts. In

the 1980's exploration and development work accelerated,

particularly since the spring of 1985 when Cal Graphite

Corporation acquired the property. Prior to 1985 a total

of 20 diamond drill holes (3808 feet) were completed on the

Hangingwall Graphite Zone. In 1985 Cal Graphite Corporation

completed an additional 22 diamond drill holes (5465 feet),

mostly on the Hangingwall Graphite Zone, but with minor

attention to the Footwall Graphite Zone which is also present

on the subject property. In 1986 Cal Graphite Corporation

drilled 34 diamond drill holes (75,744 feet) with a large

proportion of these holes testing both Footwall and Hang"ingwa7l Graphite Zones.

~----------------------~~--------, @ CONSTABLE CONSULTING INC.

Both G r a p h i t e Zones c o n s i s t o f q u a r t z - f e l d s p a r - c r y s t a l 1 i n e

g r a p h i t e g n e i s s h o s t r o c k s which s t r i k e 045' and d i p 40'

e a s t w a r d . The b o u n d a r i e s o f each o r e h o r i z o n a r e a s s a y

r a t h e r t h a n l i t h o l o g i c c o n t a c t s . The was t e rock i s a

g a r n e t - b i o t i t e - q u a r t z - f e l d s p a r g n e i s s . Both o r e and

was t e rock t y p e s a r e e x t r e m e l y compe ten t .

- 5 -

Both Graphite Zones consist of quartz-feldspar-crystalline

graphite gneiss host rocks which strike 045 0 and dip 40 0

eastward. The boundaries of each ore horizon are assay

rather than lithologic contacts. The waste rock is a

garnet-biotite-quartz-feldspar gneiss. Both ore and waste rock types are extremely competent.

~ CONSTABLE CONSULTiNG IN~

4.0 ORE RESERVES

The o r e r e s e r v e s a r e d i v i d e d i n t o f i v e d i s t i n c t m i n i n g

phases:

( 1 ) I n i t i a l F i v e Year Open P i t ( S e c t i o n s 9400E t o 10,100E)

( 2 ) Main Open P i t ( S e c t i o n s 9400E t o 9900E)

( 3 ) McGuire Lake Phase ( S e c t i o n s 10,000E t o 10,600E and Open)

( 4 ) Minnow Lake Phase ( S e c t i o n s 9300E t o 8000E and Open)

( 5 ) Below Main Open P i t Phase ( S e c t i o n s 9400E t o 9900E and Open)

The o r e r e s e r v e s w i l l be deve loped and mined i n t h i s o r d e r

and c o n t a i n t h e r e s e r v e s o u t l i n e d i n T z b l e 1 :

TABLE 1 :

L l i n i ng Phases Reserve-Shor t Tons Grade (Weigh t Average (Proven and P r o b a b l e ) Pe rcen t o f S t r i p p i n g

G r a p h i t i c Carbon) ! hiaste:Ore

- R a t i o )

I n i t i a l F i v e Year Open P i t

Main Open P i t 12,727,209 2.34 1 .14:1

McGuire Lake Phase 3,332,607 2.99 ---

Minnow Lake Phase 6,324,849 2.36 - - -

Below Main Open P i t 4,118,177 2.08 U.G.1-lining Phase

T o t a l Proven and P robab le Ore Reserves f o r A1 1 Phases 29,451,540 2.42 - - -

Cal G r a p h i t e C o r p o r a t i o n ' s c r y s t a l l i n e f l a k e g r a p h i t e zones

a r e open t o f u r t h e r r e s e r v e ex?ans ion a l o n g s t r i k e and d i p

in a l l directions. 1

CONSTABLE CCNSULTING !NC

I

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4.0

- 6 -

ORE RESERVES

The ore reserves are divided into five distinct mining

phases:

(1) Initial Five Year Open Pit (Sections 9400E to 10,100E)

(2) Main Open Pit (Sections 9400E to 9900E)

(3) McGuire Lake Phase (Sections 10,OOOE to 10,600E and Open)

(4) Minnow Lake Phase (Sections 9300E to 8000E and Open)

(5) Below Main Open Pit Phase (Sections 9400E to 9900E and Open)

The ore reserves will be developed and mined in this order

and contain the reserves outlined in TJble 1:

TABLE 1:

1'·1 i n i n g P has e s

Initial Five Year Open Pit

r~ai n Open Pi t

McGuire Lake Phase

Minnow Lake Phase

Reserve-Short Tons (Proven and Probable)

2,949,000

Grade (\'Jei ght Percent of Graphitic Carbon)

2.74

Average Stripping ('i'iaste: Ore Ratio)

0.39: 1

1 . 14: 1

Below Main Open Pit Phase

12,727,209

3,332,607

6,324,849

4,118,177

2.34

2.99

2.36

2.08 U.G.j'c1ining

Total Proven and Probable Ore Reserves for All Phases 29,451,840 2.42

Cal Graphite Corporation's crystalline flake graphite zones

are open to further reserve expansion along strike and dip

in all directions. '-----------~-----~----__.J/

~ CONSTABLE CONSULTING iNC

5.0 MINING

T h i s s t u d y i s based on t h e concept o f m i n i n g t h e Cal

G r a p h i t e orebody b y an o p e n - p i t method t o t h e maximum

p o s s i b l e e x t e n t , w i t h even tua l r e c o v e r y by underground

m i n i n g . P r o d u c t i o n t o be based on 2 s h i f t s / d a y , 6 days/

week.

S p e c i f i c parameters were s e t f o r t h i s s tudy , as f o l l o w s :

i Address t h e o p e n - p i t m i n i n g o n l y

ii Assume s t r i p p i n g t o be completed i n 1987

iii 25,000 t o n s o f uncrushed o r e t o be s t o c k p i l e d a t thle

m i l l s i t e f o r m i l l t e s t i n g .

1V Phase i n p r o d u c t i o n a t t h e f o l l o w i n g d a i l y r a t e s :

P r o d u c t i o n y e a r 1. 1000 t o n s

2. 15C)O t o n s

3. 2500 t o n s f

4. - 3000 t o n s f " 5. - 3000 t o n s

*Based on tons /g rade t o produce 20,000 t o n s o f c o n c e n t r a t e

V Assume waste t o be broken and hau led f o r darns, roads e t c

Major p r e - p r o d u c t i o n dork i s r e q u i r e d t h a t shou ld be g i v e n

e a r l y p r i o r i t y . T h i s i s l i s t e d ; t o g e t h e r w i t h t h e proposed c o s t .

i Hydro power t o t h e p r o p e r t y $1.61M

ii Communication system $31 ,000

iii T a i l i n g s t r e a t m e n t system $2.17M

i v Road, Berms $ 0 . 6 ~

Dur ing t h i s phase, s i t e p r e p a r a t i o n work can c o n t i n u e i n

r e a d i n e s s f o r m in ing , such as s t r i p p i n g , su rvey ing , s a n i t a t i o n

e t c . I

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- 7 -

5.0 MINING

This study is based on the concept of mining the Cal

Graphite orebody by an open-pit method to the maximum

possible extent, with ~v~ntual recovery by underground mining. Production to be based on 2 shifts/day, 6 days/

week.

Specific parameters were set for this study, as follows:

i Address the open-pit mining only

ii Assume stripping to be completed in 1987

iii 25,000 tons of uncrushed ore to be stockpiled at the mill site for mill testing.

lV Phase in production at the following dai ly rates: Production year l. 1000 tons

2. 1500 tons ') ..J. 2500 tons

* 4. + 3000 tons -

* 5. + 3000 tons -*Based on tons/grade to produce 20,000 tons of concentrate

V Assume waste to be broken and haul ed for dams, roads etc.

r~ajor pre-production work is required that should be given

early priority. This is listed; together with the proposed cost. Hydro power to the property $1.61M

ii Communication system

iii Tailings treatment system i v Road, Berms

$31,000

$2.17M

SO.6M

During this phase, site preparation work can continue in

readiness for mining, such as stripping, surveying, sanitation etc.

, i. ___________ ~ ____ ~---~-_!


Mine p l a n n i n g o f t h e Cal G r a p h i t e orebody i s r e s t r i c t e d t o

few a l t e r n a t i v e s due t o t o p o g r a p h i c a l , g e o l o g i c a l and

env i ronmen ta l c o n d i t i o n s . The orebody c o n s i s t s o f t h e

Hang ingwal l and F o o t w a l l Zones t h a t o u t c r o p on s u r f a c e i n

t h e c e n t r e , b u t l i e under l a k e s a t t h e e a s t and west

e x t r e m i t i e s . Pe rm iss ion t o d r a i n t h e 1 akes must be o b t a i n e d

f rom t h e m i n i s t r i e s o f Envi ronment and N a t u r a l Resources.

The orebody i s des igned t o be mined i n f i v e zones as f o l l ows:

Zone

No. T i tl e -

1 I n i t i a l Open P i t

2 Main Open P i t

3 McGuire Lake

4 Minnow Lake

5 Be1 ow Main

Ore

Grade

2.74

2.34

2.99

2.36

2.08

TOTAL

(Tons i n 1000s)

Ore Waste -

2,349 1,286

12,727 14,512

3,333 3,333

5,325 6,325

4,118 -

29,352 25,456

Method

Open Pi i t

Open P i t

Open P i t

Open P i t

U/G M i n i n g

I n he f i r s t f i v e y e a r s of p r o d u c t i o n , i t i s i n t e n d e d t o

c o n c e n t r a t e m i n i n g i n t h e Hang ingwal l o f t h e Main Zone a t

b a s e l i n e 10,000N. T h i s g i v e s easy access t o t h e Hang ingwal l ,

t h a t has a h i g h e r g rade and a l ow m i n i n g r a t i o o f waste :ore .

R e f e r t o s e c t i o n s 9,400E - 10,100E.

I n y e a r s i x , a ramp d e c l i n e f rom t h e m i l l s i t e w i l l be d r i v e n

t o be used as a conveyor gangway. Ore passes w i l l be d r i v e n

i n t o t h e o r e zones and w i l l be used t o pass c rushed o r e f r o m

t h e p i t , t o t h e conveyor and i n t o t h e m i l l coars~: o r e b i n .

The o b j e c t i s t o reduce m i n i n g c o s t s and o f f e r an z n v i r o n -

m e n t a l l y c l e a n o r e t r a n s p o r t a t i o n system.

A p r o d u c t i o n schedu le f o r t h e t o t a l tonnage o f o r e and waste

c o n t a i n e d i n t h e r e s e r v e s i s s t a ~ e d i n t h e f o l l o w i n g t a b l e .

1

I I


I ~I

J - 8 -

Mine planning of the Cal Graphite orebody is restricted to

few alternatives due to topographical, geological and

environmental conditions. The orebody consists of the

Hangingwall and Footwall Zones that outcrop on surface in

the centre, but lie under lakes at the east and west

extremities. Permission to drain the lakes must be obtained

from the ministries of Environment and Natural Resources.

The orebody is designed to be mined in five zones as follows:

Zone Ore (Tons in 1000s) Mining No. Titl e Grade Ore Waste Method

Initial Open Pit 2.74 2,949 1,286 Open PH 2 t~ain Open Pit 2.34 l2,727 14,512 Open Pit 3 1~1cGui re Lake 2.99 3,333 3,333 Open Pit 4 ~~i nnow Lake 2.36 6,325 6,325 Open Pit 5 Belmv Hain 2.08 4,118 U/G ~'1i ni ng

TOTAL 2.42 29,452 25,456

In the first five years of production, it is intended to concentrate mining in the Hangingwall of the Main Zone at

baseline lO,OOON. This gives easy access to the Hangingwall,

that has a higher grade and a low mining ratio of waste:ore. Refer to sections 9,400E - 10,100E.

In year six, a ramp decline from the mill site will be driven

to be used as a conveyor gangway. Ore passes will be driven

into the ore zones and will be used to pass crushed ore from

the pit, to the conveyor and into the mill coarse ore bin.

The object is to reduce mining costs and offer an 2nvironmentally clean ore transportation system.

A production schedule for the total tonnage of ore and waste contained in the reserves is stated in the following table.

! !

------------------------------------------------------------=---------------------1 ~ CONSTABLE CONSULTING iNC.

CAL GRAPHITE

PRODUCTION SCHEDULE -- TABLE 2

TOTAL ORE RESERVES

i o n s ( i n 10005) Weight % Tons Concentrate Years Zones Or, Waste o f 87.9% a!?%

Graphi t i c Recovery Concentrate Carbon

Pre-Prod 1 1 2 1 3 1 4 1 5 1 & 2 6 2 7 2 3 il 9 2 10 2 1 1 2 12 2 13 2 14 2 15 2 16 '7

17 2 1 0 l u 2 19 2

TOTALS 29,452.0

9,119 13,680 20,000 20,000 20,000 20,000 20,000 2CI,OOO 2C1,OOO 20,000 20,000 20,000 iC . 000 20,000 20,000 20, G O O 20,900 20.000 20,000 20,000 20, COO 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 13,653

736,454

I


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\ CAL GRAPHITE

PRODUCTION SCHEDULE ----TABLE 2

TOTAL ORE RESERVES

Tons ( i n 1000s) Weight % Tons Concentrate Years Zones Ore Waste of 87.9% 85%

Graphiti c Recovery Concentrate Carbon

Pre-Prod 300.0 1 1 322.0 18.0 2.74 7,754 9,119 2 1 483.0 77 .0 2.74 11 ,633 13,680 3 1 706.0 196.0 2.74 17,006 20,000 4 1 706.0 275.0 2.74 17 ,006 2Cl,000 5 & 2 732.0 420.0 2.64 17,006 20,000 6 2 827 .0 943.0 2.34 17,006 2Cl,000 7 2 827.0 943.0 2.34 17,006 20,000 8 2 827 .0 943.0 2.34 17,006 20,000 9 2 827 .0 943.0 2.34 17,006 20,000 10 2 827.0 943.0 2.34 17,006 20,000 11 2 827.0 943.0 2.34 17,006 20,000 12 2 827.0 943.0 2.34 17,006 20,000 13 2 827.0 943.0 2.34 17,006 20.000 14 2 827.0 943.0 2.34 17,006 20,000 15 2 827.0 943.0 2.34 17,006 20,000 16

,.., 827.0 943.0 2.34 17 , 006 20,000 L

17 2 827.0 343.0 2.34 17,006 20,000 10 lu 2 827.0 943.0 2.34 17,006 20.000 19 2 827.0 943.0 2.34 17,006 20,000 20 2 827.0 943.0 2.34 17,006 20,000 21 2 & 3 717.0 762.0 2.70 17,006 20,000 22 3 647.0 647.0 2.99 17,006 20,000 23 3 647.0 647.0 2.99 17,006 20,000 24 3 647.0 647.0 2.99 17,006 20,000 25 ') 647.0 647.0 2.99 17,006 20,000 ..J

26 3 & 4 726.0 726.0 2.66 17,006 20,000 27 4 820.0 820.0 2.36 17,006 20,000 28 4 820.0 820.0 2.36 17,006 20,000 29 4 820.0 820.0 2.36 17,006 20,000 30 4 820.0 820.0 2.36 17,006 20,000 31 4 820.0 820.0 2.36 17,006 20,000 32 4 820.0 820.0 2.36 17,006 20,000 33 4 820.0 820.0 2.36 17,006 20,000 34 4 & 5 902.0 209.0 2.14 17,006 20,000 35 5 930.0 2.08 17,006 20,000 u/g 36 5 930.0 2.08 17,006 20,000 u/g 37 5 930.0 2.08 17,006 20,000 u/g 38 5 635.0 2.08 11 ,610 13,653 u/g

TOTALS 29,452.0 25,456.0 2.42 626,208 736,454

! j ,

<§: CONSTABLE CONSULTING !NC.

6.0 METALLURGY

M i l l m e t a l l u r g i c a l r e s u l t s a r e based on e x t e n s i v e t e s t w o r k

on t h e Cal G r a p h i t e C o r p o r a t i o n o r e a t L a k e f i e l d Research

o f Canada L i m i t e d l a b o r a t o r i e s . Optimum t e s t r e s u l t s

c o n s i s t e d o f r o d m i l l g r i n d i n g , f l o t a t i o n , r e - g r i n d i n g o f

u n d e r s i z e and r e - f l o t a t i o n . F i n a l c o n c e n t r a t e c l e a n i n g

u t i l i z e d a t a b l e . The t e s t r e s u l t s a r e d e t a i l e d i n Tab le 3.

TABLE 3

M e t a l l u r g i c a l Balance:

Two P r o d u c t Ba lance

P roduc t LJeight 7L Assays % 7; D i s t . i n d . h ' a l l G S

Rougher C leaner Ccnc. 3.70 3.70 49.1 89.6 /?ougner Ta i 1 i ng 96.30 56.30 0.22 10 .4 Kdson Unders i ze 100.0 100.0 2.03 100.0

42.2 Tab ie Concen t ra te i .58 28.2 76.9 Sweco Unders i ze 57.2 2.12 13.8 23.1 Rougher C l eaner Conc. 100.0 3.70 49.1 100.0

Tab le 2 Concen t ra te 22.6 0.48 80.1 91 .6 Combined Scav. T a i l . 77.4 1.64 2.16 8.4 Sweco Unders i ze 100.0 2.12 19.8 100.0

Combined Concen t ra tes 2.05 2.05 87.1 37.9 Combined T a i l i n g s 97.95 97.95 0.25 12.1 Kason Unders i ze 100.0 i 0 0 . 0 2.03 100.0

Combined Conc. ( C a l c . ) - - - - - 2.06 36.3 37.8 I 1

1 Combined Ta i 1. ( C a l c . ) - - - - - 97.94 0.25 12.2 I Kason Unders i ze - - - - - 100.00 2.03 100.0 1

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CONSTABLE CO1?ISULTING INC.

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6.0 METALLURGY

Mill metallurgical results are based on extensive testwork

on the Cal Graphite Corporation ore at Lakefield Research

of Canada Limited laboratories. Optimum test results

consisted of rod mill grinding, flotation, re-grinding of

undersize and re-flotation. Final concentrate cleaning

utilized a table. The test results are detailed in Table 3.

TABLE 3

Metallurgical Balance: Two Product Balance

Pl~oduct \vei gilt ~~ f1.ssays % % Dist. Ind. lJ'all G G

Rougher Cleaner Cone. 3.70 3.70 49. 1 89.6 Hougher Tailing 96.30 96.30 0.22 10.4 i<ason Undersize 100.0 100.0 2.03 100.0

Table Concentl~ate 42.8 1. 58 38.2 76.9 SvJeeo Unders i ze 57.2 2. 12 19.8 23.1 Rougher Cleaner Cone. 100.0 3.70 49.1 100.0

Table 2 Concentrate 22.6 0.48 80.1 91.6 Combined Seav. Tai 1 . 77.4 1. 64 2. 16 8.4 Sweco Undersize 100.0 2. 12 19.8 100.0

Combined Concentrates 2.05 2.05 87.1 37.9 Combined Tailings 97.95 97.95 0.25 12. 1 Kason Undersize 100.0 100.0 2.03 100.0

Combined Cone. (Calc.) 2.06 86.3 87.8 Combined Tail. (Calc.) 97.94 0.25 12.2 Kason Undersize 100.00 2.03 100.0

@ CONSTABLE CONSULTING INC.'

TABLE 3 (continued)

Si ze Fracti on Analyses : Concentrate

Product Weight :L

Assays, % % Dist . L O 1 LO1

+I00 Mesh 86.5 94.5 86.7 -100 Mesh 13.5 92 .6 13.3

-- -

Head (Cal c . ) 100.0 94.2 100.0

I Combined Concentrate

+I00 Mesh 72.9 94.6 73.6 -100 Plesh 2 7 . 1 91 . 2 26.4

Head (Cal c . ) 100.0 93.7 100.0

The +I00 mesh concentrate assayed b7.11% graphi te and the

+I00 mesh recovery was 87.9 percent.

The f i n a l concentrate produced by t h i s testwork represents

grade and f l ake s i ze commanding premium product pr ices in

the graphi te market. Extensive addit ional testwork i s

necessary pr ior t o f ina l mill design. These t e s t s would

e s t ab l i sh optimum crushing method and s i ze . I t would also I

es t ab l i sh the optimum flow-chart t o produce each separate ,

I I

i product. In cont ras t t o base metal o r precious metal mi l l s I

t h i s graphi te mi 1 1 must De able t o vary the f l a k e s i z e and I I carbon content t o meet several product spec i f i ca t ions . T h u s

t he f i n a l design must be v e r s a t i l e enough t o f i l l a l l possible I

\ product l i n e s . !

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CONSTABLE CONSULTiNG INC.

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TABLE 3 {continued}

Size Fraction Analyses:

Concentrate

Product Weight %

+100 Mesh 86.5 -100 ~~esh 13.5

Head (Calc.) 100.0

Combined Concentrate

+100 Mesh -100 t'lesh

Head (Calc.)

72.9 27. 1

100.0

- 11 -

Assays, LOl

94.5 92.6

94.2

94.6 91.2

93.7

% % Di st. LOl

86.7 13.3

100.0

73.6 26.4

100.0

The +100 mesh concentrate assayed 87.1% graphite and the

+100 mesh recovery was 87.9 percent.

The final concentrate produced by this testwork represents

grade and flake size commanding premium product prices in

the graphite market. Extensive additional testwork is

necessary prior to final mill design. These tests would

establish optimum crushing method and size. It would also

establish the optimum flow-chart to produce each separate

product. In contrast to base metal or precious metal mills

this graphite mill must be able to vary the flake size and

carbon content to meet several product specifications. Thus

the final design must be versatile enough to fill all possible

product lines.

@: CONSTABLE CONSULTiNG iNC.


The economic a n a l y s i s was comple ted u s i n g a c t u a l c o n t r a c t o r b i d s and an a v e r a g e p r i c e o f $1100. -

Canadian p e r t o n of g r a p h i t e c o n c e n t r a t e (FOB Mil l S i t e ) .

The l a t t e r p r i c e was p rov ided by Canadian Government

s o u r c e s and exc luded p o s s i b l e premiums t o t h e p r i c e f o r

h i g h e r p u r i t y c o n c e n t r a t e and i g n o r e s any s h a r e of t h e

t r a n s p o r t a t i o n d i f f e r e n t i a l s between Canada and c o u n t r i e s

such a s Madagascar .

For t h e i n i t i a l 5 -yea r low w a s t e open p i t phase :

Optimum Production Years 1-5 Can. $ in 1000's

C a p i t a l Cost

Mining Cos t

Mi 11 i ng Cost

T o t a l Cost

Tons C o n c e n t r a t e

Revenue

Cash Flow

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The economic analysis was completed using actual

contractor bids and an average price of $1100. -

Canadian per ton of graphite concentrate (FOB Mill Site).

The latter price was provided by Canadian Government

sources and excluded possible premiums to the price for

higher purity concentrate and ignores any share of the

transportation differentials between Canada and countries

such as Madagascar.

For the initial 5-year low waste open pit phase:

Optimum Production Years 1-5 Can. $ in 1000's

Capita 1 Cost $ .9,005 ~~ining Cost 20,247 ~1illing Cost 19,965 Total Cost $ 49,217 Tons Concentrate 100,000 Revenue 110,000

Cash Flow $ 60,783

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@; CONSTABLE CONSULTING INC.'

F o r t h e e n t i r e p r o d u c t i o n schedu le o f y e a r s 1-34:

Pr~duct isn Years 1-34 (Can. $ i n 1000s)

T r u c k i ng

Ore

C a p i t a l Cos t

M i n i n g Cos t

M i l l i n g Cos t

Convey ing

Ore

$ 16,464

T o t a l Cos t


Revenue

Cash F l o w

No tes : B e f o r e Tax

C a p i t a l No t D i s c o u n t e d

1986 C o n s t a n t D o l l a r s

No A d m i n i s t r a t i o n Cos t s

- - i h e f o l l o w i n g s e n s i t i v i t y g raphs show t h e economics o f

t h e p r o j e c t u s i n g p r o d u c t p r i c e and g rade v a r i a b l e s .

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CONSTABLE CCNSULTING INC.

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For the entire production schedule of years 1-34:

Production Years 1-34 (Can. $ in 1000s)

Trucking

Ore

Capita 1 Cost $ 11 ,205

Il1i ni ng Cost 261,716

~1i 11 i ng Cost 105,812

Total Cost $378,733

Tons Concentrate 647,899

Revenue $712,691

Cash Flow $333,958

Notes: Before Tax

Capital Not Discounted

1986 Constant Dollars

No Administration Costs

Conveying

Ore

$ 16,464

216,050

105,812

$338,326

647,899

$712,691

$374,365

The following sensitivity graphs show the economics of

the project using product price and grade variables.

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~--------~----~--~------_I ~ CONSTABLE CCNSULTING rNC.'

z: o u

$ 700-

60(}

500-

:::E 40(}' ~

z: .......

I.L.I

~ u z: .......

IL.LJ z:

300.

20(1

10Q

I 00 ,

500 I

600 700

CAL GRAPHITE CORPORATION PRODUCT PRICE SENSITIVITY ANALYSIS

Break-Even Price $522 CDN. Per Ton of Concentrate

I

,~ I I I

300 900 1000 1100 1200 1300 1400 1500

Product Price in $CDN/ton Concentrate

)

CAL GRAPH1 TE CORPORATION --

GRADE SENSIT IV ITY ECONOMIC ANALYSIS

PERCENT GRADE GRAPH I T I C CARBON

CUT OFF GRADE @ $ 1 1 0 0 / t o n CONCENTRATE = 1.17%

$110 0

100 D-

90 O

80 D-

70 O-

Z 60 D-o u :E:

~ 50

LLJ ~ 40 u z .......

t- 30 LLJ :z:

20

10

o

O-

D-

O-

D-

O-

1.0 .--J

1.5 I

2.0

I


GRADE SENSITIVITY ECONOMIC ANALYSIS --

1 I 2.5

I

3.0 I

I 3.5

PERCENT GRADE GRAPH IT I C CARBON

I , 4.0

CUT OFF GRADE @ $llOO/ton CONCENTRATE = 1.17%

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4.5 I

)

5.b I

8.0 CONCLUSIONS AND RECOMMENDATIONS

Cal G r a p h i t e C o r p o r a t i o n ' s B u t t Township f l a k e g r a p h i t e

p r o p e r t y i s economical l y v i a b l e ove r a ln rn ing 1 i f e of 34

y e a r s p roduc ing g r a p h i t e c o n c e n t r a t e a t a r a t e o f 20,000

t o n s p e r y e a r . P re -p roduc t i on p l a n n i n g must s t a r t as soon

as a f i n a l p r o d u c t i o n d e c i s i o n i s reached and must i n c l u d e :

1 . Env i ronmenta l Approval s

2. Hydro L i n e C o n s t r u c t i o n P lann ing

3. T a i l i n g s Dam Design

4. Lake Dam Design

5. Lake Dra inage Permi s s i on

To max i l i ~ i ze c o s t r e t u r n s and m i n i n g l a y o u t e f f i c i e n c i e s

these s t e p s a r e recommended:

1. S i a r t m i 11 i n g a t h i g h e r p r o d u c t i o n r a t e

i n y e a r s 1 t o 5 (See: Econo~nic Tab le 17) t o maximize casl i

f l o w t o pay o f f i n i t i a l c a p i t a l c o s t s .

2. Design t h e m i l l f o r more than 3000 tons pe r

day t o a1 l o w a d d i t i o n a l ? roduc t p r o d u c t i o n i n case o f

l a r g e r market share. T h i s would s i g n i f i c a n t l y l ower o p e r a t i n g

c o s t s .

3. Examine g r a p h i t e market t o o b t a i n h i g h e r p r j c e d

p roduc t l i n e s which would l e a d t o an even h i g h e r r a t e o f

r e t u r n .

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8.0 CONCLUSIONS AND RECOMMENDATIONS

Cal Graphite Corpof'ation's Butt Township flake graphite

property is economically viable over a mining life of34

years producing graphite concentrate at a rate of 20,000

tons per year. Pre-production planning must start as soon

as a final production decision is reached and must include:

1. Environmental Approvals

2. Hydro Line Construction Planning

3. Tailings Dam Design

4. Lake Dam Design

5. Lake Drainage Permission

To maximize cost returns and mining layout efficiencies these steps are recommended:

1. start milling at higher production rate

in years 1 to 5 (See: Economic Table17) to maximize cash flow to payoff i nit i a 1 capital costs.

2. Design the mill for more than 3000 tons per day to allow additional product production in case of

larger market share. This would significantly lower operating costs.

3. Examine graphite market to obtain higher priced product lines which would lead to an even higher rate of return.

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C§; CONSTABLE CONSUL TING !NC

4 . After Open Pit year 5 i n s t a l l a decline-

underground conveyor system which will lead t o lower

cos t s , can handle additional tonnage and will a l l ay a

number of environmental hazards. As well, the decline-

conveyor option will allow a smooth low cost switch t o

underground mining.

5 . Final product should be stored a t railhead

in a Butler building where r a i l cars can be loaded as

required. This will allow product t o be shipped even

during a possible winter 2-month shutdown of operations.

6. Perform extensive and large batch mill

t e s t s prior t o f ina l mill design. Crucial i tems t o be

considered are crushing method and optimuin crushing

s i ze ; design of separate flow charts fo r each graphite

product and desi gri of a versat i l e mi 1 1 capable of

producing a l l rrecessary graphite products t o indus t ry ' s

to1 erances . 1Je consider metal lurgy the c r i t i c a l element

t o t h e success of t h i s venture.

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4. After Open Pit year 5 install a decline-

underground conveyor system which will lead to lower

costs, can handle additional tonnage and will allay a

number of environmental hazards. As well, the decline

conveyor option will allow a smooth low cost switch to underground mining.

5. Final product should be stored at railhead

in a Butler building where rail cars can be loaded as

required. This will allow product to be shipped even

during a possible winter 2-month shutdown of operations.

6. Perform extensive and large batch mill tests prior to final mill design. Crucial items to be

considered are crushing method and optimum crushing

size; design of separate flow charts for each graphite

product and design of a versatile mill capable of

produci ng all n-ecessary graphi te products to industry I s tolerances.

We consider metallurgy the critical element to the success of this venture.

@: CONSTABLE CONSULTING INC.'

J - 16 -1


SECTION II

GEOLOGY

1. GENERAL GEOLOGY

2. TONNAGE AND GRADE ADJUSTMENT FACTORS

3. ORE RESERVES

~ CONSTABLE CONSUL riNG iNC.

GEOLOGY

1. GENERAL GEOLOGY


SECTION I I

Cal Graphite Corpora t ion ' s B u t t Township proper ty

c o n s i s t s of 23 unpatented mining claims covering approxi -

mately 1100 acres and s i t u a t e d 16 miles e a s t of t h e

v i l l a g e of Sundridge. The proper ty l i e s i n t h e Grenvi l l e

S t ruc tu ra l Province of t h e Canadian Precambrian Shie ld .

More s p e c i f i c a l l y , t he group l i e s w i t h i n t h e Parry Sound

Dornai n ; an assembl age of 1803 t o 2500 mi 1 1 ion year 01 d

paragneisses and minor marble. The Parry Sound Domain

rocks have been deeply buried and sub jec ted t o g ranul i t e - .

f a c i e s l e v e l s of heat and Fressure . Ancient carbonaceous

a rg i i l a ceous beds were metarnor?hosed t o quar tz - fe ldspar -

c r y s t a l 1 i ne f 1 ake g r aph i t e gnei s s e s . Later re t rograde

metamorphism r e s u l t e d i n t h e formation of carbonate as a

matrix and binder f o r the rock u n i t s .

Two c r y s t a l l i n e f l a k e graphi te -bear ing horizons a r e

known on Cal Graphite Corporation ' s B u t t Township proper ty .

They s t r i k e 045' and d ip 40' t o t he sou theas t . The u n i t s

a re general l y monocl i nal b u t con ta in mi nor i n t e rna l

ptygrnatic fo ld ing and, i n t he a rea of s ec t i ons 9500 and

960GE, a minor fo ld occurs i n t h e hangingwall con tac t of

t h e upper u n i t . The two u n i t s a r e sub-para l le l with t h e

main u n i t c a l l e d t h e Hangingwall Zone and t h e lower un i t

named t h e Footwall Zone. Surrounding and between t he

g r a p h i t i c gne iss horizons a r e garne t -quar tz - fe ldspar -

b i o t i t e gne i s se s . Generally speaking t h e Hangingwall Zone

/ I J


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17


SECTION II

GEOLOGY

1. GENERAL GEOLOGY

Cal Graphite Corporation's Butt Township property

consists of 23 unpatented mining claims covering approximately 1100 acres and situated 16 miles east of the

village of Sundridge. The property lies in the Grenville

Structural Province of the Canadian Precambrian Shield.

More specifically, the group lies within the Parry Sound

Domain; an assemblage of 1800 to 2500 million year old

paragneisses and minor marble. The Parry Sound Domain

rocks have been deeply buried and subjected to granulite

facies levels of heat and pressure. Ancient carbonaceous

argillaceous beds were metamorphosed to quartz-feldspar

crystalline flake graphite gneisses. Later retrograde

metamorphism resulted in the formation of carbonate as a matrix and binder for the rock units.

Two crystalline flake graphite-bearing horizons are

known on Cal Graphite Corporation's Butt Township property.

They strike 045 0 and dip 400 to the southeast. The units

are generally monoclinal but contain minor internal

ptygmatic folding and, in the area of sections 9500 and

960UE, a minor fold occurs in the hangingwall contact of

the upper unit. The two units are sub-parallel with the

main unit called the Hangingwall Zone and the lower unit

named the Footwall Zone. Surrounding and between the

graphitic gneiss horizons are garnet-quartz-feldspar

biotite gneisses. Generally speaking the Hangingwall Zone


i s o f s l i g h t l y b e t t e r grade m a t e r i a l t h a n t h e F o o t w a l l

Zone. The c o n t a c t s of each Zone a r e t r a n s i t i o n a l

assay boundar ies . Garnet g n e i s s bands a r e found w i t h i n

t h e Hang ingwal l Zone ( c o m p r i s i n g 2.6% o f t h e u n i t ) and

s l i g h t l y more f r e q u e n t l y w i t h i n t h e F o o t w a l l Zone.

S i m i l a r l y , g r a p h i t i c gne i ss bands a r e p r e s e n t i n t h e

g a r n e t g n e i s s rock , p a r t i c u l a r l y w i t h i n t h e i n t e r v a l o f

waste r o c k between t h e two G r a p h i t e Zones. The G r a p h i t e

Zones v a r y i n m ineab le w i d t h s f r o m 60 t o o v e r 500 f e e t .

Both t h e g r a p h i t e and g a r n e t gne isses a r e ex t reme ly

competent b u t , due t o a ca rbona te m a t r i x , compressive

s t r e n g t h i s r o u g h l y 11,000 p s i f o r b o t h u n i t s . It i s

n o t expec ted e i t h e r r o c k t y p e w i l l cause ,-ock suppor t

problems, however t h e g r a p h i t i c gne i ss u n i t d i s i n t e g r a t e s

over a s h o r t t i m e due t o chemical wea the r ing . F o r added

p i t s u p p o r t o u r p i t des ign has 4 0 - f o o t berms.

The g r a p h i t e f l a k e i n Cal G r a p h i t e C o r p o r a t i o n ' s

p r o p e r t y i s v e r y 1 a rge w i t h 84.15 p e r c e n t o f t h e f l a k e s

+ I 0 0 niesh s i z e . The f l a k e i s e a s i l y f r e e d f r o m t h e h o s t

r o c k d u r i n g c r u s h i n g and m a i n t a i n s i t s i n t e g r i t y d u r i n g

m i l l i n g . Gangue m i n e r a l s a r e s i l i c a g r a i n s and b i o t i t e

f l a k e s . R e - g r i n d i n g and f u r t h e r c l e a n i n g remove these

gangue m i n e r a l s because t h e y a r e n o t c o n t a i n e d w i t h i n

t h e g r a p h i t e c r y s t a l f 1 ake. These c h a r a c t e r i s t i c s produce

?remiurn p r o d u c t s f o r t h e w o r l d g r a p h i t e market .

is of slightly better grade material than the Footwall

Zone. The contacts of each Zone are transitional

assay boundaries. Garnet gneiss bands are found within

the Hangingwall Zone (comprising 2.6% of the unit) and

slightly more frequently within the Footwall Zone.

Similarly, graphitic gneiss bands are present in the

garnet gneiss rock, particularly within the interval of

waste rock between the two Graphite Zones. The Graphite

Zones vary in mineable widths from 60 to over 500 feet.

Both the graphite and garnet gneisses are extremely

competent but, due to a carbonate matrix, compressive

strength is roughly 11,000 psi for both units. It is

not expected ei ther rock type wi 11 cause tock support

problems, however the graphitic gneiss unit diSintegrates

over a short time due to chemical weathering. For added

pit support our pit design has 40-foot berms.

The graphite flake in Cal Graphite Corporation's

property is very large with 84.15 percent of the flakes +100 mesh size. The flake is easily freed from the host

rock during crushing and maintains its integrity during

milling. Gangue minerals are silica grains and biotite

flakes. Re-grinding and further cleaning remove these

gangue minerals because they are not contained within

the graphite crystal flake. These characteristics produce premium products for the world graphite market.

@ CONSTABLE CONSULTING INC.'

TONNAGE AND GRADE ADJUSTMENT FACTORS

Tonnage f i g u r e s were c a l c u l a t e d based on t h e r e s u l t s

o f 76 d iamond d r i l l h o l e s . The s e c t i o n s c o n t a i n each

r e l e v a n t diamond d r i l l h o l e and i t s opt imum m i n i n g w i d t h

and g rade . Computer c a l c u l a t i o n s were comp le ted f o r each

i n t e r s e c t i o n l i s t i n g a v a r i e t y o f g rades o v e r s e l e c t e d

w i d t h s . Maximum m i n i n g w i d t h s were chosen b y t h e a u t h o r s

o v e r g r a d e c o n s i d e r a t i o n s t o f a c i l i t a t e f u t u r e s i m p l e ,

b u l k m i n i n g methods i n o u r d e s i g n r a t h e r t h a n c o s t l i e r

s e l e c t i v e m i n i n g methods. Each s e c t i o n was p l a n i m e t e r e d and

a volume f a c t o r o f 13.2 c u b i c f e e t p e r t o n o f o r e and was te

was used f o r tonnage c a l c u l a t i o n s . T h i s volume f i g u r e was

e s t a b l i s h e d i n s e v e r a l s p e c i f i c g r a v i t y t e s t s i n a l a b o r a t o r y .

Proven and p r o b a b l e tonnages were chosen based on:

1 . P r o x i m i t y o f iNext Diarnona D r i l l H o l e

2. Area o f I n f l u e n c e o f Proven Reserves f o r Each

Ciamond D r i l l Ho le D i d biot Exceed 100 F e e t i n

any d i r e c t i o n .

3. P r o ~ a b l e Reserves F a l l O u t s i d e of t h e 100-Foot

A rea o f I n f l u e n c e f o r Each Diamond D r i l l Ho le .

i Grades a r e g i v e n i n p e r c e n t a g e b y w e i g h t o f g r a p h i t i c c a r b o n .

The method o f a n a l y s i s i s by d o u b l e l o s s on i g n i t i o n ( L . O . I . ) . , An a p p r o x i m a t e l y 2-gram saniple f r a c t i o n o f p u l v e r i z e d c o r e

i s we ighed and p l a c e d i n a c r u c i b l e . The c r u c i b l e i s pu t I

i n an oven a t 650' C f o r 45 m inu tes , removed and c o o l e d i n

a d e s s i c a t o r . T h i s f i r s t s t a g e removes t h e l o w t e m p e r a t u r e

v o l a t i l e s ; such as s u l f i d e s , c a r b o n a t e s and w a t e r . A f t e r

r e - w e i g h i n g , t h e c r u c i b l e i s p l a c e d back ~ n a 950' C oven

f o r f o u r hou rs , removed and c o o l e d i n a d e s s i c a t o r . Aga in I

t h e sample was re -we ighed and a c a l c u l a t i o n made o f t h e I

w e i g h t l o s s f o r t h e h i g h t e m p e r a t u r e v o l a t i l e s , i n t h i s

case g r a p h i t i c ca rbon . T h i s a n a l y t i c a l method i s w i d e l y

1 CONSTABLE CONSULTING INC.

~I i

I 2.

Page 19

TONNAGE AND GRADE ADJUSTMENT FACTORS

Tonnage figures were calculated based on the results

of 76 diamond drill holes. The sections contain each

relevant diamond drill hole and its optimum mining width

and grade. Computer calculations were completed for each

intersection listing a variety of grades over selected

widths. Maximum mining widths were chosen by the authors

over grade considerations to facilitate future simple,

bulk mining methods in our design rather than costlier

selective mining methods. Each section was planimetered and

a volume factor of 13.2 cubic feet per ton of are and waste

was used for tonnage calculations. This volume figure was

established in several specific gravity tests in a laboratory.

Proven and probable tonnages were chosen based on:

1. Proximity of Next Diamond Drill Hole

2. Area of Influence of Proven Reserves for Each

Diamond Drill Hole Did Not Exceed 100 in

any direction.

3. Probable Reserves Fall Outsi of the 100-Foot

Area of Influence for Each Diamond Drill Hole.

Grades are given in percentage by weight of graphitic carbon.

The method of analysis is by double loss on ignition (L.O.I.).

An approximately 2-gram sample fraction of pulverized core

is weighed and placed in a crucible. The crucible is put

in an oven at 6500 C for 45 minutes, removed and cooled in

a dessicator. This first stage removes the low temperature

volatiles; such as sulfides, carbonates and water. After

re-weighing, the crucible is placed back in a 9500 Coven

for four hours, removed and cooled in a dessicator. Again

the sample was re-weighed and a calculation made of the

weight loss for the high temperature volatiles, in this

case graphitic carbon. This analytical method is widely


recognized in the graphite industry as the accurate and

r e a l i s t i c method for graphit ic carbon analysis.

1 , CONSTABLE CONSULTING INC.

Page 20

recognized in the graphite industry as the accurate and

realistic method for graphitic carbon analysis.


- I -, Page 21

3. ORE RESERVES

Ore r e s e r v e s a r e c a l c u l a t e d s e p a r a t e l y f o r t h e F o o t w a l l

and Hang ingwal l Zones. Based on t h e proposed m i n i n g methods

f i v e d i s t i n c t o r e r e s e r v e s were c a l c u l a t e d :

1. I n i t i a l F ive-Year Open P i t

2. Main Open P i t

3. McGuire Lake Phase

4. Minnow Lake Phase

5. Be1 ow Main Open P i t Phase

Reserves a r e c a l c u l a t e d f rom a s e r i e s o f 100 - foo t

s e c t i o n l i n e s shown on t h e enc losed s e c t i o n s (See Sec t i ons

8000E t o 10,600E). The s e c t i o n s a r e a t a s c a l e o f 1 i n c h =

50 f e e t .

Table 4

M i n i n g Phases Reserves S h o r t Grade Weight Average Tons (Proven Percen t of S t r i p p i n g and Probabl e ) G r a p h i t i c I: Waste: Ore

Carbon R a t i o )

I n i t i a l F i v e Year Open P i t 2,949,000

Main Open P i t 12,727 .,??5,

McGuire Lake Phase 3,332,007

Minnow Lake Phase 0,324,849

Be1 ow Main Open P i t Phase 4,118,177

T o t a l Proven and Probab le Ore Reserves f o r A l l Phases 29,451,840

I !

The o r e i s open i n a l l d i r e c t i o n s f o r b o t h t h e

F o o t w a l l and Hangi ngwal 1 Zones. The b e s t immediate p o t e n t i a1

f o r i n c r e a s i n g o r e rese rves i s under McGuire Lake. T h i s

i n f o r m a t i o n i s a l s o necessary f o r t h e d e c l i n e l o c a t i o n and 1 i

i

Main Open Pit design. i --

CONSTAELE CONSULTING !NC.

3. ORE RESERVES

Ore reserves are calculated separately for the Footwall

and Hangingwall Zones. Based on the proposed mining methods

five distinct are reserves were calculated:

l. Initial Five-Year Open Pit

2. Mai n Open Pit

3. McGuire Lake Phase

4. Minnow Lake Phase

5. Below Main Open Pit Phase

Reserves are calculated from a series of lOa-foot

section lines shown on the enclosed sections (See Sections

BOOOE to 10,600El. The sections are at a scale of 1 inch = 50 feet.

Table 4

f'lining Phases

Initial Five Year Open Pit

~~ain Open Pit

Reserves Short Tons (Proven and Probable)

2,949,000

l2,727~?09

McGuire Lake Phase 3,332,607

Minnow Lake Phase 6,324,849

Below Main Open Pit Phase 4,118,177

Total Proven and Probable Ore Reserves for All Phases 29,451,840

Grade vJei ght Percent of Graphitic Carbon

2.74

2.34

2.99

2.36

2.08

2.42

The are is open in all directions for both the

Average Stripping (Waste:Ore Ratio)

0.39:1

OJ • 14: 1

Footwall and Hangingwall Zones. The best immediate potential

for increasing are reserves is under McGuire Lake. This information is also necessary for the decline location and

i

Main Open Pit design. t ~------~~~~~--------~~-------~!

@; CONSTABLE CONSULTING !NC.

- 22 -


SECTION III

ACCESS. TOPOGRAPHY AND ENVIRONMENT

1. ACCESS AND TOPOGRAPHY

2. ENVIR.ONMENT



SECTION I11

ACCESS, TOPOGRAPHY AND ENVIRONMENT

ACCESS AND ENVIRONMENT

The Cal G r a p h i t e C o r p o r a t i o n p r o p e r t y i s l o c a t e d i n

B u t t Township, O n t a r i o , and c o n s i s t s o f t w e n t y t h r e e ( 2 3 )

con t iguous c la i rns, c o v e r i n g 1100 ac res . Present access t o

t h e p r o p e r t y i s e a s t o f f Highway 11 on Highway 515 East a t

t h e v i l l age o f Emsdale. Proceed a long 518 Eas t f o r a

d i s t a n c e o f 10 m i l e s , t u r n o n t o F o r e s t r y Tower Road and

c o n t i n u e f o r 9 m i l e s t o a r r i v e a t McGuire Lake, t h e

approximate c e n t r e o f t h e Cal G r a p h i t e p r o p e r t y .

The topography o f t h e area i s rugged, w i t h ab rup t

r i d g e s and v a l l e y s r a n g i n g f r o m e l e v a t i o n s o f 280 f e e t t o

405 f e e t above laike water l e v e l . G1 a c i a t i o n and e r o s i o n

have tended t o round the h i l l s and l o c a l g l a c i a l t i l l s a re

p resen t . Most o f t h e overburden m a t e r i a l c o n s i s t s o f c l a y .

The a rea i s w e l l t r e e d w i t h secondary and t e r t i a r y growth on

t h e h igh lands , c o n s i s t i n g o f mature and immature deciduous

t r e e s , m o s t l y maples. Heavy v e g e t a t i o n e x i s t s on t h e lower

s lopes and wet marshy c o n d i t i o n s i n t h e v a l l e y s . Drainage

f rom t h e n o r t h e r n p a r t o f t h e p r o p e r t y i s i n a n o r t h e r n

d i r e c t i o n v i a a c reek f r o m Minnow Lake t o G r a p h i t e Lake.

The sou the rn p o r t i o n d r a i n s i n a southeastward d i r e c t i o n i n t o

t h e Magnetawan R i v e r system and e v e n t u a l l y i n t o t h e Great

Lakes.


I I I I

I

I i I


SECTION III

ACCESS, TOPOGRAPHY AND ENVIRONMENT

1. ACCESS AND ENVIRONMENT

The Cal Graphite Corporation property is located in

Butt Township, Ontario, and consists of twenty three (23)

contiguous claims, covering 1100 acres. Present access to

the property is east off Highway 11 on Highway 518 East at

the village of Emsdale. Proceed along 518 East for a

distance of 10 miles, turn onto Forestry Tower Road and

continue for 9 miles to arrive at McGuire Lake, the

approximate centre of the Cal Graphite property.

The topography of the area is rugged, with abrupt

ridges and valleys ranging from elevations of 280 feet to

405 feet above lake water level. Glaciation and erosion

have tended to round the hills and local glacial tills are

present. Most of the overburden material consists of clay.

The area is well treed with secondary and tertiary growth on

the highlands, consisting of mature and immature deciduous

trees, mostly maples. Heavy vegetation exists on the lower

slopes and wet marshy conditions in the valleys. Drainage

from the northern part of the property is in a northern

direction via a creek from Minnow Lake to Graphite Lake.

The southern portion drains in a southeastward direction into

the Magnetawan River system and eventually into the Great

Lakes.

~ CONSTABLE CONSULTING INC_

2. ENVIRONMENT

On Tuesday, 9 September 1986, an overview of the Cal

Graphite project was presented t o representat ives of

various Government Mini s t r i e s a t the Mini s t r y of Natural

Resources ( M . N . R . ) , Bracebridge, Ontario. Present were:

G . Vaughn, Ministry of Natural Resources M . N . R .

J . Bryant, Ministry of Natural Resources M . N . R .

G . R . Gi lber t , Ministry of Natural Resources M . N . R .

G . Deyne (Bio log i s t ) Ministry of Natural Resources M.11 . R .

P . Lee, Ministry of Environment M . O . E .

J . Myslik, Ministry of Environment M . O . E .

Dr. J . Springer, Ministry of Northern M . l V . D . I Y . Develcpment 8 Mines

D. C . Vi ' l l ard. Ministry of riorthern Development 8 Mines M . N . D . M .

C . Marmont M . N . D . L I .

L . T . Dunks, Cal Graphite Corporation

D . Constable, Cal Graphite Corporation

I t was explained t h a t t o bring a mine in to production,

given the magnitude of the Cal Graphite deposit being 29m

tons over a possible l i f e of 33 years, would require very

close co-operation between the Ministr ies and operators.

The overall plan was out l ined, and the physical work

required t o bring the property in to production was discussed

and broken down in to three progressive phases:

A. Present - Exploration, Definition and Feas ib i l i ty

B. Short Term - Preparation-Development-Construction

C . Long Term - Mining, Clilling and Concentrating

- .

I ~\

\

, ,

2. ENVIRONMENT

On Tuesday, 9 September 1986, an overview of the Cal Graphite project was presented to representatives of various Government Ministries at the Ministry of Natural Resources (M.N.R.), Bracebridge, Ontario. Present were:

G.

J.

G.

G.

P.

J.

Dr.

D.

C.

L.

D.

Vaughn, Ministry of Natural Resources ~1.N.R.

Bryant, ~1i ni stry of Natural Resources M.N.R.

R. Gilbert, Ministry of Natural Resources M.N.R.

Deyne (Biologist) Ministry of Natural Resources M.N.R.

Lee, Ministry of Environment

Myslik, Ministry of Environment

J. Springer, Ministry of Northern Development & Mines

C. V1"llard. r1i ni stry of Northern Development & ~1i nes

Marmont

T. Dunks, Ca 1 Graphite Corporation Constable, Ca 1 Graphite Corporation

~1.0.E.

M.O.E. M.N.D.II1.

~~.N.D.N.

~;1. N • D • tvl •

It was explained that to bring a mine into production, given the magnitude of the Cal Graphite deposit being 29m tons over a possible life of 33 years, would require very close co-operation between the Ministries and operators.

The overall plan was outlined, and the physical work required to bring the property into production was discussed and broken down into three progressive phases:

A. Present Exploration, Definition and Feasibility B. Short Term - Preparation-Development-Construction C. Long Term - Mining, Milling and Concentrating

I

I I ' ! i i f ,-' ____________________ ----:::: ______ ----.J!

@; CONSTABLE CONSULTING INC:

A - PRESENT

T h i s phase i s underway, c o n s i s t i n g o f e x p l o r a t i o n

diamond d r i l l i q g , t r e e c u t t i n g , overburden removal,

su rvey ing , m e t a l l u r g i c a l t e s t i n g and t h e c o m p i l a t i o n of a

" F e a s i b i l i t y Repor t " on t h e Cal G r a p h i t e p r o j e c t .

M i n i s t e r i a l p e r n i t s have been o b t a i n e d f o r t h e work i n

progress and a re due t o e x p i r e i n March 1987, t h e

c o n c l u s i o n d a t e o f Phase A. It was s t a t e d , t h a t a copy

of t h e " F e a s i b i l i t y Repor t " would be made a v a i l a b l e t o

t h e M.N.R., M.O.E. , and M.N.D.M., when completed and

a f t e r exp i r a t i on o f t h e r e q u i r e d p e r i od o f con f i d e n t i a1 i t y

B - SHORT TERM

I t i s a n t i c i p a t e d t h a t t h i s phase w i l l l a s t u n t i l t h e

s p r i n g o f 1988 and i s t h e most i m p o r t a n t r e 1 a t i v e t o env' i ron-

mental d e c i s i o n s t h a t must be made.

Mutual concerns were expressed a t t h e meet ing and i t

was agreed t h a t i n o r d e r t o save t i m e i i i r e a c h i n g d e c i s i o n s

and i s s u i n g t h e r e q u i r e d pe rm i t s , c l o s e c o - o p e r a t i o n i n t h e

p l a n n i n g t o b r i n g t h i s o p e r a t i o n i n t o p r o d u c t i o n would be

ma in ta ined . The number o f i t e m s t o be m u t u a l l y r e s o l v e d as

soon as p o s s i b l e a r e d e t a i l e d as f o l l o w s :

1. New Road L o c a t i o n -

The p resen t access road, F o r e s t r y Tower Road, i s used

as a p u b l i c t h o r o u g h f a r e by l o c a l f i shermen and hun te rs . I t

passes th rough t h e p r o p e r t y and o v e r t h e proposed open p i t .

To d i v e r t t h i s road around t h e p i t shou ld n o t be cons ide red

an o p t i o n , due t o t h e p r o x i m i t y o f b l a s t i n g and p o s s i b l e

danger f rom f l y rock .

I


Page 25

A - PRESENT

This phase is underway, consisting of exploration

diamond drilling, tree cutting, overburden removal,

surveying, metallurgical testing and the compilation of a

"Feasibil ity Report" on the Cal Graphite project.

Ministerial permits have been obtained for the work in

progress and are due to expire in March 1987 , the conclusion date of Phase A. It was stated, that a copy

of the "Feasibility Report" would be made available to

the M.N.R., M.O.E., and M.N.D.M., when completed and

after expiration of the required period of confidentiality.

B - SHORT TERt~

It is anticipated that this phase will last until the

spring of 1988 and is the most important relative to environ

mental decisions that must be made.

Mutual concerns were expressed at the meeting and it was agreed that in order to save time ill reaching decisions

and issuing the required permits, close co-operation in the

planning to bring this operation into production would be

maintained. The number of items to be mutually resolved as

soon as possible are detailed as follows:

1. New Road Location

The present access road, Forestry Tower Road, is used

as a public thoroughfare by local fishermen and hunters. It

passes through the property and over the proposed open pit.

To divert this road around the pit should not be considered

an option, due to the proximity of blasting and possible

danger from fly rock.


It i s recommended t h a t a new r o a d be c o n s t r u c t e d t h a t

wou ld go n o r t h o f f t h e A lgonqu in West Access Road f o r a

d i s t a n c e o f f o u r m i l e s , and j o i n up w i t h t h e p u b l i c access

road , wes t of t h e G r a p h i t e P r o p e r t y . S i m i l a r l y , a r o a d

w i l l be c o n s t r u c t e d f o r i n t e r n a l p r o p e r t y use a l o n g t h e

p roposed t a i l i n g s v a l l e y wh i ch wou ld a l s o meet t h e A l g o n q u i n

West Road. Gates w i l l be l o c a t e d a t b o t h t h e s t a r t and end

o f t h e p r e s e n t p u b l i c r o a d and a t t h e j u n c t i o n o f t h e new ly

c o n s t r u c t e d t a i l i n g s r o a d t o s t o p access o n t o t h e p r o p e r t y .

The pub1 i c wou ld s t i l l have access a round t h e p r o p e r t y

t owa rds t h e T im Lake a r e a v i a t h e f o u r m i l e d i v e r s i o n .

The p r e v a l e n c e o f a l l - t e r r a i n v e h i c l e s poses a c o n t i n u i n g

p rob lem t o any t y p e o f i n d u s t r y o p e r a t i n g i n i s o l a t e d a r e a s .

S o l u t i o n s t o t h e p rob lem can o n l y be made b y pe rsonne l

h a v i n g d e t a i l e d knowledge o f t h e o v e r a l l t opog raphy .

2 . T a i 1 i ngs Trea tment System

The t a i 1 i ngs t r e a t m e n t system wou ld c o n s i s t o f t a i 1 i ngs,

s e t t l i n g and p o l i s h i n g ponds. The a r e a t h a t appears most

s u i t a b l e r u n s s o u t h e a s t o f McGuire Lake t h r o u g h a v a l l e y

t h a t descends g r a d u a l l y t o t h e Magnetawan R i v e r . The

i n t e n t i o n i s t o c o n s t r u c t dams a t t h e s o u t h end o f each pond,

and a l l o w t h e t r e a t e d o v e r f l o w w a t e r t o r u n s u c c e s s i v e l y

f r o m each pond u n t i l i t d r a i n s i n t o t h e Magnetawan R i v e r

system. A n a l y s i s o f t h e t a i 1 i n g s r e s u l t i n g f r o m m e t a l -

l u r g i c a l t e s t i n g o f t h e o r e , do n o t appear t o p r e s e n t an

e n v i r o n m e n t a l p rob lem. F r e s e n t p r o v i s i o n s c a l l f o r r e - c y c l i n g

of p r o c e s s w a t e r f rom t h e t a i l i n g s sys tem back t o t h e m i l l t o

m i n i m i z e t h e n e c e s s i t y t o r e l e a s e any w a t e r i n t o t h e

Magnetawan R i v e r System.

I I : i 1

l


I

/"'1 Page 26

It is recommended that a new road be constructed that

would go north off the Algonquin West Access Road for a

distance of four miles, and join up with the public access

road, west of the Graphite Property. Similarly, a road

will be constructed for internal property use along the

proposed tailings valley which would also meet the Algonquin

West Road. Gates will be located at both the start and end

of the present public road and at the junction of the newly

constructed tailings road to stop access onto the property.

The public would still have access around the property

towards the Tim Lake area via the four mile diversion.

The prevalence of all-terrain vehicles poses a continuing

problem to any type of industry operating in isolated areas.

Solutions to the problem can only be made by personnel

having detailed knowledge of the overall topography.

2. Tailings Treatment System

The tailings treatment system would consist of tailings,

settling and polishing ponds. The area that appears most

suitable runs southeast of McGuire Lake through a valley

that descends gradually to the Magnetawan River. The

intention is to construct dams at the south end of each pond,

and allow the treated overflow water to run successively

from each pond until it drains into the Magnetawan River

system. Analysis of the tailings resulting from metal

lurgical testing of the ore, do not appear to present an

environmental problem. Present provisions call for re-cycling

of process water from the tailings system back to the mill to

minimize the necessity to release any water into the

Magnetawan River System.


I t i s recommended t h a t t h e dams be des igned by geo-

t e c h n i c a l personne l s p e c i a l i z i n g i n t h a t f i e l d and c o n s t r u c t e d

t o t h e i r s p e c i f i c a t i o n s . Waste r o c k , g r a v e l and c l a y a r e

r e a d i l y a v a i l a b l e and i n q u a n t i t y . I t i s a p p r e c i a t e d t h a t

t h i s a rea w i l l n o t c o n t a i n t h e t o t a l t o n s o f t a i l i n g s

produced, and ongo ing consu l t a t i o n wi 11 be r e q u i r e d t o

l o c a t e f u t u r e d i s p o s a l s i t e s o r ~ n o d i f ' y t h e p r e s e n t l y

s e l e c t e d area.

3. M i l l S i t e L o c a t i o n

I t i s recommended t h a t t h e m i l l be l o c a t e d i n an area

a t t h e head o f t h e t a i l i n g s t r e a t m e n t system, b u t a t a

h i g h e r e l e v a t i o n . T h i s w i l l n e c e s s i t a t s l e v e l l i n g and

c u t t i n g i n t o t h e h i l l s i d e , b u t t h i s l o c a t i o n w i l l se rve

two purposes.

i As a l l d r a i n a g e f r o m t h i s a rea wi 11 t e n d t o f l o w

i n t o t h e t a i l i n g s d i s p o s a l system, i t shou ld e l i m i n a t e any

p o s s i b i 1 i t y of adverse e n v i r o n ~ n e n t a l damage due t o s p i 11 age

a t t h e m i 11 . ii It i s i n t e n d e d t o d r i v e a d e c l i n e ramp i n a

n o r t h - e a s t e r l y d i r e c t i o n , t h r o u g h t h e h i l l , under t h e o r e

body and u l t i m a t e l y t r a n s p o r t t h e o r e t o t h e m i l l by

conveyor . T h i s w i l l reduce t h e s u r f a c e t r u c k hau lage and

consequen t l y t h e s p i l l s , d u s t and n o i s e a s s o c i a t e d w i t h i t ,

r e s u l t i n g i n a more e f f i c i e n t o p e r a t i o n and g r e a t e r e n v i r o n -

menta l acceptance.

4. McGuire Lake

As t h e orebody ex tends eas tward f r o m s e c t i o n 10,000E

t o 10,600E (Map 1 ) , i t passes under McGuire Lake, a smal l

s h a l l o w l a k e whose maximum dep th i s about 20 f e e t a t t h e

c e n t r e . C u r r e n t diamond d r i l l i n g shows a grade irnprovenient

i n the ore, and the zone open t o the e a s t . I t i s the ak imate


J. Page 27

It is recommended that the dams be designed by geo

technical personnel specializing in that field and constructed

to their specifications. Waste rock, gravel and clay are

readily available and in quantity. It is appreciated that

this area will not contain the total tons of tailings

produced, and ongoing consultation will be required to

locate future disposal sites or modify the presently

selected area.

3. Mill Site Location

It is recommended that the mill be located in an area

at the head of the tailings treatment system, but at a

higher elevation. This will necessitate levelling and

cutting into the hillside, but this location will serve

two purposes. As all drainage from this area will tend to flow

into the tailings disposal system, it should eliminate any

possibility of adverse environmental daloage due to spillage

ilt the m; 11 .

ii It is intended to drive a decline ramp in a

north-easterly direction, through the hill, under the ore

body and ultimately transport the ore to the mill by

conveyor. This will reduce the surface truck haulage and

consequently the spills, dust and noise associated with it, resulting in a more efficient operation and greater enviY-on

mental acceptance.

4. McGuire Lake

As the orebody extends eastward from section lO,OOOE to lO,600E (Map 1), it passes under ~1cGuire Lake, a small

shallow lake whose maximum depth is about 20 feet at the

centre. Current diamond drilling shows a grade improvement

in the ore, and the zone open to the east. It is the ultimate

<S CONSTABLE CONSULTING INC.

intention t o mine the McGuire Lake zone as a separate open

p i t , b u t permission t o drain the lake will be required. A

diamond d r i l l program from the frozen lake surface will be

necessary t o confirm the ore configuration, however rega.rdless

of d r i l l r e su l t s drainage of McGuire Lake i s necessary.

I t i s suggested that i t wou ld be possible t o dig and

i n s t a l l a culvert a t the southeast t i p of McGuire Lake, and

allow controlled drainage of the lake in to the t a i l i ngs

treatment system. (Refer t o Map 1 ) .

- C - L O N G TERM

The long t&rm phase s t a r t s w i ~ h cc~mencemcnt cf

>roducticn, possibly the spring of 1988. The present

mining plan c a l l s for progressive, increasing tonnage,

s t a r t ing a t 1000 tonslday in the f i r s t year, and r is ing

t o f u l l protiuctio~ of 3d50 tor;s/<ay i n the fnurtn year.

Pi-oduction will comnence a t the northern end of the

property, froni a shallow p i t carried transversely across

the ore, fo r a period of f ive years or so. Concerns t o

be addressed in t h i s phase are:

1 . Minnow Lake

During t h i s period, permission will be requested

t o drain Minnow Lake which i s located above the ore zone

on the west s ide. (Refer t o Map 1 ) . I t i s suggested that Yinnow Lake, presently draining in to Graphite Lake, be

dammed a t the north end and a deep enough ditch be cut a t

the south end t o allow the lake t o be drained in th i s d i rect ion. Further def in i t ion d r i l l i ng will be requested

in t h i s area. When the lake i s drained, the mining p i l l a r

Page 28

intention to mine the McGuire Lake zone as a separate open

pit, but permission to drain the lake will be required. A

diamond drill program from the frozen lake surface will be

necessary to confirm the ore configuration, however regardless

of drill results drainage of McGuire Lake is necessary.

It is suggested thatit would be possible to dig and

install a culvert at the southeast tip of McGuire Lake, and

allow controlled drainage of the lake into the tailings

treatment system. (Refer to IYlap 1).

C - LONG TER~l

The long term phase starts with commen~ement of

nroducticn, possibly the spring of 1988. The present

mining plan calls for progressive, increasing tonnage,

starting at 1000 tons/day in the first year, and rising

to full production of 3000 toris/c,il.Y in U:e fourtn year.

Pl~od~ct i on wi 11 commence at the northern end of the

property, from a shallow pit carried transversely across

the ore, for a period of five years or so. Concerns to

be addressed in this phase are:

1. ~li nnow Lake

During this period, permission will be requested

to drain Minnow Lake which is located above the ore zone

on the west side. (Refer to Map 1). It is suggested that

Minnow Lake, presently draining into Graphite Lake, be

dammed at the north end and a deep enough ditch be cut at

the south end to allow the lake to be drained in this

direction. Further definition drilling will be requested

in this area. When the lake is drained, the mining pillar


shown on t h e p l a n s and s e c t i o n s f o r b o t h Minnow Lake and

t h e c r e e k can be removed, t o a l l o w m i n i n g o f t h e g r a p h i t e

o r e .

D - WASTE ROCK DISPOSAL

Dur i r l g t h e s h o r t and l o n g t e r m phases, a l o t o f was te

r o c k w i l l be removed and used i n t h e c o n s t r u c t i o n of r oads ,

dams and berms. T h i s w i l l s t i l l l e a v e a l a r g e amount o f

b roken was te r o c k t o be d i s p o s e d o f d u r i n g m i n i n g l i f e . It

i s a n t i c i p a t e d t h a t t h e o r e w i l l be deve loped and mined

f r o m t h e s e i ndependen t open p i t s , and w i t h p r o p e r s c h e d u l i n g

t h e f i r s t p i t m ined can accep t t h e was te f r o m t h e second and

t h i r d p i t s . However, r e g a r d l e s s o f hob$ c a r e f u l l y schedu led t h e

m i n i n g sequence i s , a l a r g e amount o f was te r o c k w i l l s t i l l

have t o be p l a c e d on a was te s t o c k p i l e . A l o c a t i o n s h o u l d

be d e s i g n a t e d t h a t i s e n v i r o n m e n t a l l y z c c e p t a b l e , hau lage

roads s h o u l d be c o n s t r u c t e d , ' f r e q u i r e c , and t h e a r e a l i m e d .

E - PIT AND PROCESS WATER

Water w i l l n o t be gene ra ted as a r e s u l t o f m i n i n g ,

b u t w i l l o c c u r i n t h e p i t as a r e s u l t o f t h e e lements , r a i n

and snow. I t i s i n t e n d e d t o pump w a t e r f rom t h e p i t v i a

p i p e l i n e t o t h e m i l l and f e e d i n t o t h e i r p rocess supp l y .

The w a t e r used f o r p r o c e s s i n g i n t h e m i l l s h o u l d be

pumped f r o m t h e s e t t l i n g pond back i n t o t h e m i l l , used t o

p rocess o r e and r e t u r n e d t o t h e t a i l i n g s pond t o commence

t h e r e - c y c l i n g .

I CONSTABLE CGNSULTlNG INC.

Page 29

shown on the plans and sections for both Minnow Lake and

the creek can be removed, to allow mining of the graphite

ore.

D - WASTE ROCK DISPOSAL

During the short and long term phases, a lot of waste

rock will be removed and used in the construction of roads, dams and berms. This will still leave a large amount of

broken waste rock to be disposed of during mining life. It

is anticipated that the ore will be developed and mined

from these independent open pits, and with proper scheduling

the first pit mined can accept the waste from the second and third pits. HoweveG regardless of how carefully scheduled the

mining sequence is,a large amount of waste rock will still

have to be placed on a waste stockpile. A location should

be designated that is environmentally acceptable, haulage

roads should be constructed lf required, and the area limed. ,

E - PIT AND PROCESS WATER

Water will not be generated as a result of mining,

but will occur in the pit as a result of the elements, rain and snow. It is intended to pump water from the pit via

pipeline to the mill and feed into their process supply.

The water used for processing in the mill should be

pumped from the settling pond back into the mill, used to process ore and returned to the tailings pond to commence the re-cycling.


F - SANITATION

A l l washrooms, showers and any b u i l d i n g s t o accommodate

personne l w i 11 be l o c a t e d i n t h e m i 11 area. F i e l d beds w i l l

be c o n s t r u c t e d and connected t o a l l waste o u t l e t s . No

r e s i d e n t i a1 development i s a n t i c i p a t e d e i t h e r on o r p rox ima l

t o t h e p r o p e r t y .

Page 30

F - SAN IT ATION

All washrooms, showers and any buildings to accommodate

personnel will be located in the mill area. Field beds will

be constructed and connected to all waste outlets. No

residential development is anticipated either on or proximal to the property.

~--------------------------~--------~~----------~j ~ CONSTABLE CONSULTING INC.'

- 31-


SECTION IV

MINING

l. I NTRODUCTI ON

2. ADMINISTRATIVE PREPARATION

3. SITE PREPARATIOI\j

4. PLANNING

5. DESIGN

6. CONVEYOR SYSTEM

7. ABANDON~1ENT

@ CONSTABLE CONSULTING iNC.

1. INTRODUCTION


SECTION I V

M I N I N G

A n Interim Exploration Report by David Constable,

Geological Consultant, retained by CAL G R A P H I T E CORPORATION,

was issued in January 1986 re la t ing t o t he i r "Graphite

Property" located in B u t t Township, Ontario. As a resul t

of his findings, he recommended a second phase be implemented, i I

that w o u l d require the following work. ' a. Surveying of 16 claims for lease

b . Diamond Drill ing ( B Q Core) - 3000 f ee t

c . . Stripping t rees and overburden on s i t e 1 d . Pre-Engineering surveying

e . Metallurgical tes t ing of b u l k samples

f . Graphite and Carbon Content Analysis + /-- --- c-- f,'Y' (21& \k$L

g . Design of a Pilot Production Plant

h . Open Pit Design Engineering

i . End Product Testing

This recommendation was accepted, and a new diamond

dr i l l ing exploration program was s tar ted in April 1986, and

early resu l t s revealed a larser volume of mineable ore could

be extracted by open p i t mining than f i r s t anticipated.

A n "Order of Magnitude" study was done based o n mining

by open p i t and processing on s i t e , that showed the project

t o be extremely viable economically. I t was therefore

decided t o conduct a detailed f ea s ib i l i t y study of the Cal

Graphite project based on revised reserve tons and grades

I t o thoroughly establish i t s f u l l economic potential . I

I


1 • I NTRODUCTI ON


SECTION IV

MINING

32

An Interim Exploration Report by David Constable,

Geological Consultant, retained by CAL GRAPHITE CORPORATION,

was issued in January 1986 relating to their "Graphite

Property" located in Butt Township, Ontario. As a result

of his findings, he recommended a second phase be implemented,

that would require the following work.

a. Surveying of 16 claims for lease

b. Diamond Drilling (BQ Core) - 3000 feet

c .. Stripping trees and overburden on site

d. Pre-Engineering surveying

e. Metallurgical testing of bulk samples

f. Graphite and Carbon Content Analysis

g. Design of a Pilot Production Plant

h. Open Pit Design Engineering

i. End Product Testing

o C()w~~ic-.-~;"'" ___ -.w - ,--

This recommendation was accepted, and a new diamond

drilling exploration program was started in April 1986, and early results revealed a larger volume of mineable ore could

be extracted by open pit mining than first anticipated.

An "Order of ~1agni tude" study was done based on mi ni ng

by open pit and processing on site, that showed the project

to be extremely viable economically. It was therefore

decided to conduct a detailed feasibility study of the Cal

Graphite project based on revised reserve tons and grades

to thoroughly establish its full economic potential.

, @ CONSTABLE CONSULTING INC.

S p e c i f i c parameters were s e t f o r t h e s tudy as f o l l o w s :

1 . P r i o r t o comp le t i on o f t h e mine, have a s t o c k p i l e

o f 25,000 t o n s o f uncrushed o r e f o r m i l 1 t e s t i n g and f i n a l

commi s s i o n i ng . 2. Then phase i n p r o d u c t i o n a t t h e f o l l o w i n g m i l l i n g

r a t e s ,

Year 1 1000 tons/day


Year 3 2500 t o n s l d a y +

Year 4 - 3000 tons/day--; To Produce 20,000 t o n s i o f c o n c e n t r a t e y e a r l y

+ \ Year 5 - 3000 tons/day ,,I

3. Assume s t r i p p i n g and h y d r a u l i c removal o f t o p s o i l

t o be c o n t i n u i n g d u r i n g t h e f a l l of 1985 and t o be completed

i n 1987.

4. Assume a l a r g e tonnage o f waste w i l l be r e q u i r e d

i n 1987 t o be used f o r roads and dam c o f i s t r u c t i o n a t McGi~ i re

Lake, t a i l i n g s , s e t t l i n g and p o l i s h i n g ponds. Other waste

berms w i 11 be r e q u i r e d f o r water d i v e r s i o n . The des ign o f

t h e dams and t a i l i n g t r e a t m e n t system would n o t f o r m pa r t .

o f t h i s f e a s i b i l i t y s tudy .

5. Assume m i n i n g i s by "open p i t " method as f a r as

p o s s i b l e , w i t h some o r e below t h e p i t b e i n g salvaged by

underground m in ing .

As soon as a d e c i s i o n i s made t o b r i n g t h e Cal

G r a p h i t e p r o p e r t y i n t o p r o d u c t i o n , f u r t h e r p r e - p r o d u c t i o n

work i s r e q u i r e d , c l a s s i f i e d i n t o A d m i n i s t r a t i v e P r e p a r a t i o n

and S i t e P r e p a r a t i o n .

CONSTABLE CCNSULTING INC.

! I I i

I I I

I l-.-

Page 33

Specific parameters were set for the study as follows:

1. Prior to completion of the mine, have a stockpile

of 25,000 tons of uncrushed ore for mill testing and final

commissioning. 2. Then phase in production at the following milling

rates,

Year 1000 tons/day



:!: 3000 .-.

Produce 20,000 tons Year 4 tons/day 1 To \,.. of concentrate yearly

+ \ Year 5 - 3000 tons/day j

3. Assume stripping and hydraulic removal of top soil

to be continuing during the fall of 1985 and to be completed

in 1987.

4. Assume a large tonnage of waste will be required

in 1987 to be used for roads and dam construction at McGuire

Lake, tailings, settling and polishing ponds. Other waste

berms will be required for water diversion. The design of

the dams and tailing treatment system would not form part

of this feasibility study.

5. Assume mining is by "open pit" method as far as

possible, with some ore below the pit being salvaged by

underground mining.

As soon as a decision is made to bring the Cal

Graphite property into production, further pre-production

work is required, classified into Administrative Preparation

and Site Preparation.

------------------------~---------~ @: CONSTABLE CONSULTING INC.


The f i r s t p r i o r i t y w i l l be t o a p p l y f o r p e r m i t s ,

c e r t i f i c a t e s and l i c e n s e s f r o m v a r i o u s government agenc ies ,

t h a t wou ld i n c l u d e the f o l l o w i n g :

P e r m i s s i o n f o r a M i n i n g and M i l l i n g O p e r a t i o n M.N.R.

App rova l f o r D i s p o s a l o f L i q u i d Waste M.O.E.

A p p l i c a t i o n t o t a k e Water M.O.E.

M i n e r a l 1ndus . t r i es I n f o r m a t i on F a c t Sheet M.O.E.

C e r t i f i c a t e o f Approva l ( A I R ) M.O.E.

N o t i c e o f P r o j e c t M.O.E.

Rad io Telephone L i c e n s e M.O.C.

Powder Magazine L i c e n s e M.O.L.

Idork P e r m i t f o r G rave l M.N.R.

Work P e r m i t f o r Diamond D r i l l i n g M.W.R.

Work P e r m i t f o r T ree Removal & S t r i p p i n g M.N.R.

M i n i s t e r i a1 permi s s i o n , c e r t i f i c a ; . i o n e t c . ,may t a k e up

t o s i x months t o p r o c e s s . I n a number o f i n s t a n c e s t h e

a p p l i c a t i o n must be accompanied b y p l a n s and s p e c i f i c a t i o n s

showing d e s i g n and proposed l o c a t i o n o f t h e p r o j e c t .

The f o l l o w i n g p r i o r i t i e s s h o u l d be addressed as soon

as p o s s i b l e , and t h e necessa ry o r g a n i z a t i o n s i n f o r m e d a f t e r

t h e s t a r t up d e c i s i o n i s made, due t o t h e l e a d t i m e r e q u i r e d

t o imp lement c o n s t r u c t i o n .

Page 34


The first priority will be to apply for permits,

certificates and licenses from various government agencies,

that would include the following:

Permission for a Mining and Milling Operation

Approval for Disposal of Liquid Waste

Application to take Water

Mineral Industries Information Fact Sheet

Certificate of Approval (AIR)

Notice of Project

Radio Telephone License

Powder Magazine License

Work Permit for Gravel

Work Permit for Diamond Drilling

Work Permit for Tree Removal & Stripping

~~.N.R.

M.O.E.

M. O. E.

M.O.E.

~~. O. E.

M.O.E.

M.O.C.

M.O.L.

~~. N. R.

M.N.R.

~1. N. R.

Ministerial permission, certificaiion etc.,may tah~ up

to six months to process. In a number of instances the

application must be accompanied by plans and specifications

showing design and proposed location of the project.

The following priorities should be addressed as soon

as possible, and the necessary organizations informed after

the start up decision is made, due to the lead time required

to implement construction.

,

~----------------~--__ ~~ ______ ~f @; CONSTABLE CONSULTING INC.'

A. H Y D R O

The connected H . P . a t the property will be in the

range of 3500 - 3900, assessed on the following estimates

Mill 2500 H P

Conveyor 400 H P

Vent Fans 120 HP

Portable Crusher Pi t Lighting 400 H P Pumps

Misc: Mil 1 Heaters Water Heaters u / g Lights Elec. Feeder 200 HP

Hydro o f f i c i a l s inform us t h a t a 20 mile, 44 k v l ine

will be required, to del iver 4000 H P t o the property, at a

provisional cost of $50,00O/km or 81.6ti t o t a l , including

land c lear ing. This f igure does not include any government

assistance tha t may possibly be allowed. They also s t a t e a

sub s ta t ion will be required a t the s i t e together with a

transformer s t a t i o n , and tha t designs and construction

drawings will have t o be forwarded t o the ministr ies involved.

B . COMMUNICATIONS I

I

Communications from the mine s i t e should be established

prior t o any major work s t a r t i n g , such as d r i l l i n g , blast ing

and dam construction.

There are two a1 ternat ive systems avai ?able :

i Telephone Line (Normal service)

The ins ta l 1 ation cost of s tr inging the 1 ine

on exis t ing hydro poles, or on newly ins ta l l ed poles would

be paid by Cal Graphite. The provisional cos ts from Sand

Lake t o the mine s i t e , a distance of 9 miles, are: ,

1 . Hydro Poles = $31,000 t Operating Charges

2 . k w P o l e s = 47,500 + Operating Charges ,i


A. HYDRO The connected H.P. at the property will be in the

range of 3500 - 3900, assessed on the following estimates:

Mill 2500 HP

Conveyor

Vent Fans

Portable Crusher

400 HP

120 HP

Pit Lighting 400 HP Pumps

Mise: Mill Heaters Water Heaters u/g Lights Elec. Feeder

200 HP

Hydro officials inform us that a 20 mile, 44 kv line

will be required, to deliver 4000 HP to the property, at a

provisional cost of $50,000/km or $1 .6M total, including

land clearing. This figure does not include any government

assistance that may possibly be allowed. They also state a

sub station will be required at the site together with a

transformer station, and that designs and construction

drawings will have to be forwarded to the ministries involved.

B. COMMUNICATIONS Communications from the mine site should be established

prior to any major work starting, such as drilling, blasting

and dam construction. There are two alternative systems available:

Telephone Line (Normal servi ce)

The installation cost of stringing the line

on existing hydro poles, or on newly installed poles would

be paid by Cal Graphite. The provisional costs from Sand

Lake to the mine site, a distance of 9 miles, are:

1.

2. Hydro Poles =

New Poles = $3l,000 + Operating Charges

47,500 t Operating Charges

~ CONSTABLE CONSULTING iNC.

i i Radio Telephone

The user supp l i e s t h e r ad io tower and

ob t a in s a y e a r l y l i c e n s e . The c o s t of a tower, i n s t a l l e d ,

i s $15,000. Bell o f f e r s two op t ions of " l i n e s ou t" . One

from an e x i s t i n g tower a t Trout Creek r equ i r i ng a $589

i n s t a l l a t i o n charge p lus $90/month r e n t a l . The second, a

p r i v a t e l i n e from Kearney r equ i r i ng a $5659 i n s t a l l a t i o n

charge p lus $200/month.

1 . Trout Creek - I n s t . Cost $15,600 + $1030 y r .

2. Kearney - I n s t . Cost $21,000 + $2400 y r .

Operating and usage c o s t s w i l l be i n add i t i on

t o t h e above.

As t h e p i t production i s by su r f ace b l a s t i n g using

e l e c t r i c b l a s t i n g techn iques , t h e use of r ad io t ransmiss ion

i s ques t ionab le .

Comparative c o s t s over a 30 yea r l i f e a r e :

Capi ta l Fixed Total Cost:/Yr I n s t a l 1 a t i o n Yearly 30-Year For

Charge Cost 30 Yrs.

Telephone 1 . $ 31,000 2. 47,500

Radio 1 . $ 15,600 $1,030 $ 4 6 , 5 0 0 $ 1550. 2. 21,000 2,400 93,000 3100.

Page 36

ii Radio Telephone

The user supplies the radio tower and

obtains a yearly license. The cost of a tower, installed,

is $15,000. Bell offers two options of "lines out". One

from an existing tower at Trout Creek requiring a $589

installation charge plus $90/month rental. The second, a

private line from Kearney requiring a $5689 installation

charge plus $200/month.

1. Trout Creek - Inst. Cost $15,600 + $1030 yr.

2. Kearney - Inst. Cost $21,000 + $2400 yr.

Operating and usage costs will be in addition

to the above.

As the pit production is by surface blasting using

electric blasting techniques, the use of radio transmission

is questionable.

Comparative costs over a 30 year life are:

Capita 1 Fi xed. Tota 1 Cost/Yr Installation Yearly 30-Year For

Charge Cost 30 Yrs. -----

Telephone l. $ 31 ,000 $ 31 , 000 $ 1033. 2. 47,500 47,500 1583.

Radio l. $ 15,600 $1 ,030 $ 46,500 $ 1550. 2. 21 ,000 2,400 93,000 3100.

<E CONSTABLE CONSULTING INC.

C . TAILINGS TREATMENT SYSTEM

A cornple te ly c o n t a i n e d sys tem i s r e q u i r e d , t h a t wi 11

have t o be p l anned , d e s i g n e d and drawn up f o r p r e s e n t a t i o n

t o t h e M . N . R . and M . O . E . A f i r m s p e c i a l i z i n g i n t a i l i n g s

f i 11 r e t a i n i n g dams, i n c l u d i n g s e t t l . i n g and pol i s h i n g pond

dams, s h o u l d be r e t a i n e d a s soon a s a d e c i s i o n i s made. The

e n g i n e e r i n g c o s t s would be i n t h e o r d e r o f $170,000, broken

down a s f o l l o w s :

$50 ,000 - V i s i t s i t e , concep tua l d e s i g n , s e i s m i c s t u d y i f needed , f l y - o v e r a r e a .

$100,000 - F i n a l Des ign , L i n i n g s . e t c . , M N R a p p r o v a l .

$ 20,000 - Re-design and Check C o n s t r u c t i o n

The c o n s t r u c t i o n c o s t s w i l l be i n t h e

o r d e r of $2 .00 M f o r dams c o n s i s t i n g of 500 ,000 t o n s o f was t e ,

p l u s o t h e r m a t e r i a l , and i n c l u d e s t h e f o l l o w i n g work:

D r i l l and b l a s t was t e rock

Load, haul and dump was t e rock

Load, h a u l , dump and s p r e a d g l a c i a l t i l l

Load, h a u l , dump and s p r e a d g r a n u l a r B .

Crushing w a s t e rock i f r e q u i r e d

Grou t ing and p r e s s u r e g r o u t i n g

C o n s t r u c t and i n s t a l l d e c a n t towel

Load, h a u l , dump and s p r e a d c l a y m a t e r i a l f o r s e a l i n g .

The t o t a l c a p i t a l c o s t o f t h e t r e a t m e n t sys t em c o u l d be i n t h e $2.17M r a n g e .

Page 37

C. TAILINGS TREATMENT SYSTEM

A completely contained system is required, that will

have to be planned, designed and drawn up fm" presentation

to the M.N.R. and M.O.E. A firm specializing in tailings

fill retaining dams, including settling and polishing pond

dams, should be retained as soon as a decision is made. The

engineering costs would be in the order of $170,000, broken

down as follows:

$50,000

$100,000

$ 20,000

Visit site, conceptual design, seismic study if needed, fly-over area.

Final Design, Linings etc., MNR approval.

Re-design and Check Construction

The construction costs will be in the

order of $2.00 M for dams consisting of 500,000 tons of waste,

plus other material, and includes the following work: Drill and blast waste rock

Load, haul and dump waste rock

Load, haul, dump and spread glacial till

Load, haul, dump and spread granular B.

Crushing waste rock if required

Grouting and pressure grouting

Construct and install decant towel

Load, haul, dump and spread clay material for sealing.

The total capital cost of the treatment system could be in the $2.17M range.

i I

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D. ROADS

The p resen t " F o r e s t r y Tower" access road runs

th rough t h e p r o p e r t y and d i r e c t l y over t h e proposed open

p i t . A new road w i l l have t o be c o n s t r u c t e d t h a t w i l l by-

pass t h e n i n e s i t e . It shou ld be r e l o c a t e d t o d e p a r t from

t h e A lgonqu in west road, near t h e Magnetawan R i v e r and r u n

NE, a d i s t a n c e o f t h r e e m i l e s t o meet t h e Tim Lake Road.

The l o c a t i o n o f t h e road i s e n v i s i o n e d t o pass we1 1 e a s t of

t h e m i n i n g o p e r a t i o n and t a i l i n g s f i l l system.

The road w i l l r e q u i r e +150,000 tons o f waste r o c k and

t h e c o s t i s a n t i c i p a t e d t o be i n t h e range o f $590,000. The

road w i l l be used t o hau l t h e bagged c o n c e n t r a t e and w i l l be

3 0 ' wide w i t h a good g r a v e l sur face. The c o s t s w i l l be a

C a p i t a l Expense and w i l l be made up o f t h e f o l l o w i n g :

D r i l l and B l a s t Waste Rock

Crush Waste Rock i f r e q u i r e d

Load, Haul, Dump and spread waste r o c k

Load, Haul , Dump and spread Granu la r B

Load, Haul , Dump and spread sand and t i l l

A f t e r t h e p o i n t s d i scussed have been a c t i v a t e d and

a c t i o n underway, tonnages can be c a l c u l a t e d f o r t h e v a r i o u s

p roduc ts r e q u i r e d f o r roads, dams and f o u n d a t i o n s . The

" S p e c i f i c a t i o n s " shou ld be w r i t t e n f o r t h e work r e q u i r e d ,

c o n t r a c t o r r e s p o n s i b i l i t i e s d e t a i l e d , submi t ted t o

c o n t r a c t o r s f o r tender , assess t h e b i d s and award t h e

c o n t r a c t ( s ) . (See Appendix 111)

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Page 38

D. ROADS The present "Forestry Tower" access road runs

through the property and directly over the proposed open

pit. A new road will have to be constructed that will by

pass the mine site. It should be relocated to depart from

the Algonquin west road, near the Magnetawan River and run

NE, a distance of three miles to meet the Tim Lake Road.

The location of the road is envisioned to pass well east of

the mining operation and tailings fill system.

The road will require ~150,OOO tons of waste rock and

the cost is anticipated to be in the range of $590,000. The

road will be used to haul the bagged concentrate and will be

30' wide with a good gravel surface. The costs will be a

Capital Expense and will be made up of the following:

Drill and Blast Waste Rock

Crush Waste Rock if required

Load, Hau 1, Dump and spread waste rock

Load, Haul, Dump and spread Granular B

Load, Haul, Dump and spread sand and ti 11 After the points discussed have ~2en activated and

action underway, tonnages can be calculated for the various products required for roads, dams and foundations. The

"Specifications" should be written for the work required,

contractor responsibilities detailed, submitted to

contractors for tender, assess the bids and award the contract(s). (See Appendix III)


SITE PREPARATION

S i t e preparation work should be done before any

contractors s t a r t working. This work consis ts of :

i . Surveying Roads should be flagged and levels se t o u t a1 ong the s i der; . Construction surveying requi red.

i i Stripping A l l t r e e s and overburden should be rerr~oved from breaking areas and 10' back from the proposed open p i t out l ine .

i i i Safety -- Gates should be made and se t u p on Forestry Tower Road tha t can be closed during blas t ing .

Use an on-board compressor on any vehicle t o ac t ivate a s i ren f o r b las t warning.

Have blast ing mats available f o r the f i r s t two benches t o avoid f l y rock.

iv Environment Delineate a refuel l ing s i t e and prepare i t by laying sand and liming i t .

If the refuel l ing area has more than 500 l i t r e s of flammable material in storage, i t i s c l ass i f i ed as a "Fire Hazard". :: inistry inspectors have t o be not i f ied and speci f ic precautions will be required.

v Sanitat ion Temporary sani ta t ion f a c i l i t i e s should be -

offered, from a sani ta t ion contractor on a rental basis. A s i ze t o service 20 bottoms should be adequate.

vi Tra i ler A t r a i l e r f o r use as a temporary o f f i ce and storage place should be b r o u g h t in .

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Pa.ge 39

3. SITE PREPARATION

Site preparation work should be done before any

contractors start working. This work consists of:

i. Surveying

ii Stripping

iii Safety

iv Environment

v Sanitati on

vi Trailer

Roads should be flagged and levels set out along the sides. Construction surveying required.

All trees and overburden should be removed from breaking areas and 10' back from the proposed open pit outline.

Gates should be made and set up on Forestry Tower Road that can be closed during blasting.

Use an on-board compressor on any vehicle to activate a siren for blast warning.

Have blasting mats available for the first two benches to avoid fly rock.

Delineate a refuelling site and prepare it by laying sand and liming it.

If the refuelling area has more than 500 litres of flammable material in storage, it is classified as a "Fi re Hazard ". [':i ni stry inspectors have to be notified and specific precautions will be required.

Temporary sanitation facilities should be offered, from a sanitation contractor on a rental basis. A size to service 20 bottoms should be adequate.

A trailer for use as a temporary office and storage place should be brought in.

~----------------------~----~--------~ ~ CONSTABLE CONSULTING iNC.

vi i Explosives Check with breaking contractor and arrange approved storage f a c i l i t y and location fo r explosives magazine. Designate separate cap storage 10catio~n. Inform the ministry.

v i i i Fire Order necessary f i r e protection equipment. m p m e n t Mobi 1 e equipment must supply i t s own.

ix Ore Storage Prepare and lime all1 areas tha t will be used fo r ore storage.

x Construction Small buildings t o house the sub-station and transformer s ta t ion wi 1 1 be required. Prepare the mill s i t e fo r construction. Drill and blas t in to h i l l s i de i f required t o level the area. Pour a "ground pad" f o r e lec t r i ca l safety.

I t i s pointed o u t that t h i s i s not a f u l l y comprehensive

l i s t , nor i s i t in p r io r i ty order. I t is,however, work tha t

can be done t o the major construction phase.

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vii Explosives

viii Fire rquTpment

Pa.ge 40

Check with breaking contractor and arrange approved storage facility and location for explosives magazine. Designate separate cap storage location. Inform the ministry.

Order necessary fire protection equipment. Mobile equipment must supply its own.

ix Ore Storage Prepare and lime all areas that will be used for ore storage.

x Construction Small bUildings to house the sub-station and transformer station will be required. Prepare the mill site for construction. Drill and blast into hillside if required to level the area. Pour a "ground pad" for electrical safety.

It is pointed out that this is not a fully comprehensive

list, nor is it in priority order. It is, however, work that

can be done to the major construction phase.

I.E CONSTABLE CONSULTING !NC.

4. PLANNING

The m i n i n g o f t h e Cal G r a p h i t e p r o p e r t y ore-body i s

r e s t r i c t e d t o few a l t e r n a t i v e s due t o t o p o g r a p h i c a l , g e o l o g i c a l

and env i ronmen ta l c o n d i t i o n s . These c o n s t r a i n t s a f f e c t i n g

mine p l a n n i n g and des ign a r e :

A. TOPOGRAPHICAL AND GEOLOGICAL

The o r e body c o n s i s t s o f two m a j o r zones, t h e F o o t w a l l

Zone and t h e Hangi ngwal l Zone. Both zones come t o s u r f a c e

i n t h e c e n t r a l area, b u t l i e under l a k e s on t h e e a s t and west

e x t r e m i t i e s . The e a s t l a k e i s c a l l e d McGuire Lake and t h e

west blinnow Lake. ( R e f e r t o lYap 1 ) .

The o rebod ies d i p t o t h e sou theas t a t an a n g l e o f about

40' and a 1 arge h i 11 over1 i e s t h e c e n t r a l zone.

The o r e body has been separa ted i n t o f o u r d i s t i n c t

m i n i n g b l o c k s :

1. Main B lock

2 . McGuire Lake B l o c k

3. Minnow Lake B lock

4. Below Main B lock ( S . E . )

The reason f o r t h i s c o n f i g u r a t i o n i s t h a t B lock 4

i s sou theas t o f t h e Main B lock and n o t amenable t o open

p i t t i n g due t o excess i ve waste remova l .

B l o c k s 2 and 3 a r e env i ronmen ta l concerns .

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Page 41

4. PLANNING

The mining of the Cal Graphite property ore-body is

restricted to few alternatives due to topographical, geological and environmental conditions. These constraints affecting mine planning and design are:

A. TOPOGRAPHICAL AND GEOLOGICAL

The ore body consists of two major zones, the Footwall

Zone and the Hangingwall Zone. Both zones come to surface

in the central area, but lie under lakes on the east and west

extremities. The east lake is called McGuire Lake and the west ~1i nnow Lake. (Refer to I"lap 1).

The orebodies dip to the southeast at an angle of about 40

0 and a large hill overlies the central zone.

The ore body has been separated into four distinct mining blocks:

1. t~ai n Block

2. McGuire Lake Block

3. Minnow Lake Block

4. Below Main Block (S.E.)

The reason for this configuration is that Block 4 is southeast of the Main Block and not amenable to open pitting due to excessive waste removal.

Blocks 2 and 3 are environmental concerns.

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B. EIUV I ROIUMEIUTAL

B locks 2 and 3 1 i e under l a k e s t h a t w i l l r e q u i r e

d r a i n i n g . The l a k e s concerned a r e Minnow Lake and PlcGuire

Lake and a r e b o t h sha l l ow . Minnow Lake d r a i n s no r thward

v i a a c reek i n t o G r a p h i t e Lake, and McGuire Lake i s a s p i l l

wa te r l a k e f rom G r a p h i t e Lake t h a t d r a i n s s o u t h e a s t e r l y i n t o

t h e Magnetawan R i v e r System.

Pe rm iss ion t o d r a i n t h e 1 akes and b u i l d a r e t a i n i n g

darn a t t h e neck o f G r a p h i t e Lake w i l l be r e q u i r e d f r o m .the

M.N.R. and M.O.E. T h i s w i l l i n e f f e c t remove t h e l a k e and

c reek m i n i n g p i 11 a r s shown on a1 1 s e c t i o n s , a1 l o w i n g f u l l

r e c o v e r y o f o r e . ( R e f e r t o s e c t i o n s and Map 1 ) .

-- A,

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@ CCNSTABLE CONSULTING INC.

Page 42

B. EI~V I ROm/lENTAL

Blocks 2 and 3 lie under lakes that will require draining. The lakes concerned are Minnow Lake and McGuire

Lake and are both shallow. Minnow Lake drains northward

via a creek into Graphite Lake, and McGuire Lake is a spill

water lake from Graphite Lake that drains southeasterly into the Magnetawan River System.

Permission to drain the lakes and build a retaining

dam at the neck of Graphite Lake will be required from the

M.N.R. and M.O.E. This will in effect remove the lake and

creek mining pillars shown on all sections, allowing full recovery of ore. (Refer to sections and Map 1).

----------------------------------________ ~~--------____ ~i , @ CONSTABLE CONSULTING INC.

5. DESIGN -- The Cal G r a p h i t e o r e body i s des igned t o be mined i n

f o u r zones as f o l l o w s , and assumes t h e l a k e s have been d r a i n e d .

ZONE Tons ( 1 ,000s ) No-Title Ore Ore Nas te lvli n i ng

Grade Method

2. McGuire Lake 2.99 3,333 3,333 Open P i t

3. Minnow Lake 2.36 6,325 6,325 Open P i t

4. Be1 ow Main 2.08 4,118 - - u / g M i n i n g

1 TOTAL 2.42 29,452 25,451 I

i I

The p r e s e n t schedu le c a l l s f o r t h e Ma in Zone t o be

mined by open p i t i n two phases. The f i r s t phase i s t h e

p r o j e c t " S t a r t Up" and c o n s i s t s o f m i n i n g p a r t o f .

he Hang iqgwa l l Zone f o r t h e f i r s t f i v e y e a r s o f p r o d u c t i o n .

( R e f e r t o S e c t i o n s 9400E t o 10,100E and Map 1) :

The second phase i s t o mine down t o l a k e e l e v a t i o n and

cornrnence t h e ma in open p i t . ( R e f e r t o s e c t i o n s 9300E t o

10,100E and Map 1 ) .

TABLE 6 Zone # 1

M i n i n g Ore Torls i n ( 1 0 0 0 s j M i n i n g Time P e r i o d Phase Grade Ore Waste Method Years

I n i t i a l F i v e Y r . 1 2.74 2,949 1,OSO O p e n P i t 5 Open P i x

2 Na in Open P i t 2.34 12,727 14,713 Open P i t 1s

I TOTAL 2.41 15,676 15,793 O p e n P i t 1 2 1 i

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5.

Page 43

DESIGN The Cal Graphite ore body is designed to be mined in

four zones as follows, and assumes the lakes have been drained.

T.A.BLE 5

ZONE Tons ( 1 , OOOs ) No-. -Title Ore Ore Waste rVlining

Grade Method ~-

l. Hain 2.41 15,676 15,793 Open p 0

-!-1 <.

2. McGuire Lake 2.99 3,333 3,333 Open Pit

3. Minnow Lake 2.36 6,325 6,325 Open Pit

4. Below Main 2.08 4,118 u/g ~1ining

TOTAL 2.42 29,452 25,451

The present schedule calls for the Main Zone to be

mined by open pit in two phases. The first phase is the

project "Start Up" and consi sts of mi ni ng part of .

the Hangingwa11 Zone for the first five years of product·ion.

(Refer to Sections 9400E to 10,100E and Map 1):

The second phase is to mine down to lake elevation and

comrnence the main open pit. (Refer to sections 9300E to

10,100E and Map 1).

TABLE 6 Zone # 1

Mining Ore Tons in (lOOOs) Phase Grade Ore Waste

Mining Method

Time Period Years

Initial Five Yr. 2.74 2,949 1 ,080 Open Pit 5 Open Pit

Main Open Pit 2 2.34 12,727 14,713 Open Pit 16

TOTAL 2.41 15,676 15,793 Open Pit 21

<E CONSTABLE CONSULTING INC.

The d e s i g n of t h e Main Zone open p i t c an be d i s c u s s e d

i n d e t a i l , b u t the McGuire and Minnow Lake zones c a n n o t be

p lanned u n t i l t h e l a k e s a r e d r a i n e d and t h e geo logy of t h e i r

o r e c l e a r l y d e l i n e a t e d . Simi 1 a r l y , tihe method of e x t r a c t i ng

t h e "Below Main Zone" s h o u l d n o t be d e t e r m i n e d a t t h i s t i m e

a s a c t u a l min ing may n o t o c c u r u n t i l y e a r 34.

1 . Main Haulage and P i t Roads

The s u r f a c e hau l age road f rom the p i t t o t h e Mi l l w i l l

be upgraded t o a c c e p t 40 t o n h a u l e r s . The p i t h a u l a g e

road w i l l s t a r t a t t h e N . E . p o i n t of the p i t and

d e c l i n e a t - l o % , the ma.ximum s a f e g r a d e f o r w i n t e r

o p e r a t i o n s . A s i n g l e h a u l a g e r o a d o f 4 0 - f o o t w id th

t ~ i 11 be m a i n t a i n e d , u n t i 1 t h e p i t i s mined t o i t s

f u l l w id th a t l a k e w a t e r l e v e l . A return haul age

road w i l l then be e s t a b l i s h e d t o e x i t the p i t a t

t h e s o u t h e a s t end , c l o s e r t o t h e m i l l . The r o a d s

w i l l be sanded i n the w i n t e r (Dry T a i l i n g s ) and a

b a r r i e r m a i n t a i n e d on t h e o?en s i d e of t h e r o a d s .

The road w i l l be ex t ended t o 5 0 - f o o t w i d t h s on

c u r v e s and t h e downgrade r educed t o -5%. The

c o n t r a c t o r wi 11 m a i n t a i n a1 1 haul age r o a d s i n t o and

t h r o u g h o u t the p i t f o r a n e f f i c i e n t o p e r a t i o n , They

a r e t o be d r e s s e d u s i n g g r a n u l a r m a t e r i a l , l oaded ,

dumped and s p r e a d by t h e c o n t r a c t o r . He i s a l s o

r e s p o n s i k l e f o r plowing snow i n t h e w i n t e r , o i l i n g

i n t h e summer and keeping r o a d s c l e a n and f r e e from

s p i l l a g e .

2 . Benches

For t h e pu rpose of t h i s f e a s i b i l i t y s t u d y , t h e p i t

s l o p e i s d e s i g n e d t o i n c l u d e a much l a r g e r margin of 1 I

s a f e t y t h a n may be r e q u i r e d . Two 4 0 - f o o t benches

s h o u l d be d r i l l e d a t -65O, b l a s t e d and mucked. A berm of 40 f e e t shou ld be l e f t f rom t h e t o e of t h e

i @ CONSTABLE CONSULTING INC.

Page 44

The design of the Main Zone open pit can be discussed

in detail, but the McGuire and Minnow Lake zones cannot be

planned until the lakes are drained and the geology of their

ore clearly delineated. Similarly, the method of extracting

the "Below r~ain Zone" should not be determined at this time

as actual mining may not occur until year 34.

1. Main Haulage and Pit Roads

The surface haulage road from the pit to the Mill will

be upgraded to accept 40 ton haulers. The pit haulage

road will start at the N.E. pOint of the pit and

decline at -10%, the maximum safe grade for winter

operations. A single haulage road of 40-foot width

~~ill be maintained, until the pit is mine~ to its

full width at lake water level. A return haulage

road will then be ~stablished to exit the pit at

the southeast end, closer to the mill. The roads

will be sanded in the winter (Dry Tailings) and a

barrier maintained on the open side of the roads.

The road will be extended to 50-foot widths on

curves and the downgrade reduced to -5%. The

contractor will maintain all haulage roads into and

throughout the pit for anefficient operation, They

are to be dressed using granular material, loaded,

dumped and spread by the contractor. He is also

responsible for plowing snow in the winter, oiling in the summer and keeping roads clean and free from spillage.

2. Benches

For the purpose of this feasibility study, the pit

slope is designed to include a much larger margin of

safety than may be required. Two 40-foot benches

should be drilled at -65 0, blasted and mucked. A

berm of 40 feet should be left from the toe of the ! , I I

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3. Waste

second bench t o t h e co l l a r of the t h i r d . The

reason f o r t h i s con f igu ra t i on , i s t h a t every 40 - f t .

berm l e f t i s wide and cornpetent enough fo:. use as

e i t h e r a road o r c lean out bench.

The compressive s t r eng th of t h e rock i s i n thle 8500-

11,000 P . S . I . range and should not p resen t any

d i f f i c u l t y i n d r i l l i n g . The d r i l l i n g p a t t e r n f o r a

40-foot bench can be as high a s 9 ' x 6 ' i n o r e and

waste using 3" b i t s . This would r e s u l t i n an average

break of 130 tons /ho le . A t f u l l production of 6000

t ons of o r e and waste, 1 ,835 ' f e e t of d r i l l i n g / d a y

would be requ i red on two s h i f t s .

The r a t i o of waste t o o r e c a l cu l a t ed and used f o r

t h i s s tudy averages 1 : l . However, a f t e r t h e p i t i s

s t a r t e d and t h e exposed f ace s proved competent, i t i s

conceivable t h a t t h e s lope angle could be reduced

with a r e s u l t i n g drop i n t h e waste tonnage.

Waste disposal i s a cause of concern, given t h e

magnitude of waste t o be s t o r e ? , and a s i t e wi l l have

t o be loca ted and limed. In t h e ?re-product ion and

f i r s t two yea r s of production a t o t a l of 750,000 tons

of waste w i l l be requ i red f o r dams, roads and berms.

Therefore a waste dump s i t e dec i s ion i s not required

immediately.

The presen t mining schedule i s based on mining

t h e Main Zone, phases 1 and 2 , and then mining t h e

McGuire Lake zone followed by the IM-innow Lake Zone.

In r e a l i t y , i f permission i s obtained a t an e a r l y

d a t e t o d r a in t h e l ake s , i t i s recommended t h a t t he se

two l a t t e r zones be mined before the Main Zone and i f

t h e mining i s complete they wi l l se rve as waste s t o r age s i t e s .

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3. ltJaste

second bench to the collar of the third. The

reason for this configuration, is that every 40-ft.

berm left is wide and competent enough for use as

either a road or clean out bench. The compressive strength of the rock is in the 8500-

11,000 P.S.I. range and should not present any

difficulty in drilling. The drilling pattern for a

40-foot bench can be as high as 9' x 6' in are and

waste usi ng 3" bits. Thi s waul d result in an average

break of 130 tons/hole. At full production of 6000

tons of are and waste, 1,835' feet of drilling/day

would be required on two shifts.

The ratio of waste to are calculated and used for

thi s study averages 1: 1. However, after the pi tis

started and the exposed faces proved competent, it is

conceivable that the slope angle could be reduced

with a resulting drop in the was~e tonnage.

Waste disposal is a cause of concern, given the

magnitude of waste to be store~, and a site will have

to be located and limed. In the pre-production and

first two years of production a total of 750,000 tons

of waste will be required for dams, roads and berms.

Therefore a waste dump site decision is not required

immediately.

The present mining schedule is based on mining

the Main Zone, phases 1 and 2, and then mining the

HcGuire Lake zone followed by the II1-innow Lake Zone.

In reality, if permission is obtained at an early

date to drain the lakes, it is recommended that these

two latter zones be mined before the Main Zone and if

the mining is complete they will serve as waste storage sites.

<E CONSTABLE CONSULTING INC_

TABLE 7

Page 46

Tons (1000s)

Ore Waste Ava i 1 a b l e To M i l l S tockP i l e P i t Vol ume

(Tons) - -

McGuire Lake 3,333 3,333 6,666

Minnow Lake 6,325

Main Zone

TOTAL

Roads e t c . 1,864

To s t o c k p i l e on s u r f a c e 10,596

F o r t h e purpose o f t h i s s t u d y however, i t i s assumed

t h a t t he Main Zone i s mined f i r s t , and t h e waste

d i s p o s a l i s c o n t a i n e d i n T a b l e 7 i n S e c t i o n I V .

4. Crusher

A p o r t a b l e c r u s h e r w i l l i n i t i a l l y be s e t up a t t h e

m i l l s i t e t o c r u s h t o - 6 " . S t o c i < p i l e s o f 25,000

t o n s o f c rushed and uncrushed o r e shou ld be m a i n t a i n e d

a t t h e c r u s h e r s i t e as m i l l and c r u s h e r feed, i n case

o f d e l a y i n t h e m i n i n g c y c l e ; e.g. snow storms,

l i g h t n i n g s to rms o r breakdowns. ,

L a t e r i n t h e m i n i n g schedu le , when o r e passes

a r e a v a i l a b l e i n t h e p i t , he c r u s h e r s h o u l d be

I moved back t o t h e p i t .

i A1 1 o r e s t o r a g e s i t e s w i l l be l i m e d .

j j I 1 i i 5. P i t Water i

I The m a j o r i t y o f p i t w a t e r w i l l o c c u r as a r e s u l t o f

1 t h e e lements and " r u n o f f " f r o m h i g h e r ground. It I w i l l a l s o be d r a i n e d i n t o t h e p i t v i a t h e d e c l i n e i i h a u l a g e roads. The p i t bo t tom w i l l be s l o p e d towards I

I I I


Page 46

TABLE 7 Tons (1000s)

Ore Waste Available

To Mill StockPi Ie Pit Volume (Tons)

McGuire Lake 3,333 3,333 6,666

Minnow Lake 6,325 6,325 6,666

Main Zone 15,676 9, 127 6,666

TOTAL 25,334 12,460 12,991

Roads etc. 1,864

To stockpile on surface 10,596

For the purpose of this study however, it is assumed

that the Main Zone is mined first, and the waste

disposal is contained in Table 7 in Section IV.

4. Crusher A portable crusher will initially be set up at the

mill site to crush to -6". Stockpiles of 25,000

tons of crushed and uncrushed ore should be maintained

at the crusher site as mill and crusher feed, in case

of delay in the mining cycle; e.g. snow storms,

ligh~ning storms or breakdowns. Later in the mining schedule, when ore passes

are available in the pit, the crusher should be

moved back to the pit. All ore storage sites will be limed.

5. Pit Water The majority of pit water will occur as a result of

the elements and "run off" from hi gher ground. It

will also be drained into the pit via the decline

haulage roads. The pit bottom will be sloped towards

~--------------------------~----------' ~ CONSTABLE CONSULTING INC.

the southwest corner, and sumps cut here on successive

benches. The sumps must be a t a lower elevation than

the ore passes. The water will be pumped through a

4" l ine t o the mill for use as process water.

Eventually a hole will be d r i l l ed in to the undergr~ound

ramp and the water pumped from an underground sump

t o the mil l . This will eliminate any freezing of

the l ine .

6 . Underground Conveyor System -

After f ive years of operation, and a good cash flow

has been generated, i t i s envisaged that an under-

ground conveyor system could be used fo r a l l ore

transportat ion.

The decline ramp would be approximately 4500-

fee t l o n g a t a -15% gradient, and would s t a r t a t a

portal adjacent to the mil l . A ser ies of ore passes

and f ingers will be driven from the ramp, in ore, t o

the p i t bench. A ser ies of two ccnveyors will be

h u n g from the back and feeders ins ta l led i n the ore

pass ra i se above the be l t s . Ventillation intake

and exhaust raises wili be driven t o surface and

fans and heaters ins ta l l ed . The exhaust ra ise will

be outf i t ted and used as an escapeway.

(Refer t o Figures 3 and 4 ) .

This system w i l l a l l o w the portable crusher t c

crush near an ore pass grizzly and use i t s stacking

belt t o feed di rect ly t o the ore pass. Scooptrams

will be required t o supply the crusher. The ore

could be crushed t o -4" o r less , that would reduce wear on the belt and reduce crushing time and costs

in the mil l .

I ~I

I

Page 47

the southwest corner, and sumps cut here on successive

benches. The sumps must be at a lower elevation than

the ore passes. The water will be pumped through a

4" line to the mill for use as process water.

Eventually a

ramp and the

to the mi 11 .

the line.

hole will be drilled into the underground

water pumped from an underground sump

This will eliminate any freezing of

6. Underground Conveyor System

After five years of operation, and a good cash flow

has been generated, it is envisaged that an under

ground conveyor system could be used for all ore transportation.

The decline ramp would be approximately 4500-

feet long at a -15% gradient, and would start at a

portal adjacent to the mill. A series of ore passes

and fingers will be driven from the ramp, in ore, to

the pit bench. A series of two conveyors will be

hung from the back and feeders installed in the ore

pass raise above the belts. Ventillation intake

and exhaust raises will be driven to surface and

fans and heaters installed. The exhaust raise will be outfitted and used as an escapeway.

(Refer to Figures 3 and 4).

This system will allow the portable crusher to

crush near an ore pass grizzly and use its stacking

belt to feed directly to the ore pass. Scooptrams

will be required to supply the crusher. The ore

could be crushed to -4" or less, that would r'educe

wear on the belt and reduce crushing time and costs in the mill.


The advantages of no truck haulage costs f o r ore,

the d i rec t feed into the mill bin and a cleaner environ-

ment condition, will o f f se t the high i n i t i a l capital

cos t of the system given the magnitude of tons involved.

7 . Abandonment

On completion of mining, cer ta in work will be required

in order to conform to present mining and environlnental

regulat ions, and ultimately t o return the area to i t s

previous s t a t e as closely as possible.

If however, the mine produces fo r the mining l i f e

of the p i t s scheduled, 34years , requirements a t

abandonment rnay have changed. If t h i s i s the case

i t would be useless t o t r y and ant ic ipate the new

regulat ions.

I t i s recommended a sum of money be allocated

in the study fo r abandonment costs applicable t o

the open p i t s only, as underground mining will continue

beyond year 34, the time period cnder review.

1 I

I

1


The advantages of no truck haulage costs for ore,

the direct feed into the mill bin and a cleaner environ

ment condition, will offset the high initial capital

cost of the system given the magnitude of tons involved.

7. Abandonment

On completion of mining, certain work will be required

in order to conform to present mining and environmental regulations, and ultimately to return the area to its

previous state as closely as possible.

If however, the mine produces for the mining life

of the pits scheduled, 34 years, requirements at

abandonment may have changed. If this is the case

it would be useless to try and anticipate the new regulations.

It is recommended a sum of money be allocated

in the study for abandonment costs applicable to

the open pits only, as underground mining will continue beyond year 34, the time period ~nder review.



SECTION V

PRODUCTION AND MINING COSTS

1 . INTRODUCTION

2. PRODUCTI ON

3. MINING COSTS

4. CAP IT AL COSTS

<§; CONSTABLE CONSUL TfNG INC.


SECTION V


1 . INTRODUCTION

A t t h e co~xrnencement o f t h i s s tudy , s p e c i f i c d e t a i l s

w i t h r e g a r d t o t h e o p e r a t i o n of t h e open p i t were g i ven ,

as f o l l o w s :

PARAMETERS

P r o d u c t i o n i s t o be phased i n a t t h e f o l l o w i n g ra , tes ,

a f t e r t h e m i l l has been f u l l y comrnisioned and i s o p e r a t i n g .

Year 1 1000 t o n s o r e l d a y

2 1500 t o n s o r e l d a y

3 2500 t o n s o r e l d a y f

4 - 3000 t o n s ore lday: t o a t t a i n 20,000 h n s o f c o n c e n t r a t e

5 3000 t o n s o r e l d a y , per year

The f u l l p r o d u c t i o n r a t e o f 3000 t o n s o r e l d a y

.is t o be based on t h e p i t o p e r a t i n g two s h i f t s l d a y , s i x

days a week, w i t h a p o s s i b l e t h i r d s h i f t l o a d i n g and

h a u l i n g i f r e q u i r e d . Sundays and s t a t u t o r y h o l i d a y s a r e

t o be cons ide red non-work ing days. The c: i 11 w i l l o p e r a t e

t h r e e s h i f t s l d a y , w i t h an average throush;~ut ove r 34 yea rs ,

o f 2314 t o n s l d a y , t o a t t a i n a y e a r l y p r o d u c t i o n o f 20,000

t o n s o f c o n c e n t r a t e .

The m i l 1 w i l l be ope ra ted by company personne l , and

a1 1 o t h e r work, d r i l l i n g , b l a s t i n g , l o a d i n g , h a u l i n g and

p o s s i b l y c r u s h i n g w i 11 be c o n t r a c t e d o u t .

j I I


50


SECTION V


1. INTRODUCTION

At the commencement of this study, specific details

with regard to the operation of the open pit were given,

as follows:

PARAMETERS

Production is to be phaseu in at the following rates,

after the mill has been fully commisioned and is operating.

Year 1000 tons ore/day

2 1500 tons ore/day

3 2500 tons ore/day + -

to attain 20,000 4 - 3000 tons ore/day' l tons of concentrate

5 3000 tons ore/day ~ per year

The full production rate + of - 3000 tons ore/day

'i s to be based on the pit operating two shifts/day, six

days a week, with a possible third shift loading and

hauling if required. Sundays and statutory holidays are

to be consi dered non-wol~ki ng days. The i;;i 11 wi 11 operate

three shifts/day, with an average throushput over 34 years,

of 2314 tons/day, to attain a yearly production of 20,000

tons of concentrate.

The mill will be operated by company personnel, and

all other work, drilling, blasting, loading, hauling and

possibly crushing will be contracted out.


Based on t h e s e parameters , p r o v i s i o n a l s p e c i f i c a t i o n s

were drawn up and s u b m i t t e d t o t h e c o n t r a c t o r s a f t e r t h e y

had v i s i t e d t h e p r o p e r t y o r had t h e m i n i n g p l a n e x p l a i n e d

t o them i n t h e L i v e l y , O n t a r i o f i e l d o f f i c e s o f CAL GRAPHITE

CORPORATION. ( R e f e r t o APPENDIX 111)

2. PRODUCTION

Based on t h e m i n i n g p l a n d e t a i l e d i n t h e p r e v i o u s

s e c t i o n , o r e t o n s , g rade and was te tonnages f o r each rn i n i ng

zone a r e 1 i s t e d be low:

( i n 1000s) S t r i p p i n g R a t i o Zone Tons Grade Waste: Ore

1 . I n i t i a l Open P i t 2,769 2.74 0 .39 : l

2. Main Open P i t 12,907 2.34 1 . 1 4 : l

3. McGuire Lake P i t 3,333 2 ' 99 To be assessed a f t e r

4. Minnow Lake P i t 6,325 2.36 l a k e s d r a i n e d and D r i 1 l e d . Assume 1 : l r a t i o f o r s t u d y

5. Below Main P i t 4,118 2.08 U / G M i n i n g

TOTAL 29,452 2.42 - -

As p r e v i o u s l y s t a t e d i n t h i s r e p o r t , s p e c i f i c p r e -

p r o d u c t i o n work i s r e q u i r e d b e f o r e m i n i n g o r e can commence.

However, f o r t h e purpose o f d raw ing up t h e f o l l o w i n g t i m e

f rame p r o d u c t i o n schedu le ; i t i s assumed t h i s work has

been completed, and Year 1 s t a r t s when m i l l i n g commences.

I t i s p o i n t e d o u t , t h a t t h e m i n i n g r a t e s s t a t e d can be

i n c r e a s e d , as p r o d u c t i o n i s governed by t h e m i l l c a p a c i t y

t h a t i n t u r n i s geared t o s a l e s volume.

I i CONSTABLE CONSULTING INC.

Based on these parameters, provisional specifications

were drawn up and submitted to the contractors after they

had visited the property or had the mining plan explained

to them in the Lively, Ontario field offices of CAL GRAPHITE

CORPORATION. (Refer to APPENDIX III)

2 • PRODUCT! ON

l.

2.

3.

4.

5.

Based on the mlnlng plan detailed in the previous

section, ore tons, grade and waste tonnages for each mining

zone are listed below:

(in 1000s) Stripping Ratio Zone Tons Grade vJaste: Ore

Initial Open Pit 2,769 2.74 0.39: 1

Main Open Pit 12,907 2.34 1 . 14: 1

McGuire Lake Pit 3,333 2.99 To be assessed after ~1innow Lake Pit 6,325 2.36 lakes drained and Drilled.

Assume 1:1 ratio for study

Below Main Pit 4,118 2.08 U/G Mining

TOTAL 29,452 2.42

As previously stated in this report, specific pre

production work is required before mining ore can commence.

However, for the purpose of drawing up the following time

frame production schedule; it is assumed this work has

been completed, and Year 1 starts when milling commences.

It is pointed out, that the mining rates stated can be

increased, as production is governed by the mill capacity

that in turn is geared to sales volume.

@: CONSTABLE CONSULTING INC_'

CAL GRAPHITE

PRODUCTION SCHEDULE

TABLE 8 OPEN PIT M I N I N G

Tons ( i n 1000s) Weight % o f Tons Concent,rate Years Zones Ore Waste G r a p h i t i c @ 87.9%

85% Carbon Recovery Concent ra te

Pre-Prod 300.0

1 1 322.0 18.0 2 1 483.0 77.0 3 1 706.0 196.0 4 1 706.0 275.0 5 1 & 2 732.0 420.0 6 2 827.0 943.0 7 2 827.0 943.0 8 2 827.0 943.0 9 2 827.0 943.0 10 2 827.0 943.0 11 2 827.0 943.0 12 2 827.0 943.0 13 2 827.0 943.0 14 2 827.0 943.0 15 2 827.0 343.0 16 2 827.0 943.0 17 2 827.0 943.0 i 8 2 827.0 943.0 19 2 827.0 943.0 20 2 827.0 943.0 2 1 2 & 3 717.0 762.0 2 2 3 647.0 647.0 23 3 647.0 647.0 2 4 3 647.0 647.0 2 5 3 647.0 647.0 2 6 3 & 4 726.0 726.0 27 4 820.0 820.0 2 8 4 320.0 820.0 29 4 820.0 820.0 30 4 820.0 820.0 3 1 4 820.0 820.0 32 4 820.0 820.0 33 4 820.0 820.0 34 4 209.0 209.0

--

TOTAL 25,334.0 25,456.0

Underground Mining Comnences in the 34th Year.

/ - CONSTABLE CONSULTING INC.

/~ Page 52

CAL GRAPHITE PRODUCTION SCHEDULE

TABLE 8 OPEN PIT MINING

Tons (in 1000s) Weight % of Tons Concentrate Years Zones Ore Waste Graphitic @ 87.9% 85%

Carbon Recovery Concentrate

Pre-Prod 300.0

1 1 322.0 18.0 2.74 7,754 9,119 2 1 483.0 77 .0 2.74 11 ,633 13,680 3 1 706.0 196.0 2.74 17 ,006 20,000 4 1 706.0 275.0 2.74 17,006 20,000 5 & 2 732.0 420.0 2.64 17,006 20,000 6 2 827.0 943.0 2.34 17,006 20,000 7 2 827.0 943.0 2.34 17,006 20,000 8 2 827.0 943.0 2.34 17,006 20,000 9 2 827.0 943.0 2.34 17 ,006 20,000 10 2 827.0 943.0 2.34 17,006 20,000 11 2 827.0 943.0 2.34 17,006 20,000 12 2 827.0 943.0 2.34 17,006 20,000 13 2 827.0 943.0 2.34 17,006 20,000 14 2 827.0 943.0 2.34 17,006 20,000 15 2 827.0 943.0 2.34 17,006 20,000 16 2 827.0 943.0 2.34 17,006 20,000 17 2 827.0 943.0 2.34 17,006 20,000 18 2 827.0 943.0 2.34 17 , 006 20,000 19 2 827.0 943.0 2.34 17 ,006 20,000 20 2 827.0 943.0 2.34 17,006 20,000 21 2 & 3 717.0 762.0 2.70 17,006 20,000 22 3 647.0 647.0 2.99 17,006 20,000 23 3 647.0 647.0 2.99 17,006 20,000 24 3 647.0 647.0 2.99 17,006 20,000 25 " 647.0 647.0 2.99 17 ,006 20,000 .)

26 3 & 4 726.0 726.0 2.66 17,006 20,000 27 4 820.0 820.0 2.36 17,006 20,000 28 4 320.0 820.0 2.36 17,006 20,000 29 4 820.0 820.0 2.36 17,006 20,000 30 4 820.0 820.0 2.36 17,006 20,000 31 4 820.0 820.0 2.36 17 ,006 20,000 32 4 820.0 820.0 2.36 17,006 20,000 33 4 820.0 820.0 2.36 17,006 20,000 34 4 209.0 209.0 2.36 4,336 5,100

I ~--

TOTAL 25,334.0 25,456.0 2.47 550,909 647,899 I

I Underground Mining Commences in the 34th Year.

I I I I I

I @: CONSTABLE CONSULTING INC.

3. MINING COSTS

I M i n i n g c o s t s have been assembled f r o m c o n t r a c t o r s I I c o s t s s u b m i t t e d i n r e p l y t o t h e p r o v i s i o n a l s p e c i f i c a t i o n I

l i s t , f o r work a t Cal G r a p h i t e p r o p e r t y . The average o f I t h e c o s t s r e c e i v e d have been used f o r t h i s s tudy , as f o l l o w s :

A. D r i 11, B l a s t , Crush, Haul Cos ts

$ TON

Ore Waste - -- 1. D r i l l and b l a s t o r e and waste r o c k

t o a maxi~nurn s i z e o f 8 c u b i c f e e t 1.48 1 .48

2. Load, hau l , dump uncrushed o r e a t t h e m i l l . Av. s i n g l e d i s t a n c e 3000 f e e t . 2.47

3. Load, h a u l , dump uncrushed waste r o c k . Av. s i n g l e d i s t a n c e 3000 f e e t .

4. I nc remen ta l c o s t p e r t o n o f uncrushed waste f o r each a d d i - t i o n a l 1 O O O f e e t above t h e 3000 f e e t i n I t e m 3.

5. Load, h a u l , c rush , s t o c k p i l e , l o a d and d e l i v e r c rushed o r e ( - 6 " ) t o t h e m i l l . Av. d i s t a n c e 3000 f e e t , s i n g l e . 3.98

6. I nc remen ta l c o s t p e r t o n o f c rushed o r e f o r each a a d i t i o n a l 500 f e e t o f hau l as t h e p i t dep th i n c r e a s e s . 0 .23

7. Load, h a u l , c rush , s t o c k p i l e , l o a d and dump o r e t h r o u g h an o r e pass g r i z z l y , up t o a d i s t a n c e of 500 f e e t . 2.45

8. Load, hau l , c rush , s t o c k p i l e , l o a d and dump waste i n t o waste pass, up t o a d i s t a n c e o f 1000 f e e t .

I


/"""" I Page 53

I

)

3. MINING COSTS

Mining costs have been assembled from contractors

costs sUbmitted in reply to the provisional specification

list, for work at Cal Graphite property. The average of

the costs received have been used for this study, as follows:

A. Dr-ill Costs

$ TON Ore Waste

1. Drill and blast are and waste rock to a maximum size of 8 cubic feet 1.48 1.48

2. Load, haul, dump uncrushed are at the mill. Av. single distance 3000 feet.

3. Load, haul, dump uncrushed waste rack. Av. single distance 3000 feet.

4. Incremental cost per ton of uncrushed waste for each addi t10nal 1000 feet above the 3000 feet in Item 3.

5. Load; haul, crush, stockpile, load and deliver crushed are (-6") to the mil 1. Av. di stance 3000 feet, single.

6. Incremental cost per ton of crushed are for each additional 500 feet of haul as the pit depth increases.

7. Load, haul, crush, stockpile, load and dump ore through an ore pass grizzly, up to a distance of 500 feet.

8. Load, haul, crush, stockpile, load and dump waste into waste pass, up to a distance of 1000 feet.

2.47

2.47

0.43

3.98

0.23

2.45

2.93


C. MISCELLANEOUS COSTS

A f u r t h e r o p e r a t i n g c o s t pe r t o n o f o r e can be

expected, made up o f t h e f o l l o w i n g i t e m s :

D e s c r i p t i o n Canadian $ $ Ton Ore

L a y i n g b l a s t i n g mats (Benches 1 & 2 ) Clean Up f o r B l a s t and g u a r d i n g Temporary 2oads Grad ing and Plai n t a i n i ng Su r face Roads Sanding P i t Roads 5 months/year Snow Removal 5 mon ths l yea r Fenc ing Aroud P i t s P l a c i n g P i t Road S a f e t y B a r r i e r s S a n i t a t i o n Personnel Trucks T r a i l e r - - O f f i c e e t c . Sump c u t t i n g , punips & 1 i ne

Sub-Total s c e l l aneous .......... $ 0.12

P i t S u ~ e r v i s i on Cost/Month

Geol/Eng Supv. $ 3000. Survey C o n t r o l 3000. Truck, Te l , S u p p l i e s 1200.

Month ... TT7TOK

Hydro Costs/Month

Demand f o r 2550 KW $11,500. Usage-2500 KW-6OOHrs. 39,800.

TOTAL ........ $51,300. Tons/Month 90,000 M I L L ........ $ 3 . 5 7

Added f o r Conveyor & P o r t a b l e Crusher i n Yr.6 . . . 9.11

................ T o t a l Added C o s t / t o n o r e S 0.38

i CONSTABLE CONSULTING !NC.

C. MISCELLANEOUS COSTS

A further operating cost per ton of ore can be expected, made up of the following items:

Description

Laying blasting mats (Benches 1 & 2) Clean Up for Blast and guarding Temporary Roads Grading and Maintaining Surface Roads Sanding Pit Roads 5 months/year Snow Removal 5 months/year Fencing Aroud Pits Placing Pit Road Safety Barriers Sanitation Personnel Trucks Trai1er--Office etc. Sump cutting, pumps & line

Canadian $ $ Ton are

Page 54

Sub-Total Miscellaneous .......... $ 0.12

Pit Supervision Cost/Month

Geol/Eng Supv. Survey Control Truck, Tel, Supplies

Month ...

Tons/Month ...

Hydro Costs/~lonth

Demand for 2550 KW Usage-2S00 KW-600Hrs.

TOTAL ....... . Tons/fIjonth

$ 3000. 3000. 1200.

$ 7200.

9L', 000. ........ . . . . . .. $ 0.08

$11 ,500. 39,800.

$51,300. 90,000 r~ILL ........ $ 0.57

Added for Conveyor & Portable Crusher in Yr.6 ... 0.11

Total Added COSt/ton ore ................ $ 0.88

! 1

!

'------------------::::-------.J! ~ CONSTABLE CONSULTING INC.

C. - OPERATING COSTS --

O p e r a t i n g c o s t s have been c a l c u l a t e d f o r a m i n i n g p e r i o d

o f t h i r t y f o u r years , t h e t i m e p e r i o d assumed f o r t h i s

a n a l y s i s . Underground m i n i n g commences a f t e r t h i s t i m e and

c o s t s have n o t been reques ted f o r t h i s s tudy .

i Waste

The c o s t o f h a n d l i n g waste has a l a r g e c o s t impact

due t o t h e magni tude o f t h e tonnage i n v o l v e d . A waste

d i s p o s a l a n a l y s i s was made, and i t i s p o s s i b l e t o reduce

t h e waste h a n d l i n g c o s t s d r a m a t i c a l l y , ove r t h e t h i r t y

f o u r y e a r p e r i o d . The c o s t s o f b r e a k i n g and h a u l i n g waste

f o r t h e c o n s t r u c t i o n o f t a i l i n g s dams i n t h e t r e a t m e n t

system i s a l e g i t i m a t e charge t o C a p i t a l Expense.

Tab le 9 shows t h e d i s p o s a l l o c a t i o n s f o r waste,

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c. OPERATING COSTS

Operating costs have been calculated for a mining period

of thirty four years, the time period assumed for this

analysis. Underground mining commences after this time and

costs have not been requested for this study.

Waste

The cost of handling waste has a large cost impact

due to the magnitude of the tonnage involved. A waste

disposal analysis was made, and it is possible to reduce

the waste handling costs dramatically, over the thirty

four year period. The costs of breaking and hauling waste

for the construction of tailings dams in the treatment system is a legitimate charge to Capital Expense.

Table 9 shows the disposal locations for waste.


WASTE DISPOSAL ANALYSIS -

TABLE 9 (Tons i n 1000s) ~ Tons Roads/ D i s p o s a l # 2

Years Zone Waste Dams -- Du~np - Zone Remarks --

Pre-Prod .

Prod . 1 1 2 1 3 1 4 1 5 1 & 2 6 2 7 2 8 2 9 2 1 0 2 11 2 12 2 1 3 2 1 4 2 15 2

C a p i t a l Charge Haul age D i s t Av. 5000 f e e t

Main P i t Haul age t o Dump S i t e Inc rernenta l D i s t a n c e 2000 ft. on su r face . A l l o w a d d i t i o n a l Inc re rnenta l

i n t h e p i t as 1 Cos t -For 2000 f-t. ,

an o v e r a l l average.

1 r

A1 1 was te t o Ma'in P i t and Dumped a t L i p . D i s t a n c e Max 2000 f t . Bu t Use Cost f o r 3000 f t .

T o t a l Waste 25,456 1,750 13,681 10,025 = 25,456

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Pag~:, 56

WASTE DISPOSAL ANALYSIS

TABLE 9 (Tons in 1000s)

Tons Roads/ Disposal # 2 Years Zone Waste Dams ~-p- Zone Remarks ----

Pre-Prod. 300 300 Prod. 1 1 18 18 Capita.l Charge

2 1 77 77 Haul al~e Di st 3 1 196 196 Av. 5000 feet 4 1 275 159 116 5 & 2 420 420 Main I)it Haulage 6 2 943 943 to Dump Site 7 2 943 943 Incremental 8 2 943 943 Distance 2000 ft. 9 2 943 943 on suy'face. 10 2 943 500 443 A 11 ow add it i ona 1 11 2 943 943 Incremental 12 2 943 943 Cost for 2000 ft. 13 2 943 943 in thl? pit as 14 2 943 943 an ov(~ra11 15 2 943 943 averaqe.

16 2 943 943 17 2 943 500 443 18 2 943 943 19 2 943 943 20 2 943 943 21 2 & 3 762 762 All waste 22 3 647 647 to Main 23 3 647 647 Pit and 24 3 647 647 Dumped at 25 3 647 647 Lip. 26 3 & 4 726 726 Di stance 27 4 820 820 Max 2000 ft. 28 4 820 820 But Use Cost 29 4 820 820 for 3000 ft. 30 4 820 820 31 4 820 820 32 4 820 820 33 4 820 34 4 209 209

Total \"Jaste 25,456 1,750 13,681 10,025 ::: 25,456

~ CONSTABLE CONSUL TING INC.

ii Mine O ~ e r a t i n q Costs

Three o p e r a t i n g c o s t s c e n a r i o s a r e presented, w i t h

number one b e i n g a f i x e d s c e n a r i o and t h e o t h e r two, o p t i o n a l .

They a r e d e l i n e a t e d as f o l l o w s :

# 1 Scenar io (Tons i n 1 0 0 0 s ) ( $ i n 1000s CAN.) Covers y e a r s 1-5 i n c l u s i v e , w i t h 750,000 t o n s o f waste

go ing t o t h e dams and r o a d c o n s t r u c t i o n . The c o s t o f b r e a k i n g

and h a u l i n g t h i s waste i s charged t o C a p i t a l . The rema in ing

waste goes t o t h e dump s i t e a t a d i s t a n c e o f 3000 f e e t . The

o r e w i l l be c rushed a t t h e mi 11 and i n c l u d e d i n t h e i r m i l 1 i n g

c o s t . Tons Ore 2349 D & B @

t laul ed @

Tons Waste 536 D & B @ Hauled @

Tons Ore 2949 Maint /Supv

T o t a l M i n i ng Cost . . . . . . . . $1 4,356

Cost Per Ton . . . . . . . . . . . . . . $ 4.37 t o n o r e

# 2 Scenar io (Tons i n 1 0 0 0 s ) ( $ i n 1000s CAM.)

Covers y e a r s 6-34 i n c l u s i v e , w i t h 1.0F t o n s o f waste

f o r r a i s i n g h e i g h t s o r c o n s t r u c t i n g new dams f o r t h e t a i l i n g s .

The c o s t f o r B reak ing and H a u l i n g i s a C a p i t a l charge. The

o r e w i l l be c rushed i n t h e p i t and hau led t o t h e m i l l , and an

inci-ernental d i s t a n c e c o s t based on 4 x 500' average i s added.

Waste d i s p o s a l i s 1.OM t o n s t o dams, 13.15M t o s u r f a c e dumps

w i t h an i nc remen ta l c o s t , based on 1500 f t . average added and

10.03M t o n s t o t h e Main P i t a t a t o t a l d i s t a n c e o f 3000 ft.

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ii Mine Operating Costs

Three operating cost scenarios are presented, with

number one being a fixed scenario and the other two, optional.

They are delineated as follows:

# 1 Scenario (Tons in 1000s)($in 1000s CAN.)

Covers years 1-5 inclusive, with 750,000 tons of waste

going to the dams and road construction. The cost of breaking

and hauling this waste is charged to Capital. The remaining

waste goes to the dump site at a distance of 3000 feet. The

ore will be crushed at

cost.

the mill and included

Tons Ore 2'349 o & B @ $ 1.48 = Hauled @ 2.47 =

Tons vJaste 536 o & B @ 1.48 Hauled @ 2.47

Tons Ore 2949 111ai nt/Supv. 0.20

Total Mining Cost

Cost Per Ton ............. .

in their mi 11 i ng

$ 4,365 7,284

793 1 ,324

590

$14,356

$ 4.87 ton are

# 2 Scenario (Tons in 1000s)($ in 1000s ClIN.)

Covers years 6-34 inclusive, with 1.OM tons of waste

for raising heights or constructing new dams for the tailings.

The cost for Breaking and Hauling is a Capital charge. The

are will be crushed in the pit and hauled to the mill, and an

incremental distance cost based on 4 x 500' average is added.

Waste disposal is 1.OM tons to dams, 13.15M to surface dumps

with an incremental cost, based on 1500 ft. average added and

10.03M tons to the Main Pit at a total distance of 3000 ft.

-·------------------------------____ ~~--------~I ~ CONSTABLE CONSULTING iNC.'

-----------------------------

Tons Ore 22,385 D & E @ $ 1.48 = $ 33,130

22,385 Crush & Haul 4.90 = 109.687

Tons Waste 23,170 D & B @ 1.48 = 34,292

13,145 Haul to Dump 3.12 = 41,012

10,025 Haul to Pit @ 2.47 = 24,762

Tons Ore 22,385 Maint./Supv. 0.20 = 4,477

Total Mini n g Cost.. . . . . . . . . . . $ 247,360

J Page 58

Tons Ore 22,385 D & B @ $ l.48 $ 33,130

22,385 Cy'ush & Haul 4.90 109.687

Tons Waste 23,170 D & B @ 1.48 34.292

13,145 Haul to Dump 3. 12 = 41 ,012

10,025 Haul to Pit @ 2.47 24,762

Tons Ore 22,385 Maint./Supv. 0.20 4,477 -.~"

Tota 1 Mining Cost ............ $ 247,360

$ 11.0S/ton Ore


# 3 S c e n a r i o (Tons i n 1000s) ( $ i n 1000s CAN. )

Covers y e a r s 6-34 i n c l u s i v e and t h e o n l y d i f f e r e n c e

be-tween rY 2 and # 3 S c e n a r i o i s t h e o r e h a n d l i n g . I n t h i s

s c e n a r i o , t h e o r e w i l l be b roken and c rushed i n t h e p i t ,

and dumped t h r o u g h g r i z z l i e s , i n t o o r e passes and t r a n s p o r t e d

t o t h e m i l l by a s e r i e s of t w o conveyo r b e l t s to t h e m i l l .

The was te can be hand led t h e same way, b u t f o r t h i s s t u d y i t

w i l l be assumed i t i s done t h e c o n v e n t i o n a l way, as i n

# 2 S c e n a r i o .

Tons Ore 22,385 D & B @ 1.48 = $ 33,130 22,385 Crush, Dump i n 0.Pass @ 2.45 = 54,843 22,385 Conveyed @ 0.30 = 6,716

Tons Waste 23,170 D & B ( 3 1 . 4 8 = 34,292 13,145 Hauled t o Dump @ 3.12 = 41,012 10,025 Hau led t o P i t @ 2.47 = 24,762

Tons Ore 22,385 Ma in t . /Supv . Cos t @ 0 .20 = 4,477 22,385 E l e c t Cos t -

Conv/Crush @ 0.11 = 2,462

T o t a l M i n i n g Cos t . . . . . . . . . . . . . $ 201 ,694

$ 9.01 / t o n o r e

P e r m u t a t i n g t h e t h r e e s c e n a r i o s g i v e s t h e f o l l o w i n g r e s u l t s :

# 1 & # 2 Scena r i os (Tons i n 1 0 0 0 s ) ( $ i n 1000s CAN)

Scena r i os 1 & 2 # 1 & 3 - # 1 Tons Ore 3,341 T o t a l Cos t $ 14,356 $ 14,356 if 2 22,405 247,360 # 3 22,405 201,694

T o t a l s - Tons Ore 25,334 $261 ,716 321 6,050

O p e r a t i n g Cost /Ton Ore $ 10.33 $ 8.53

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# 3 Scenario (Tons in 1000s)($ in 1000s CAN.)

Covers years 6-34 inclusive and the only difference

between # 2 and # 3 Scenario is the ore handling. In this

scenario, the ore will be broken and crushed in the pit,

and dumped through grizzlies, into ore passes and transported

to the mill by a series of two conveyor belts to the mill.

The waste can be handled the same way, but for this study it

will be assumed it is done the conventional way, as in

# 2 Scenario.

Tons Ore 22,385 D & B @ 1.48 $ 33,130 22,385 Crush, Dump in O.Pass @ 2.45 == 54,843 22,385 Conveyed @ 0.30 = 6,716

Tons Waste 23,170 D & B @ 1.48 34,292 13,145 Hauled to Dump @ 3. 12 41,012 10,025 Hauled to Pit @ 2.47 24,762

Tons Ore 22,385 ~1ai nt. /Supv. Cost @ 0.20 = 4,477 22,385 Elect Cost -

Conv/Crush @ 0.11 2,462

Tota 1 ~lining Cost ............. $ 201,694

$ 9.01 /ton

Permutating the three scenarios gives the following results:

# 1 & # 2 Scenarios (Tons in 1000s)($ in 1000s CM)

Scenarios 1 & 2 # 1 & 3

are

# 1 Tons Ore 3,341 # 2

Total Cost $ 14,356 247,360

$ 14,356 22,405

# 3 22,405

Totals - Tons Ore 25,334

Operating Cost/Ton Ore

$261,716

$ 10.33

201,694

$216,050

$ 8.53

@; CONSTABLE CONSUL TING INC.

D. PERMANENT DEVELOPMENT COSTS -

A permanent development c o s t w i l l be e n t a i l e d f o r

t h e ramp d e c l i n e r e q u i r e d f o r use i n i t i a l l y as conveyor

gangways and even tua l l y f o r use d u r i n g t h e underground

phase o f m i n i n g . A1 1 development w i l l be i n waste o r l ow

grade ore , and w i l l be done by a c o n t r a c t o r .

An area c o n t r a c t o r was approached and asked i f t h e y

would c o n s i d e r s u p p l y i n g a t e n t a t i v e p r i c e schedu le f o r

t h e underground work a t t h e "Cal G r a p h i t e " p r o p e r t y . It

was emphasized t h a t t hese c o s t s were f o r a " F e a s i b i l i t y

S tudy" o n l y , and i n no way was t h e r e q u e s t t o be cons t rued

as a t e n d e r t o per form work o r a guarantee t h a t t h e y wou ld

be awarded t h e c o n t r a c t i f t h e p r o p e r t y was t o be developed.

These c o n d i t i o n s were accepted and t h e i r c o o p e r a t i o n was

e x c e l l e n t .

A meet ing was h e l d i n t h e L i v e l y , O n t a r i o , f i e l d

o f f i c e o f Cal G r a p h i t e C o r p o r a t i o n and t h e m i n i n g and

deve l opment method was exp l a i ned.

General parameters g i v e n t o a s s i s t i n d e v e l o p i n g

c o s t s were:

i Work t o be per fo rmed on a 3 - s h i f t l d a y , 6 day/

week b a s i s , w i t h t h e c o n t r a c t o r s u p p l y i n g a l l

equipment and n a t e r i a1 s t o comple te h i s s p e c i f i e d

work.

ii A l l t e c h n i c a l suppor t s e r v i c e s , su rvey ing ,

geo l ogy and eng i n e e r i ng c o n t r o l would be suppl i ed

by Cal G r a p h i t e .

iii Cal G r a p h i t e would supp ly e l e c t r i c power and w a t e r .

i v The c o n t r a c t o r would supp ly a l l p i p i n g , v e n t i l a t i o n I

t u b i n g , r o c k b o l t s , r e b a r s , sc reen and any o t h e r ground I

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D. PERMANENT DEVELOPMENT COSTS

A permanent development cost will be entailed for

the ramp decline required for use initially as conveyor

gangways and eventually for use during the underground

phase of mining. All development will be in waste or low

grade ore, and will be done by a contractor.

An area contractor was approached and asked if they

would consider supplying a tentative price schedule for

the underground work at the "ea 1 Graphite" property. It

was emphasized that these costs were for a "Feasibility

Study" only, and in no way was the request to be construed

as a tender to perform work or a guarantee that they would

be awarded the contract if the property was to be developed.

These conditions were accepted and their cooperation was

excellent.

A meeting was held in the Lively, Ontario, field

office of Cal Graphite Corporation and the mining and

development method was explained.

General parameters given to assist in developing costs ~vere:

Work to be performed on a 3-shift/day, 6 day/

week basis, with the contractor supplying all

equipment and materials to complete his specified work.

ii All technical support services, surveying,

geology and engineering control would be supplied

by Cal Graph ite.

iii Cal Graphite would supply electric power and water.

iv The contractor would supply all piping, ventilation

tubing, rock bolts, rebars, screen and any other ground

conditioning materia7.


v The c o n t r a c t o r t o s u p p l y compressed a i r .

v i The c o n t r a c t o r t o t r u c k a l l deve lopment was te

o r o r e b r o k e n b y him, up t h e ramp and dumped w i t h i n

500 f e e t o f t h e p o r t a l .

v i i Cos t s f o r t r u c k i n g was te beyond 500 f e e t and

r o a d d r e s s i ng wou ld be a d d i t i o n a l .

v i i i Ground c o n t r o l work i f deemed necessa ry wou ld

be an a d d i t i o n a l n e g o t i a t e d c o s t .

1X The p r i c e f o r s u r f a c e b l a s t i n g i n t h e p o r t a l

a rea , 2nd e s t a b l i s h i n g t h e p o r t a l , t o be based on

t h e c o n t r a c t o r s u p p l y i n g a l l equ ipment , e x p l o s i v e s ,

cement, m a t t i n g and s p r e a d i n g b r o k e n m a t e r i a l

w i t h i n 150 f e e t .

A s p e c i f i c a t i o n 1 i s t showing s i z e s and t h e magn i t ude

o f work t o be done was drawn up and i s a t t a c h e d as Append ix

111.

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v The contractor to supply compressed air.

vi The contractor to truck all development waste

or ore broken by him, up the ramp and dumped within

500 feet of the portal.

vii Costs for trucking waste beyond 500 feet and

road dressing would be additional.

viii Ground control work if deemed necessary would be an additional negotiated cost.

lX The price for surface blasting in the portal

area, and establishing the portal, to be based on

the contractor supplying all equipment, explosives, cement, matting and spreading broken material within 150 feet.

A specification list showing sizes and the magnitude

of work to be done was drawn up and is attached as Appendix I I 1.


The fol lowing t a b l e shows t h e t o t a l development

i work requ i red and t h e a s s o c i a t e c o s t s :

C A L GRAPHITE

PERMANENT DEVELOPMENT

CAPITAL COST

TABLE '0

( $ i n 1000s)

DESCRIPTION UNITS

Decline ramp 12 ' x 15 ' @ -15% 4500 f t .

Re-rnucks 12 ' x 15 ' x 50 ' each 500 f t .

COST

I - I Safe ty Bays 140 cu. f t . each 4480 cu. f t . 14

! Vent i l a t ion In take Chamber 3600 cu. f t . 1 1 I

I 2 2 Vent i l a t ion In take Raise (Raw)8 'xg1 65 f t .

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Venti 1 a t i on Exhaust r a i s e ( A 1 i ~nak ) 8 ' x 9 ' 450 f t .

- ! Ore Pass Raise & Fingers I (Aliinak) 8 ' x 9 ' 1500 f t .

I - .

Porta l - c u t and concreted Total 2 0 I ~ I

Vent Raise - Supply and I n s t . i Fans and Heater Total

- 1 Transf orrner Pad and Encl osure Total 2 I I

A1 imak Set-ups and Tear-Downs 3 5 6

-. Sump Cuizting 400 cu. f t . 1

Ground Control Allowance + Rock Bol ts + Re-Bars + Wire Screen

D E V E L O P M E N T TOTAL $ 4,171

The c o s t f o r permanent development wi l l be

incurred i n production year s i x , and wi l l be charged

t o c a p i t a l expense.

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The following table shows the total development

work required and the associate costs:

TABLE 10

CAL GRAPH ITE

PERMANENT DEVELOPMENT

CAPITAL COST

( $ in 1000s)

DESCRIPTION UNITS COST

Decline ramp 12' x 15' @ -15%

Re-mucks 12' x 15' x 50' each

Safety Bays 140 cu. ft. each

Ventilation Intake Chamber

Ventilation Intake Raise (Raw)8'x9'

Ventilation Exhaust raise (Alimak)

4500 ft. $ 2,520

500 ft.

4480 cu. ft.

3600 cu. ft.

65 ft.

8' x 9 I 450 ft.

Ore Pass Raise & Fingers (A 1 i rnak ) 8' x 9' 1500 ft.

Portal - cut and concreted Total

Vent Raise - Supply and Inst. Fans and Heater Total

Transforrner Pad and Enclosure Total

Alirnak Set-ups and Tear-Downs 3

Sump Cutting 400 cu. ft.

Ground Control Allowance + Rock Bolts + Re-Bars

280

14

11

22

225

750

20

20

2

56

1

+ Wire Screen 250

DEVELOPMENT TOTAL S 4,171

The cost for permanent development will be

incurred in production year six, and will be charged

to capital expense.

{

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~------------------____ ~~ ______ ~i @ CONSTABLE CONSULTING INC.

4. CAPITAL COST

The c a p i t a l c o s t s a r e l i s t e d on t h e f o l l o w i n g

T a b l e i n t h e y e a r t h e y o c c u r .

C a p i t a l C o s t s a r e i n 1986 do1 1 a r s , and a

r e s i d u a l v a l u e h a s n o t been a s s e s s e d f o r m i l l i n g o r

rnining equipment due t o t h e l a r g e p r o d u c t i o n t o n n a g e s

and l e n g t h o f t i m e i n v o l v e d .

Abandonment c o s t s a r e e s t i m a t e d f o r r e - g e n e r a t i n g

t h e open p i t a r e a s o n l y , a s underground mining wi 11

c o n t i n u e a f t e r y e a r t h i r t y f o u r , t h e t i m e p e r i o d under

d i s c u s s i o n .

Page 63

4. CAPITAL COST

The capital costs are listed on the following Table in the year they occur.

Capital Costs are in 1986 dollars, and a residual value has not been assessed for milling or mining equipment due to the large production tonnages and length of time involved.

Abandonment costs are estimated for re-generating the open pit areas only, as underground mining will continue after year thirty four, the time period under discussion.

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i Page 64

i TABLE 11

CAL GRAPHITE

CAP I TAL

D e s c r i p t i o n Pre- Years P r o d u c t i o n 1-5 6 10 17 20 34

- Hydro - 44KV L i n e 1,610

Cornmunicati ons-Tel ephone 3 1

T a i 1 i ngs Treatment System 2,170

Roads & Berms 590

M i 11 Des ign & Cons. t ruc t . 3,800

Emergency Genera to r 250 I T rans fo rmer S ta . 34 1

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I 120

I i sub. S t a . i

Conveyor System

D r a i n Lakes McGuire and Minnow

I ~ Dams f o r Lakes I

Devel opnlent - Conveyor ! Gal 1 ei-i es

Abandonment i

200

M i sc. Equipment 100

TOTAL $ 8,705 300 5071 1000 1188 - 200

C a p i t a l Cost ( $ i n 1000s) T o t a l C a p i t a l = (Tons i n 1000s) T o t a l Ore Tons = $ = $0 .65 / ton o r e

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CAL GRAPHITE

CAPITAL

TABLE 11

Description Pre- Years Production 1-5 6 10 17 :20 34

Hydro - 44KV Line 1 ,610 Communications-Telephone 31 Tailings Treatment System 2,170 1000 1000 Roads & Berms 590 Mill Design & Construct. 3,800 Emergency Generator 250 Transformer Sta. 34 Sub. Sta. 120 Conveyor System 900 188 Drain Lakes tkGuire

and Minnow 150 Dams for Lakes 150 Development - Conveyor

Galleries 4171 Abandonment 200 Misc. Equipment 100

TOTAL $ 8,705 300 5071 1000 1188 - 200

Capita 1 Cost ($ in 1000s) Tota 1 Capital $16,464 $O.65/ton ore (Tons in 1000s) Total Ore Tons = 25,334


- 65 -


SECTION VI

METALLURGY

1. INTRODUCTION

2. METALLURGICAL REPORT

3. METALLURGY - COSTS AND PRODUCT VALUES



SECTION VI

METALLURGY

1. INTRODUCTION

The t r e a t m e n t methods and c o s t s d e s c r i b e d i n t h i s

r e p o r t a r e based on comprehensive p i l o t p l a n t t e s t i n g o f

t h e g r a p h i t e o r e by L a k e f i e l d Research o f Canada L i m i t e d

and a d d i t i o n a l t e s t w o r k by Erana Mines L i m i t e d o f L i v e l y ,

O n t a r i o .

The L a k e f i e l d work c o n s i s t e d of seven p i l o t p l a n t

t e s t s on 50 tonnes o f g r a p h i t e o r e i n t h e 1.60 t o 2.20

p e r c e n t g r a p h i t e grade range. The t e s t s ' o b j e c t i v e was

t o produce a + I 0 0 mesh s i z e f l a k e c o n c e n t r a t e g r a d i n g

S e t t e r t h a n 85% g r a p h i t i c carbon.

F u r t h e r t e s t work i s necessary g r i o r t o f i n a l m i l l

des ign . T h i s work would e s t a b l i s h :

( a ) C rush ing method

( b ) Optimurn Crush ing S i z e t o P rese rve F l a k e S i z e

( c ) I n v e s t i g a t e F l o a t C e l l s versus Column F l o t a t i o n

i d ) E s t a b l i s h F low Char t s f o r Each S p e c i f i c

G r a p h i t e P roduc t

( e l Tes t t h e F low Char t s i n Large Batch M i l l Runs

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1. I NTRODUCTI ON


SECTION VI

METALLURGY

The treatment methods and costs described in this

report are based on comprehensive pilot plant testing of

the graphite are by Lakefield Research of Canada Limited

and additional testwork by Erana Mines Limited of Lively,

Ontario.

The Lakefield work consisted of seven pilot plant

tests on 50 tonnes of graphite are in the 1.60 to 2.20

percent graphite grade range. The tests' objective was

to produce a +100 mesh size flake concentrate grading

better than 85% graphitic carbon.

66

Further test work is necessary ~rior to final mill

deSign. This work would establish:

(al Crushing method

(bl Optimum Crushing Size to Preserve Flake Size

(cl Investigate Float Cells versus Column Flotation

(dl Establish Flow Charts for Each Specific

Graphite PrOduct

(el Test the Flow Charts in Large Batch Mill Runs



The optimum t e s t r e s u l t s from Lakefield Research of

Canada Limited are included in t h i s r e p o r t ' s Appendix I .

Lakefield found t h a t the best r e s u l t s were produced in

t e s t No. PP6. The -12 mm ore was ground in a rod mill i n

closed c i r c u i t with a 14 mesh screen. The screen undersize

was pumped t o a bank of rougher f l o t a t i o n c e l l s and the

rougher concentrate was cleaned once. The cleaner concentrate

was screened a t 100 mesh and the screen oversize was tabled

t o recover a +I00 mesh f lake graphite product. The table

t a i l i n g was l igh t ly reground in a pebble mill t o 1iberat:e

f lake graphite middlings and was recycled t o the 100 mesh

screen.

The screen undersize was pumped to a Sank of

scavenger f 1 o t a t i on ce l l s . The scavenger concentrate was

reground in a ball mill in closed c i r c u i t with a 25 mm

diameter cyclone and cleaned three times. The scavenger

cleaner concentrate was tabled as a f ina l upgrading step.

Rod mill and f lo ta t ion reagents f o r t h i s t e s t were 150 g/ton

kerosene, 200 g/ton Na OH and 500 g/ton Na S i l i c a t e . With

a head grade of 2.05% graphi t ic carbon, Lakefield produced

a +I00 mesh f lake concentrate assaying 87.1% graphite and

a -100 mesh concentrate a t 91.2%. The recovery r a t e on

t e s t PP6 i s 87.9%.

Erana Mines Lirnited labs report s imilar t e s t r e s u l t s

using Dew f r o t h e r 250, kerosene, and Na s j 1 i c a t e .

i 1 I

COI LBLE CONSULTING IEC.

Page 67


The optimum test results from Lakefield Research of

Canada Limited are included in this report's Appendix I.

Lakefield found that the best results were produced in

test No. PP6. The -12 mm ore was ground in a rod mill in

closed circuit with a 14 mesh screen. The screen undersize

was pumped to a bank of rougher flotation cells and the

rougher concentrate was cleaned once. The cleaner concentrate

was screened at 100 mesh and the screen oversize was tabled

to recover a +100 mesh flake graphite product. The table

tailing was lightly reground in a pebble mill to liberate

flake graphite middlings and was recycled to the 100 mesh

screen.

The screen undersize was pumped tQ a bank of

scavenger flotation cells. The scavenger concentrate was

reground in a ball mill in closed circuit with a 25 mm

diameter cyclone and cleaned three times. The scavenger

cleaner concentrate was tabled as a final upgrading step.

Rod mill and flotation reagents for this test were 150 g/ton

kerosene, 200 g/ton Na OH and 500 g/ton Na Silicate. With

a head grade of 2.05% graphitic carbon, Lakefield produced

a +100 mesh flake concentrate assaying 87.1% graphite and

a -100 mesh concentrate at 91.2%. The recovery rate on

test PP6 is 87.9%.

Erana Mines Limited labs report similar test results

using Dow frother 250, kerosene, and Na silicate.

-I i j , I ,

~ cor .SlE CONSULTING INC.


The mill wi 1 1 be designed and constructed b ed on

the previous metallurgical r esu l t s . The mil 1 will consi of a

grinding-classif ier sequence, f l o a t c e l l s , re-grind, f l o c e l l s

and a f inal screening-filter-drying-bagging stage.

1 . CAPITAL COST - $3.8M to design, construct and commission a 3000 ton/day mil l .

2 . OPERATING COST - $ 5.50/ton including crushing t o 6"

( I nc l . Power) $ 4.00/ton excluding crushing t o 6"

The product value i s $1120 C D N per ton of cl zentrate,

s tated by M. Prudhomme, Industri a1 Mineral s Division, Mi I pal

Policy Sector, Energy Mines and Resources in his l e t t e r

received September 1986. A f igure of $1100 CDIV per ton F

concentrate i s the st ipulated f igure t o be used in the

Economic Analysis of t h i s property.

(Refer t o Appendix I1 I.

I ~\

I

Page 68


The mill will be designed and constructed b ed on

the previous metallurgical results. The mill will consi of a

grinding-classifier sequence, float cells, re-grind, flo cells

and a final screening-filter-drying-bagging stage.

l. CAP IT AL COST - $3.8M to design, construct and commission a 3000 ton/day mill.

2. OPERATING COST - $ 5.50/ton including crushing to 6"

( Inc l. Power) $ 4.00/ton excluding crushing to 6"

The product value is $1120 CON per ton of CI :entrate, stated by ~~. Prudhomme, Industrial ~linerals Division, r~il ral

Policy Sector, Energy Mines and Resources in his letter

received September 1986. A figure of $1100 CON per ton F

concentrate is the stipulated figure to be used in the

Economic Analysis of this property.

(Refer to Appendix II).

~ COi ABLE CONSULTING !NC.

- 69 -


SECTION VII

ECONOMIC ANALYSIS

1. INTRODUCTION

2. TABLES

l

@; CON ~BLE CONSULTING INC.


SECTION VII

ECONOMIC ANALYSIS

1. INTRODUCTION

Economic A n a l y s i s was done based on c o s t s

assembled f r o m v a r i o u s sources and d e t a i l e d i n s e c t i o ;

o f t h i s r e p o r t .

The revenue i s based on r e c e i v i n g an average )f

$1100 CDN f o r t h e end p roduc t , F.O.B. a t t h e m i l l .

The economic a n a l y s i s i s app l i c a b i e t o t h e o !

tonnage and grade o f m ineab le o r e mined by t h e open

p i t method, t h a t cove rs a schedu led p r o d u c t i o n p e r i o d ~f

t h i r t y f o u r y e a r s .

The c o s t o p t i o n s a r e p resen ted f o r y e a r s s i x o

t h i r t y f o u r , summarized as f o l l o w s :

1 . Ore "Hauled" t o t h e mi 11. No c a p i t a l r e f i r e d .

2. Ore "Conveyed" t o t h e mi 11 . $5.26 M Cap a1 Cost .

The r e s u l t s o f t h e economic a n a l y s i s of t h e r 1

G r a p h i t e orebody a r e c o n t a i n e d i n t h e f o l l o w i n g Tab le !

TABLE

12 Parameters used i n Economic A n a l y s i s

13 P r o d u c t i o n Parameters

14 T o t a l Cost . P re -P roduc t i on C a p i t a l and 5-Ye:: P r o d u c t i o n

15 T o t a l Costs . C a p i t a l a,nd P r o d u c t i o n Costs - 'I a rs 6-34

16 T o t a l Costs. Summary o f Tables 14 and 15

1 7 T o t a l Costs f o r Optimum P r o d u c t i o n i n t h e F i r t 5 Years

COh l B L E CONSULTING INC.

1. INTRODUCTION


SECTION VII

ECONOMIC ANALYSIS

Economic Analysis was done based on costs

assembled from various sources and detailed in sectio >

of this report. The revenue is based on receiving an average )f

$1100 CON for the end product, F.O.B. at the mill.

The economic analysis is applicable to the 0

tonnage and grade of mineable ore mined by the open

pit method, that covers a scheduled production period If

thirty four years.

The cost options are presented for years six 0

thirty four, summarized as follows:

70

1. Ore "Hauled" to the mill. No capital rei irE:d.

2. Ore "Conveyed" to the mi 11. $5.26 M Cap a 1 Cost.

The results of the economic analysis of the I

Graphite orebody are contained in the following Table'

TABLE

12

13

14

15

16

17

Parameters used in Economic Analysis

Production Parameters

Total Cost. Pre-Production Capital and 5-Yei Production Total Costs. Capital and Production Costs - , ars 6-34 Total Costs. Summary of Tables 14 and 15

Total Costs for Optimum Production in the Fir t 5 Years

@ CON ".BLE CONSULTING INC.

TABLE 12


PARAMETERS USED IN ECONOMIC ANALYSIS

1 . Product Value:

F, value of $1 100 CDIV per ton of concentrate F 1 . B .

mill s i t e has been used for the Economic Analysis, b ;ed

on the f igure of $1120 CDN, F.O.B.Vadasgascar stated )y

M . Prudhomrne, Industr ial Mineral Division, Mineral P icy

Sector, Enersy Mines & Resources, in his l e t t e r rece led

September 1986. (Appendix 11)

2 . Economic Results shown are "Protect Basis", and

administration or other i n d i r ~ c t cos ts have been app ed.

3. Results are Before Tax.

4. 1986 Constant Dollars have been used throughout.

5 . No operating costs have been included fo r the yez ;

prior t o production Year 1 .

I I

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CONS BLE CONSULTING INC.

~I I

f ge 71

TABLE 12


PARAMETERS USED IN ECONOMIC ANALYSIS

1. Product Value:

P,. value of $11 00 cor~ per ton of concentrate F LB.

mill site has been used for the Economic Analysis, b ;ed

on the figure of $1120 CON, F.O.B.Madasgascar stated ~

M. Prudhomme, Industrial Mineral Division, Mineral P icy

Sector, Energy Mines & Resources, in his letter rece 'ed

September 1986. (Appendix II)

2. Economic Results shown are "Protect Basis", and

administration or other indirect costs have been app ed.

3. Results are Before Tax.

4. 1986 Constant Dollars have been used throughout.

5. No operating costs have been included for the yec

prior to production Year 1.

@: CON~ BlE CONSUL TlNG INC.

'age 72

TABLE 13


PRODUCTION PARAMETERS

Tons ( i n 1000s) TOIUS CONCi TRATE

ORE WASTE ORE GRADE 87.92 RECOVERY 854 CONCENTRATE - 7

PRODUCTION YEARS 1-5

2949 536 2.68 70,405 82,799


1. P roduc t ion i s based on t h e m i l l o p e r a t i n g 322 day lyear

I 2. I n t h e f i r s t f i v e - y e a r p e r i o d , yea r 1 s t a r t s a t 1000

tons m i l l i n g l d a y and inc reases u n t i l 20,000 tons o f !

concen t ra te i s produced y e a r l y .

1 3. The maximum p r o d u c t i o n i s 20,000 t o n s concen t ra te /year

I 4. P roduc t ion Schedule: i

Tons Concentrct Years Tons/Day @ 85% Per Year

-- ~ - 1 1000 9,119

, j

CONS ILE C0NSL;LTING {NC.

TABLE 13


PRODUCTION PARAMETERS

Tons (in 1000s) TONS CONCi TRJnE

ORE WASTE ORE GRADE 87.9% RECOVERY 85% CONCENTRATE

2949 536

22,385 23,170


2.68


2.44

70,405

480,504

1. Production is based on the mill operating 322 day/year

2. In the first five-year period, year 1 starts at 1000

tons milling/day and increases until 20,000 tons of

concentrate is produced yearly.

3. The maximum production is 20,000 tons concentrate/year

4. Production Schedule:

Years

2

4

5

6-- 34

Tons/Day

1000

1500

2193

2193

2273

2439

Tons Concentrat @ 85~b Per Year

9,119

13,680

20,000

20,000

20,000

20,000

82,799

565,100

@: CONS !LE CONSULTING INC.

l

TABLE 14


TOTAL COST - PRE-PRODUCTION CAPITAL AND 5 YEARS PRODUCT10

( $ CDN i n 1 0 0 0 s )

C a p i t a l Cost

Mining Cos t

M i l l i n g Cos t

TClTAL COST


Revenue

Cash Flow

Notes : No p r e - p r o d u c t i o n c o s t i n c l u d e d

Before Tax

1986 Cons t an t Do1 1 a r s

No Admini s t r a t i o n C o s t s

C a p i t a l Not D i scoun ted

/ -- @ CONS BLE CONSULTING INC.

I ~I

TABLE 14


TOTAL COST - PRE-PRODUCTION CAPITAL AND 5 YEARS PRODUCTIO ($ CON in 1000s)

Capita 1 Cost

Mining Cost

Milling Cost

TOTAL COST

Tons Concentrate

Revenue

Cash Flow

$

$

9,005

14,356

16,272

39,633

82,799

91 .079

51,446

Notes: No pre-production cost included Before Tax




@: CONS

Page 73

i

! ----- ----------J BLE CONSULTING INC.

TABLE 15


TOTAL CAPITAL AND PRODUCTION COSTS YEARS 6-34

Capita l Cost

Mining Cost

M i l l i n g Cost

TOTAL COST

Tons Concentrate

Revenue

Cash Flow - TOTAL

Notes: Before Tax

Capita l Not Discounted

1986 Constant Dol lars


A

# 1 Option # 2 Option

$ 2,200 $ 7,459

247,360 201,694

89,540 89,540

Page 7 4

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i C3N5 BLE CONSULTING INC.

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TABLE 15


TOTAL CAPITAL AND PRODUCTION COSTS YEARS 6-34

(CON in 1000s)

Capital Cost Mining Cost Mi 11 i ng Cost

TOTAL COST

Tons Concentrate Revenue

Cash Flow - TOTAL

Notes: Before Tax




# 1 Option

$ 2,200

247,360

89,540

$ 339,100

565,100

$ 621,611

$ 282,511

# 2 Option

$ 7,459

201 ,694 89,540

$ 298,693

565,100

$ 621,611

322,918

Page 74

@; CON~ BLE CONSULTING INC.

I

TABLE 16


TOTAL COSTS - YEARS 1-34 - SUMMARY

( $ CDN i n 1000s)

# 1 Option # 2 Optic -

C a p i t a l Cost

M i n i n g Cost

M i l l i n g Cost

T o t a l Cost

Tons Concen t ra te

Revenue

Cash F low - T o t a l

Notes: B e f o r e Tax

C a p i t a l Not D i scoun ted

1986 Constant Do1 1 a r s

No A d m i n i s t r a t i o n Costs

I

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I i I

TABLE 16 CAL GRAPHITE CORPORATION

TOTAL COSTS - YEARS 1-34 - SUMMARY ($ CDN in 1000s)

Capital Cost

~1i ni ng Cost

fvlilling Cost

Total Cost

Tons Concentrate

Revenue

Cash Flow - Total

Notes: Before Tax




# 1 Option

$ 11 ,205

261,716

105,812

$ 378,733

647,899

712,691

$ 333,958

# 2 Opti~

$ 16,461

216,05(

105,81;

$ 338,32(

647 ,89~

712,691

$.374,36~

@;CON ~BLE CONSULTING INC.

CAPITAL COST

MIN ING COST

MILL ING COST

'age 76

TABLE 1 7


OPTIMUM PRODUCTION YEARS 1 -5

($ CDN i n 1 0 0 0 s )

TOTAL COST

TONS CONCENTRATE

REVENUE

CASH FLOW

ABLE CONSULTING INC.

CAPITAL COST MINING COST MILLING COST

TOTAL COST TONS CONCENTRATE REVENUE CASH FLOW

TABLE 17 CAL GRAPHITE CORPORATION

OPTIMUM PRODUCTION YEARS 1-5 ($ CDN in 1000s)

$ 9,005 20,247 19,965

$ 49,217 100,000

$110,000 $ 60,783

Jage 76

~ CO,- ABLE CONSULTING INC.

DATED AT SUDBURY, ONTARIO THIS TWENTIETH (20 th )

DAY OF OCTOBER 1986.

Respectful ly submittec

I

~I 1 ge 77

DATED AT SUDBURY, ONTARIO THIS TWENTIETH (20th)

DAY OF OCTOBER 1986.

Respectfully submitte(

~ COI\ ABLE CONSULTING INC.

l

CERTIFICATION

I, DAVID W. COIUSTABLE, c e r t i f y t h a t :

1 ) I am a c o n s u l t i n g g e o l o g i s t , p r e s i d e n t o f CORSTABLE C SULTING INC., w i t h an o f f i c e a t 10 K i n g s t o n Cour t , Sudbury, Ontar .

2 ) I am a 1970 g radua te o f Mount A1 l i s o n U n i v e r s i t y , Sac i l l e , New Brunswick w i t h an Honours Bache lo r o f Science i n geo l y, and d u r i n g 1970-71 comple ted a y e a r s p o s t g radua te work a t Ox r d U n i v e r s i t y , Engl and.

3 ) I am a F e l l o w o f t h e Geo log i ca l A s s o c i a t i o n o f Canada i n c e 1975 and a member o f t h e P rospec to rs and Developers Assoc t i o n and t h e CI IYM.

4) I have been c o n t i n u o u s l y employed i n m i n e r a l & o i l ex; o r a t i o n and development s i n c e g r a d u a t i o n i n a l l p a r t s of Canada a p a r t s o f t h e U n i t e d Sta- tes and Flexico.

5 ) I have based t h i s r e p o r t on my con t i nuous i nvo l vemen t n t h e Cal G r a p h i t e C o r p o r a t i o n p r o p e r t y s i n c e 1985 and my p r e v i s e x p l o r a t i o n r e p o r t s da ted dune 15, 1955 and October 30, 1 5. (Amended January 27, 1986 3 .

6 ) I have no i n t e r e s t , d i r e c t o r i n d i r e c t , i n t h e shares f Cal G r a p h i t e C o r p o r a t i o n o r i t s s u b s i d i a r i e s o r ( j r o p e r t i e s , n 1 do I expect t o r e c e i v e any. 1 have d i s c l o s e d i n t h i s r e p o r t t ' t h e b e s t o f my knowledge a l l i n f o r m a t i o n wh ich m i g h t have a bl r i n g on t h e recommendations r e l e v a n t t o Cal G r a p h i t e Corpo ra t n ' s B u t t Township G r a p h i t e P r o p e r t y .

DATED THIS twentieth (20th) DAY OF OCTOBER, 1986 1

I

AT SUDBURY, ONTARIO. I

1 Consul t i ng G e o l o g i s t I I I i I

I @ CC! 'ABLE CONSULTiNG INC.

ge 78

CERTIFICATION

I, DAVID W. CONSTABLE, certify that: 1) I am a consulting geologist, president of CONSTABLE C SULTING INC., with an office at 10 Kingston Court, Sudbury, Ontar

2) I am a 1970 graduate of Mount Allison University, Sac New Brunswick with an Honours Bachelor of Science in geol during 1970-71 completed a years post graduate work at Ox University, England.

3) I am a Fellow of the Geological Association of Canada 1975 and a member of the Prospectors and Developers Assoc and the CIII1M.

4) I have been continuously employed in mineral & oil ex~ and development since graduation in all parts of Canada a of the United States and Mexico.

il"le, y, and rd

ince tion

oration parts

5) I have based this report on my continuous involvement n the Cal Graphite Corporation property since 1985 and my previ l s exp 1 orat i on reports dated June 15, 1985 and October 30, 1 5. (Amended January 27, 1986).

6) I have no interest, direct or indirect, in the shares Graphite Corporation or its subsidiaries or properties, n! expect to receive any. I have disclosed in this report ti best of my knowledge all information which might have a b, on the recommendations relevant to Cal Graphite Corporat Butt Township Graphite Property.

DATED THIS twentieth (20th) DAY OF OCTOBER, 1986

AT SUDBURY, ONTARIO.

~ Consulting Geologist

f Cal do I

the ring n's

1

@ co 'ABLE CONSULTiNG INC.

CERTIFICATION

I, LESLIE T . DUNKS, c e r t i f y t h a t :

1 ) I am a P r o f e s s i o n a l Eng ineer l i c e n s e d i n O n t a r i o i n 15 I , and o f f e r s e r v i c e s i n Mine E n g i n e e r i n g and I n d u s t r i a l Engi 2 e r i n g under t h e t i t l e L.T. Dunks Assoc ia tes , w i t h an o f f i c e a t 1 3 Edward Avenue, Chelmsford, O n t a r i o .

2 ) I am a rnember o f t h e A s s o c i a t i o n o f P r o f e s s i o n a l Eng i r ? r s , O n t a r i o , and a s e n i o r member o f t h e A s s o c i a t i o n o f I ndus tv 31 Eng ineers , U.S. I am an a s s o c i a t e o f t h e Management I n s t i ~ t e of Eng ineers , U.K., and a meniber o f t h e Canadian I n s t i t u t ~ ~f M i n i n g and Meta l 1 u rgy .

3 ) I have been c o n t i n u o u s l y employed i n t h e m i n i n g i ndus t q i n Canada s i n c e 1952, and was a s s o c i a t e d w i t h m i n i n g i n Mala j p r e v i o u s l y . 4) I have based t h i s r e p o r t on the G r a p h i t e P r o p e r t y o f t 2 Cal G r a p h i t e C o r p o r a t i o n by p r o p e r t y examinat ion , and t h e rest i e , tonnages, grades and meta l 1 u r g i c a l r e s u l t s suppl i ed.

5 ) I have no i n t e r e s t , d i r e c t o r i n d i r e c t i n t h e snares c Cal G r a p h i t e C o r p o r a t i o n o r i t s s u b s i d i a r i e s o r p r o p e r t i e s , nc do I expect t o r e c e i v e any. I have d i s c l o s e d i n t h i s r e p o r t I t h e b e s t of my knowledge, a l l i n f o r m a t i o n t h a t might have a bc - i n g on t h e recommendations r e l e v a n t t o Cal G r a p h i t e Corpo ra t i c s B u t t Township G r a p h i t e P r o p e r t y ,

DATED Tti I S twent ieth AT SUDBURY, ONTARIO.

DAY OF OCTOBER, 1986

, i P. Eng. I

i I

- I

COf ABLE CONSULTING INC.

~I F ~e 79

CERTI FI CATION

I, LESLIE T. DUNKS, certify that:

1) I am a Professional Engineer licensed in Ontario in E ), and offer services in Mine Engineering and Industrial Engi ~ering under the title L.T. Dunks Associates, with an office at 1 ) Edward Avenue, Chelmsford, Ontario.

2) I am a member of the Association of Professional Engir ~rs, Ontario, and a senior member of the Association of Industr ~l Engineers, U.S. I am an associate of the ~1anagement Insti lte of Engineers, U.K., and a member of the Canadian InstitutE )f Mining and Metallurgy.

3) I have been continuously employed in the mlt11ng indust y in Canada since 1952, and was associated with mining in Mala) previously.

4) I have based thi s report on the Graphite Property of t = Cal Graphite Corporation by property examination, and the reSE ie, tonnages, grades and metallurgical results supplied.

5) I have no interest, direct or indirect in the shares c Graphite Corporation or its subsidiaries or properties, nc I expect to receive any. I have disclosed in this report best of my knowledge, all information that might have a bE on the recommendations relevant to Cal Graphite Corporatic Butt Township Graphite Property.

DATED THIS twentieth (20th) DAY AT SUDBURY, ONTARIO.

OCTOBER, 1986

P. Eng.

Ca 1 do

) the ~i ng s

~ COf ABLE CONSULTING INC.

October 20, 1986

Cal Graphite Corporation 10.6 Fielding Road Lively, Ontario POM 2EO

Gent 1 emen :

RE CONSENT LETTER

This l e t t e r i s your au thor i ty t o use our repor t ~ t e d October 20, 1986 and e n t i t l e d " F E A S I B I L I T Y REPORT FOR CAL GRAPHITE CORPORATION ON THEIR GRAPHITE PROPERTY LOCATED I BUTT TOWNSHIP, ONTARIO", f o r any corporate purpose you de I necessary, including i t s use in whole or in par t in any c lpany prospectus.

DATED AT SUDBURY, ONTARIO T H I S t w e n t i e t h ( 2 0 t h ) DAY OF OC IBER,1986

. , Mining

.G.A.C., C

Engineer

onsul t i n g Geo

I /

I

i COP ABLE CONSULTING INC.

October 20, 1986

Cal Graphite Corporation 106 Fielding Road Lively, Ontario POM 2EO

Gentlemen:

RE CONSENT LETTER

This letter is your authority to use our report lted October 20, 1986 and entitled "FEASIBILITY REPORT FOR CAL GRAPHITE CORPORATION ON THEIR GRAPHITE PROPERTY LOCATED I BUTT TOWNSHIP. ONTARIO". for any corporate purpose you de 1

necessary, including its use in whole or in part in any c lpany prospectus.

DATED AT SUDBURY. ONTARIO THIS twentieth (20th) DAY OF OC IBER.1986.

Mining Engineer

Consulting Geologist

€ COl ABLE CONSUL TING INC.

i J I I

I I

APPENDIX I

METALLURGICAL REPORTS

@: COl ABLE CONSUL TING INC.

Summary - continued

3 . Optimum Results

The b e s t r e s u l t s were produced i n t e s t No. PP6. The -12 m ore

was ground i n a rod m i l l i n closed c i r c u i t with a 1 4 mesh screen. he screen

undersize w a s pumped t o a bank of rougher f l o t a t i o n c e l l s and the : uglier

concentrate was cleaned once. The cleaner concentrate w a s screenel a t 100 mesh

and the screen oversize was t ab led t o recover a +lo0 mesh f l ake g r hi1:e product.

The t a b l e t a i l i n g w a s l i g h t l y reground i n a pebble m i l l t o l i b e r a t f lake

graphi te middlings and was recycled t o the 100 mesh screen.

The screen undersize w a s pumped t o a bank of scavenger f 1tal;ion c e l l s .

The scavenger concentrate was reground i n a b a l l m i l l i n closed c i u i t with a

25 mm diameter cyclone and cleaned th ree times. The scavenger c l e e r concentrate

w a s t ab led as a f i n a l upgrading s tep . The process flowsheet i s il str rated i n

Figure No. 1.

Summary - Continued

3. Optimum Results

- 4 -

The best .results were produced in test No. PP6. The -12 more

was ground in a rod mill in closed circuit with a 14 mesh screen.

undersize was pumped to a bank of rougher flotation cells and the

he screen

ugher

concentrate was cleaned once. The cleaner concentrate was screenel at 100 mesh

and the screen oversize was tabled to recover a +100 mesh flake gr; hi te product.

The table tailing _was lightly reground in a pebble mill to liberat! flake

graphite middlings and was recycled to the 100 mesh screen.

The screen undersize was pumped to a bank of scavenger f ,tation cells.

The scavenger concentrate was reground in a ball mill in closed ci ui t with a

25 mm diameter cyclone and cleaned three times. The scavenger cle er concentrate

was tabled as a final upgrading step. The process flowsheet is il Lst-:rated in

Figure No. 1.

,---

3. Optimum Resu l t s - Cont'd

F igure No. 1 - Flowsheet

+lo0 Mesh

I2is +I Screen

~ o d e r Cleaner 'W. Rougher 3

Screen T, l e 1 Concentrate

Rougher Tailing

Screen Undersize

3. Optimum Results - Cont'd

Figure No.1 - F10wsheet

+100 Mesh

O/S

- 5 -

-12 mm

14 M

I-----..:::~:::>I Rougher Tailing ""'=::::;::~::;:::::=-'

100 M 1e 1 Concentrate I

Pebble Mill I

Screen Undersize

3. Optimum Results - Cont'd Figure No. 1 - Flowsheet - Cont'd -100 Mesh

I Screen Unders ize I

B a l l Mill

\ - /

. Scav. 1st C1. T a i

- led. Scav. T a i l . -

\

< 1 Table 2 1-4 Table 2 Concentrate 1

L

p Scavenger Scalp Scavc gel. Scalp T a i l i n g


Figure No. l - Flowsheet - Cont'd

-100 Mesh

Screen Undersize

OfF

- 6 -

ScavE ger Scalp Tailing

Scavenger 1st Cleaner 1-----::---"';;;:';. Scav. 1st Cl. Tai }

'-======:==:::::==::::=--1

Scavenger 2nd Cleaner I Come .led. Scavo Tail.

Scavenger 3rd Cl,=r I T c

~ ______ ~'------~:1~ Table 2 Concentrate

Summary - Continued . .

3. Optimum ~ ~ s u l t s - Cont ' d

The combined g raph i t e concentrate from t e s t PP6 represen. d :!.O5 %

by weight of t h e o r i g i n a l ore and assayed 87.1 % graph i t e and 93.7 LO1 a t

87.9 5 o v e r a l l g raph i t e recovery. The +lo0 mesh f r a c t i o n of t h e cl cerltrate

represented ' 1.49 % by weight of t h e o r i g i n a l ore an& assayed 94.6 i LO:[ at

-- 64.7 % o v e r a l l graphi te recovery. The -100.mesh f ~ a c t i o n of t h e C I c e n t r a t e

represented 0 -56 % by weight of t h e o r i g i n a l o re and assayed 91.2 LO:[ at

- 23.2 % o v e r a l l g raph i t e recovery.

- 4. Power and Reagent Consumption

Average power consumption i n the rod m i l l w a s 2 .4 kWh/ton :. App-oximately

150 g / t kerosene w a s added t o t h e rod m i l l and rougher f l o t a t i o n as ;he p r i m v y

g raph i t e c o l l e c t o r . Approximately 200 g / t NaOH and 500 g / t N a S i l i r te were

added t o t h e scavenger c i r c u i t t o d isperse and depress t h e gangue c l s t i t u e n t s

i n t h e f l o t a t i o n recovery of -100 mesh graphi te .

- 7 -

Summary - Continued


The combined graphite concentrate from test pp6 represen d ~~ .05 %

by weight of the original ore and assayed 87.1 % graphite and 93.7 Lor at

87.9 % overall graphite recovery. The +100 mesh fraction of the Cl centrate

represented L 49 % by weight of the original ore and assayed 94.6 ~ LOI at

64.7 % overall graphite recovery. The -100' mesh f~action of the CI centrate

represented 0.56 % by weight of the original ore and assayed 91.2

23.2 % overall graphite recovery.

LOI at

4. Power and Reagent Consumption

Average power consumption in the rod mill was 2.4 kWh/tor.I • Approximate ly

150 g/t kerosene was added to the rod mill and rougher flotation as ;he primary

graphite collector. Approximately 200 g/t NaOH and 500 g/t Na 8ili Lte were

added to the scavenger circuit to d~sperse and depress the gangue c lstituents

in the flotation recovery of -100 IIlesh graphite.

1. Purpose:

2. Procedure :

To improve g r a ~ h i t e grade i n t h e scavenger c i r lit by d iscarding t h e scavenger 1st c l eane r t a i l i n g .

No changes were made i n t h e coarse f l a k e graph ;e c i r c u i t .

The following changes were made i n t h e scaveng r c leaner c i r c u i t .

1. Sodium s i l i c a t e and NaOH were introduced t c the t h i r d c l eane r .

2. The scavenger 1 s t c leaner t a i l i n g w a s d i s c ? ded with t h e f i n a l t a i l i n g .

3 . Increased water flow was used i n t h e c i r cu : . 4. The a i r flow t o t h e , c e l l s w a s reduced.

5. The scavenger 1 s t c leaner w a s increased frc . one Denver NO. 5 c e l l t o two Denver No. 5 c e l l s .

The c i r c u i t was operated f o r 6.5 hours .at a f ,d r a t e of 506 kg/h and sampled every 30 minutes during t h e .st 2.5 hours of opera t ion .

2.1. M i l l Loads: As f o r Tes t PP1.

2.2. C l a s s i f i e r s : A s f o r Tes t PP1.

2.3. F l o t a t i o n C e l l s : Rougher 6 A g i t a i r No. 1 5 Rougher Cleaner 2 A g i t a i r NO. 1 5 Scavenger 1 Denver No. 7 Scalp 2 Denver N o . 7 Scavenger 1 s t Cleaner 2 Denver No. 5 Scavenger 2nd Cleaner 1 Denver No. 5 Scavenger 3rd Cleaner 1 Denver N o . 5

- 3 . Flowsheet:

-- 3.1. +lo0 Mesh: A s f o r Test PP5.

Test No. PP6

1. Purpose:

2. Procedure:

2.1. Mill Loads:

2.2. Classifiers:

2.3. Flotation Cells:

3. Flm.rsheet:

3.1. +100 Mesh:

- 75 -

To improve graphite grade in the scavenger cir Lit by discarding the scavenger 1st cleaner tailing.

No changes were made in the coarse flake grapb ;e circuit.

The following changes were made in the scaveng ~ cleaner circuit.

1. Sodium silicate and NaOH were introduced tc t.he: third cleaner.

2. The scavenger 1st cleaner tailing was disco ded with the final tailing.

3. Increased water flow was used in the circu:

4. The air flow to the cells was reduced.

5. The scavenger 1st cleaner was increased fr( . one Denver No.5 cell to two Denver No.5 cells.

The circuit was operated for 6.5 hours at a f kg/h and sampled every 30 minutes during the of operation.

As for Test PP1.

As for Test PP1.

Rougher 6 Agitair No. 15 Rougher Cleaner 2 Agitair No. 15 Scavenger 1 Denver No. 7 ~calp 2 Denver No. 7 Scavenger 1st Cleaner 2 Denver No. 5 Scavenger 2nd Cleaner 1 Denver No. 5 Scavenger 3rd Cleaner 1 Denver No. 5

As for Test PP5.

d rate of 506 .st 2.5 hours

h

Test No. P P ~ - Continued

3 . Flowsheet - Cont'd

3 . 2 . -100 Mesh:

Screen U/S i-1

*-+-I B a l l M i l l

+ Scavenger Scalp )

Scav. 1st c1. C i . T a i l .

Sca

I

Table 2 Table 2 Conc. I

Scalp T a i l . -

nbii.ned v . Tail. -

- 76 -

Test No. pp6 - Continued

3. Flowsheet - Cont'd

3.2. -100 Hesh:

Screen U/S

I I

l

Scavenger Scalp I----~

>----4 Ball Mill I

1st Cl.

\ '

'-____ J Scav. 1st 1-___ _

1_CL Tail.

Table 2 rl --------~~e 2 Conc.

Sc~alp Tail.

J :nbi~ ~. -=:J

Test No. P P ~ - Continued -

- 4. Resul t s :

4 . 1 . Rod M i l l Report:

Feed :

Feed Rate:

M i l l Speed:

M i l l Load:

Operating Time:

Pulp Density:

Screen Undersize:

Average Power:

Net Power Consmption:

The r e s u l t s were a cons iderable improvement over rest PP5. It was recommended t h a t t h e scavenger 1st c l e a n € t a i l i n g be discarded.

4.2. Conical M i l l Report:

Feed:

H i l l Load:

Pulp Density:

S i z e Analysis :

515 kg/h -12 mm o r e a t 1 . 7 $ mois ture

506 dry kg/h

34 rpm, 60 % c r i t i c a l speed

248 kg of rods

Tota l 6.5 hours , Tes t pe r iod 2.5 hours

M i l l Discharge 1880 g/L Screen Undersize 1470 g/L

58.8 % -48 mesh 32.3 % -100 mesh

Gross 2.54 kW No Load 1 .28 kW Net 1 .26 kw

2.49 kWh/tonne of -12 mm o r e .

Table Ta i l ing

136 kg alumina pebble

M i l l Discharge 1080 g/L

Table Ta i l ing 16 .2 % +48 mesh 25.8 % -100 mesh

M i l l Disc herge 3.4 $ +48 mesh 83.8 % -100 mesh

- I

- 77 -


4. Results:

4.1. Rod Mill Report:

Feed:

Feed Rate:

Mill Speed:

Mill Load:

Operating Time:

Pulp Density:

Screen Undersize:

Average Power:

Net Power Consumption:

The results were a considerable improvement over ~est PP5. It was recommended that the scavenger 1st cleane tailing be discarded.

515 kg/h -12 mm ore at 1.7 % moisture

506 dry kg/h

34 rpm, 60 % critical speed

248 kg of rods

Total 6.5 hours, Test period 2.5 hours

Mill Discharge Screen Undersize

58.8 % -48 mesh 32.3 % -100 mesh

1880 giL 1470 giL

Gross No Load Net

2.54 kW 1.28 kW 1.26 kW

2.49 kWh/tonne of -12 mm ore.

4.2. Conical Mill Report:

Feed: Table Tailing

Mill Load: 136 kg alumina pebble

Pulp Density: Mill Discharge 1080 giL

Size Analysis: Table Tailing l6.2 % +48 mesh 25.8 % -100 mesh

Mill Discharge 3.4 % +48 mesh 83.8 % -100 mesh


4.6 . Analyses:

12son Undersize 3ougher Concentrate 3ougher T a i l i n g Zougher Cleaner Conc. Swtco Oversize Sxtco Undersize Yajle 1 Conc. TaSle 1 T a i l . Table 2 Conc. Table 2 T a i l . Sczvenger Conc . S c i i p T a i l i n g Scavenger C 1 . 1 Tai l ing Scavenger C 1 . 3 Conc. Co~bined Concentrates C o ~ b i n e d Ta i l ings Rougher Cleaner Tai l ing Combined Scavenger Ta i l ing

Product

Tzble 2 Concentrate Co~bined Conc. +lo0

-100

Table 1 Conc. +lo0 -1 00

-)

i'est No. pp6 - Continued

4.6" Analyses:

Product

;Ca.son Undersize ~ougher Concentrate ~ougher Tailing ?ougher Cleaner Conc. Sweco Oversize S .... eco Undersize ~able 1 Cone. Table 1 Tail. Table 2 Conc. i'able 2 Tail. Scavenger Cone. Scalp Tailing Scavenger Cl. 1 Tailing Scavenger Cl. 3 Conc. Conbined Concentrates Conbined Tailings Rougher Cleaner Tailing Combined Scavenger Tailing

Product

Table 2 Concentrate Combined Conc. +100

-100

Table 1 Conc. +100 -100

% C (g)

2.03 20.0

0.2:2 49.1 62.4 19.8 88.2 18.1 80.1 63.1 49.1 1. 73 3.04

70.0 87.1

0.25 8.08 2.16

% Lor

90.7 94.6 91.2

94.5 92.6

- 79 -


h - 3 . B a l l M i l l Report : - Feed: Scavenger Concentrate

- 1.ii:l-l Load: 68 kg s t e e l b a l l s

Pulp Density:

- Size Analys is :

Mil l Discharge . 1120 g/L Cyclone Overflow 1040 g/L

Scavenger Conc . 72.7 % -200 mesh 43.5 % -400 mesh

Cyclone O/F 53.8 % -400 mesh

,--. 4.4 . Reagent Addit ions :

Type

Kerosene DF250

- Kerosene NaOB Sodium S i l i c a t e NaOH Sodium S i l i c a t e

- 4.5. F'ulp Density and pH:

Product

\. Rougher Feed Rougher C e l l 1 Rougher T a i l i n g

- Conical M i l l Discharge Scavenger C e l l 1 Scavenger Sca lp Ta i l ing Hazen Mill Dischzrge

1 P25 Overflow Scavenger 1st Cleaner Scavenser 2nd Cleaner

- Scevenger 3 rd Clezner

Point o f Addit io

Pulp Density (g/L)

Rod M i l l Rougher Feed Rougher 3rd Ce l l scav6nger Feed ~ c a v k n ~ e r 1st C 1 Feed Scavenger 3rd C 1 Feed Scavenger 3rd C1 Feed

0 nfI - Ter -- . C

- I


4 _ 3. Ball filill Report:

Feed:

Hill Load:

Pulp Density:

Size Analysis:

4.4. Reagent Additions:

Kerosene DF250 Kerosene HaOK Sodium Silicate HaOK Sodium Silicate

4.5. Pulp Density and pH:

Product

Rougher Feed Rougher Cell 1 Rougher Tailing Conical Mill Discharge Scavenger Cell 1 Scavenger Scalp Tailing Hazen lvlill Discharge P25 Overflow Scavenger 1st Cle~~er Scavenger 2nd Cleaner Scavenger 3rd Cleaner

- 78 -

Scavenger Concentrate

68 kg steel balls

Mill Discharge 1120 giL Cyclone Overflow 1040 gIL

Scavenger Cone. 72.7 % -200 mesh 43.5 % -400 mesh

Cyclone OIF 53.8 % -400 mesh

Amount ( g/t) Point of Additio

126 Rod Mill 23 Rough~r Feed 27 Roug~er 3rd Cell 96 Scavenger Feed

384 Scavenger 1st Cl Feed 122 Scavenger 3rd Cl Feed 130 Scavenger 3rd Cl Feed

Pulp Densitl ( giL) ~ Ter . °c

1470 3·7

1440 1080

4.6 1030 1120 1040

11.2 11.5 11.6

Test No. P P ~ - Continued .-

-. - 4.7 . Meta l lurgica l Balance:

2.7.1. Two Product Balance - -

4.7.2. Size Fract ion Analyses: -

Table 1 Concentrate

- Product

- Xougher Cleaner Conc . 3ougher Ta i l ing :-&son Unders i z e

T;%ble Concentrate Sweco Undersize 3ougher Cleaner Conc . Table 2 Concentrate Combined Scav. T a i l . Sweco Undersize

Combined Concentrates Combined Tai l ings Kason Undersize

Conbined Conc. ( ~ a l c . ) Combined T a i l . ( ~ a l c . ) :(ason Undersize

Codoined Concentrate -

Assays, % G

49.1 0.22 2.03

88.2 19.8 49 -1

80.1 2.16

19.8

87.1

Product

+lo0 mesh -100 mesh

Bead ( Calc. )

% D i s t . G

89.6 10.4

100.0

76-9 23.1

100.0

91.6 8.4

100.0

87.9

Weight % Ind. I O r a l l

0.25 12.2 2.03 100.0

3.70 96.30

100.00

42.8 57.2

100.0

22.6 77.4

100.0

2.05 97.95

100.00

- - -

I

Weight %

86.5 13.5

100.0

) +lo0 mesh -100 mesh

3.70 96.30

100.00

1.58 2.12 3.70

0.48 1 . 6 4 2.12

2.05 97 - 95

100.00

2.06 97.94

100.00

72.9 1 94-6 1 T3::1 27.1 91.2 --

Head (Ca lc . )

Assays, % LO1

94.5 92.6

94.2

% Dist . LO I

86.7 1 3 . 3

100.0

100aO 93 8 7 loo. 0

- 80 -


4. "I. Metallurgical Balance:

4.7.1. Two Product Balance

Product Weight % Assays. % % Dist.

Ind. I O'all G G

R()Ugher Cleaner Conc. 3·70 3.70 49.1 89.6 Rc)ugher Tail ing 96.30 96.30 0.22 10.4 Kason Undersize 100.00 100.00 2.03 100.0

Table Concentrate 42.8 1. 58 88.2 76.9 Sweco Undersize 57.2 2.12 19.8 23.1 Rougher Cleaner Conc. 100.0 3.70 49.1 100.0

Table 2 Concentrate 22.6 0.48 80.1 91.6 Combined Scavo Tail. 77.4 1.64 2.16 8.4 Sweco Undersize 100.0 2.12 19.8 100.0

Combined Concentrates 2.05 2.05 87.1 87.9 Combined Tailings 97 ·95 97·95 0.25 12.1 Kason Undersize 100.00 100.00 2.03 100.0

Combined Conc. (Calc.) - 2.06 86.3 87.8 Combined Tail. (Calc.) - 97.94 0.25 12.2 Kason Undersize - 100.00 2.03 100.0

I

4.7.2. Size Fraction Analyses:

Table 1 Concentrate

Product Weight Assays, % % Dist. % LOI LOI

+100 mesh 86.5 94.5 86.7 - , -100 mesh 13.5 92.6 13.3

Head (Calc.) 100.0 94 .2 100.0

Combined Concentrate

+100 mesh 72.9 94.6 73.6 -100 mesh 27.1 91.2 26.4

Head (Calc.) 100.0 93.7 100.0


- - 4.8. Screen Analyses:

G~nica.1 Discharge -

Kason Unders i ze -

% Passing Cumulative -

99.5 96.6 92. o 83.8 76.9 71.0 62.9 54.4

-

- - Mesh S ize

(Ty le r ) - -

+ 35 4 8

- 6 5 100 150 200

- 270 400

- 400 I - I

1 . 5 9 .9

23.3 41.2 55.9 67.7 76.5 82.5 87.0 go. 0

100.0

T o t a l I 100.0 ! - I -

% Retzined

-

Sweco Undersize

I n d i v i d u d

0.5 2 9 4.6 8.2 6.9 5.9 8 . 1 8.5

54.4

- - T o t a l

Cumulative

0 - 5 3.4 8.0

16 .2 23.1 29.0 37.1 45.6

100.0

100.0

+ 100 150 200 270 4 00

- 400

0 . 3 6.9

11.6 11 .4

9 .8 60.0

Total 100.0 !

-

0.3 7.2

18 .8 30.2 40.0

100.0 -

- 81 -


4.8. Screen Analyses:

Conical Discharge

M esh Size % Retained % Passing ( Tyler) Individual Cumulative Cumulative

+ 35 0.5 0.5 99.5 48 2.9 3.4 96.6 65 4.6 8.0 92.0

100 8.2 16.2 83.8 150 6.9 23.1 76.9 200 5.9 29.0 71.0 270 8.1 37.1 62.9 400 8.5 45.6 54.4 400 54.4 100.0 -

T otal 100.0 - -

Kason Undersize

+ 20 1.5 1.5 98.5 28 8.4 9·9 90.1 35 13.4 23.3 76.7 48 17.9 41.2 58.8 65 14.7 55.9 44.1

100 11.8 67.7 32.3 150 8.8 76.5 23.5 200 6.0 82.5 17.5 270 4.5 87.0 13.0 400 3.0 90.0 10.0

- 400 10.0 100.0 -Total 100.0

Sweco Undersize

+ 100 0.3 0.3 99.7 150 6.9 7.2 92.8 200 11.6 18.8 81.2 270 11.4 30.2 69.8 400 9.8 40.0 60.0

- 400 60.0 100.0

TotaJ. 100.0

- -.

Tt,t No. P P ~ - Continued

- 4.8. Screen Andyses - Cont'd

-. Scavenger Concentrate

Combined Concentrates -

% Passing Cumulative

99.8 90.7 72.7 56.3 43.5

-

-

Mesh Size (Tyler )

+ 100 150 200 270 400

- 400 Total

Ta'ble 1 Concentrate -

- 1 Sweco Oversize I -

$ Retained

- + 28

3 5 48 65 100

- 100 -

Individual.

0.2 9 -1 18.0 16.4 12.8 43.5

100.0

3 . 4 11.3 21.1 19.8 17.3 27.1

3.4 14.7 35.8 55.6 72.9 100.0

-

Cumulative

0.2 9-3 27.3 43.7 56.5

100.0

-

Total 1 100.0 -

27.1 - -

- I

Tc~t No. pp6 - Continued

4.8. Screen Analyses - Cont'd

Scavenger Concentrate

Hesh Size (Tyler) Individual

+ 100 0.2 150 9.1 200 18.0 270 16.4 400 12.8

- 400 43.5

Total 100.0

Combined Concentrates

+ 28 35 48 65

100 100

To tal \

Ta"b1e 1 Concentrate

+ 28 35 48 65

.00 ]

- ] .00

Tot :al

Sweco Oversize

+ 20 28 35 48 65

100 - 100

Total

3.4 11.3 21.1 19·8 17.3 27.1

100.0

4.0 14.4 25.0 24.3 18.8 13.5

100.0

0.1 2.2 8.5

21.4 21.1 24.9 15.8

100.0

% Retained

1

- 82 -

% Passing Cumulative Cumulative

0.2 99.8 9~3 90·7

27.3 72.7 43.7 56.3 56.5 43.5

100.0 -

- -

3.4 96.6 14.7 85.3 35.8 64.2 55.6 44.4 72.9 27.1

100.0 -- -

4.0 96.0 18.4 81.6 43.4 56.6 61.1 32.3 86.5 13.5

100.0 -

- -

~

0.1 99.9 2.3 97.1

10.8 89.2 32.2 61.8 59·3 40.7 84.2 15.8

100.0

Test No. P P ~ - Continued --


- , Scavenger C l . 3 Conc.

+- .. Table 1 T a i l i n g

Tota l I 100.0 1 - I -


99.9 97.6 83.8 55 2 25.8 -

-

Mesh Size - ( ~ y l e r )

+ 28 - 35

4 8 65

- 100 - 100

Rougher Cleaner Conc. -

% Retained Indiv idual I Cumulative

-

0.1 2.3

13.8 28.6 29.4 25.8

100.0 - Tota l -

0.1 2.4

16 .2 44.8 74.2

100.0

-

0.2 2.3 6.4

1 4 . 6 17.0 14 .6 11.0

6.7 4.6 3.2

19.4

0.2 2.5 8.9

23.5 40.5 55.1 66.1 72.8 77.4 80.6

100.0

- I - I + 20

28 I - 3 5

4 8

To ta l -

99.8 97.5 g l .l 76.5 59.5 44.9 33.9 27.2 22.6 19.4 -

-

I 100.0 1 - I I -

I

I 65 l o o 150 200 270

- 400 I - 400 -

- 83 -



Table 1 Tailing

Mesh Size % Retained % Passing ( Tyler) Individual I Cumulative Cumulative

+ 28 0.1 0.1 99.9 35 2.3 2.4 97·6 48 13.8 16.2 83.8 65 28.6 44.8 55.2

100 29.4 74.2 25.8 - 100 25.8 100.0 -Total I 100.0 - -

Sc:avenger Cl. 3 Cone.

+ 100 0.2 0.2 99.8 150 8.7 8.9 91.1 200 18.8 27.7 72.3 270 18.1 45.8 54.2 400 12.8 58.6 41.4 400 41.4 100.0 -

Tc )tal 100.0 I - -

RO::!8her Cleaner Cone.

+ 20 0.2 0.2 99.8 28 2.3 2·5 97.5 35 6.4 8.9 91.1 48 14.6 23.5 76.5 65 17·0 40.5 59.5

100 14.6 55.1 44.9 150 11.0 66.1 33·9 200 6.7 72.8 27.2 270 4.6 77.4 22.6 400 3.2 80.6 19.4

- 400 19.4 100.0

Total 100.0 _I

-)

Test N o . PP6 - Continued -

4 . 8 . Screen Analyses - Cont'd

-. Hazen Cvclone Overflow


99.9 93.2 78.4 64.6 53.8 -

-

1.1esh S i z e ( mler )

+ 100 150 200 270 boo

- boo

Tota l

% Retained Individual I Cumulative

0 .1 6.7

14.8 13.8 10 .8 53.8

100.0

0 .1 6.8 a. 6 35.4 46.2

100.0

-

- 84 -

Test No. PP6 - Continued


Hazen Cyclone Overflow

Hesh Size % Retained % Passing ( Tyler) Individual I Cumulative Cumulative

+ 100 0.1 0.1 99.9 150 6.7 6.8 93.2 200 14.8 21.6 78.4 270 13.8 35.4 64.6 400 10.8 46.2 53.8

- 400 53.8 100.0 -Total I 100.0 I - -

APPENDIX II

PRODUCT PRICES

@: CON~ 3LE CONSULTING INC_

- Energy, Mines and Energie. Mines et 4 + Resources Canada Ressources Canada

Mineral Policy Politique rninerale

- Ottawa, Ontarlo Ottawa (Ontario) K I A OE4 K1 A OE4

Your ble Volre rc 'nca

Our hle Nolre re Ice

September 25, 1986

Mr. John Stirling President Calgraphite Corporation 106 Fielding Road Lively, Ontario POM 2E0

Dear Mr. Stirling:

Many thanks for your hospitality during our visit, Jean-Ma Lamothe and I, in Sudbury, September 16-17. Our discussion have led .o a good understanding of your project and its potential development 1 1987.

David Constable and Ed Blanchard have given us thorough deta . s of the project and we appreciated their information and time.

As mentioned, I have gathered a list of documents per Lnent to graphite trade within selected countries, as well as abou, graphite consumers in Canada.

- Graphite 1982, Markets in Selected ~untries; Michel Prud'homme, MPS/EMR October 1983.

- Canadian Users and Traders of Graphite, 1986

- List of Companies Producing Carbon and/or Graphite Products in Canada, 1984

- List of Companies involved with the P lcessing, Handling and Trading of Graphite - Nal ral and Synthetic, 1984

- Consumers of Graphite in Canada, 1985

- List of Consumers of Graphite Materials in t 2 United States, 1984

- American Producers/Graphite Materials, 1984

- American Agents, Merchants and Processors of raphite, 1984

Energy. Mines and Resources Canada

Mineral Policy

Ottawa. Ontario K1AOE4

Energie. Mines et Ressources Canada

Politique minerale

Ottawa (Ontario) K1AOE4

Your fife Votfe rt 'nca

OUf file Notre re 'lee

September 25, 1986

Mr. John Stirling President Calgraphite Corporation 106 Fielding Road Lively, Ontario POM 2£0

Dear Mr. Stirling:

Many thanks for your hospitality during our visit, Jean-Ma and I, in Sudbury, September 16-17. Our discussion have led understanding of your project and its potential development

David Constable and Ed Blanchard have given us thorough deta project and we appreciated their information and time.

As mentioned, I have gathered a list graphite trade within selected countries, consumers in Canada.

of documents per as well as aboUi

Graphite 1982, Markets in Selected Michel Prud'homme, MPS/EMR October 1983.

Canadian Users and Traders of Graphite, 1986

Lamothe .0 a good l 1987.

.s of the

~nent to graphite

luntries;

List of Companies Producing Carbon and/or Graphite Products in Canada, 1984

Canada

List of Companies involved with Handling and Trading of Graphite Synthetic, 1984

the P 'cessing, Na1 ral and

Consumers of Graphite in Canada, 1985

List of Consumers of Graphite Materials in States. 1984

American Producers/Graphite Materials, 1984

~ United

American Agents. Merchants and Processors of raphit e , 1984

- Graphite Consumers in the United States, 1985

- Users of Graphite in Selected Countries: Wes Geimany, United Kingdom, Belgium and Japan.

These lists will provide you with companies names in Canada tore than 210), in the United States (nearly 120) and other countric (around 40). I trust this information will be helpful for contract agreements. If it ever happens, please let me know.

I have also enclosed a table with the consumption of natura: graphite in the United States, by sector, in 1986.

Regarding the Japanese market; in 1985, crystalline graphit imports amounted to 35 288 tonnes, a decline of 17.7 per cent co ,ared to 1984. Fine crystalline graphite accounted for 12%, the rer inder is for natural crystalline flake graphite. China maintained it role of a dominant exporter of flake graphite accounting for 89 pe cent of total Japanese imports in terms of tonnage, followed by 1 dagascar (4.5%) and Sri Lanka (3.7%).

Imports of amorphous graphite, microcrystalline, total1 h3 569 tonnes, a slight increase of 3.5 per cent compared to 1984. Republic of Korea accounted for 87 per cent of total imported tonnage fol.lowed by North Korea with 11.6 per cent.

Average imports prices of natural were as followed:

$US per metric tonnes, C.I.F. Japan: Natural fine crystalline gra hite B 475.27 Natural crystalline graphite 439.37 Amorphous graphite 116.83

1 including shipments from Brazil ($1,315.05/t) Madagascar ($812,12/t) and China ($425.56/t)

*

Many thanks again for your time and hospitality. Pleas do not hesitate to contact me if I can give you some assistance.

Sincerely yours,

Michel Prud'homme Industrial Minerals Division

Enc 1.

2

Graphite Consumers in the United States, 1985

Users of Graphite in Selected Countries: Wes Germany, United Kingdom, Belgium and Japan.

These lists will provide you with companies names in Canada 210), in the United States (nearly 120) and other countriE 40). I trust this information will be helpful for agreements. If it ever happens, please let me know.

I have also enclosed a table with the consumption of natura: in the United States, by sector, in 1986.

Regarding the Japanese market; in 1985, crystalline graphit amounted to 35 288 tonnes, a dec 1 ine of 17.7 per cent co 1984. Fine crystalline graphite accounted for 12"10, the rer for natural crystalline flake graphite. China maintained it a dominant exporter of flake graphite accounting for 89 pe total Japanese imports in terms of tonnage, followed by 1

(4.5%) and Sri Lanka (3.7%).

Imports of amorphous graphite, microcrystalline, totall tonnes, a slight increase of 3.5 per cent compared to 1984. of Korea accounted for 87 per cent of total imported tonnage by North Korea with 11.6 per cent.

Average imports prices of natural were as followed:

1

SUS per metric tonnes, C.I.F. Japan: Natural fine crystalline gra£hite Natural crystalline graphite Amorphous graphite

including shipments from Brazil ($1,315.05/t) Madagascar CJ812,12/t) and China ($425.56/t)

475.27 439.37 116.83

Many thanks again for your time and hospitality. Pleas hesitate to contact me if I can give you some assistance.

Sincerely yours,

VvucU~Jla \

Michel Prud'homme Industrial Minerals Division

Encl.

lore than {around

contract

graphite

imports )ared to inder is role of cent of

dagascar

ld 569 Republic followed

do not

Graphite M. PRUD'HOMME

SUMMARY especially for low-prade n a t l l * . ~ ,-... ~ 8 . -

" , . . ._ . i. I. Ln.. .CI I

out by oniy one operation. Asbury Graphite Quebec inc. which mines and processes f lake g raph i t e ore at Notre-Dame-du-Laus, on an intermittent basis. Shipments in 1985 have increased slightly. Most of the shipments a r e lor exports to the United S ta t e s ; t h e remainder is shipped locally to supply the domesttc refractor ies indus t ry and foundries.

Imports of c r u d e graphite for the first nine months of 1985 were valued at $1,636,000, an increase of 17 per cent com- pa red with the same period last yea r . The United S ta t e s accounts for 90 per cent of total c rude graphi te imports which are mainly going into Ontario (76 p e r cent) and Quebec (15 pe r cen t ) . Other supplying cpuntr ies include Norway. Madagascar, West Germany, France and t h e United Kingdom.

During 1985, exploration and developments activities were quite intensive in Qucbec and Ontario. Possible association of g raph i t e and gold has spur red fu r the r investigation. especially in the Township of Laurier and of Maria, i n eastern Ontario. Several companies have been promoting some development works and market researchs in o rde r to become a new reliable source of supply for the graphi te markets in the United S ta t e s , J apan and western Europe.

For t h e last two yea r s , pr ices of natural graphite have ~ m a i n e d basically stable. Anticipated price increases for 1985 have been estimated at 5-8 per cent for large flake crystalline graphi te only. Low growth for fine crystalline graphi te has ~ r e c l u d e d any price increase. Supplies are still sufficient to satisfy increasing demand s o pr ices should then remain basically stable for 1986.

With slow recovery in most metallurgy industr ies , graphi te demand is expected to lncrease dight iy . New producers would encounter problems in finding markets,

w l ~ n r n c ocvelopmcnt of ncw products requiring flake graphi te for usc in mag-carbon refractory brick, brake and clutch lining replacing ashestos. Expanded graphite has good potential for gasket and insulation applications.

NATURAL GRAPHITE

Graphi te itl a natural form of carbon. Natural graphite is a lus t reous, black carbon mineral, crystallized in the hexagonal system with rho~nbohedral symmetry. Flake graphi te i s opaque, flexillle and sectile, and exhihits perfect basal cleavage. Natural graphite is unctuous and is relatively soft with a Iiard- ncss of 1 to 2 on Mohs' scale. It has a black colour and a biack s t r eak on glazed porcelain. I ts specific gravi ty is 2.266 glcm3. Graphite is an excellent conductor of heat and electricity: and it has a high melting temperature of 3 000°C. I t is extremely res is tant to acid, chemically inert and highly refractory.

Natural graphite \is widely distributed throughout the world ' and is of common occurrence in metamorphic rocks produced by regional or contat t metamorphism. Amor- phous graphite is a microcrystalline graphite formed by crystali~zation of the ,carbon from organic sediments such a s coal. The g raph i t e occurs as distorted seams of minute microcrystalline particles intermixed with ungraphitized materials. T h e graphite content may vary from 15 pe r cent to 98 pcr cent depending on the degree of metamorphism and the original carbon content in t h e sediments. Crystalline lump, o r vein graphi te , occurs in the form of massive vein o r circular accumulation formed from hydrothermal origin. T h e graphite occur s along the contacts of in t rusive rocks with limestones. Such occurrences appear in foliated or columnar forms. Crystalline flake graphi te is found disseminated in mrta- morphosed dliceous o r calcareous sediments s u c h as marble. gneiss and schist.

- M. Prud'homme is with the Mineral Policy Sector . Energy. Mines and Resources , Canada. Telephone (613 ) 995-9466.

(

1985

Graphite M. PRUD'HOMMr,;

SUMMARY

._._ .... ,,_ .... , ... 0" L"~"

out by only one operation, Asbury Graphite Quebec Inc_ which mines and processes flake graphite ore at Notre-Dame-du-Laus, on an intermittent basis. Shipments in 1985 have increased slightly. Most of the shipments are for exports to the United States; the remainder is shipped locally to supply the domestic refractories Industry and foundries.

Imports of crude graphite for the first nine months of 1985 were valued at $[,636,000, an increase of 17 per cent compared with the same period last year, The United States accounts for 90 per cent of total crude graphite imports which are mainly going Into Ontario (76 per cent) and Quebec (15 per cent), Other supplying c.ountries include Norway, Madagascar, West Germany, France and the United Kingdom.

During 1985, exploration and developments activities were quite intensive in Quebec and Ontario~ Possible a..c;;sociation of graphite and gold has spurred further investigation. especially in the Township of La.urier and of Maria, in eastern Ontario. Several companies have been promoting some development works and market researchs in order to become a neW reliable source of supply for the graphite markets in the United States, Japan and western Europe.

For the last two years, prices of natural graphite have remained basically stable. Anticipated price increases for 1985 have been estimated at 5-8 per cent for large flake crystalline gr"phite only. Low growth for fine crystalline graphite has precluded any price increase. Supplies are still sufficient to satisfy increasing demand so prices should then remain basically stable for 1986.

With slow recovery In most metallurgy Industries, graphite demand is expected to increase "lightly. New producers would encounter problems in finding markets,

Wlln (flC af'velOpment of new prlJduct!'i r-equiring flake graphite for usc in mag-carbon refractory brick, brake and clutch lining replacing asbestos. Expanded graphite has good potential for gasket and insul"Uon applications.

NATURAL GRAPHITE

Graphite is a natural form of carbon. Natural graphite is a lustreous, black carbon mineral, crystallized in the hexagonal system with rhombohedral symmetry. Flake graphitp. is opaque, flexible and sectHe. and exhibit~ perfect basal cleavage. Natural graphite is unctuous and is relatively soft with a hardness of 1 to 2 on Mohs' scaI€'. It has a black colour and a biack streak on glazed porcelain. Its specific gravity :is 2.266 g/cm3. Graphit~ iR an excellent conductor of heat and electriCity; and it has a high melting temperature of 3 OOO·C, It is extremely resistant to acid, chemically inert Ilnd highly refractory.

Natural gnphite \is widely distributed throughout the world ',and is of common occurrence in metamorphic rocks produced by regional or contact metamorphism. Amorphous graphite is a microcrystalline graphite fonned by crystallization of the, carbon from organic sediments such as coal. The graphite occurs as distorted seams of minute microcrystalline particles in termixed wit h ungraphitized materials. The graphite content may vary from 15 per cent to 98 per cent depending on the degree of metamorphism and the original carbon content in the sediments. Crystalline lump, or vein graphite, occurs in the form of massive vein or circular accumul;:ttion formed probably from hydrothermal origin. The graphite occurs along the contacts of intrusive rockB with limestones. Such occurrences appear in foliated or columnar forms. Crystalline flake graphite is found disseminated in m~tamorphosed siliceous or calcareous sediments such as marble. gneisg and schist.

M. Prud'homme is with the Mineral Policy Sector. Energy, Mines and Resources, Canada. Telephone (613) 995-9466. 29.1

In Quebec, graphi te deposits are located mainly along the Grenville ser ies in severxl Townships: Buckingham, Argenteuil and Pontiac.

T h e disseminated flake graphi te var le ty i s dominant, i n biotite gneiss and crystalline limestone associated wlth biotite quartzi te , but the vein variety i s also reported along the contact of intrusive rocks and crystalline limestone. Occurrences of graphi te a re asssciatad -i?h iiietasrdirnentary rocks which have heen subjected to several deformation ,.,. q e s e - - A

. . -

In Ontario, graphi te deposits occur within cry-stalline limestone and gneiss. T h e occurrences of major interests are in serni- pelitic and pelitic gneiss units within paragneiss sequences. Graphite is present in amounts up to 10 per cent and grain sizes may vary from 2 to 10 mm. Accessory minerals consist of biotite, garnet and pyri te : t race elements in these graphitic rocks are ~ c k e l , cobalt, boron, vanadium and also gold which has attracted sufficient attention to warrant fur ther investigation.

In northern Saskatchewan. graphi te ore in coarse grain biotite-gneiss occurs near the southwestern shore of Deep Bay near Reindeer Lake. The mineralized area is several miles Long and contains about 10 per cent graphi te carbon. Reserves a re estimated at about 3 million t. Engineering feasibility s tudies were carried out by the Saskatchewan Mining Development Corpora- tion and Superior Graphite Co. Ltd.. of the United States . Plans for a 10 900 t p y flotation mill and open-pit operation were completed but economic considerations have precluded development for the last two years .

Exploration and Research

Since 1982, in te res t in graphi te is at a high level with exploration work and research being conducted in several provinces. especially Quebec and Ontario.

In Quebec, geologists from the Department of Energy and Resources have carried out an airborne survey. and detailed car tography in four areas in the regions of Catineau and Mont-Laurier. Exploration work has spur red since the release of this information, especially in the Townships of July. Argenteuil, Buckingham, Papineau. LaSalle and the Counties of Bouthillier,

McGill, I-ochaber, Cameron, 13oyrr, Hartwt:ll, tvtulgrave and Suffollt.

In Ontario, exploration ectivity war mainly carried out in the eastern rep,ion: however, some occurrences were recorded in northwestern Ontario near Wabigoon, Mulrie and 1,avaI. In eastern Ontarlo, field evaluation prograrns on graphite properties have been done by geologists from the Department of Natural Resources. Explora- tion was coilcentrated in the 'Townships of Maria. But t . Rver-nn N L " . - -

\>men , Monmouth. T h e potential for gold associated with graphi te led to fur ther exploration work in Maria and Lauricr Townships in the Aigonquin Region.

Research and development on graphite products was carried out during 1983 and 1984 fo r the National Research Council of Canada at i t s Industr ia l Materials Research Institute in Boucherville. Quebec. Studies were made on the behaviour of Mag-carbon refractories under s t r e s s and on physical and chemical characterization of graphite-epoxy composites. Studies have also been conducted on surface-treatment of graphite electrodes for arc furnaces, and on non-destructive evaluation of advanced materials such as graphite-epoxy co~nposites used in the aerospace industry.

T h e CANMET Extractive Metallurgy Laboratory in Ottawa is conducting a s tudy on bacterial leaching for flakes liberation.

Le Centre d e Recherche Minerale in Quebec has worked on a concentration process for graphitic ores from Hartwell County and Mont-Laurier.

USES AND SPECIFICATIONS

T h e uses of natural graphite depend on its physical and chemical properties. The s t r eng th of graphi te increases an i ts temperature rises. I t has a high thermal conductivity and a low absorptivn coefficient for x-rays and electrons. Flake graphite enhances anisotropy in bodies where forming processes, such as extruslon and pressing. align the flakes. It res is ts oxidation better than granular graphite.

Flake graphite is used in the manufacture of crucible for the steel, nonferrous and precious melals industr ies . It is pre- f e r red to microcrystalline graphi te because it bu rns more slowly, has a high attrition resistance and imparts s t ructural s t rength

In Quebec. graphite deposits are located mainly alon g the Grenville series In sever,,1 Townships: Buckingham. Argenteull and Pontiac I

The disseminated flake graphite varIety is dominant. in biotite gneiss and crystalline limestone associated with biotite quarttite. but the vein variety Is also reported along the contact of intrusive rocks and crystalline limestone. Occurrences of graphite are a.990clated with metasedimentary rocks which have been subjected to several deformation nh"ll'O ........ _....l

In Ontario. graphite deposits occur within cry'staUine limestone and gneiss. The occurrences of major in terests are in semi-pelitic and pelitic gneiss units within pal"agneiss sequences. Graphite is present in amounts up to 10 pel" cent and grain sizes may vary from 2 to 10 mm. Accessory minerals consist of biotite. garnet and pyrite; trace elements in these graphitic rocks are nickel. cobalt, boron, vanadium and also gold which has attracted sufficient attention to warrant further investigation.

In northern Saskatchewan. graphite ore in coarse grain biotite-gneiss occurs near the southwestern shore of Deep Bay near Reindeer Lake. The mineralized area is several miles long and contains about 10 per cent graphite carbon. Reserves are estimated at about 3 million t. Engineering feasibility studies were carried out by the Saskatchewan Mining Development Corporation and Superior Graphite Co. Ltd •• of the United States. Plans for a 10 900 tpy flotation mill and open-pit operation were completed but economic considerations have precluded development for the last two years.

Exploration and Research

Since 1932. inlerest in graphite is at a high level with exploratl?n work and research being conducted In several provinces. especially Quebec and Ontario.

In Quebec. geologists from the Department of Energy and Resources have carried out an airborne survey, and detailed cartography in four areas in the regions of Gatineau and Mon t-Laurier. Exploration work has spurred since the release of this information _ especially in the Townships of July. Argenteuil. Buckingham. Papineau. LaSalle and the Counties of Bouthillier.

McGill. Lochaber. Cameron. Iloyer. lIartwell. Mulgrave and Suffoll<.

In Ontario. exploration aclivlty W"~ mainly carried out In the ea~tern region; however, some occurrences were recorded in northwestern Ontario near Wabigoon. Mulrle and LavaL In eastern Ontarlo, field evaluation programs on graphitp. properties have becn done by geologists from the Department of Natllr~l ReSO\lrccs. E.xplora.tion was concentrated in the Townships of Maria. Rutt. Rvp .... ~nn N ...... ""H.. n ...

\JIOen, Monmouth. The potential .. soelated with graphite led to exploration work in Maria and Townships In the AlgonqUin Region.

for gold further Laurier

Research and development on graphite products was carried out during 1983 and 1984 for the National Research Council of Canada at its Industrial Materials Research Institute in Boucherville. Quebec. Studies were made on the behaviour of Mag-carbon refractories under stress and on phYSical and chemical characterization of graphite-epoxy composites. Studies have also been conducted on surface-treatment of graphite electrodes for arc furnaces, and on non-destructive evaluation of advrtnced materials such as graphite-epoxy colOposites used in the aerospace industry.

The CANMET r;:xtractive Metallurgy Laboratory in Ottawa is conducting a study on bacterial leaching for flakes liberation.

Le Centre de Recherche Minerale in Quebec has worked on a concentration process for graphitic ores from Hartwell County and Mont-Laurier.

USES AND SPECIFICATIONS

The uses of na tural graphite depend on its physical and chemical properties. The strength of graphite increases ::\!=I it~ temperature rises. It has a high thermal conductivity and a low absorption coefficient for x-rays and electrons. Flake graphite enhances anisotropy in bodies where forming processes, such as extrusion and pressing, align the flakes. It resists oxidation better than granular graphite.

Fla ke graphite is used in the manufacture of cruc.ible for the steel, nonferrous and precious metals industries. It Is preferred to microcrystalline graphite because it burns more slowly, has a high attrition resistance and imparts structural strength

29.3

In 1984, imports of c r u d e graphi te were from t h e United S t a t e s ($1,788,000), West Germany ($138,000) and the Republic of China ($4.000). for a total value of $1,930,000. Shipments into Ontario accounted for 81 p e r cent of total Imports. followed by Quebec with 14 pe r cent.

I n 1985, f o r a nine-month period, c r u d e graphi te imports were valued at $1,636,000, an increase of 1 7 pe r cent. c n ~ p a r c d to :he same period las t yea r . Imports are mainly from the United S t a t e s a+.-n-an*:-- I-- nn - -

supplying coun t r i e s a r e Norway, Madagascar, West Germany. F rance and t h e United Kin gdom.

WORLD PRODUCTION AND REVIEW

In 1984, world production remained around 560 000 t fo r all types of natura l graphi te . China produced nearly 184 000 t followed b y t h e U.S.S.R., 80 000 t ; Czechoslovakia. 50 000 t : Aus t r i a , 43 790 t and Mexico, 41 500 t .

United S t a t e s

U.S. consumption of natura l graphi te f o r 1984 was about 31 900 t , of which 20 900 t were microcrystalline g rade mainly fo r use i n foundr ies and steelmaking (27 pe r c e n t ) , b r ake linings (12 per cent) , and lubr icants (6 p e r cen t ) . Refractories usage accounts f o r 25 p e r cen t of consumption of natura l g raph i t e - all forms. In 1983, to ta l consumption for na tu ra l graphi te was 32 700 t : amorphous graphi te consumption was near 22 500 t .

In 1984. U . S . imports increased by 34 p e r cent to 52 830 t . Shipments from Mexico, t h e l a rges t suppl ier b y volume. increased by 26 p e r cent to 25 275 t. Imports of crys ta l l ine flake g raph i t e , t h e l a rges t ca tegory by value, increased b y 53 pe r cent to 9 725 t because of higher shipments from Canada and Brazil. China is a major suppl ier of crystalline flake accounting for 43 p e r cent of total United S t a t e s flakes imports in 1984.

In t h e United S ta t e s , only one amorphous graphi te mine has been in operation since 1982. United Minerals Go. nea r Townsend, Montana, operates on an in ter- mittent basis an open-pit mine of low-grade amorphous graphi t ic material, with an ave rage of 25 pe r cent of f ixed cavbon, which is sold mostly to steel-related use r s .

Reserves are estimated to he over 2 mlllion t . Graphi te Sales Inc. 14 t h e salorr representa t ive .

U.S. Graphi te l nc . has purchased the Graph l t a r products Ilne from Wickes Companies. Inc. : Dixon Tlconderoga Company closed Its operat ions at J e r sey Ci ty , New J e r s e y , and i t s crucible plant in Philadelpl.~la, Pennsylvanla: Super ior Graphi te Co. Ltd. bough t a p lant at Russel- vlUe in Arkansas from T h e now Chnmlr=l -

A l a rge deposit of g raph i t e with an average carbon content of 12 pe r c e n t has been discovered in Luobei County. Reserves are estimated at 615 million t.

Czechoslovakia

A new flotation plant was built at Male Orbno to process o re , averaging 30-40 per cent g raph i t e , from the Konstantin mlcro- crys ta l l ine graphi te mine.

F rance

Vesuvius Crucible Go. concluded a purcllase agreement for a r e f r ac to ry plant to produce graphite-alumina r e f r ac to r i e s in no r the rn France.

I ta ly

Societa Talco e Grafite Val Chisone S.p.A closed i t s microcrystalline graphi te mine near Pinerolo.

Madagascar

La SociEt6 Mini5re de la Grande Ile (SMGI). Madagascar, has appointed F & S Alloys and Minerals Corp. of New York as sales r ep resen ta t ives in North America.

INTERNATIONAL TRADE AND MARKET

Although graphi te occu r rences are widespread and many potentially i~npo~. tant deposi ts are undeveloped, t h e international t r a d r in graphi te l ~ l p r e s e n t s a relatively small market. Few countr ies supply natural graphi te and production is usually limited ta one major category. Small volumes ol graphi te are consumed by producers .

(

In I ~84. Imports of crude graphite were from the United States ($1.788.000). West Germany ($138.000) and the Republ\c of China ($4.000). for a total value of $1, 930, 000. Shipments Into On larlo accounted for 81 per cent of lotal Import., followed by Quebec with 14 per cent.

In 1985, for a nine-month period, crude graphite imports were valued at $1,636,000. an increase of 17 per cp.nt. cnmpared to the same period last year. Imports are mainly from the United Statp!I=I ~"',..nll ... tl ........ 1_- "n --

supplying countries are Norway, Madagascar, West Germany, France and the United Kingdom.

WORLD PRODUCTION AND REVIEW

In 1984. world production remained around 560 000 t for all types of natural graphite, China produced nearly 184 000 t followed by the U.S.S.R., SO 000 t: Czechoslovakia. 50 000 t; Au.tri .. , 43 790 t and Mexico, 41 500 t.

United State ..

u. s.. consumption of natural graphite for 1984 was about 31 900 t. of which 20 900 t were microcrystalline grade mainly for use in foundries and steelmaking (27 per cent). brake linings (12 per cent), and lubricants (6 per cent). Refractories usage accounts for 25 per cent of consumption of natu ral graphite all forms. In 1983, total consumption for natural graphite was 32 700 t: amorphous graphite consumption was near 22 500 t.

In 1984. U.S. imporls increased by 34 per cent to 52 830 t. Shipments from Mexico, the largest supplier by volume, increased by 26 per cent to 25 275 I. Imports of crystalline flake graphite, the largest category by value, increased by 53 per cent to 9 725 I because of higher shipments from Canada and Brazil. China is a major supplier of cryst.lJIne flake accounting for 43 per cent of total Unitpd States flakes Imports in )984.

In the United States. only one amorphous graphite mine has been in operation since 1982. United Minerals Co. near Townsend, Montana, operate~ on an intermittent basis an open-pit mine of low-grade amorphous graphitic material, with an average of 25 per cent of fixed car-bon. which is Bold mostly to steel-related users.

ReserVCR are estlm~ted t. Graphite Sales rCpl"eSenta tive.

to he over 2 million Inc. 19 the "aiM

U.S. Gnphite Inc. has purchased the Graphltar products line from Wicke" Companies, Inc.; Dixon Tlcondel'oga Company clo.ed Its operation. .1 Jer"ey City. New Jersey. and its crucible plant In Philadelphia, Pennsylvania: Sup"rlor Graphite Co. Ltd. bought a plant .t Russelville in Arkansas from The now Chf'mll""!ll

China

A large deposit of graphite with an average carbon content of 12 per cent has been discovered in Luobei County.. Rc!=terves are estimated at 615 million I.

CZe<: hoslo va Ida

A. new flotation plant was built at Male Urbno to process ore. averaging 30-40 per cent graphite. from the Konslantln microcryslalline graphite mine.

France

Vesuvius Crucible Co. concluded a purcha.se agreement for a refractory plant to produce graphite-alumina refractories in northern France.

Italy

Sodeta Talco e Grafite Val Chis one S.p.A closed its microcrystalline graphite mine ne:tr Pinerolo.

Madagancar

La Societe Miniere de \a Grande IIe (SMGI), Madagascar. has appointed F &S Alloys and Minerals Corp. of New York as sales representatives in North America.

INTERNATIONAL TRADE AND MARKET

Although graphite occurrences are widespread and many potent1ally i"'port.nt deposits are undeveloped. the international trade in graphite n::!presents a relatively small market. Few countries supply natural graphite and production is usually limited to one major category. Small volumes o( graphite are consumed by producers.

29.5

North America will remain largely metlts in supplying countrlen. Should thl. dependent on foreign sources for graphlte. happen dcvelopment of alternatlvc sources rrf No shortage of graphi te is foreseen as world high-gradc graphi te will Ukety occur in r e sources of natural g raph i t e appear o r d e r to secure industry , e spec~a l ly in Japan unlimited. llowever, t he availability of the and the United S ta t e s which will still have to low-cost, h igh-grade graphi te could be rely on imports for coarse crystalline flake affected by the policies of foreign govern- graphi te .

Representat ive year-end graphi te prices' , fob, $US p e r shor t ton

1982 1983 -- 1984 -- -- Flake and crystalline graphi te , bags

China 272 - 1.542 54 - 1.542 54 - 1,542 Germany, West 318 - 2.722 318 - 3.175 286 - 3,084 Madagascar 249 - 726 227 - 544 227 - 726 Norway 272 - 816 181 - 635 181 - 816 S r i Lanka 544 - 1,816 419 - 1,367 272 - 1,367

Amorphous, nonflake, microcrystalline graphi te (80%-85% carbon) ---

Korea. South (bags ) Mexico (bu lk )

"Industr ia l ~ i n e r a l s " 2 pricing quotation, c i f , U.K. po r t , $US p e r tonne

Crystalline lump, 92-99% C Crystalline large flake, 85-908 C Crystalline medium flake. 85-908 C Crystalline amall flake, 80-95% C Powder (200 mesh) . 80-85% C

90-92% C 95-978 C 97-99% C

Amorphous powder, 80-858 C

"Chemical Marketing ~ e ~ o r t e r " 3 , fob, bags , $US pe r pound

Crystalline, powder. 88-90) 90'92% 95-96% . 97% and up

Flake, No. 1. 90-95% No. 2, 90-958

Amorphous, powder powder, 97% and up

1 U.S. Bureau of Mines, quoted from Engineering and Mining Journal. 2 IM, November 1985. 3 CMR, December. 1985. fob Free on board; cif Cost, insurance and freight.

29.7

(

North America will remain largely dependent on foreign sources for graphite. No shortage of gr.phlte Is foreseen as world resources of natural graphite appear unllmited. However. the availability of the low-cost. high-grade graphite could be affected by the policies of foreign govern-

ments in supplying cI)untrles. Should this happen development of alternative sources nf high-grade graphite will likely occur In order to seCUre indURtry. especially in Japan and the United States which will sUI! have to rely on imports for coarse crystalline n"ke graphite.

Representative year-end graphite prices l • fob. $US per short ton

1982 ~3 __ Flake and crystalline graphite, bags

China 272 - 1.542 54 - 1.542 Germany, West 318 - 2.722 31B - 3.175 Madagascar 249 - 726 227 - 544 Norway 272 - 816 lSI - 635 Sri Lanka 544 - 1.816 499 - 1.367

Amorphous. nonflake. rnicrocrys talline graphite (80%-85% carbon)

Korea t South (bags) B2 - 109 82 - 109 Mexico (bulk) 77 - 109 64 - 91

"Industrial Minerals" 2 pricing quotation. cif. U.K. port. $US per tonne

Crystalline lump. 92-99% C Crystalline large flake. 85-90% C Crystalline medium flake. 85-90% C Crystalline small flake. 80-95% G Powder (200 mesh). 80-85% C

90-92% C 95-97% C 97-99% C

Amorphous powder. 80-85% C

"Chemical Marketing Reporter"3. fob. bags. $US per pound

Crystalline. powder.

Flake. No. I. 90-95% No.2. 90-95%

Amorphous. powder

88-90% 90~92% 95-96i 97% and up

powder. q?% and up

1985 550=-----1; 100

630 - 1.000 490 - 860 300 - 800 250 - 275 410 - 460 550 - 750 750 - £1.000 175 - 350

19B4 --: 30-------:60

.40 - •• 75

.60 .90

.SO - 1.20

.65 - .75

.65 - .75

.16 - .40 • SO - 1.20

-- I~S_4 __

54 - 1.542 286 - 3.084 227 - 726 1Bl - 816 272 - 1.367

82 - 109 64 - 109

19S5 .30 - .60 .40 - .75 .60 - .90 .SO - 1.20

.65 - .75

.65 - .75

• 16 - .40 .SO - 1.20

1 U.S. Bureau of Mines. quoted from Engineering and Mining Journal. 21M. November 1985. 3 CMR. December. 1985. fob Free on board; df Cost. Insurance and freight.

29.7

'TARIFFS ( c o t ~ t ' d )

Most F a v o n ~ . e d Nntir,r~ Non-MI'N 1985

- 1'187 1'185 Item No.

U N I r E U STATICS ( c o n t ' d )

517.24 C r y s la l l ine flalce ( n o t ~ n c l u r l l n g f l a k e d u s t ) , valuecl o v e r 5.5:!k1;. lI.3qlb 0 .3$ /1b

. 511.27 Lump a n d c h i p f r e e f r e e <I7 I1 O . L - -

c a r b o n o r g r a p h i t e , f o r e l e c t r i c f u r n a c e o r e l e c t r o l y t i c p u r p o s e s 3.3% a d val 2 . 4 7 % a d val 45% a d v a l

517.71 C a r b o n s a n d e l e c t r o d e s f o r p r o d u c i n g e lec t r ic a r c l i g h t , u n d e r 0.5 i n c h in d i a m e t e r 3.9% a d va l 2.8% a d va l 6n% ad val

5 17.74 C a r b o n s a n d e l e c t r o d e s . f o r p r o d u c i n g e lec t r ic a r c l i g h t , 0 .5 i n c h o r more in d i a m e t e r 3.3% a d v a l 2.4% ad va l 45% a d va l

517.81 l l r u s h e s f o r e l e c t r i c noto or, a n d o t h e r forms

,-. f o r m a n u f a c t u r i n g b r u s h c s 4% a d v a l 3.7: a d va l 45% a d v a l

517.91 A r t i c l e s n o t specially p r o v i d e d f o r , of c a r b o n o r 5.6% ad val 4.9% ad v a l 4 5% a d v a l

-- - S o u r c e s : T h e Cus toms T a r i f t . ( 1985). R e v e n u e C a n a d a , Cus toms and E x c i s e ; T a r i f f S c h e d u l e s of t h e Uni ted S t a t e s A n n o t a t e d ( 1985). USl ' rC Publicatiorl IblU.

(

TARIFFS (cont'd) ====---===-===;:===============~==:::====~=====:;;:;:;:::::::~-::=:::"=::-=:::,=::';

Item No.

UNl'ft-:lJ Sf A rES (cont'd)

517.24 Crystalline flake (not inducting flake d u!=;t) f valueci over 5.S~/lb. Lump and chip

carbon or graphite, for electric furnace or e lee t rol yUe pur pose s

517.71 Carbons and electrodes for producing electric arc light. under O.S inch in diameter

SI7.74 Carbons and electrodes. for producing electric arc 1i gh t, O. 5 inc h or more in diameter

517.81 Brushes for electric rnotor. an d other forms for manufacturing brushes

517.91 Articles not specially provided for, of carbon or graphite

Most Favoured N.1tion __ ~~-MF~. __ _ -::--1985 __ . ____ -= __ I ()87_=-___ ~~ ____ ._. __

O.3~ib free

3.3% ad

3.9% ad

3.3% ad

val

vaL

val

4% ad val

5.6% ad v;tl

O.3¢.lIb free

2.47% ad val

2.8% ad val

2.4% ad va)

3.n ad val

4.9% ad val

1.6S~/lb lO<i ~rl "..,1

45% ad val

60% ad val

45% ad va)

45% ad val

45% ad val

Sources: The Customs Tarif f, (1985). Revenue Canada. Customs and Excise j Tariff Sched\l\es of the United States Annotated (1985). USlTC Publication 161U.

29.9

TABLE 2. E N D - U S E S OF CRAPIIITE S U U S T I ' C U T E S AND NATURAL C R A P l l I T E - = - - ----- ---.--------

Product Manufacturing Goods lndustr la l Sector - Activated Carbone Absorbants (oxidized organic materials) Decolorlzers

Puri f iers Solvents

Automobiles, c hemicala Food Water t reatments Chemtcaln

Amorphoue carbon (petroleum coke)

Anode, electrode Alumlna, aluminum Calclum carbide C--..--!l,. - ,

Carbon br icks , inner Alumlna smelters carbon Iinlng, Blast furnace crucibles and re to r t s Foundry cupolas

Sealing r ings , bush ings , Pump, tu rb ine , motor washings and wear r ings nuclear reactors ,

mechanical engineering

Carbon arc lighting and Light therapy. photo- flame a rc engrav ing , i r radiat ion.

graphic a r t

Carbon and graphi te f ibres reinforcing f ibe r s Aircraft, aerospace, sport- (pyrolized organic f ibres . p i tch) ing goods, automobile,

textile, medical and muslcal equipment

Carbon black-soot

Manufacturing Graphi te (baked carbon)

Pigments ink , pa in t s , plastics, paper Synthet ic r u b b e r Motor vehicles t i res

Anode Chlar-alkalies Electrode Electric a r c furnaces (s teel)

spectroscopy Moderators, reflectors Aerospace vehicles,

and thermally stable nuclear reactors components

Motor b rushes Electrical motors

Natural Graphite Carbon ra iser Steelmaking (mlcrocrystalline. flake, vein) Carbonaceous additives Foundries

and refractories Metallurgy industr les Pencils Dry bat ter ies cells Electronic industr ies Lubricants Mechanical engineer ing Brake linings Automobile

(

TABLE 2. END-USES OF GRAPJIITF. SUBSTITUTES AND NATURAL GRAPIIITE

Product

Activated Carbons (oxidized organic materials)

Amorphous carbon (petroleum coke)

Carbon and graphite fibres (pyrolized organic fibres. pitch)

Carbon black-soot

Manufacturing Graphite (baked carbon)

Natural Graphite (microcrystalline, flake, vein)

Absorbant. Decolorlzers Purifiers Sol vents

Anode. electrode

Carbon bricks, inner carbon lining, crucibles and retorts

Sealing rings, bushings, washings and wear rings

Carbon arc ligh ting and flame arc

reinforcing fibers

Pigments Synthetic rubber

Anode Electrode

Moderators J reflectors and thermally stable components

Motor brushes

Carbon raiser Carbonaceous additives and refractories

Peneil~

Dry batteries cells Lubricants B rake linings

Automobile., chemlcRI. Food Water treatments Chemical"

Alumina, aluminum Calcium carbide

Alumina smelters Blast furnace Found ry cl.polas

Pump, turbine, motor nuclear reactors, mechanical engineering

Light therapy, photoengravtn g, irradjation, graphic art

Aircraft, aerospace, sporting goods, automobile, textile, medical and musical equipment

Ink. paints, plastics, paper Motor vehicles tires

Ghlor-alkalies Electric arc furnaces (steel) spectroscopy Aerospace vehicles,

nuclear t'eactors

Electrical motors

Steelmaking Foundries

Metallurgy industries

Electronic industries Mechanical engineering Au tomobiIe

29.11

TABLE 5 . CONSUMPTION OF NATURAL GRAPHITE IN CANADA. 1976-1984

1976 1977 - 1978 1979 1980 1981 19

Consumption unmanufactured natlurd graphite Foundry facing 3,677 3.060 2,234 2.800 3.078 3.850 1.4 Metallurgical 2 39 460 5 5 505 468 556 2.8 Refractories 709 667 1,024 477 58 3 49 7 10.1 Batteries 123 8 1 68 3 1 10 67 1 o t h e r 1 760 769 771 1,967 1.778 1.602 9.

Total 5.508 5.037 4.152 5,780 5.917 6,572 15.5'

Source: Energy. ,Mines and Resources Canada. Included brake linings, chemicals, abrasives, rubber and other end uses.

P Preliminary.

tv

'"

TABLE 5. CONSUMPTION OF NATURAL GRAPHITE IN CANADA. 1976-1984

1976 1977 1978 1979 1980

Consumption unmanufactured natural graphite Foundry facing 3,677 3.060 2,234 2,800 3,078 Metallurgical 239 460 55 505 468 Refractories 709 667 1.024 477 583 Batteries 123 81 68 31 10 Other l 760 769 771 1,967 1. 778

Total 5,508 5,037 4,152 5,780 5,917

Source: Energy. Mines and Resources Canada. 1 Included brake linings, chemicals, abrasives, rubber and other end uses~ P Preliminary.

1981 19 1983 1984P

3,850 1,4 4,309 5,297 556 2.8 3,710 4,725 497 10,1 515 761

67 1 178 216 1,602 9 901 1,604

6,572 15,5 9,613 12,603

APPENDIX II I

CONTRACT SPECIFICATIONS

~ CON:; 3LE CONSUL TING iNC.

- SAL GRAPHITE CORPORATION

September 15 , 1986

Dear Sir: RE: C a l G r a p h i t e - F e a s i b i l i t y S tudy

A s s t a t e d i n o u r d i s c u s s i o n s , a f e a s i b i l i t y s t u d y i s be ~g done f o r Cal G r a p h i t e C o r p o r a t i o n , r e l a t i v e t o t h e i r p r o p e r t y i n B u t t Twp., O n t a r i o

The i n t e n t i o n is t o mine t h e o r e body by open p i t a dep 1 of 450 f e e t v e r t i c a l l y below l a k e e l e v a t i o n . I n i t i a l l y , t ?

o r e w i l l be broken, c rushed t o - 6 " and h a u l e d t o t h e m !l, an a v e r a g e d i s t a n c e o f 3000 f ee t . The l o n g e r t e r m p l a n c a l l s f o r a d e c l i n e ramp 1 2 ' X 1 5 ' t o be d r i v e n aa . .proxi i t e l y 4500 f e e t , t h a t w i l l form t h e conveyor g a l l e r y . I n c l i n i o r e p a s s e s w i l l be d r i v e n and o r e w i l l be c rushed t o -6 ,

dumped i n t o t h e o r e p a s s e s , and conveyed o v e r t h e b e l t )

t h e m i l l .

I t would be a p p r e c i a t e d i f you c o u l d submi t u n i t p r i c e s ' o r t h e work d e s c r i b e d on t h e a t t a c h e d l i s t . R e p l i e s w i l l : I

k e p t c o n f i d e n t i a l .

A t e n t a t i v e p r o d u c t i o n s c h e d u l e i s a s f o l l o w s :

TONS/DAY

ORE WASTE -

Year 1 1000

2 1.500

3 2500

The d e c l i n e ramp w i l l be s t a r t e d d u r i n g t h i s p e r i o d .

Thank you f o r your a s s i s t a n c e .

Yours t r u l y ,

Les Dunks, P. Eng. ~ o n s u l t i n g E n g i n e e r . E n c l s .

106 FIELDING R D LIVELY. ONTARIO POM 2E0 TELEX NO. 067-7261 TEL (705) 68: i49

~ ':AL GRAPHITE CORPORATION

September 15, 1986

Dear Sir: RE: Cal Graphite -Feasibility Study

As stated in our discussions, a feasibility study is be 19 done for Cal Graphite Corporation, relative to their property in Butt TWp., Ontario

The intention is to mine the ore body by open pit a dep 1 of 450 feet vertically below lake elevation. Initially, t ore will be broken, crushed to - 6" and hauled to the m Ll, an average distance of 3000 feet. The longer term plan calls for a decline ramp 12' X IS' to be driven a.,.proxi ltely 4500 feet, that will form the conveyor gallery. Inclin 1 ore passes will be driven and ore will be crushed to -6 dumped into the ore passes, and conveyed over the belt the mill.

It would be appreciated if you could submit unit prices :or the work described on the attached list. Replies will: kept confidential.

A tentative production schedule is as follows:

TONS/DAY

ORE WASTE

Year 1 ~OOO 300

2 1500 450

3 2500 1200

4 3000 3000

The decline ramp will be started during this period.

Thank you for your assistance.

Yours truly,

Les Dunks, P. Eng. Consulting Engineer. EncIs.

106 FIELDING RD. • UVELY, ONTARIO • POM 2EO • TELEX NO. 067-7261 • TEL. (705) 68: i49

- ITEM - DESCRIPTION

SCHEDULE OF CONTRACT UNIT PRICES

FOR

A FEASIBILITY STUDY

CAL GRAPHITE CORP - OPEN PIT ESTIMATED UNI' UNIT QUANTITY PRICE --

Drill and blast ore and waste rock Year 1-5 ton to a maximum size of 8 cubic feet ref. to

schedule

Load, haul, dump uncrushed ore at I1 ton the mill. A v . single distance 3000 feet.

Load, haul, dump uncrushed waste rock. A v . single distance 3000 feet.

Incremental cost per ton of uncrushed waste for each additional 1000 feet above the 3000 feet in Item 3.

Load, haul, crush, stockpile, load and deliver crushed ore (-6") to the mill. Av. distance 3000 feet, single.

ton

ton

ton

Incremental cost per ton of 3000/day ton crushed ore for each additional 500 feet of haul as the pit depth increases.

Load, haul, crush, stockpile, load and dump ore through an ore pass grizzly, up to a distance of 500 feet.

3000/day ton

Load, haul, crush, stockpile, 3000/day ton load and dump waste into waste pass, up to a distance of 1000 feet.

Decline ramp at -15% size 12' X 15'

4500 feet ft,

Re-mucks 12' X 15' X 50' each 500 feet ft. (.total 10)

cont.

ITEM

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

SCHEDULE OF CONTRACT UNIT PRICES

FOR

A FEASIBILITY STUDY

RE

CAL GRAPHITE CORP - OPEN PIT

DESCRIPTION

Drill and blast are and waste rock to a maximum size of 8 cubic feet

Load, haul, dump uncrushed ore at the mill. Av. single distance 3000 feet.

Load, haul, dump uncrushed waste rock. Av. single distance 3000 feet.

Incremental cost per ton of uncrushed waste for each additional 1000 feet above the 3000 feet in Item 3.

Load, haul, crush, stockpile, load and deliver crushed are (-6") to the mill. Av. distance 3000 feet, single.

Incremental cost per ton of crushed are for each additional 500 feet of haul as the pit depth increases.

Load, haul, crush, stockpile, load and dump are through an ore pass grizzly, up to a distance of 500 feet.

Load, haul, crush, stockpile, load and dump waste into waste pass, up to a distance of 1000 feet.

Decline ramp at -15% size 12' X 15'

Re-mucks 12' X 15' X 50' each (total 10)

ESTIMATED UNI' QUANTITY

Year 1-5 ref. to schedule

"

"

"

"

3000/day

3000/day

3000/day

ton

ton

ton

ton

ton

ton

ton

ton

4500 feet ft~

500 feet ft.

UNIT PRICE

cant.

ITEM DESCRIPTION

11. Safety bays 140 ft* each (total 32)

12. Ventilation intake chamber

13. Ventilation intake raise-raw

14. Ventilation exhaust raise 8' X 9' alimak

ESTIMATED QUANTITY

3600 cu.ft. cu.f .

65 feet ft.

450 feet ft.

15. Ore pass raises and fingers 1500 feet ft. 8' X 9' alimak

16. Portal - cut and cement complete tota

17. Ventilation raises - install fans/heater

complete tota

18. Transformer pad and enclosure complete tota

19. Alimak set-up complete tota

20.. Alimak tear-down complete tota:

21. Refuge sta/store 2000 cu.ft. cu.1 . 22. Rock bolt 6' installed

(material + labour)

23. Re-bar 8' installed (material + labour)

24. Screen 4" X 4" installed (material + labour)

as required R. B .

25. Sump cutting 400 cu-ft. cu-ft.

NOTES: a. one ton equals 13.2 cu. ft. of rock in place

b. contractor to supply compressor, equipment, explo .ves for surface and u/ground

c. Cal Graphite will supply electricity, pumps and p : lights.

~e 2.

ITEM

11.

12.

13.

DESCRIPTION

Safety bays 140c ft. each (total 32)

Ventilation intake chamber

Ventilation intake raise-raw

14. Ventilation exhaust raise 8' X 9' alimak

15. Ore pass raises and fingers 8' X 9' alimak

16. Portal - cut and cement

17. Ventilation raises - install fans/heater

18. Transformer pad and enclosure

19. Alimak set-up

20.· Alimak tear-down

21. Refuge sta/store

22. Rock bolt 6' installed (material + labour)

23.

24.

25.

Re-bar 8' installed (material + labour)

Screen 4" X 4" installed (material + labour)

Sump cutting

ESTIMATED UNI1 QUANTITY

4480 cu. ft. cu. f

3600 cu. ft. cu. f •

65 feet ft.

450 feet ft.

1500 feet ft.

complete tota

complete tota

complete tota

complete tota.

complete tota:

2000 cu. ft. cu .j

as required R.B.

" ReBal

II. Sq. ft

400 cu.ft. cu. ft.

NOTES: a. one ton equals l3.2 cu. ft. of rock in place

UNIT PRICE

b. contractor to supply compressor, equipment, explo .ves for surface and u/ground

c. Cal Graphite will supply electricity, pumps and p lights.

APPENDIX IV

BIBLIOGRAPHY

C o n s t a b l e , D. W . June 1985, P re l irni n a r y Expl o r a t i o n ! p o r t , Cal G r a p h i t e C o r p o r a t i on , G r a p h i t e . o p e r t y , B u t t Township, O n t a r i o . P r i v a t e R ~ o r t

C o n s t a b l e , D. W . October 1985, (Amended Janua ry 27, 8 6 ) In t e r i rn E x p l o r a t i o n Repor t , Cal Gra i t t ? C o r p o r a t i o n , G r a p h i t e P r o p e r t y , But Township, O n t a r i o . P r i v a t e R ort;

Davidson, A . 1982, G r a p h i t e Occur rences i n t h e A onquin Region, Grenvi 1 l e P rov ince , O n t a r i o GSC Open F i l e Repor t 870

L a k e f i e l d Research o f Canada L imi t ed , 1982, P r o j e c t No. L . R . 2565 "An In \ ; t i g a t i o n

o f t h e Recovery o f G r a p h i t e from Dri I Core Samples" . P r i v a t e Repor t

Lawson, P . 1984, Mi n e r a l Commodity Summaries, Bureau o f Mines, U.S. Dept . of t h e I e r . i o r .

Prud ' honirne, M . 1985, Commodity Paper on G r a p h i t e p l i s h e d by t h e Mineral P o l i c y S e c t i o n , Ener , Mines and Resources , Government o f Canada.

Robinson, M . \d. 1979, P r i v a t e Report foi- Dravo Camp, y o f P i t t s b u r g , Pennsy lvan ia on t h e Butt dnsh ip G r a p h i t e P r o p e r t y .

I i

-- I i

2

CONS 3LE CONSULTING INC.

Constable, D. W.

Constable, D. W.

Davidson, A.

Lakefield Research of Canada Limited,

Lawson, P.

Prud'homme, M.

Robinson, M. l~.

APPENDIX IV

BIBLIOGRAPHY

June 1985, Preliminary Exploration Cal Graphite Corporation, Graphite Butt Township, Ontario. Private R

October 1985, (Amended January 27, Interim Exploration Report, Cal Gra Corporation, Graphite Property, But Township, Ontario. Private R

1982, Graphite Occurrences in the A Region, Grenville Province, Ontario GSC Open File Report 870

~port , 'opt=rty, lort

86) He

ort

onquin

1982, Project No. L.R. 2565 "An 1m 3tigation of the Recovery of Graphite from Dr; I Core Samples". Private Report

1984, Mineral Commodity Summaries, Bureau of Mines, U.S. Dept. of the Ierior.

1985, Commodity Paper on Graphite p lished by the Mineral Policy Section, Ener , Mines and Resources, Government of Canada.

1979, Pri vate Report for Dravo Comp. y of PittsbUrg, Pennsylvania on the Butt' Nnship Graphite Property.

) , i

I ---~ ___ .-J

@: CON!: 3LE CONSUL TfNG INC.

~I I

APPENDIX V

UNIAXIAL COMPRESSION TESTS

@ CONS !LE CONSULTING INC.

APPENDIX VI

SENSITIVITY GRAPHS

@; CONS I LE CONSULTING INC.

CAL GRAPHITE CORPORATION --

PRODUCT PRICE SENSITIVITY ANALYSIS

Break-Even Price $522 CDN. Per Ton of Concentrate

500 600 700 800 900 1000 1100 1200 1300 1400 1500

Product Price i n $CDN/ton Concentrate

2: Cl LJ

:E ~

2: ~

UJ :E C) L) 2: ~

~ UJ 2:

$ 70

60

50

40

30

20a

10

I I

CAL GRAPHITE CORPORATION PRODUCT PRICE SENSITIVITY ANALYSIS

Break-Even Price $522 CON. Per Ton of Concentrate

I

00 "---4---'--~--'I--~--T,---L--T)---L--'I---L---.--~--.-~---r __ -L __ ~I __ -L __ ~i--~ 500 600 700 800 900 1000 1100 1200 1300 1400 1500

Product Price in $CDN/ton Concentrate

CAL GRAPHITE CORPORATION -

GRADE SENSITIVITY ECONOMIC . ANALYSIS -

PERCENT GRADE GRAPI-IITIC CARBON

CUT OFF GRADE @ $1100/ton CONCENTRATE = 1.17%

$1100

1000

900

800

700

. 600 z

0 U

:::E

~ 500 z .......

LJ.J 400-:IE: 0 u Z H

I- 300 LJ.J Z

200

10

0

1.0 r J

1.5 2.0


GRADE SENSITIVITY ECONOMIC ANALYSIS

, 2.5

I 3.0

I 3.5

PERCENT GRADE GRAPHITIC CARBON

I 4.0

CUT OFr GRADE @ $llOO/ton CONCENTRATE = 1.17%

I 4.5

)

5.b

I DIAMOND DRILL RECORD LOGGED BY CONSTABLE CONSULTING INC.

' T-

1 PROPERTY . BUTT TOWNSHIP - CALGRAPHITE CORPORATION

I A

I D.D.H. N O . C A L - * ~ - ~ C PAGE 1 oL '2 I

----- LATITUDE BEARING OF HOLE ) STARTED

oct. /85 1 -----

DEPARTURE DIP OF HOLE -80°

COMPLETED O c t .

CLAIM No.

DIRECTION AND D I S T A N C E FROM

----- ELEVATION DIP TESTS NE. CLAIM POST 1 N i 1 DEPTH

170 .0 '

4

FROM

0

3.4

42.3

D E S C R I P T I O N

CAS ING

- G a r n e t Gneiss - 0

Red-brown, h a r d , b locky w i t h Gneiss . a t 5 1 t o CA.

G r a p h i t i c G n e i s s

0 Grey, average h a r d n e s s , Gneiss. is a t 58 t o CA.

A t 47,O' G r a p h i t e f l a k e s comprise 1 t o 4% of t h e rock .

w 6 -M

FOOTAGE TO

3.4

42,3

141.3

I = -

ASSAY SAMPLE LENGTH

9,7

5884

6885

SAMPLE No.

6875

6876

6877

6878

6879

6880

6881

6882

'/, TC

3.61

9.7

9.6

9.7

9,7

10.0

9.0

9.7

8

127.7

137.0

3.28

3.62

4.00

3.69

3.65

3 . 5 4

3,32

-

FOOTAGE FROM

41,2

50.9

60.6

69.6

79.3

89.0

108,O

TO

50,9

60.6

69.6

79,3

89.0

99.0

99 .0108 .0

117.7

137.0

141.7

1

1

-

w- 5- -- - 5- - 2- - 0)-

W- I g-

8- ="- ?m - - = - -

9.3

4.7

- - - - 3.34

3.75 - -

-

8 i 1 0

DIAMOND DRILL RECORD LOGGED BY D. Constable

PROPERTY BUTT TOWNSHIP - CALGRAPHITE CORPORATION

LATITUDE -----BEARING OF HOLE

(Ast o ) STARTED

oct.

----- _80 0 Oct. DEPARTURE DIP OF HOLE COMPLETED

ELEVATION ----- Nil 170.0' DIP TESTS DEPTH

FOOTAGE FROM TO DESCRIPTION

0 3.4 CASING

3.4 42 0 3 Garnet Gneiss

0 Red-brown, hard, blockV with Gneiss. at 51 to CA.

,

42.3 141.3 GraEhitic Gneiss

Grey, average hardness, Gneiss. is at 580

to CA.

At 47 0 0' Graphite flakes comprise 1 to 4% of the rock.

_. ___ 0_- _" •


/85

/85

SAMPLE No.

~875

\6876

~877

~878

~879

~880

~881

~882

~883

5884

b885

D.D.H. No. CAL-85-4C . PAGE t CLAIM No. ------'----__

~--DIRECTION AND DISTANCE FROM

NE. CLAIM POST

FOOTAGE SAMPLE ASSAY FROM TO LENGTH Yo TC

4102 50 .. 9 9 07 3.61

50.9 60.6 9.7 3.28 ""

I

m 60.6 69.6 9.6 3.62

jifl

j CS> ~

69.6 79 .. 3 9.7 4.00 i -l

Ol ~

79.3 89.0 9~7 3.69 ~ Ol !§l

89.0 99.0 10.0 3.65 §~ 1 99.0 108.0 9.0 3.54 J

10800 117.7 9.7 3 .. 32 I

117.7 127.7 10.0 3.00

127.7 137.0 9.3 3.34 I

137.0 141.7 4.7 3.75 I

J 6) t)

I 6)

DIAMOND DRILL RECORD LOGGED BY __ D __ o_C_o_n_s_t_a_b_1_e ________ ___ CONSTABLE CONSULTING INC.

PROPERTY __ ~B~I~~~T~T~O~WN~S~H~TuP~-~C~A~T~I~GuRA=uP~HuT~T~E~C~O=R~P~O=RA~T~I~O~NL-____ ~ _________________________ ~ ______ ~ D.D.H. Nc. CAL-85-4C PAGE_2 __ C-ftt CLAIM Ho. ---------------

~---DIRECTION AND DISTANCE FROM

LA TITUDE _____ --_-_-_-_________ BEARING OF HOLE ______ (~A=__=s=__::t"__"-c..L) ___ STARTED _-=O-=c-=t--=-" __ -----'1'-8_5:......-_

DEPARTURE ------ DIP OF HOLE _800

COMPLETED--=O:....=c,-=t-=.." _---'-1_8-=--5_

ELEVATION ------ DIP TESTS ____ n_l._· 1 _______ DEPTH ____ 1_7_0_-_0_' ____ 1.-_______ ---' NE. CLAIM POST

FOOTAGE SAMPLE FOOTAGE SAMPLE ASSAY FROM TO DESCRIPTION No. FROM TO LENGTH ~ TC

141.3 170 0 0 GARNET GNEISS

Frnm 41 ? -n 141 7 (HI n t:; F, .At- \'"" [1<=>r.'" rYc, I", ~ I::;

Red-l-. .... nwn h",rn m~~~iU'P- harrp-n ro~k with aneiss at 64 0

n!=>rr~ .nt- TO ",1 l'rl rhr .... n

to CA.

I

END OF HOLE CAL-85-4C is at 170.0'

-,,-''''''''''''--.....,. / /

WJ0~/jLJ }: -, k • -G:, f ~ '- ~ '-" f "-

. .

' 1 DIAMOND DRILL RECORD LOGGED BY D - CONSTABLE CONSULTING INC.

PROPERTY BUTT TOWNSHIP - CAL GRAPHITE CORPORATION D.D.H. No, CAL-85-5C PAGE

LATITUDE BEARING OF HOLE --" STARTED OCT- /85 I CLAIM No. ' 1 DEPARTURE DIP OF HOLE -go0 COMPLETED OCT- /85 DIRECTION AND DISTANCE FROM

ELEVATION DIP TESTS N i l DEPTH 157.0' NE. CLAIM POST

SAMPLE LENGTH

8.8

9,2

SAMPLE No.

6886

6887

FOOTAGE D E S C R I P T I O N

-

CAS LNG

Garnet Gneiss

0 Red-brown, hard , b locky w i t h Gneiss. a t 52 t o CA.

Contains n i l t o t r a c e c r y s t a l l i n e g r a p h i t e f l a k e s .

Graph i t i c Gneiss

, FROM

0

I

1 3.4

32 -3

- 3

1-4% g r a p h i t e f l a k e . F i r s t s e c t i o n t o 41,7' i s f i n e -

g ra ined g raph i t e . - --- - -

I 1 - From-41.7 ' - 781-5-1s cnarne r ~ r z p h i t e . I

ZLYLII TI--- n- 2 1 . u n I - 102.0' ~ a r n e t Gneiss.

% TC

3.57

3,68 -

FOOTAGE T O

3,4

32.2

f

143,9

ASSAY

1

FROM

32,s

41.3

6888

6889

6890

6891

6892

6893

T O

41,3

50.5

50.5

60,3

69.9

79.2

89,O

60.3

69.9

79.2

89.0

99.0

99 ,0108 .3

9.8

9.6

9,3

9.8

10.0

9.3

2,86

3.21

3.70

3.08

3.51

3.05

DIAMOND DRILL RECORD LOGGED BY D. Constable CONSTABLE CONSULTING INC.

D.D.H. No. CAL-85-SC PAGE ~-F 1 r t CLAIM No. ----------

I- DIRECTION AND DISTANCE FROM

________________________ DEPTH _____ l_S_7_._0_' _______ ~ ________ ~ NE. CLAIM POST

SAMPL E I-------c-F O_0-tT_A_G_E __ --I SAMP L E I-nr--...-...-----__ ----,-_A---=-S-=-~---=-y----T __ __.----i No. FROM TO LENGTH ~ TC

3.4 32.2 Garnet Gneiss

Red-brown, hard, blocky with Gneiss. at 520

to CA.

Contains nil to trace crystalline graphite flakes.

32.3 143,,9 Graphitic Gneiss 3.57

6887 41.3 50.5 9,,2 3 0 68

Grey, average hardness, gneiss at 500

to CA. Contains 6888 50.5 60.3 9.8 r-----~---~--------------------------------~~-----------+_--~--

2 0 86

3.21 1-4% graphite flake. First section to 41,,7' is fine- 6889 60,,3 69.9 9.6

grained graphite. 6890 69.9 79.2 9,,3 3.70

6891 79.2 89.0 9.8 3.08 I -T

From 97.0! - 102.0: Garnet Gneiss. 6892 89,,0 99.0 10.0 3.51

6893 99,,0 108.3 9.3 3.05

I DIAMOND DRILL RECORD LOGGED BY D. C o n s t a b l e CONSTABLE CONSULTING INC.

PROPERTY BUTT TOWNSHIP - CAL GRAPHITE CORPORATION , D.D.H. Ha. CAL-85-5C PAGE 2 05 ? I & I ----- -------- LATITUDE BEARING OF HOLE STARTED I I CLAIM No. I

0 DEPARTURE ----- DIP OF HOLE -90 COMPLETED OCT0 DIRECTION AND DISTANCE FROM

ELEVATION ----- DIP TESTS n i l DEPTH 157.0' NE. CLAIM POST

143.9

I

157.0

I I 1

G a r n e t G n e i s s -

I 1 I I

,N.$.

ercent t o t a l car

From

~ e d - b r o w n , hard, w i t h f i r s t 4' conta in ing 1-2%

g raph i te flakes, T h e n rock is barren of graphite ,

-

32.5

-

to 148.6 ( l J 6 . 1 f e s t ) av'eraqes


PROPERTY BUTT TOWNSHIP - CAL GRAPHITE CORPORATION

LATITUDE ----- --------BEARING OF HOLE STARTED

0 DEPARTURE ----- DIP OF HOLE -90 COMPLETED OCT.

ELEVATION ----- DIP TESTS nil DEPTH 157.0'


From 102.0' - 124.5' is coarse graphitic gneiss again.

'Frnm 124 I)' - ]43 9' mixE!if ~oarse-and fine-arainE!if

Graphitic Gneiss.

Gneiss. is at 71 0

to CA.

i


Red-brown, hard, with first 4' containing 1-2%

graphite flakes., Then rock is barren of graphite.,

I I '~A /J /

END OF HOLE CAL-85-5C is at 157.0' htJCw·~


/85

SAMPLE No.

6894

6895

6896

6897

6898

N.B.

;f~ I

D.D.H. No. CAL-8S -SC PAGE 2 of "J.t CLAIM No. --------

-El---DIRECTION AND DISTANCE FROM

NE. CLAIM POST

FOOTAGE SAMPLE ASSAY

FROM TO LENGTH --

108.3 118.2 9.9 4.11

118~2 127.0 8.8 3.10

127.0 137.0 10.0 2.79

137.0 146.8 9.8 3.43

146.8 148.6 1.B 2.20

From B2.S tb 148. 6 tll .1 fe et) a'\; eraqe~

3.32 bercen t tote 1 car pon.

F&; rt<:,

I DIAMOND DRILL RECORD L O G G E ~ B Y ~ . CoNSTABLE CONSTABLE CONSULTING INC.

-- I PROPERTY BUTT TOWNSHIP PROPERTY - CALGRAPHITE CORPORATION , D.D.H. No. CAL-85-6c PAGE 1 YL' 2 I LATITUDE BEARING OF HOLE STARTED Aug* 29/85 CLAIM No.

D EPARTURE DIP OF HOLE - 88O COMPLETED AUg. 30,85 DIRECTION A N D DISTANCE FROM

ELEVATION DIP TESTS DEPTH 150.0' NE. CLAIM POST

FOOTAGE FOOTAGE SAMPLE . ASSAY

averaseg

' 4 G

3-

2 . r c f

3,1<

5.67

F ROM D E S C R I P T I O N

0 6.5 C A S I N G


Contains 2-5% g r a p h i t e -

16.9 142.7 Graphi t ic Gneiss I 0

Contains 4-1C?% g r a p h i t e . Gneiss. i s a t 46 t o CA.

From 113.6' - 120.6 ' - Garnet Gneiss w i t h 2-3% graph i t e ,

TO

17.0

27.0

37.0

47.0

57.0

67.0

77.0

87.0

97.0

107.0

I

6576

6577

6578

6579

6580

6581

6582

6583

6584

6585

3 . 9 4 percent to ta l carbon,

113.7

1-20.6

130.0

142.0

6 . 6 t o

LENGTH

10.0

10.0

10.0

10.0

FROM -

6.6

17.0

27.0

37.0

47.0

57.0

67.0

77.0

87 .0

97.0

4rp T 6 :

10.44051

10.03-90

10.04.25

4-30

3.52

10.03.75

3.63

3.60

10.0.4-07

10 .05 -58

I w i k h 2-3s g r a p h i t e and interbedded g a r n e t g n e i s s .

- -

6.7

I From 120.6' - 142.7 ' f ihe-cp-sined g r a p h i t i c g n e i s s - 7 4 6 12 .

9.4

12.0

1 4 2 . 0

6588

6589

N.B.

120.6

130.0

From

6586

6587 2.59

3.83

3.43

(135.4

107.0

113.7

fee t )

DIAMOND DRILL RECORD LOGGED BY D. CONSTABLE CONSTABLE CONSULTING INC.

PROPERTY BUTT TOWNSHIP PROPERTY - CALGRAPHITE CORPORATION

LATITUDE _________ BEARING OF HOLE ________ STARTED Aug. 29/85

DEPARTURE DIP OF HOLE - 88° COMPLETEDAug. 30/85

) D.D.H. No. CAL-85-6c PAGE 1 \JJ.. 2 t . CLAIM No. --------

--e---DIRECTION AND DISTANCE FROM

ELEVATIOH DIP TESTS ________ ---, __ DEPTH __ 1_5_0_.:-0_' ____ '--___ ----' NE. CLAIM POST

FOOTAGE SAMPLE FOOTAGE SAMPLE ASSAY

FROM TO DES C R" P T , 0 N No. FROM TO LENGTH ' o/r, '1' " (' ,~.~

0 6.5 CASING

6.5 16.9 Garnet Gneiss 6576 6.6 17.0 10.4 4.51 2,30

contains 2-5% graphite," 6577 17.0 27.0 10.e 3.90 "

6578 27.0 37.0 10. C 4.25

16.9 142.7 Graphitic Gneiss 6579 37.0 47.0 10.0 4.30 ? -Il{ I

46° , contains 4-10,% graphite. Gneiss. is at to CA. 6580 47.0 57.0 10.0 3.52

6581 57.0 67.0 10.0 3.75

6582 67.0 77.0 10.0 3.'63 3,1{'

From 113.6' - 120.6' - Garnet Gneiss with 2-3% graphite. 6583 77.0 87.0 10.0 3.60

6584 87.0 97.0 10.0 4.07 5.b1

6585 97.0 107.0 10.0 5.58

6586 ... 07.0 113.7 6.7 3.70 ;Z, l"\ ,

~ From 120.6' - 142.7' fine-grained graphitic gneiss 6587 13.7 120.6 '-.59 - - ~ ... 2-370 graphite and interbedded garnet gneiss. 6588 r20.6 130.0 9.4 3.83 Wlxn

6589 r30.0 142.0 12.0 3.43

N.B. From E .6 to 142.0 (135 4 fee 11-, ) av€ raaeE

3.94 ~ercent total carbon.

I DIAMOND DRILL RECORD LOGGED BY D. CONSTABLE - A C L E LBWS~K.PT~?INC.

BUTT TOWNSHIP PROPERTY - CALGRAPHITE CORPORATION * -

PROPERTY D.D.H. No. CAL-85-6c PAGE 2 G- 2

LATITUDE BEARING OF HOLE STARTED AUG. 2 9 / 8 5 CLAIM No. 0

DEPARTURE DIP OF HOLE - 8 8 COMPLETED AUG. 3 0 / 8 5 DIRECTION AND DISTANCE FROM

ELEVATION DIP TESTS DEPTH 1 5 0 . 0 ' NE. CLAIM POST

I· DIAMOND DRILL RECORD LOGGED BY D. CONSTABLE CONSTABLE CONSULTI-N&-INC.

PROPERTY ___ B_UT __ T __ T_O_WN __ S_H __ I_P_P_R_O_P_E_R_TY ___ -__ C_A_L_G_RA __ P_H_I_T_E __ C_O_R_P_O_RA __ T_I_O_N _______________________ ~--------~ D.D.H. No. CAL-85-6c '\

PAGE 2 c..~' 2

·lATITUDE _________ BEARING OF HOLE ________ STARTED __ A_U_G_e_29_1_8_5 __ o

DEPARTURE DIP OF HOLE __ --'---_88 ______ COMPLETED AUG. 30/85

. t CLAIM No. --------


ELEVATION DIP TESTS ____________ DEPTH ___ 1_5_0--=-._0_' ___ L-___ ~ NE. CLAIM POST

FOOTAGE SAMPLE FOOTAGE SAMPLE ASSAY FROM TO DESCRIPTION No. FROM TO LENGTH ...

...

. ....


Coarse-grained, gneiss with 30% garnets.

,

,.-----......, A' ,

END OF HOLE CAL-85-6C is at 150.0' vJ A) L~{Ji 1/ --{ .. F ~A C~

,~ /

.

I DIAMOND DRILL RECORD CONSTABLE CONSULTING I N C . LOGGED BY D. Cons tab le .

PROPERTY BUTT TOWNS HIP PROPERTY - CALGRA PHITE CORPORATION , D.D.H. No. CAL-85-7B 1 ) E 2 PAGE-. -

----- LATITUDE BEARING OF HOLE STARTED RUG. 27/85 1 I 4 CLAIM No. I DEPARTURE

----- DIP OF HOLE -50° COMPLETEDAUG. 28/85 DIRECTION AND DISTANCE FROM

ELEVATION -----

DIP TESTS n i l DEPTH 207.0' NE. CLAIM POST

FROM

0

8.0

27.1 I

P

FOOTAGE TO

8.0

27.1

202.0


CASING

Garne.t Gneiss

0 Red-brown, b locky- hard rock w i t h Gneiss. a t 45 t o CA,

G r a p h i t i c Gneiss

Grey, hard, blosky. Conta in ing from 2-10% g r a p h i t e as

c r y s t a l s a long g n e i s s a t 75O t o CA.

From 80 .9 ' - 107.0' Garnet ~ n e i s s

From 120.4 ' onwards h o l e i s h i g h g rade g raph i t e . P~---~P~----

SAMPLE No.

6558

6559

6560

6561

6562

6563

6564

6565

6566

6567

ASSAY

% T C '

3.49

4 -10

3.47

4o2O

3-83

2.38

1 7 6

1 - 4 0

3.94

SAMPLE LENGTH

10.0

10.0

10.0

10.0

10.0

11.4

4.5

10.0--

10.0--4,.22

FOOTAGE FROM

27.0

47.0

57.0

67.0

77.0

91.1

102.5

1 0 7 ~ 0

117.0

).qr

2aq7

/ q 7

TO

37.0

37 .047 .0

57.0

67.0

77.0

91.1

102.5

107.0

117.0

127.0

I ' DIAMOND DRILL RECORD LOGGED BY D. Constable CONSTABLE CONSULTING INC.

PROPERTY _____ B_UT __ T __ T_O_WN __ S_H_I_P __ P_R_O_P_E_R_T_y __ -__ CA __ L_G_RA __ P_H_I_T_E __ C_O_R_P_O_RA __ T_I_O_N _______________________ ~--------~

LATITUDE ____ ------------- BEARING OF HOLE ________ STARTED AUG. 27/85

DEPARTURE ----- DIP OF HOLE -500

COMPLETEOAUG. 28/85

D.D.H. No. CAL-85-7B PAGE 2, 'f. 2 t CLAIM No. ---------

!- DIRECTION AND DISTANCE FROM

ELEV ATION ----- DIP TESTS ______ n_i_1 __________ DEPTH ____ 2_0_7_._0_' ______ <-________ ...1 NE. CLAIM POST

FOOTAGE SAMPLE FOOTAGE SAMPLE ASSAY FROM TO DESCRIPTION No. FROM TO LENGTH 1(; , '1;C

0 8.0 CASING


Red-brown, blocky. hard rock with Gneiss. at 450 to CA • ..

27.1 202.0 GraEhitic Gneiss 6558 27.0 37.0 10.0 3.49 \."11 i

. 6559 37.0 47.0 10.0 4.10

Grey, hard, blocky. Containing from 2-10% graphite as 6560 47.0 57.0 10.0 3.47

crystals along gneiss at 750 to CA. 6561 57.0 67.0 10.0 4.20 ;'Sl

6562 67.0 77.0 10.0 3.83

6563 77.0 91.1 ' '~'i" /. 2.38 ~

From 80.9' - 107.0' Garnet Gneiss 6554 91.1 102.5 11.4 1 76 /'3 l ~565 102.5 107.0 4.5 1.60

From 120.4' onwards hole is high grade graphite. 6566 ,107-.-0 117.0 10.0- -3.94

~56:J-- 117.0 - 127.0 10.0 __ 4.-21

DIAMOND DRILL R&CORD LOGGED BY D .. CONSTABLE CONSTABLE CONSULTING INC o

PROPERTY - CALGRAPHITE CORPORATION \

PROPERTY BUTT TOWNSHIP D.D.H. No. CAL-85-7B PAGE 2 \ }2

LATITUDE ------ BEARING OF HOLE STARTED AUG. 27/85 t CLAIM No.

0 28/85 DEPARTURE ------ DIP OF HOLE -50 COMPLETED AUG. .. DIRECTION AND DISTANCE FROM

ELEVATION ------- DIP TESTS nil DEPTH 207.0' NE. CLAIM POST

FOOTAGE SAMPLE FOOTAGE SAMPLE ASSAY DESCRIPTION -- ~

FROM TO No. FROM TO LENGTH o .TC

6568 127.0 137.0 10.0 4.38

, 6~~~'- J.3.7.;~0 .-147-.0 --·-10.-0 ·-3· .. -78- ---

6570 147.0 157.0 10.0 4.35 .3. U ..

6571 157.0 167.0 10.0 2.80 .. 6572 167.0 177.0 10.0 3.37

i 6573 177.0 187.0 10.0 5.30 :Z. e; , ,

6574 187.0 197.0 10.e 4.22

6575 197.0 207.0 10.0 3.08 1.3 l.


Red-brown, hard, gneiss at 610 to CA. From 27 Q 0 207 0 (16 .1 p' us 15 9 fee of

of wa ste) veraq~ d 3.7 ~ oerc ent t( tal clrbon

I L_ I ------ - ----------------- - -- -

-- ... ,

END OF HOLE CAL-85-7B is at 207.0' U~ Li Ii I.LL F c;A v ~-'l~~ t-- . c..-- r

( DIAMOND DRILL RECORD BY D. CONSTABLE CONSTABLE CONSULTING I N C .

BUTT TOWNSHIP PROPERTY- CALGRAPKI?CEADRPORATION D.D.H. No. CAL-85-7C PAGE 1 t 2

LATITUDE BEARING OF HOLE STARTED AUG. 28/85 0

CLAIM No.

DEPARTURE DIP OF HOLE -90 COMPLETED AUG. 29/85

DIRECTION AND DISTANCE FROM

ELEVATION DIP TESTS DEPTH 185.0' NE. CLAIM POST

SAMPLE No.

6429

6430

6431

6432

D E S C R I P T l O N

CASING

Garnet ~ n e i s s I

~ed-brown, hard, gne i s s . a t 67O t o CA.

raph hi tic ~ n e i s s

Grey, hard, blocky, Gneiss. a t 70° t o CA.

c o n t a i n s pyrite (2%) and from 2 t o 10% g r a p h i t e .

FOOTAGE

6433

6434

6435

6436

6437

6438

FROM

0

4.3

2 3 . 7

TO

4.3

23.7

179.2 I

FROM

23.7

28.0

48.0 ---

I

SAMPLE LENGTH

4.3

10.0

10.0

10.0

FOOTAGE TO

28.0

38.0

38.048.0

58.0

58.0

78.0

88.0

98.0 --- 108.0

68.0

68 .078.0

88.0

98.0

108.0

119.0

10.0

10.0

10.0

10.0

10.0

11.0

c 7 ,

2.75

2.80

3.01

2.38

4.04

ASSAY

ppp

y 'i(p. '

4 . 6 6

3.18

3.31

3.75

1 1 3

1#09

/,LL

2

2 ~b

-

&& / L

0 , 7 2 1

2.qq

a , 0 6

i r i s

3.32 2.%

DIAMOND DRILL RECORD LOGGED BY D. CONSTABLE

PROPERTY BUTT TOWNSHIP PROPERTY- CALGRAPHIT~RPORATION

LATITUDE BEARING OF HOLE STARTED 0

DEPARTURE DIP OF HOLE -90 COMPLETED

ELEVATION DIP TESTS DEPTH

FOOTAGE DESCRIPTION FROM TO

0 4.3 CASING

4.3 23.7 Garnet Gneiss \

Red-brown, hard, gneiss. at 670 to CA.


I 0

" Grey, hard, blocky, Gneiss. at 70 to CA.

I contains pyrite (2%) and from 2 to 10% graphite.


AUG. 28/85

AUG. 29/85

185.0'

SAMPLE No.

..

6429

6430

6431

6432

6433

···6434

6435

6436

6437

6438

D.D.H. No. CAL-85-7C PAGE 1 ) 2 r--------, t CLA.IM No. --------

..... 3-----DIRECTION AND DISTANCE FROM

NE. CLAIM POST

FOOTAGE SAMPLE 0) ASSAY I--~'

FROM TO LENGTH Ph 'fIC'. t!!L

23.7 28.0 4.3 4.66 0,12,

28.0 38.0 10.0 3.18 1,'1'-f

38.0 48.0 10.0 3.31 ;; ,C ("

48.0 58.0 10.0 3.75 ~,d5

58.0 68.0 10.0 2.75 i, I :,

68.;0 78.0 10.0 2.80 ),0"1

78.0 88.0 10.0 3.Q1 {,("ic,

86.0 98.0 10.0 2.38 ), ,j) :;l..,

98.0 108.0 10.0 4.04 A,l(,b

108.0 119.0 11.0 3.32 JS~

1 ' I D I A M O N D DRILL RECORD LoGGED BY D, CONSTABLE CONSTABLE CONSULTING INC .

- -

BUTT TOWNSHIP PROPERTY - CALGRAPHITE CORPORATION CAL-85-7C D. D. H. NO. PAGE * f 2

I

L ATlTUDE BEARING OF HOLE cTADTEn AUG. 28/85 0

I DEPARTURE DIP OF HOLE -90 COMPLETED AUG- 9/85

CLAIM No.


ELEVATION DIP TESTS DEPTH 185.0' NE. C L A I M POST I

waste averages 3 . 4 0 percent t -o ta l

-

SAMPLE No.

6439

6440

6441

6442

6443

6444

6445

From

x F e ' 1.38

2..30

4,03

3 -87

3-62

4.80

3.75

pl-1s

SAMPLE L E N G T H

4.5

8.3

10.0

10.0

10.0

10.0

7.0

(152.3


Garnet ~ n e i s s

~ed-grey! hard. contains 1% pyrite as plates along gneiss.

FROM

123.5

128.0

138.0

148.0

158.0

168.0

178.0

23.7

, FROM

179.2

- - ZGc 0.56

1 LS

3 6 %

2 . 7 b

2 2 3

3 61

2.2.5

9.0.

ASSAY FOOTAGE TO

128.0

136.3

148.0

158.0

168.0

178.0

185.0

to 185.0

FOOTAGE TO

J.85.0

feet- of

DIAMOND DRILL RECORD LOGGED BY D. CONSTABLE CONSTABLE CONSULTING INC.

PROPERTy~B~UT~T~T_O_WN __ S_H __ IP ___ PR_O_P_E_R_T_Y ___ - __ C_A_L_G_RA __ P_H_I_T_E __ C_O_R_P_O_RA __ T_I_O_N ____________________ ~ ____ ~--------~ D.D.H. No. CAL-85-7C PAGE~ ~ LATITUDE_~ _____ ~_ BEARING OF HOLE ________ STARTED_A_U_G_._2_8_/_8_5 __

o DEPARTURE ________ DIP OF HOLE _____ -_9_0 ______ COMPLETED AUG. 29/85

t CLAIM No. -------'------

..... .....,~----DIRECTION AND DISTANCE FROM

ELEVATION DIP TESTS ___________ DEPTH ___ 1_85_.0_' ____ L _______ ....I NE. CLAIM POST

FOOTAGE DESCRIPTION

SAMPLE FOOTAGE SAMPLE ASSAY

FROM TO No. FROM TO LENGTH ITC t((;C

6439 123.5 128.0 4.5 1.38 0.5&

6440 128.0 136.3 8.3 2 •. 30 I V~

6441 138.0 148.0 10.0 4,03 3.0'6 3J5-V

6442 148.0 158.0 10.0 3.87 2.'l1." / Co t.;'

.. 6443 158.0 168.0 10.0 3.62 :2.23

6444 168.0 178.0 10.0 4.80 ~ bf

179.2 1.85.0 Garnet Gneiss 6445 178.0 185.0 7.0 3.75 2.2.$

Red-grey! hard, contains 1% pyrite as plates along gneiss.

From '3.7 tb 185.0 (15' .3 01 15 9.0 feet of

waste -"lvpr I;::!('T':>C:: ., 40 D~ ~rr-~nr rot'i'!l (";::! rht ,n

------CAL-85-?C

. ",f- lQ!:: n. .-f-y~ ( ~7 7tA: ;J f -: /' f-'I<'~!!) f\ .... HOLE ,e (~- --- ---. - ./:... ~ J--\..Q. G. '-

--- I

1;3.

I DlAbffgND DRILL RECORD LOGGED BY D- CONSTABLE - -SULTING INC,

PROPERTY BUTT TOWNSHIP - C a l ~ r a p h i t e Corpora t ion D.D.H. No.CAL-85-8AA PAGE 1 of I

LATlT UDE ---

BEARING OF HOLE STARTED Oct* /85 CLAIM No. ---

DEPARTURE DIP OF HOLE -45O

COMPLETED O c t . /85 DIRECTION AND DISTANCE FROM

ELEVATION --- DIP TESTS n i l DEPTH 106.0 NE. CLAIM POST

--

amounts o f

SAMPL E LENGTH

9.5

11.4

10.2

9.9

5.8

3.6

9.7

-

O ~ T C

2.85

3.44

3.45

3.59

4.25

5.45

3.70

SAMPLE No.

6899

7401

7402

7403

7404

7 4 2 0

7 4 0 5 5 4 . 5 -

D E S C R I P T l O N

CAS ING

- G r a p h i t i c Gneiss

Grey, average hardness , weathered and blocky. Grade

i s very h i g h from 2-6% graph:-te. Gneiss . i s from

82O t o CA a t s t a r t of s e c t i o n t o 56O t o CA a t 72.0'.

ASSAY

FROM

0

4.1

FOOTAGE TO

4.1

80.8

FROM

4 . 1

13.6

25.0

35.2

45.1

50.9

FOOTAGE TO

13.6

25.0

35.2

45.1

50.9

54.5

6 4 2


PROPERTY BUTT TOWNSHIP - Cal Graphite Corporation

LATITUDE BEARING OF HOLE STARTED Oct.

DEPARTURE DIP OF HOLE _45 0

COMPLETED Oct.

ELEVATION DIP TESTS nil DEPTH 106.0


0 4.1 CASING

4.1 80.8 GraEhitic Gn.eiss

Grey, average hardness, weathered and blocky. Grade

is very high from 2-6% graphite. Gneiss. is from

82° to CA at start of section to 56° to CA at 72.0' •

80.S 106.0 Garnet Gneiss

Red-brown, hard massive with very minute amounts of ""_.-- - -

I I graphite.

From 88.5 1 - 91.0' white quartz_.~~n. ~

CONS1~BLE CONSULTING INC o

/85

/85

SAMPLE No.

b899

7401

7402

2403

[7404

7420

7405

7406

7407

From

perCE

D.D.H. No. CAL-85-SAA PAGE 1 of 1 t CLAIM No. --------


NE. CLAIM POST


FROM TO LENGTH %TC

4.1 13.6 9.5 2.85 ,

13.6 25.0 11.4 3 44 ;

25.0 35.2 10.2 3.45

35.2 45.1 9.9 3.59

45.1 50.9 5.8 4.25

50.9 54.5 3.6 5.45

54.5 64 2 9.7 3.70

64.2 73.6 9.4 3.47

73.6 aO.7 7.1 3.54

4.1 tb_ 80.7 (76.6 feet' aver :tqes 3.59

nt to al ca irbon

I

J)(~Q/{J~ 0c/ K, -- '--

106.0 I'

END OF HOLE CAL-85-SAA IS AT

PROPERTY BUTT TOWNSHIP - Gal D.D.H. NO. CAL-85-9AA PAGE 1 ) 1

LATITUDE ---- BEARING OF HOLE O (Ast.) STARTED O c t - CLAIM No. 0

DEPARTURE "-' DIP OF HOLE -45 COMPLETED O c t * /85 DIRECTION AND DISTANCE FROM

ELEVATION ---- DIP TESTS n i l DEPTH 147.0' NE. CLAIM POST

FOOTAGE D E S C R l P T l O N SAMPLE FOOTAGE SAMPLE h ASSAY

FROM TO No. FROM TO LENGTH % TC d L

0 4.5 CASING

4 . 5 124.3 G r a p h i t i c G n e i s s 7498 14.6 24.6 10.0 3.93 2 9L(

7409 24.6 34.2 9.6 3.21 317

Grey, average hardness g n e i s s . i s a t 63 t o CA. 7410 34.2 44.4 10.2 3.26 ] , qq

Graphi te c o n t e n t is e x c e l l e n t and v a r i e s from 2-6%. 7411 44.4 52.9 8.5 3,83 2 07 I

7412 52.9 62.3 9.4 4.12 Jb7-3--

From 82.0' - 88.6' Garne t Gneiss 7413 02.3 72.2 9.9 3.70 298 x L y l

A t 117.0' Gneiss. is at 76O t o CA. 7414 72.2 80.0 7.8 3.10 3 . 2 ' 'I '$



LATITUDE BEARING OF HOLE 0 (Ast. } STARTED Oct.

DEPARTURE DIP OF HOLE _45 0 COMPLETED Oct.

ELEVATION DIP TESTS nil DEPTH 147.0'

FOOTAGE OEseRI PTION FROM TO

0 4.5 CASING

4.5 124.3 Graphitic Gneiss

Grey, hardness. gneiss. is at 63 o to CA •. .' average

Graphite content is excellent and varies from 2-6%.

i

From 82.0' - 88.6' Garnet Gneiss

At 117.0' Gneiss. is at 0

76 to CA.

124.3 147. ( Garnet Gneiss

Red:"'brown, hard, massive and cn::lr~p-C1r;:o;n~r=! ,..,,, ......... -.:--.1- ------ ..

__ .... _""' ... .l.1i,;;;I

I only traces of graphite. /' -....

~~~yt F~ Ac. '.

r r END OF HOLE CAL-85-9AA is at 147.0'


/85

/85

SAMPLE No.

7408

7409

7410

7411

7412

7413

7414

7415

7416

7417

7418

7419

N.B.

D.D.H. No._CAL-85-9AA PAGE 1 l ) 1 t CLAIM No. ---------

I- DIRECTION AND DISTANCE FROM

NE. CLAIM POST

FOOTAGE SAMPLE ASSAY FROM TO LENGTH % TC t. (~ c

14.6 24.6 10.0 3.93 )q ~

24.6 34.2 . 9.6 .3.21 3.\1

34.2 44.4 10.2 3.26 1.9Y

44.4 52.9 8.5 3 0 83 ;.l.. . !;) "I

52.9 62.3 9.4 4.12 J . ., c~-~

62.3 72.2 9.9 3.70 ~L"\~ l,O "I ,. ~

72.2 80.0 7.8 3.10 2?2 ~ D'1.

80.0 89.6 9.6 1.80 ;),01

.89.6 99.5 9.9 2.96 ~:>y

99.5 109.0 9.5 3.82 J.I~

109.0 118.6 9.6 2.77 \.8]·

118.6 124.2 5.6 4.03 '),.~~

from ] 4.6 tc 124 ~' (l09 .6 fee t) av~ raJ:I.eS

S.35 T: ercen t:ota carb nn

I DIAMOND DRILL RECORD L O G G E D ~ Y - D. Cons tab le CONSTABLE CONSULTING I N C . -

\ I P R O P E R T T U T T TOWNSHIP - C a l G r a p h i t e Corporation D.D.H. N,FAL-~~-~OAA 1 bi' 1 1 LATITUDE BEARING OF HOLE STARTED

DEPARTURE DIP OF HOLE - 45O COMPLETED

CLAIM No.


ELEVATION DIP TESTS None DEPTH NE. CLAIM POST I

SAMPLE LENGTH

11.0

10.0

10.0

20.0

10.0

10.0

1 0 7 - (

FROM

0

35.2


CASING

P rap hi tic Gneiss

Rusty, blocky, with bands of ga rne t gne iss .

Core h a s been ground.

A _ _ - - - uverail recoverv of core 31 - 0 - - 107

0 G n e i s s o s i t y i s a t 8 2 t o CA.

From 5710' - 67.0' g a r n e t gne iss .

- A I/ /

/ X / / - / b r-- . n

w +vudA!& , 1-6NC- - 1

FOOTAGE TO

35 .2

107.0

END OF HO-LE CAL-85-10AA is a t 107.0'

SAMPLE No.

7301

7302

7303

7304

7305

7306

3 - R - avel-a~es-

I

ASSAY

carb

% TC

2,oo

2-96

0.79

1.52

3oo7

2.98

(71-3

2 .12 -~n,

feet)

percen toea:.

FOOTAGE FROM

36.0

47.0

57.0

67.0

87.0

97.0

F m

TO

47.0

57.0

67.0

87.0

97 0

107.0

71.0

3 6 - 0 t~


PROPERTY BUTT TOWNSHIP - Cal Graphite corporation

LATITUDE BEARING OF HOLE STARTED

DEPARTURE DIP OF HOLE _ 45° COMPLETED

ELEVATION DIP TESTS None DEPTH


0 35 2 £ASING


" Rusty, blocky, with bands of garnet gneiss.

Core has been ground. I

- Overall recovery of core 31 - 29 0 o/n 107

. .. 8 0 Gne1SSos1ty 19 at 2 to CA.

From 5710' - 67.0' garnet gneiss.

..-----.. '" ~ . X '1 ./ 11-4-;( ~~ ~Y2--/l-~ >- 1~·Ac. '-.-~

END OF HOLE CAL-85-10AA is at 107.0'

' ..

SAMPLE No.

7301

7302

7303

7304

7305

7306

N.B

CONSTABLE CONSULTING INC. \

D.D.H. No~AL-85-10AA PAGE 1 \J~' 1 t CLAIM Ho. ---------


NE. CLAIM POST


FROM TO LENGTH ~ TC

36.0 47.0 11.0 2 0 00

47.0 57.0 10.0 2.96

57.0 67.0 10.0 0.79

67.0 87.0 20.0 1.52

87.0 970 10.0 3.07

97.0 107.0 10.0 2.98

71.0

~rom In 0 t:c 107 (71 J feet i) ave :ages.

~12 t: lercent tota ~Arh in

I D I A M O N D DRILL RECORD LOGGED BY - -- CONSTABLE CONSULTING INC.

PROPERM ~ u t t T&5hip - Cal ~ r a p h i t e Corporation r-

D.D.H. No. CAL-85-10AB PAGE1 or 1

LATITUDE BEARING OF HOLE STARTED 0

CLAIM No.

DIP OF HOLE -65

DEPARTURE COMPLETED DIRECTION AND DISTANCE FROM

ELEVATION DIP TESTS n i l DEPTH 1 4 5 . 0 ' NE. CLAIM POST

FOOTAGE SAMPLE FOOTAGE SAMPLE pI ASSAY , FROM TO D E S C R l P T l O N No. FROM TO LENGTH % TC k 6 C .

0

3 3 . 1

I

33.1

145.0

G

raph hi tic G n e i s s

Rusty , soft b l o c k y c o r e c o n t a i n s small bands of

-

7307

7308

7309

3 3 . 0

4 7 . 0

6 7 . 0

4 7 . 0

6 7 . 0

7 7 . 0

1 4 . 0

20 .0

1 0 . 0

1 . 3 6

3 . 1 0

3 0%

3 > q

2 . 9 0 3 , , -


PROPERTY Butt Township - Cal Graphite Corporation

LATITUDE BEARING OF HOLE 0

STARTED

DEPARTURE DIP OF HOLE -65

COMPLETED


FOOTAGE FROM TO OEseRI PTION

0 33.1 CASING_

33.1 145.0 .GraEhitic Gneiss

.. Rusty, soft: blocky core contains small bands of

Garnet. Gneiss (32.0 1 - 37.5'). Lots of ground core !

. j)art ic\] lar 1 v from 37 0' - 57 ~I .12J)% core recmTerV)

Good ~ 0,%) core recovery from 57.0' - 145.0'.

,

END OF HOLE CAL-85_-l0AB IS AT ]4t;,(\1

I I I ~J0 ~ ~ FG~Ac.

'---- I' . ..

SAMPLE No.

7307

7308

7309

7310

7311

7312

7313

7314

731 5

7316

CONSTABLE CONSULTING INC. r

D.D.H. No. CAL-85-10AB PAGEl or 1 t CLAIM No. ---------


NE. CLAI M POST

FOOTAGE SAMPLE "-ASSAY

FROM TO LENGTH % TC tGC

33.0 47.0 14.0 1.36 3.a~

47.0 67.0 20.0 3.10 3. ,,~

67.0 77.0 10.0 2.90 3,..,~

77.0 87.0 10.0 3.97 /. C3,

87.0 97.0 10.0 2.64 /,"Iv ~-, .... I

97.0 107.0 10.0 3.62 d... b"\ .J;v6--

~07.0 117.0 10.0 3.04 ?'.Sl~

11.17 • 0 127.0 10.0 2.56 ~,,~ (.."

~27.0 137 0 10.0 2.35 ?',I~

37.0 145.0 8.0 3.17 '].)4-

I N.B·IFrom ~7.0 tb 145.10 {98 0 ft-:h ~veJaqes '---I 3.04 bercen r tota 11 carl Jon

DIAMOND DRILL RECORD LOGGED BY D- CONSTABLE CONSTABLE CONSULTING INC, -

---- -- ----

P R O P E R T Y ~ RTTTT TQWNSHTP - PAT. GRAPFTT'FFI r w D.D.H. No.CAL-85-12AA PAGE 1 of j

LATITUDE BEARING OF HOLE STARTED CLAIM No. 0

DEPARTURE DIP OF HOLE -45 COMPLETED DIRECTION AND DISTANCE FROM

I ELEYAT'oN DIP TESTS DEPTH 165.0' NE. CLAIM POST

DIAMOND DRILL RECORD LOGGED BY D. CONSTABLE CONSTABLE CONSULTING INC" \

D.D.H. No.CAL-85-12AA PAGE 1 of ) PROPERTY ________ ~B~T~TT~T~T~O~WN~SuH~I~P~-~C~A~L~·~G~B~A~P~H~I~T~E~C~O~R~P~O~R~A~T~I~O~N~-------------------------~-----, t CLAIM No. ---------

-E::r---DIRECTION AND DISTANCE FROM

LATITUDE _________ BEARING OF HOLE ________ STARTED ______ _ _ 450

DEPARTURE ________ DIP OF HOLE ___________ COMPLETED _____ _

E LEVATIOH _________ DIP TESTS ____________ DEPTH -'--__ =16=-5=-=--. 0=---' ' ___ L-____ --' NE. CLAIM POST

FOOTAGE SAMPLE FOOTAGE SAMPLE ASSAY FROM DESCRIPTION No. LENGTH % TC -

TO FROM TO

0 34,,1 CASING

34.1 117,6 GraEhitic Gneiss 7317, 34.5 47.0 12.5 2.00 2...27

7318 47.0 57.0 10.0 2.36 J, -,2

Rusty blocky soft. starts in Graphite with minor 7319 57.0 67.0 10.0 "2.14 ~,'")..~

bands of garnet gneiss and anatexic pink feldspar 7320 67.0 77.0 10.0 2.78 I..{ 'I 2- Sfl __ i

b.c...("S" ' 'l:; /.,

, similar to ho1e CAL-85-14C. Gneiss. at 83 0 to CA 7321 77.0 87.0 10.0 3 0 89

G:t':"ound core only 40% core recovery from 34.5-117.0 7322 87.0 97.0 10.0 2.13 ~ 0'2>

7323 97.0 107.0 10.0 '2.24 2> Ie I

7324 ~07.0 ;1.17.0 10.0 3.25 3,0";-

117.6 165.0 Qarnet Gneiss

Red-brown. massive hard containina nil aranhite

Gneiss. is at 0

77 to CA.

N B 'from ~ 14 5tc 117 ( (82 5 feet ) av~ ·raaes

END OF HOLE CA L-8 5 -12AA is at 165.0' ~ SR tl pr~pnt tot,rt ~arh hn

,~ /7 -'" ,

~JI) ~,~~~ig F~Ac ""--- -,

#- DIAMOND DRLL RECORD LOGGED BY DO c o n s t a b l e CONSTABLE CONSULTING INC.

PROPERTY BUTT TOWNSHIP - CAL GRAPHITE CORPORATION D. D. H. No. r

CAL-85-12D PAGE 1 OL 3 I

LATITUDE ------- -------

BEARING OF HOLE STARTED 0

DEPARTURE ------- DIP OF HOLE -90 COMPLETED

ELEVATION + DIP TESTS n i l DEPTH 600.0' 1 CLAIM No.


NE. CLAIM POST

FROM TO D E S C R l P T l O N NO. FROM TO LENGTH % TC

0 5.0 CASING

5.0

I

-

I

439.2 Garnet ~ n e i s s

Grey t o red-brown blocky, hard, ba r ren of g r a p h i t e , 0

~ n e i s s . i s a t 37 t o CA.

I 1 I From 377.0' - 400.0' f a u l t gouge. I

-

I

G By 127.0' ~ n e i s s . is a t 42 t o CA.

0 By 250.0' Gneiss. is a t 67 t o CA.

From 377.0' - 387.0' ground co re 35% recovery.

-

--I--- DIAMOND DRILL RECORD LOGGED BY DQ constable CONSTABLE CONSULTING INC. t PROPERTY BUTT TOWNSHIP - CAL GRAPHITE CORPORATION D.D.H. No. CAL-85-l2D PAGE 1 OL 3

LATITUDE ------- BEARING OF HOLE ------- STARTED t CLAIM No.

DEPARTURE 0 ------- DIP OF HOLE -90 COMPLETED DIRECTIOti AND DISTANCE FROM

ELEVATION + DIP TESTS nil DEPTH 600.0' NE. CLAIM POST

FOOTAGE SAMPLE FOOTAGE SAMPLE ASSAY FROM TO DESCRIPTION No. FROM TO LENGTH % TC -

0 5.0 CASING


Grey to red-brown blocky, hard, barren of graphite,

Gneiss. is at 370

to CA.

I 0 By 127.0' Gneiss. is at 42 to CA.

By 250.0' Gneiss. is at 0

67 to CA.

From 377.0' - 387.0' ground core 35% recovery.

l L I I From 377.0' - 400.0' fault gouge. I I -~l~

-~~

I - DIAMOND DRILL RECORD BY D. Constable CONSTABLE CONSULTING INC.

'r pROPERTY BUTT TOWNSHIP - Cal ~ r a p h i t e Corpora t ion D. D. H. No. CAL-85-12D PAGE 2 01 3 1

I.

I LATITUDE ----- -------

BEARING OF HOLE STARTED I I ) CLAIM No. I 0

DEPARTURE ----- DIP OF HOLE -90 COMPLETED DIRECTION AND DISTANCE FROM

ELEVATION + DIP TESTS n i l DEPTH 600.0' NE. CLAIM POST

FROM TO D E S C R l P T l O N No. F ROM

439.2 568,O ~ r a n h i t e Gneiss 7351 439.3 447.0 7.7 3.88

7352 447.0 457.0 10,O 3.12

-

I

Grey, s o f t , massive, c o n t a i n s 2-6% g r a p h i t e c r y s t a l s . 0

Gneiss. is a t 84 t o CA.

From 512.5' - 519,4' in te rbedded Garnet Gneiss and a

raph hi tic Gneiss c o n t a i n i n g 2% g r a p h i t e . \

7353

7354

7355

7356 -

7357

7358

7359

7360

7361

7362

-- - - P 3 6 3 4 2 7 . d - 530.91 3.3 ~ 1 I 1 From 527,6' - 548,O' G r a p h i t i c Gneiss w i t h b ~ d s cf 1736b. 1530.9

457.0

464.4

474.1

488.5

497.0

501.8

507.0

515.7

520.7

-

537.01 6.1 3.17

2.55

537.0

547.0

554.4

minera l ized Garnet Gneiss

464.4

474.1

480.3

480.3488.5

497.0

501.8

507.0

515.7

520.7

527.6

I I

4,18

3.20

4.59

547.0

554.4

563.2

7365 -

7366

7367

10.0

7.4

8.8

7.4

9.7

8.2

8.5

4,8

5.2

8,7

5.0

6.9

3,18

3.44

3.03

4.15

3.57

3.42

2.90

3.04

1.82

4.04

-

-' DIAMOND DRILL RECORD LOGGED


LATITUDE -----BEARING OF HOLE -------

0 DEPARTURE ----- DIP OF HOLE -90

BY D. Constable

STARTED

COMPLETED

CONSTABLE CONSULTING INC. 'r

D.D.H. No. CAL-85-12D PAGE 2 OI' 3 t CLAIM No. ---------

-Ef----DIRECTION AND DISTANCE FROM

NE. CLAI M POST ELEVATION + DIP TESTS nil 600.0~ DEPTH

FOOTAGE SAMPLE FOOTAGE SAMPLE ASSAY . FROM TO DESCRIPTION No. FROM TO LENGTH rro TC

439.2 568 0 0 Gra:ehite Gneiss 7351 439.3 447.0 7.7 3.88

7352 44'7.0 457.0 10,0 3.12

Grey, soft, massive, contains 2-6% graphite crystals. 7353 457.0 464.4 7.4 3,,18

Gneiss. is at 840

to CA. 7354 464.4 474.1 9.7 3.44 \ 6.2 7355 474.1 480.3 3.03

7356 480.3 488.5 8.2 4.15

7357 488.5 497.0 8.5 3.57

7358 497.0 501.8 4 0 8 3.42

From 512.5' - 519 .. 4' interbedded Garnet Gneiss and ' ' ........ -=, '7359 501.8 507.0 5,,2 2.90

Graphitic Gneiss containing 2% graphite. 7360 507.0 515.7 8 0 7 3.04 \

7361 515.7 520.7 5.0 1.82

7362 520.7 527.6 6.9 4.04

- 7363 627.6 530.9 3.3 2.55 _. __ .--- _. ---- -----.- '-'-

L I 1 From 527 .. 6' - 548,,0' Graphitic ~TV'!; ~~ with hand!! of 17 ~e::A 1 t:;~n al t:;'l"7 nl t::. 1 I 'l , "7 , __ ~ ~~_.J ~vl.V v" .... oJ • .J...I

mineralized Garnet Gneiss 7365 537.0 547.0 10.0 4 .. 18 "

7366 547.0 554.4 7.4 3.20 '-

7367 554.4 563.2 8.8 4.59

-

D, constable CONSTABLE CONSULTING INC . - r PROPERTY BUTT TOWNSHIP - CAL GRAPHITE CORPORATION D.D.H. No. CAL-85- l2D PAGE 3 of 3

LATITUDE ----' BEARING OF HOLE ------ STARTED CLAIM No. 0

DEPARTURE -----' DIP OF HOLE -90 COMPLETED DIRECTION AND DISTANCE FROM

ELEVATION + DIP TESTS nil DEPTH 600,01 NE. CLAIM POST

I

G r e y t o red-brown, hard, massive rock w i t h only

traces of s raphi te . G n e i s s . i s a t 82O t o CA,

- . -

7368

7369

7370

, N . B .

-

u u I

END OF HOLE CAL-85-12D is a t 600,O'

I

563,2

568.2

573.6

:?ram

.3.13

7 -

568,2

573.6

582.8

4 3 9 . 3

percen t ---

5.0

5.4

9.2

to 582.8

totaI. -

--- 3.29

0-80

1.67

(143.5 ft.)

a r a ~ n i t e .

averacre%,

-


PROPERTY BUTT TOWNSHIP - CAL GRAPHITE CORPORATION

LATITUDE ----- BEARING OF HOLE ------ STARTED 0

DEPARTURE ------ DIP OF HOLE -90 COMPLETED

ELEVATION + DIP TESTS nil DEPTH



Grey to red-brown, hard, massive rock with only

traces of ~r~hite. Gneiss. is at 82° to CA o

I

END OF HO~E CAL-85-12D is at 600.0'

I I I

600 0 0'.


SAMPLE No.

7368

7369

7370

N.B.

I

D.D.H. No. CAL-85-l2D PAGE 3 of 3 t CLAIM No. ---------

--a---DIRECTION AND DISTANCE FROM

NE. CLAI M POST

FOOTAGE SAMPLE ASSAY --FROM TO LENGTH 'Yo TC

563 0 2 568 0 2 5.0 3.29 --

568.2 573.6 5.4 0 .. 80

573.6 582.8 9.2 1.67

From 4 39.3 t 0 582 8 (14 B.5 ft ) av-.J raae-.S

13.13 t: erceni tota qrap hite.

I I

' I DIAMOND DRILL RECORD L o ~ G E D BY D, Constable CONSTABLE CONS'JLTING I N C .

BUTT T- PROPERTY - CALGRAPHITE CORPORATION D.D. H. No. CAL-85-13B PAGE 1 of -

PROPERTY -

if' 1

LATITUDE "' BEARING OF HOLE STARTED AUG. 15/85 CLAIM No.

DEPARTURE --- DIP OF HOLE -7 o0 COMPLETED AUG. 17/85 DIRECTION A N D DISTANCE FROM

ELEVATION --- DIP TESTS n i l DEPTH 300.0' NE. C L A I M POST

SAMPLE LENGTH

ASSAY SAMPLE No.

FOOTAGE FROM D E S C R I P T I O N

CASING

Garnet ~ n e i s s 0

Red-Black co lour , v e r y blocky wi th g n e i s s o s i t y a t 27

t o CA. Core ground i n p l a c e s through f i r s t 60 ' .

Contains t r a c e s o f p y r i t e a long g n e i s s bands.

A t 61.3' and 71.4' bands of p ink f e l d s p a t h i c m a t e r i a l

s e v e r a l i nches wide. Conformable.

Conformable O u t Con tac t a t 32O t o CA.

raph hi tic Gneiss

Grey-green, massive. more homogeneous with 7:L 9raphF.te and

TO FOOT

FROM

0

33.5

-

90.2

I I 47: as f i a k e s a long g n e i s s o s i t y .

-

AGE TO

33.5

90.2

1U.2

DIAMOND DRILL RECORD LOGGED BY __ D __ ._C __ o_n_s_t_ab_1e _______ ___ CONSTABLE CONS~TING INC.

PROPERTY ____ B_ur_T_T_O_~fl_~_S_I_II_P__'_P_R_O_P_E_R_TY __ -_CA __ L_G_RA_P_H_I_T_E __ C_O_R_P_O_RA_T_I_O_N _____ ~ _________ ,-____ ......, D.D.H" No.CAL-85-13B PAGE 1 of -2-t CLAIM No. --------

ca----DIRECTION AND DISTANCE FROM

LATlTUDE _________ BEARING OF HOLE _________ STARTED __ A_U_G...c.. __ 15.-:/.-:8_5 __

DEPARTURE DIP OF HOLE ____ -_7_0_o _____ COMPLETED AUG_ 17/85

ELEVATION DIP TESTS _____ n_1_" 1 ______ DEPTH ___ 3_O_O_-_O_' ____ L.... ____ --' NE. CLAIM POST

FOOTAGE SAMPLE FOOTAGE SAMPLE ASSAY FROM TO OEseRI PTION No. FROM TO LENGTH

° 33.5 CASING


Red-Black colour, very blocky with gneissosity at 270

to CA. Core ground in places through first 60' _

Contains traces of pyrite along gneiss bands. ..

At 61.3' and 71.4' bands of pink fe1dspathic material

several inches wide. Conformable.

Conformable Out Contact at 320 to CA.


Grey-green, massive. more homogeneous with '% graphite and

I I r ~ pyrite as flakes along gneissosity.

( DIAMOND DRILL RECORD LOGGEDBY D o c o n s t a b l e CONSTABLE CONSULTING INC, I u

PROPERTY T - n ; l P W P E R T Y - CALGRAPHITE CORPORATION 2 0 f 7 I , D.D.H. No. *L-85-13B PAGE 6 I

LATITUDE - -- - BEARING OF HOLE STARTED AUG. 15/85

DEPARTURE DIP OF HOLE -70° COMPLETED AUG* 17/85

CLAIM No.


n i l DEPTH 300.0' ELEVATION "' DIP TESTS NE. CLAIM POST

F ROM

118.2

200.6

FOOTAGE

TO

200.6

300.0

% T,Ci

2 -83

3-17

3 - 1 3

3-02

SAMPLE LENGTH

10.3

10.0

10.0

10.0

10.0

1n n LU.U

10.0

8.0

300.0

D E S C R I P T l O N P

Garnet Gneiss

Red-black, massive and hard.

From 193.6' - 200.6' l i g h t grey, qua r t z - fe ldspa r ,

b i o t i t e band. Conformable I n and O u t Contacts a t

20° t o CA.

Graphi t ic Gneiss

Dark green, very b recc ia t ed and c o n t a i n i n g < 1% very

f i n e g r a p h i t e f l a k e s and numerous w h i t e q u a r t z angular

b recc ia zones.

From 221.6' t o 300.0' g raph i t e becomes more abundant and

SAMPLE No.

6540

6541

6542

6543

I averases 3.17

FOOTAGE FROM

221.7

232.0

242.0

252.0

3-32

3-18

3-37

3-32

(78.3

6544

C C A C ua93

6546

6547

N . B .

TO

232.0

242.0

252.0

262.0

262.0

- 7 - n C. I L . U

282.0

292.0

From feet)

I I I l a r g e r f l a k e s . U p t o 4% g r a p h i t e by weight. Gneiss. i s 272.0

-a- n L O L . ~

292.0

300.0

221.7 to

r -4- A A O to 04 . uc 7 1

/

I = ; ~ A < -

OF HULK LS ac 3-h 03 J-JB m,- -, m- - -

DIAMOND DRILL RECORD LOGGED BY D. Constable CONSTABLE CONSULTING INC~

PROPERTY ____ B_U_n_T __ T_O_~_~_S_HI __ P __ P_R_O_P_E_R_T_y __ -__ CA __ L_G_RA __ P_H_I_T_E __ C_O_R_P_O_RA __ T_I_O_N ________________________ ~------~ D.D.H. No.CAL-85-13B PAGE 2 of ')~ t CLAIM t-Io. ---------

... :t=-----DlRECTION AND DISTANCE FROM

LATITUDE ________ BEARING OF HOLE ________ STARTED AUG. 15/85

DEPARTURE DIP OF HOLE _700

COMPLETED AUG. 17/85

ELEVATION __ ----'-_________ 01 P TESTS ____ n_~_·l _______ DEPTH ___ 3_0_0_. 0_' ___ . . NE. CLAIM POST

FOOTAGF SAMPLE FOOTAGE SAMPLE ASSAY FROM TO DESCRIPTION No. FROM TO LENGTH % T.C


Red-black, massive and hard.

From 193.6' - 200.6' light grey, quartz-feldspar,

biotite band. Conformable In and Out contacts at

0 20 to CA.

.'


Dark green, very brecciated and containing < 1% very p540 221.7 232.0 10.3 2.83

fine graphite flakes and numerous white quartz angular. ~541 232.0 242.0 10.0 3.17

breccia zones. ~542 242.0 252.0 10.0 3.18

From 221.6' to 300.0' graphite becomes more abundant and 6543 252.0 262.0 10.0 3.02

larger flakes. Up to 4% graphite by weight. Gneiss. is 6544 262 ~ 0 272.0 10.0 3.32

r ... .J. .11.11 0 01-_ '-''7\ L:I::JI~ "'..,'" n II"\~II"'JI n ,n n g, .... 7-Z '-v ~. V...J""t:...J 1:o11:o.V ~o~.v ~v.v 3.18 --- " ( J ' 0rn / /7 r= C:;.A.c J ,~..J~ 6546 282.0 292.0 10.0 3.37

~-

6547 292.0 300.0 8.0 3.32 END O~~ HOLl!: ~s at:: ';)UU.U \.:RL-OJ '.1..;1.0 N.B. From 221.7 to 300.0 (78.3 feet) averages 3.17

total carboD.

I DIAMOND DRILL RECORD LOGGED BY D. Cons tab le CONSTABLE CONSULTING INC. I PROPERTY - BUTT TOjSHIP PRmERTY - CALGRAPHITE CORPOMTION , D.D.H. No. CAL-85-14C PAGE 1 of 1 LATITUDE ---- BEARING OF HOLE ------ STARTED Sept . /85

---- D EPARTURE DIP OF HOLE

-go0 COMPLETED

Sept . /85

CLAIM No.


ELEVATION -" DIP TESTS n i l DEPTH 200.0' NE. CLAIM POST

SAMPLE LENGTH

7.0

18.4

9,5

10.0

10.0

10.0

10,O

FROM

0

25.1

107,O

FOOTAGE FROM

42.1

49.1

67.5

77.0

87.0

97.0

107.0

D E S C R l P T l O N

CASING

Garne t Gneiss

0 Red-brown, hard , b locky wi th gne i s s . a t 45 t o CA.

Conta ins 1% g r a p h i t e .

From 42.2' onwards u n i t becomes a mix-of Garne t Gneiss ,

raph hi tic ~ n e i s s and Red Fe ldspar beds c o n t a i n i n g 1-7%

g r a p h i t e (hybr id rock) .

G r a p h i t i c Gneiss

Grey t o red-grey, b locky s o f t . wi th i n t e r v a l s of p u r e

% TC

2-79 2.93

4.15

2.75

3,22

2.73

4.56

FOOTAGE T 0

25.1

107.0

162.0

TO

49.1

67.5

77.0

87.0

97.0

107.0

117.0

SAMPLE No.

6819

6820

6821

g r a p h i t e and 5% c o n t e n t of r e d f e l d s p a r rock (hybr id rock) . 6822

6823

6824

6825

- --

ASSAY


PROPERTY - BUTT TOWNSHIP PROPERTY - CALGRAPHITE CORPORATION

LATITUDE BEARING OF HOLE ------ STARTED Sept.

DEPARTURE DIP OF HOLE _900

COMPLETED Sept.


FOOTAGE FROM TO OESeRI PTION

0 25.1 CASING


Red-brown, hard, blocky with gneiss. 0

at 45 to CA.

Contains 1% graphite~

.. From 42.2' onwards unit becomes a mix.of Garnet Gneiss,

Graphitic Gneiss and Red Feldspar beds containing 1-7%

graphite (hybrid rock) •


Grey to red-grey, blocky soft. with intervals of pure

graphite and 5% content of red feldspar rock (hybrid rock).


/85

/85

SAMPLE No.

6819

6820

6821

6822

6823

6824

6825

D.D.H. No. CAL-85-l4C PAGE lof L t CLAIM No. ---------


NE. CLAIM POST


FROM TO LENGTH %T~

42.1 49.1 7.0 2 79 49.1 67.5 18.4 2.93

67.5 77.0 9.5 4.15

77.0 87.0 10.0 2.75

87.0 97.0 10.0 3.22

97.0 07.0 10.0 2.73

~07 .0 117.0 10.0 4.56

] DIAMOND DRILL RECaRn LOGGED BY- D. c o n s t a b l e CONSTABLE CONSULTING INC.

PROPERTY BUTT TOWNSHIP PROPERTY - CALGRAPHITE CORPORATION CAL-85-14C PAGE , D.D.H. No.

---- --- LATITUDE BEARING OF HOLE STARTED

SEPT. /85

- 90 0 DEPARTURE ---- . DIP OF HOLE COMPLETE^ SEPT, /85

CLAIM No. .


ELEVATION --- DIP TESTS n i l DEPTH 200.0' NE. CLAIM POST 1

162-0 200,O

~ed-brown, s o f t e r and con ta ins b o t h 1% g r a p h i t e and - ---

1 I I I I I I I I 1 I ,f

I

/

SAMPLE LENGTH

. ASSAY 70 Tc

SAMPLE No.

6826

6827

6828

6829

6830

6831

FOOTAGE D E S C R l P T l O N FROM

117,O

127.0

137.0

147.0

157.0

167.0

- FOOTAGE

TO

127.0

137,O

147.0

157.0

167.0

178.2

FROM

-

I

I

T 0

10,O 4.07

10.0 3.56 I

10.0 5-68

10.0 3,11

10.0 2.69

11.21 2.49

I


PROPERTY BUTT TOWNSHIP PROPERTY - CALGRAPHITE CORPORATION

LAT/TUDE BEARING OF HOLE STARTED SEPT.

DEPARTURE DIP OF HOLE - 90° COMPLETED SEPT.



162.0 200.0 Garnet Gnpi.ss

Red-brown, softer and contains both 1% graphite and

200ft, red feldspar. Gneiss. is 0

at 54 to CA.

From 162.0' - 178.2' hybrid rock.

From 178.2' - onwards pure Garnet Gneiss with no graphite.

~; ....... .


PAGE 2 u'f"; /85

/85

SAMPLE No.

6826

6827

6828

6829

6830

6831

from

iperce

D.D.H. No.CAL-85-14C

t CLAIM K •• ...:..... --------


NE. CLAIM POST

FOOTAGE SAMPLE ASSAY FROM TO LENGTH /0 '1'(.;

117 0 0 127.0 10 0 0 4.07

127.0 137 0 0 10.0 3.56

137.0 147.0 10.0 5.68

147.0 157.0 10.0 3.11

157.0 167.0 10.0 2.69

167.0 178.2 11.2 2.49

fU·1t o 178 2 0-36 .1 fe ~t) a, erage 3.42

pt tot a1 ca bon.

I I cddW0~iJo ~Gj ItC

END OF HOLE CAL-85-14C is at 200.0' ("

LJLE NO. LOCATION DATES

CAL-85-4C M a p Oct. 13-15/85

85-5C M a p Oct. 16-17/85

85-6C M a p -

85-7B M a p -

M a p - M a p - M a p Oct. 4/85

M a p -

M a p Oct. 5-6/85

85-1OAA M a p Oct. 7/85

Oct. 7-8/85

-

AZIMUTH (AST. )

242O

Sept. 21-23/85

Nov, 5-8/85

hJLE NO.

CAL-85-4C

85-5C

85-6C

85-7B

85-7C

85-70

85-8M

8S-8C

85-9M

85-9C

85-10M

85-10AB

85-10B

a5-10C

85-11C

85-11D

as-12M

85-12B

85-12C

85-13B

85-14C

85-~Eo t

LOCATION

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

Map

AI:R 2 1987

OMEP OffICE

DATES

Oct. 13-15/85

Oct. 16-17/85

Oct. 4/85

Oct. 5-6/85

Oct. 7/85

Oct. 7-8/85

Oct. 8-9/85

-'

Sept. 21-23/85

NoV. 5-8/85

~.---.-----------------.----

AZIMu~rH (AST.)

242 0

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