Johan Beetz area geology consists of quartzite, gabbro and granitic gneiss along Watshishou Hill. Costabelle regional fault is the main structural feature of the area running roughly to the North North-East from the St-Lawrence. Costabelle fault was flushed with hydrothermal fluids producing the milky quartz. Pegmatite dykes brecciated the Costabelle fault area. Prospections campaigns of four (4) km of the fault, from the St-Lawrence, identified ten bodies of milky quartz. Grenville Province, on which Johan Beetz quartz deposits are found, also hosts many known quartz deposits. These deposits, as the Baskatong milky quartz, the St-Donat-de-Montcalm and Charlevoix quartzite ore bodies are used for Si-metal purposes.
Open pit mining is the method considered to extract the Johan Beetz quartz veins. Here is an evaluation of the outcropping quartz veins considering the latest hand measured length, width, and above surface of all 10 showings. Historical reports do not provide officially surveyed data of the quartz ore bodies. The identification of the veins follows the original naming of Owen in 1951 and confirmed by R. A.Marleau in 1986.
The Quartz vein 2 is also named White Hill. White Hill is barren of any overburden. It has been sampled numerous times over the years, from 1944 to 2011 to analyze its purity. There is a Table
cumulating the results of the different oxides present in the quartz vein, the silica content and bore results with two (2) analytical methods (Valuation and Mineral Potential of Johan Beetz
Quartz Deposit, QC, Canada - Final Report, february 21st 2014).
In 2010, a sampling campaing was performed on Vein 2 from which ten (10) samples were collected and analysed by ALS chemical laoratory at Val D'Or. A quartz sample prepared and representing the ten stations from Vein 2 was sent to Germany at the highly specialized laboratory in evaluation of purity of resources, Dorfner Anzaplan in order to analyze more accurately the quantity of impurities contained in the quartz (elemental form and not oxides). Dorfner Anzaplan made observations on the high quality quartz, mentioning that the two (2) elements from which the quartz will need most beneficiation are the K and Al. Other elements analyzed (Na, Li, Ti, Ca, Mg, Cr, Mn, Cu, Ni) have an acceptable level in the raw quartz or are expected (B, P, Fe) to end with and acceptable level of after enrichment quartz. The accuracy of these results were not available with previous detection limits.
However, 10 other samples were analyzed in may 2014 by the world silicon spanish producer Grupo FerroAtlántica with remarkable chemical results.
Vein 2 is directed East-West. A North-South fault cuts Vein 2 at approximately one third of its Western end. This Western portion of Vein 2 is highly contaminated in iron and aluminum oxides hence not suitable for metallurgy. Appropriate selective mining methods would expect a loss between 15 and 50%.
1 742 600 mt = Conservative Minimal Indicated Resources (33,5%) - Vein 2.
Vein 9 is oriented approximately East-West and is located 120 m West of Vein 2.
507 200 mt = Conservative Minimal Indicated Resources - Vein 9.
These metrics do not account for below ground level quartz ore. It is expected that these estimated basic bulk tonnage will dramatically increase when the delineation and depth of the quartz bodies will have been investigated.
A drilling campaign will determine the depth of the quartz ore bodies, hence multiply the raw bulk tonnage, and defined with greater accuracy the quality of the quartz, and, increase as well, the market value of the Property.
Valuation of PAL's mining titles
On PAL’s mining titles the indicated resources for Veins 2, 9 and 10 are + 6M mt. On the Johan Beetz seven (7) other veins, the indicated resources are + 11M mt.
In order to compare the value of the mining titles based on the observed indicated resources, prior to a drilling program which will only highly increase the bulk tonnage two (2) similar deposits will be briefly discussed.
PAL’s property value should be at least similar to the Lighthouse project, circa $300M USD based on observations in this report.
Kvinnherad quartz deposit, Nesodden area Norway
Kvinnherad is a high purity quartz deposited with estimated resources of 2.7 M mt exposed on a step forested mountainside (based on field mapping 12 m x 600 m x 150 m). The geological setting and size of vein is similar to Johan Beetz. Frequently observed impurities are K and Fe oxides. Analytical data from the lab Dorfner Anzaplan indicates level of boron and phosphorous similar to le levels in Vein 2 of the studied Property PAL. Open pit mining is planned. The application for Kvinnherad beneficiated quartz would be semi-conductor, and fuse quartz for light bulbs. A total of 50K tons would be mined to supply the plant with 20 000 tons/year to produce 5 000 tons per year of ultra pure silica. The site has a 30 years potential and paid back after 4.3 years.
Lighthouse quartz deposit, Australia
A deposit of quartz and silica sand of 1.8M mt was sold at $307M to Solar Silicon Resources Group, in Queensland, Australia in 2010. The silica content at the Lighthouse deposit ranges from 98.3% up to 99.5%. The Lighthouse quartz deposit will be operated as an open pit. They propose to produce solar grade silica. Sea access is at 250 km from the deposit.
Including all veins...
Gross value of the Johan Beetz quartz ore
Source: ''Valuation and mineral Potential of Johan-Beetz Quartz Deposit, Qc., Canada, Final Report, Feb 21st 2014 - M.Bathalon, P.Geo (865)''
PAL’s mining titles also include Vein 10, which has not been investigated yet. The valuation exercise is made strictly on Veins 2 & 9. The gross value is calculated on indicated resources only, and not on presumed below surface potential.
The gross value of Vein 2 and 9 depends on the production PAL aims for and its 2 grades of quartz. This valuation exercise does not consider a combination of primary markets but the value of the ore body according to one market at a time. PAL has letters of intention from, smelters to utilize their silica in foundries (metallurgical grade MG), from architectural quartz manufacturers (blocs for counter top) and simili-quartz counter top fabricator (as Dupont, Cambria) . Hence, the prices of those three (3) industries are based on 2011/2014 LOI. The price of high purity quartz for photovoltaic purposes is documented on the international market and trades in the last six (6) months (from may 2014).
For the purposes of these calculations for metallurgical use, grade 2 (Architectural Gr) associated with silicon content greater than 98.5%. The Grade 1 (EG) contained in Vein 2 is evaluated to 55% and in Vein 9, 75%. For the architectural calculations, the color and structure of the ore body are the decisive factors, hence it is estimated that a very high proportion of the pristine quartz will be of grade 2.
For the high tech uses, the analytical results and promising beneficiation essays at Université Laval removing up to 75% (and minimaly) impurities, and the trading price average in the last six (6) months (Metal Pages-may 2014) are considered for the calculation.
Vein 2 Valuation according to markets at prices offered to PAL in letters of intent = 1 914 529 300$
Vein 9 Valuation according to markets at prices offered to PAL in letters of intent = 709 078 300$
Total raw ore valuation (veins 2 and 9): 2 623 607 600 $