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Location and Access
The Sierra Kaolin™ (SK™) project (also known as the Kline Mountain kaolin deposit) straddles the Continental Divide in the northern part of the Black Range, Gila National Forest, in northwestern Sierra County, New Mexico. Access to the project is by paved road, NM State Highway 59, which runs through the northern part of the project area. The SK™ project is approximately 60 road miles west of Truth or Consequences, NM, and 25 miles from the nearest village, Winston, NM. Elevations at the project area range from 7,750 ft to 7,927 ft above sea level.
Ownership Status
The property consists of 25 Federal mining claims encompassing 2,720 acres. The Federal leases call for a royalty payment of 7% of net proceeds derived from mining operations. There is also an overriding royalty interest of 7% out of mining operations payable to the former owner of these leases. In addition, in 1995 the Company acquired lode mining claims on certain of its existing holdings that encompass 160 acres.
In early 2005, Clean Age Minerals entered into an Operating License Agreement with Tecumseh Professional Associates, Inc. (TPA) of Albuquerque, NM. Whereby TPA acts as the operator/mine site manager and has the right to 65% of the net profits of the project by conducting certain material tests, producing a feasibility study and building a processing plant to commercialize the kaolin.
Previous Work
The kaolin potential of the SK™ project has been investigated by a number of mining companies, dating as far back as the early 1960's. Past programs have been carried out by Rosario (Rio Tinto Zinc), Ethyl Corporation, Dresser Minerals, and Industriales Peñoles, among others. All reported the deposit to be extensive and to have considerable value for pigment production.
In 1995 various tests were conducted on samples from test pits to look at the commercial viability of the SK™ kaolin pigments. CLC paper coating tests of the SK™ pigments were conducted by Western Michigan University, Coating Pilot Plant. The SK™ pigments with their high brightness and fine particle size were tested using premium coating applications. Coating results were impressive and compared favorably with the No. 1 grade premium Georgia kaolins. In May 2005, a successful pilot scale kaolin processing program was conducted at Hazen Research Facility in Golden, Colorado to produce SK™ hydrous pigments for CLC paper coating testing and architectural coating testing.
In July 2005, an evaluation and comparison of SK™ pigments in architectural coatings was conducted by Innovation Technical Systems Corporation of Northville, Michigan. The SK™ pigments performed admirably when tested against the Georgia kaolin equivalent pigments.
Geologic Environment
The Sierra Kaolin project lies near the eastern margin of the Datil-Mogollon volcanic field, a region dominated by Tertiary caldera-related volcanic rocks.
The SK™ kaolin is considered to be a primary hydrothermal deposit that was formed in situ. The kaolin is part of an advanced argillic alteration assemblage that includes kaolinite (Al4(Si4O10)(OH)8) and related mineral species possibly including dickite and halloysite; alunite (KAl3(OH)6(SO4)2); and chalcedonic and/or opaline quartz (hydrous amorphous silica).
2005 Core-Drilling Program and Investigation
The TPA 2005 Core-Drilling Program and Investigation focused on about 1% of the total acreage holdings.
During August and September of 2005, a 16 core hole drilling program was conducted by TPA on about 27.8 acres of the 2,720 acres of holdings (1%). Drill holes were located on an approximate grid of 250 ft x 250 ft, mostly in the areas of known high-grade kaolin, with a number of holes located to test the margins of the 27.8 acre target area.
The core was logged by Senior Geologist who tracked recovery, rock quality designation (RQD), geologic structure, relative hardness, relative density, phenocrysts, lithic fragments, relative kaolin content, and a qualitative kaolin category designation.
The core samples were then analyzed on 2-foot intervals for the physical properties of brightness, yellowness, relative hardness (Mho's hardness equivalent), and the bulk density measured on 18 core samples.
Samples were then sent for whole rock chemical analysis and x-ray diffraction (XRD) analysis for the resulting XRD patterns. In addition, several samples were sent out for Electron Microscope evaluations (SEMs).
A geological and mining consultant firm was contracted to build a geological model and resource model of the investigated area based on the collected data. This report is due to be concluded in the very near future.
Currently all of the analytical data is being interpreted and will be used to develop a process flowsheet and for the prediction of the specification for the commercial products that will be produced.
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Minerals
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