Our Baie-Johan-Beetz hydrothermal deposit
Generally, the ground slowly rises north from sea level, up to 180 m above sea level. The quartz veins of Johan Beetz can be observed rising from the St-Lawrence and are heading North-East all the way to road 138, for approximately 4 km. From the provincial road, a 800 meters path, which can easily be adapted to a paved road, leads to the property.
The area is sparsely vegetated with moss and lichens on some outcropping rocks, and small patches of spruces. Vegetation is more abundant and of a wider variety going North. The mining titles owned by PAL correspond to the past mining lease BM 794 and have a surface of 54.22 hectares (542 200 m2).
In 2019, the Fraser Institute ranked Quebec Mining market as the 4th most attractive area in the world for mining investment.
Our Baie-Johan-Beetz hydrothermal deposit in video
6 key advantages of Baie-Johan-Beetz deposit.
01. Location opportunity
- 15km east of the village Baie-Johan-Beetz
- Deposit is less than 800 meters from main provincial road (route 138)
- 69 km from town of Havre-St-Pierre and its airport
- The property is on immediate shore of the St-Laurence Gulf River
02. Easy export
- 290km from Sept-Iles industrial harbor
- 15 km from Baie-Johan-Beetz’s deep water dock
03. Easy operation
- Hydrothermal quartz is on surface
- Mining lease type is Surface Operation
- Scarce surface vegetation
04. Excellent business opportunity
- Advantageous governemental policies due to surface deposit type operation
- Possible support from local and state governments
- Qualified workers available
- Numerous job seekers in the region
- Surrounded communities in need of jobs
06. Sustainable footprint
- The open pit extraction method lowers the overall footprint
- The available hydroelectricity power allows the use of greener technologies, such as SOLSILC technology
- The advantageous location of the deposit reduces transport
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.
Here is an evaluation of the outcropping quartz veins considering the latest hand measured length, width, and above surface of all 10 showings.
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).
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. According to the latest geological valuation, with a conservative mining method (assuming a 50% loss), 1,742,600 mt could be extracted, from which 55% would be of grade 1.
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.
According to the latest geological valuation, with a conservative mining method (assuming a 20% loss), 507,200 mt could be extracted, from which 55% would be of grade 1.
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, here's a brief comparaison to a similar deposit : Lighthouse Quartz mine in Far North Queensland, Australia. A more in-deep analysis is available upon request.
Lighthouse quartz deposit, Australia
The Australian deposit of approximately 6Mmt is comparable to PAL with its proven 5,836,600 mt (to which one should consider adding the adjacent deposit of 141,26ha and the volume located under the sea level). For grade1, the Australian deposit was showing 1,830Mmt against 1,237Mmt for PAL accordingly to 2014 Bathalon’s report. We foresee that further fieldwork will largely increase this last number. The total volume of both deposits is comparable across all categories. The Lighthouse deposit was acquired for the sum of $ 307M by Solar Silicon Resources Group in 2010. However, the PAL deposit has significant advantages in that:
• The deposit contains ore reserves as large as those of Lighthouse, more than 4.6Mtm of reserves possibly for dimension stone, and more than 1.237M tm of grade 1;
• PAL has more advantageous logistic conditions - the deposit is located 13 km from a deep water wharf while the Lighthouse field is more than 302 km from the nearest wharf (Cairns);
• PAL deposit is 800 m from the provincial highway;
• Due to the proximity of the infrastructure, the costs associated with transport and handling are reduced, which translates into optimal logistics;
• Low cost electrical energy
Moreover, in the above comparison we only selected above sea level reserves of veins 2 and 9 for PAL. One can consider the actual content of vein 10 and to be complete, add deposit valuation located below sea level, both of which we do not have for now, but we know they will only add to total reserves. PAL’s property value is comparable to the Lighthouse project. According to our studies, we are evaluating the internal rate of return of this property at 35.5% at a price of $290M USD over a 25 years period.