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BIRCH MOUNTAIN REPORTS TECHNICAL OVERVIEW AND
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ANALYTICAL RESULTS FOR ATHABASCA PGM-GOLD PROJECT
CALGARY, Alberta, July 16, 1999 - Birch Mountain Resources Ltd. (BMD:ASE) wishes to provide a technical overview of the results of assay and analytical method development work carried out by Birch Mountain and others on its Prairie Gold properties. Analytical data have been generated by or on behalf of Birch Mountain, and independently by other companies, government agencies and universities.
Summary Birch Mountain concludes that the results of analyses of drill core and surface samples highlighted below, conclusively prove the existence of anomalous quantities of gold, silver, platinum, palladium and other precious and base metals in rocks from our Athabasca property. Testing of quantitative assay methods developed by Birch Mountain and other parties, however, has not yet achieved our objective of developing a method for repeatable, statistically sound estimates of precious metal concentrations. Recent advances in our understanding of the underlying chemical systems related to mineral genesis, have enabled Birch Mountain to achieve intermittent detection of important levels of gold, platinum and palladium. We feel that the variability in results is related to control of certain process parameters that are now systematically being tested. We know that gold, platinum, palladium and other precious and base metals are present in our Athabasca rocks, but at this point we can not quantify their concentrations within acceptable statistical variance.
Electron Imaging
As stated in the news release of June 24, 1999, Birch Mountain considers that scanning electron microscope (SEM) and electron microprobe (EMP) data conclusively prove the existence of anomalous quantities of gold, silver, platinum, palladium and other precious and base metals in sedimentary rocks from Athabasca. Birch Mountain, the Geological Survey of Canada, Lac Minerals and others have conducted extensive SEM/EMP imaging and elemental analyses of surface samples and drill core from Athabasca using secondary and backscattered electron (BSE) imaging, and energy and wavelength dispersive x-ray spectrometry. Over 200 distinct chemical species comprising native and multi-element precious metal particles, and more widely distributed base metal particles, notably Cu, Zn and Pb, have been documented. As an example, one broken surface on one drill core specimen examined by SEM/EMP contained 90 micron-sized gold-bearing particles. The existence of placer accumulations of distinctive flour gold in rivers and streams in Athabasca further supports a local source of gold and other precious metals. Sources of information for SEM/EMP results are listed in Table 1.
Table 1. Precious metals detected by SEM and EMP analysis, Athabasca and Dawson Bay.
The SEM/EMP data show that the gold particle size population, determined from measurements of 170 particles, exhibits a truncated distribution with nearly 50 % of measured gold particles falling in the smallest size range of <2 microns. SEM/EMP imaging also shows that micron sized gold particles commonly are surrounded by a large number of sub-micron sized gold particles. From these data we conclude that the majority of precious metal particles lie in the sub-micron size range.
Previous Analytical Results
Since 1994, Birch Mountain and others have tested established methods for the assay and analysis of precious metals in sedimentary rocks from Athabasca. In contrast to SEM/EMP imaging and microanalysis, which prove the existence of precious metals in these rocks in amounts well above lower limits of detection, conventional analytical results have been inconclusive, either because they fail to detect precious metals or because positive results can not be repeated routinely. A small proportion of such analyses have reported precious metals. These include:
4.1 g/t gold measured by Aztec K x-ray analysis at Anglo American Research Laboratories, Johannesburg, South Africa, for a composite sample prepared from 7 drill core grab samples collected between 159.1 and 185.3 metres depth in Lac drill hole ATH94-01;
An average grade of 0.36 g/t gold over a 5.0 m interval from 148.5 to 153.5 metres depth in Lac drill hole ATH94-04 measured by fire assay-ICP at Anglo American Research Laboratories;
1.69 g/t gold measured by fire assay of activated carbon used to extract gold from a cyanide bottle roll leach of a 150 g sample of surface rock at Saskatchewan Research Council, Saskatoon, Saskatchewan.
Neither the Aztec nor the cyanide leach results could be reproduced by alternate methods. It is unlikely that the lack of repeatability can be explained by inadequate sampling or by the "nugget effect" because of the inferred predominance of sub-micron precious metal particles.
1998 Bulk Sample In 1998 Birch Mountain prepared four bulk samples of visibly altered sedimentary rocks to provide the samples to approach this problem systematically. Details of each of the four bulk samples are given in Table 2. The bulk samples were submitted to Loring Laboratories Ltd., Calgary, Alberta, for (a) crushing to —0.25 inch using a jaw crusher, and (b) pulverizing to -100 mesh using a disc pulverizer.
Table 2.Bulk samples, Athabasca, 1998.
Sample
Location
Type
Size
Length
Formation
Member
Description
BJ98-008
Trench
Channel
50 Kg
1.5 m
Waterways
Moberly
Altered limestone
BJ98-009
Trench
Channel
50 Kg
1.5 m
Waterways
Moberly
Altered limestone
HAR98-001
Trench
Bulk
50 Kg
-
Waterways
Moberly
Sideritized limestone
HAR98-002
Trench
Bulk
50 Kg
-
Waterways
Moberly
Decarbonated limestone
The four bulk samples were submitted to ITS Bondar Clegg, North Vancouver, B.C., for standard fire assay and multi-element ICP analysis. Results for precious metals are shown in Table 3; neutron activation results for sample BJ98-008 are given in Table 4. The data clearly show that standard fire assay and instrumental neutron activation analyses of the 1998 bulk samples detect negligible concentrations of precious metals in these samples.
Table 3. Lead collector fire assay results for 1998 bulk samples; ITS Bondar Clegg.
Table 3. Lead collector fire assay results for 1998 bulk samples; ITS Bondar Clegg.
Sample
Au (g/t)1
Pt (g/t)1
Pd (g/t)1
Ag (g/t)2
BJ98-008
0.003
<0.005
0.003
1.4
BJ98-009
0.002
<0.005
0.002
2.1
HAR98-001
0.002
<0.005
0.002
0.5
HAR98-002
0.002
<0.005
0.002
<0.5
1Fire assay/ICP; ITS Bondar Clegg, method code FA-56.
2 HF-HNO3-HClO4-HCl digest/ICP; ITS Bondar Clegg.
Table 4. Instrumental neutron activation analysis, ITS Bondar Clegg
Sample
Au (g/t)
Ir (g/t)
Ag (g/t)
BJ98-008
<0.002
<0.050
<2
The four 1998 bulk samples were also provided to International Metallurgical and Environmental of Kelowna, B.C., through EnviroGold Technologies Inc., of Calgary, Alberta. Aqua regia digestion followed by AA determination of precious metals yielded nil results with the exception of sample BJ98-008 which reported 0.08 g/t gold and 11 g/t platinum.
Analytical Method Development
In March, 1999, Birch Mountain initiated an in-house program to develop analytical methods to resolve inconsistencies between SEM/EMP imaging and precious metals analysis, and to address the problem of repeatability. By adjusting experimental conditions, by carefully recording experimental conditions, and by systematically varying key parameters, Birch Mountain is deliberately striving to identify and control the variables causing the erratic results. We are using Birch Mountain's laboratory, and facilities and analytical instrumentation available in the Department of Geology at the University of Calgary. Significant results from Birch Mountain's recent in-house work are given in Table 5. Atomic absorption measurements carried out by Birch Mountain at the University of Calgary utilized three point standard additions calibration and deuterium arc background correction.
Table 5. Summary of Birch Mountain in-house analytical method development results, 1998 bulk sample BJ98-008.
Digest
Extraction
Collector
Analysis Type
Au (g/t)
Pt (g/t)
Pd (g/t)
Reductive
Static
None
FA/ICP3
0.593
0.132
0.015
Caustic
Bottle roll
Adsorption
FA/ICP
0.008
0.002
1.01
Acidic
Bottle roll
Adsorption
FA/ICP
0.008
0.004
1.90
Caustic
Bottle roll
Adsorption
FA/ICP
0.009
nd
0.558
Acidic
Static
Chiddey
FA/ICP
0.0008
nd
0.427
Acidic
Static
None
AA4
4 to 6
na
na
3Fire assay - ICP; Loring Laboratories Ltd., Calgary, AB.
4Atomic absorption, University of Calgary, Calgary, AB.
na — not analyzed; nd — not detected
Although Birch Mountain's testing has shown important values of gold and palladium, we have not yet been able to reproduce "hits" despite careful attention to replicating the conditions and procedures of runs which yielded positive results. We can not yet explain this lack of repeatability. It is unlikely, however, that contamination is responsible because we obtain similar results using different methods and laboratories. Results for sample BJ98-008 are summarized in Table 6.
Table 6. Summary of assay and leach results, 1998 bulk sample BJ98-008.
Method
Laboratory
Au (g/t)
Ag (g/t)
Pt (g/t)
Pd (g/t)
FA/ICP
Bondar Clegg
0.003
1.4
<0.005
0.003
INAA
Bondar Clegg
<0.002
<2
na
na
Aqua regia digest/AA
I M and E
0.08
na
11
nd
Aqua regia digest/AA
Birch / U of Calg.
4 to 6
na
na
na
Reductive pre-treatment, FA/ICP
Birch Mountain/ Loring
0.593
na
0.132
0.015
Bottle roll, column adsorption, FA/ICP
Birch Mountain/ Loring
0.008 to 0.009
na
0.002 to 0.004
0.558 to 1.90
Aqua regia digest, Chiddey precip, FA/ICP
Birch Mountain/ Loring
0.0008
na
nd
0.427
ASE:BMD
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