POTENTIAL OF THE PAKEAGAMA LAKE RARE METALS PROPERTY
Overview
In January of 1999, the Ontario Geological Survey ("OGS") published an article on a new discovery with potential for economic tantalum, cesium, rubidium and lithium mineralization at Pakeagama Lake, located about 170 km. north of Red Lake in northwestern Ontario. In late March of 1999, Houston Lake Mining Inc. ("Houston Lake") entered into an option agreement to earn a 100% interest in the property.
The area in the vicinity of Pakeagama Lake was mapped by Dr. Denver Stone of the OGS in the early 1990's. He identified a series of fertile granites and took a number of samples from the Pakeagama Lake pegmatite which contained highly anomalous lithium, tantalum and cesium values.
Based on this initial field work, Dr Fred Breaks of the OGS conducted three weeks of detailed mapping and sampling in 1998. Dr. Breaks identified a strongly zoned, complex petalite subtype pegmatite. The combination of size, accessibility and the presence of both geochemical indicators and rare metal ore minerals, provide the Property with high potential for economic rare metal mineralization.
Size
The southeasterly trending pegmatite has an exposed strike length of 250 metres at surface and is open in both directions. The width varies from 10 to 70 metres and appears to be widening at both extremities where a thin overburden masks the pegmatite. The Pakeagama Lake pegmatite is the second largest complex petalite subtype pegmatite found in Ontario. Large size is an important determinant in the exploitation of rare metal deposits.
A narrow tantalum-bearing aplite occurs 400 metres to the southeast and suggests the continuation of the rare metal pegmatite system for at least 400 m. beyond the exposed 250 m. strike. A pronounced lithium-cesium anomaly extends for over a hundred metres from the Pakeagama Lake pegmatite contact indicating the possible presence of a second rare metal pegmatite body.
Rare Metals and Their Applications
Rare metals have many unique properties that are sought after for high technology applications. A new source of supply can be expected to accelerate development of many more new and exciting products.
Tantalum (Ta): Seven economically important, tantalum-rich minerals have been confirmed in electron microprobe analyses from Pakeagama Lake samples. These include mangano-tantalite, ferrotantalite, manganocolumbite, microlite, ferrotapiolite, stibiotantalite, and wodginite. A well defined evolutionary trend of compositional change from manganocolumbite to manganotantalite is indicative of high potential for tantalum-rich zones in the pegmatite (i.e. world-class Tanco mine).
Tantalum is used in electrical capacitors in computers, avionics, automotive and communications technology. Tantalum carbide tools yield superior performance over that of tungsten carbide. Corrosion and heat resistant super alloy applications are found in the aerospace and chemical industries. Tantalum is the metal least rejected by the human body and is therefore used in medical applications such as surgical implants and prosthetic devices.
World supply is dependent on three large primary producers located in Australia, Africa and Canada. The Tanco mine (Manitoba) is currently processing tailings only. Secondary tantalum contribution from tin production is declining. Demand for tantalum has experienced a 10% growth rate per year since 1992 fueled mainly by the computer and mobile communications industries. Recent price quotations are $(US) 40.00-43.00/lb for 40% tantalum oxide concentrate.
Cesium (Cs): The cesium mineral pollucite has been identified within the Pakeagama Lake pegmatite and is only the fourth pollucite occurrence noted in Ontario. Cesium values range from 400 to 1349 g/t Cs. These highly anomalous values compare favourably to those defining the prolific Bernic Lake field (the Tanco mine). In addition, a prominent lithium-cesium anomaly has been identified with a very strong cesium value of over 400 g/t Cs. These factors attest to the high potential for economic cesium mineralization at Pakeagama Lake.
Cesium is used in magneto-hydrodynamic power generation, ion propulsion motors in aerospace applications, opto-electronics such as night-vision glasses, in DNA separation and as a catalyst in chemical applications. A new product, cesium formate, is used as a calibrated drilling lubricant for high temperature, high pressure oil wells.
Cesium is produced primarily from the Tanco mine which holds 82% of the world's reserves. Current world-wide demand is about 500,000 pounds per year and new applications in the chemical and oil industries are expected to increase demand tenfold in the near future. Prices have remained stable for the past several years at $1000/tonne for 24% cesium oxide concentrate.
Rubidium (Rb): Rubidium values range from 0.97 to 1.2% in potassium-feldspar. The Pakeagama Lake pegmatite's average value of 1.11% is the highest bulk content for rubidium yet found in northwestern Ontario.
Rubidium-rich feldspars are used in ceramics applications for spark plugs and electrical insulators because of their high dielectric capacity. Rubidium is also used in specialty glasses, photoelectric cells, and in vacuum tubes.
Rubidium is primarily produced as by-products or co-products with other pegmatite minerals. Demand is limited by the lack of availability of supply. Annual consumption consists of about 200 tonnes derived from lepidolite and 60,000 tonnes of Rb-feldspar concentrate. Recent price quotations are $(US) 800.00/tonne for lepidolite and $(US) 80.00-125.00/tonne for Rb-feldspar.
Lithium (Li): The Pakeagama Lake pegmatite displays an impressive 10 metre wide spodumene + quartz core. Lithium oxide ranges from 4.33 to 4.79 % in one metre channel samples across 5 metres. A large bulk sample of exfoliated slabs contains 4.33% lithium oxide. Montebrasite mineralization is widespread.
Lithium is used in the latest generation of batteries, in ceramics, glassware, glazes, enamels, alloys, nuclear energy, chemicals, phamaceuticals, vitamins and in the smelting of aluminum ores. Lithium is produced from pegmatites and brines, with the latter enjoying extraction cost advantages for many applications. The pegmatite derived lithium minerals include spodumene which is used in pyro-ceramics, tableware, specialty glass, neon tubing, and headlights and montebrasite which is used in ceramic tiles and specialty glass.
Overall, world demand for lithium is relatively stable and future growth in demand may arise from newer applications such as batteries, aircraft manufacturing and pharmaceuticals. Recent prices are quoted as $(US) 385.00/tonne for 7.5% spodumene concentrate.
Conclusion
Given the positive results to date, coupled with the strong and growing demand for rare metals, the Pakeagama Lake Property is now Houston's primary focus. The Company intends to advance its development as soon as possible.
(Source: Houston Lake Mining) |
