Forget Auric, this is the meat today for IPMs ore, Auric needs Gippys Enhanced Ore Pile, IMHO:
3) Complexed Mineralization - gold which occurs together with other
mineral compounds. This type of gold can be associated (i.e. complexed)
with clays, black/heavy mineral sands, iron oxides, and with complex
matrix chemistry, such as salts (calcium and sodium chlorides),
??? <<An aside- I want a Name for our May 15th Newsletter and I suggested to Chuck Bankes that it be a THREAD that ties it all together- I said SALT!!! Any opinions???>>>>Chuca SALTECH?
organics (i.e. humates) and sodium and calcium carbonates. Like
refractory gold, complexed gold does not respond to typical extraction
processes. Gold located on the Black Rock Property falls within this
category.
SUMMARY OF GOLD DEPOSITS AND RECOVERY METHODS
PREPARED FOR INTERNATIONAL PRECIOUS METALS
<TABLE>
<CAPTION>
GRADE YEARS TO
TYPE DEPOSITS FIRE ASSAY RECOVERY RANGE (OPT) NEW TECH DEVELOP MINING COMPANIES
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1) FREE MILLING
ORES
Free Gold Course Placer Yes Simple Gravity 0.01-0.03 No In Antiquity Placer Dome
Lode Yes Simple Gravity 0.03-0.75 No In Antiquity AMAK
Free Gold, Fine Oxide Ores Yes Cyanidation & 0.03+ 90 yrs old AMAK, Echo Bay
Flotation/ New Crest
Cyanidation (Australia)
Free Gold, Lower Oxide Ores Yes Heap & Vat Cyanide 0.02+ 20 yrs old 5-10 Years Echo Bay
Grade Reacting Nevada Producers
----------------------------------------------------------------------------------------------------------------------------------
2) REFRACTORY ORES
Carbonaceous Oxide Ores Yes Pretreatment with 0.07+ 50 yrs old 20 Years Newmont Barrick
With Carbon Oxidants &
Cyanidation
Gold In Sulphides Sulphide Ores Yes Roasting 0.07+ 80 yrs old 20 Years Homestate, Barrick
Tellurides (Cu,Pb,In,As) Pressure Oxida- 0.07+ 20 yrs old 10 Years NCO
tion, Cyanidation
a Bio-Leach 0.07+ 10 yrs old 10 Years S. Africa (Mintek)
Gold in Sulphides Sulfides of Fe Yes Bio-Oxidation 0.02+ 2 yrs old 10 Years Tonkin Springs
(Lower Grade) As. etc. Leach Newmont Gold Quarry
Encapsulated Gold Quartz Veins Some Not Recoverable 0.03+ In R&D 5-10 Years Newmont-still in
in Quartz & Sands Difficulty by Present Methods R&D
----------------------------------------------------------------------------------------------------------------------------------
3) COMPLEXED
MINERALIZATION
Gold in Ganque Yes, by To be Determined 0.02+ In R&D 2-5 Years IPM & Others
In Process of Minerals, Si, Modified and (Some Success)
Documentation Clays, Alkali Chemical
In Process of Gold in Micro Yes, by To be Determined 0.02+ In R&D 2-10 Years IPM & Others
Documentation Clusters & Modified and (Some Success)
Organics Chemical
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
B.1.3 Material Events Associated with Black Rock Development
B.1.3.1 1995 Drilling Program and 1996 Wet Chemical Assay
In October 1995, the Company began implementing a systematic strategy
for advancing the basin portion of the Black Rock Property. The Company's plan
was to begin a drill program and to continue developing and improving the
efficiency and effectiveness of its testing process. The program design over the
first one square kilometer Black Rock Property grid consisted of one hundred
twenty-one drill holes to a depth of thirty meters (100 feet). Samples were
collected every 1.32m (
<<<<...
INTERNAL FIRE ASSAY TESTING -MODIFIED FIRE ASSAY, NOVEMBER, 1997
As previously discussed, standard fire assay procedures do not
provide repeatable measurements of content in the Black Rock material. To
that end, the Company has developed a modified fire assay procedure on raw
Black Rock Property (head grade) samples. The modified fire assay developed
by IPM and confirmed by an Arizona registered State laboratory yielded
positive results for gold. Non-destructive elemental determination (Scanning
Electron Microscope/Emission Dispersion Spectroscopy) has been used to verify
the elemental composition of the metal prills recovered by the modified fire
assay. During the last quarter of 1997, IPM conducted well over 700 tests
utilizing various methods.
The result was a method that is of longer duration to complete but
is successful in the determination of metal, with silver being a recent metal
to be identified. Some of the prills were
12
<PAGE>
weighed, while others were dissolved and determined by Atomic Absorption
(AA). The most recent testing has shown values from both secured chain of
custody samples collected by both of IPM's consultants Behre-Dolbear and
Company and Bateman, as set forth in the following chart:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
LOCATION/ HEAD GRADE HEAD GRADE TYPE INTERVAL IN FEET TYPE OF SAMPLE
HOLE # GOLD OZ/T SILVER OZ/T OF
COLLECTION
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
168 0.017 2.770 AUGER 30 - 35 -
-----------------------------------------------------------------------------------------------------------------
181A 0.023 1.800 AUGER 3 - 25 CHAIN OF CUSTODY
-----------------------------------------------------------------------------------------------------------------
143A 0.033 1.490 AUGER 3 - 25 CHAIN OF CUSTODY
-----------------------------------------------------------------------------------------------------------------
181T 0.042 0.020 TRENCH 5 - 25 CHAIN OF CUSTODY
-----------------------------------------------------------------------------------------------------------------
181T 0.080 NOT DETERMINED TRENCH 5 - 25 CHAIN OF CUSTODY
-----------------------------------------------------------------------------------------------------------------
130A 0.052 1.500 AUGER 40 - 45 -
-----------------------------------------------------------------------------------------------------------------
127 0.035 1.300 AUGER 15 -20 -
-----------------------------------------------------------------------------------------------------------------
181B 0.023 NOT DETERMINED AUGER 25 -50 CHAIN OF CUSTODY
-----------------------------------------------------------------------------------------------------------------
181B 0.020 NOT DETERMINED AUGER 25 - 50 CHAIN OF CUSTODY
-----------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE: ALL OF THE VALUES FALL WITHIN THE PREVIOUSLY ANNOUNCED RANGES OF GRADE
FOR THE BLACK ROCK AREA, HOWEVER, THE ABOVE SAMPLES REPRESENT ONLY TWO
LIMITED AREAS.
The Company engaged Bateman who has accepted this technical procedure
as a method to proceed to the second stage of the mine development process,
being the calculation of a resource statement on the first one square km
drilled grid. Reference is made to the headings "Summary Status Statement for
the Black Rock Property" and "Stages of the Mine Development Process" for a
further description of the work to be completed in the second and later
stages of the mine development process.
13
<PAGE>
B.1.4 SUMMARY STATUS STATEMENT FOR THE BLACK ROCK PROPERTY
Over the past 4 years, IPM has been engaged in the exploration for
precious metals on the Property. When IPM began exploring for mineralization
on the Property, IPM was not aware of the fact that the Property represented
a new type of precious metals deposit, currently identified as "Complexed
Mineralization", being mineralization associated with clays, black/heavy
mineral sands, iron oxides, and with complex matrix chemistry, such as salts
(calcium and sodium chlorides), organics (i.e. humates) and sodium and
calcium carbonates.
IPM's initial exploration program involved the testing and assaying
of samples taken from the Property for mineral content. The testing included
outcrop, bedrock, soil sampling, etc., with analyses consisting of
geochemical testing and/or assaying; geologic assessments to determine the
potential geologic environment; geophysical studies to expand the knowledge
of the Property and to identify the potential for new or hidden geologic
targets; and the quantification and placement of the Property into a geologic
model.
IPM's initial exploration program utilized a multitude of standard
mining methodologies for initial determinations of mineral content, and these
results convinced IPM of the presence of anamolous precious metal values.
Although these different methodologies indicated the presence of precious
metals, IPM was unable to obtain precious metal values using the industry
recognized standard fire assay. As such, the scientific challenge for IPM
became how to quantify mineral content from samples taken from the Property
using an industry recognized assay method.
As stated in IPM's press release of November 14, 1997, IPM is now
able to measure the amount of mineralization in a given sample taken from the
Property using an industry recognized assay method. This step is significant
since the ability to measure the amount of mineralization in a given sample,
through what has been termed as a Modified Fire Assay Procedure, will now
allow IPM to progress the Property to the next stage of development, being
the preparation of a Resource Statement. In conjunction with the preparation
of a Resource Statement for the drilled one square kilometre grid, IPM will
continue exploration work on the
14
<PAGE>
Property outside of this area.
A Resource Statement requires an area be drilled to depth and width
according to a certain spacing formula (i.e. holes so far apart, samples
taken every "x" number of feet) in an effort to determine the aggregate
amount of mineralization that is likely contained on the drilled one square
kilometre grid and define those areas where the mineralization is
concentrated or depleted. Mining geologists and engineers examine the geology
and assay data from the drilling program and integrate that information in a
statistical model to estimate average grade and tonnage which "defines" that
specific portion of the property tested. Generally speaking, the Resource
Statement stage can take up to 2 years and practically, some of the
feasibility studies can be done concurrently. IPM has now commenced this
stage for the drilled one square kilometre grid.
Upon completion of the Resource Statement, and conditional upon
there being sufficient mineralization contained therein, IPM would progress
to the next stage of development, being the preparation of a Feasibility
Study. A Feasibility Study evaluates, for a specific property, all of the
tasks and costs associated with the extraction and sale of the mineralization
to determine if there is an economic basis for actually building a mine on
the property. The study is applied to the resource that has been defined in
the second stage of this process and can take up to 2 years. The distribution
and variations of grades seen from the Resource Statement become the
benchmark for the grade control and ultimate planning in a mining operation
to ensure the greatest percentage of precious metals will be recovered in the
mill, at least to the quantity determined by the head grade analysis.
The final stage of a mining project if the economics are favorable,
staking the property to operating status. Generally speaking the permitting,
construction and development stage can take approximately 1 to 3 years after
the completion of the feasibility analysis.
Chucaquoteitisallinthe TanksandThe Sludge-Here Comes The Sludge! U be the judge. |
