CALICO PEAK MOLYBDENUM PROPERTY NAPIER VENTURES INC.

Transcription

1
TECHNICAL REPORT
CALICO PEAK MOLYBDENUM PROPERTY
Rico Area, Dolores County Colorado
Latitude N 37.710272 and Longitude W -108.090352.
UTM 12S 756488E/4177643 E
Prepared for:
NAPIER VENTURES INC.
Suite 2001, 837 West Hastings Street,
Vancouver, British Columbia, Canada V6C 3N7
Phone: (604) 294-1082
Fax: (604) 473-9138
Email: [email protected]
Prepared by:
BARRY PRICE, M.SC. P.GEO.
BJ PRICE GEOLOGICAL CONSULTANTS INC.
Suite 1028 470 Granville Street, Vancouver, BC, Canada
Phone: 604 682 1501 Fax: 604 642 4217
[email protected]
AND
JAMES G. BAUGHMAN, B.SC. P.GEO (WYOMING)
DENVER, COLORADO
March 24, 2011
2
PHOTOGRAPH OF CALICO PEAK FROM THE SOUTH
Showing pronounced alteration.
CALICO PEAK PROPERTY, COLORADO
Page |i
Technical Report
Rico Area, Colorado
SUMMARY
The authors have been retained to provide a technical report on the Calico Peak project situated near
Rico, in Dolores County Colorado, and is prepared for Napier International LLC. Napier International LLC
(Napier) completed its acquisition of the Calico Peak property during the fall of 2010. Napier
International LLC has retained B.J. Price Geological Consultants Inc. and James Baughman to prepare
this report in support of disclosures on the property by Napier. Field work was conducted on this
project in September and October 2010 under the supervision of co-author Baughman. Co-Author
Baughman visited the property numerous times, most lately on October 2, 2010. Co-author Price has
not visited the property but is familiar with porphyry molybdenum deposits.
The Calico property is located approximately 52 km (32 Miles) north-northwest of Durango, Colorado at
Calico Peak along the west portion of the Rico Mountain Range in the Rico Mining District. It is centered
on a large potassic (alunitic) alteration zone with polymetallic veins related to a Tertiary intrusive
porphyry suite. There are 65 Lode Mining Claims (approximately 1300 acres) within which are a number
of older patented claims held by others. Fourty four claims were acquired by staking and twenty-one
additional claims were later purchased.
The Calico Property was first explored by old time prospectors in the late 1800s. The Rico Mining
District was originally discovered in 1869 but the rich silver ores were not mined in large quantities until
1879. The district produced lead, zinc, gold, and a little copper in addition to silver. The ore occurs in
veins related to faults, as well as in replacement deposits in limestone. A large amount of mineralization
was also found where gypsum layers within the Hermosa Formation had been dissolved, leaving open
space for ore-bearing solutions. Early Tertiary intrusives (Laramide) are common in the district, and are
probably closely genetically related to the mineralization.
In more recent times during the 1970s and 1980s Anaconda Mining Company explored the Calico Peak
Property where it identified the potential porphyry molybdenum target. Anaconda Mining Company
completed surface work including geological mapping, surface sampling and drilling of three shallow drill
holes to depths of 500 feet to identify a molybdenum porphyry target. The results indicated porphyry
mineralization existed, but the project was abandoned in the early 1980s when the molybdenum market
was depressed.
B.J.PRICE GEOLOGICAL AND J.G. BAUGHMAN
JANUARY 2011
P a g e | ii
Napier has not completed any work on its own, aside from the brief program supervised by co-author
Baughman, which consisted of limited geologic mapping and sampling, soil sampling, geochemical
analysis of rock and soil sampling and an orientation Induced Polarization (IP) geophysical survey.
Similar porphyry molybdenum targets have been explored east of Rico, where a small but high grade
molybdenum resource was also drilled by Anaconda. . This is the type of target sought by Napier. Two
very large deep porphyry molybdenum deposits are being mined in Colorado, providing an exploration
model.
There is a historical resource of alunite (potassium aluminum sulphate) that has been estimated for the
Calico Peak area by Mario Serna Isaza, from over 200 rock samples taken during his Master’s Degree
thesis study completed in 1971. Neither the authors nor Napier have verified this estimate, which is not
in compliance with NI 43-101 or CIM resource categories, and it should not be relied upon.
Alunite is a result of oxidation of sulphides and is sometimes an indicator of gold deposits or of buried
porphyry copper/molybdenum systems. While the alunite is of interest, it is low grade, and the main
target is a buried, moderate to large size molybdenum porphyry deposit similar to that at Silver Creek.
A secondary target would be gold-silver mineralization in veins peripheral to the suspected porphyry.
Suggested work program for the next exploration season will consist of:

Data compilation

Prospecting, mapping and sampling

A deep IP survey

This would be followed by drilling at least 2 deep holes, 1000-2000 feet each to search for
molybdenum mineralization at depth.
A tentative budget for the program would be Can $1.5 million.
JANUARY 2011
P a g e | iii
Dated at Vancouver B.C. this March 24, 2011
respectfully submitted
B.J. PRICE GEOLOGICAL CONSULTANTS INC.
per: __________________________________________________
Barry J. Price, P.Geo. Qualified Person March 24, 2011
JAMES G. BAUGHMAN
Per: ______________________________________
James G. Baughman, Qualified Person March 24, 2011
JANUARY 2011
P a g e | iv
Technical Report
Rico Area, Colorado
TABLE OF CONTENTS
PHOTOGRAPH OF CALICO PEAK FROM THE SOUTH ............................................................................................... 2
Technical Report ...................................................................................................................................................... i
CALICO PEAK MOLYBDENUM PROPERTY ................................................................................................................ i
NAPIER VENTURES INC............................................................................................................................................. i
SUMMARY ................................................................................................................................................................ i
TABLE OF CONTENTS...............................................................................................................................................iv
INTRODUCTION AND TERMS OF REFERENCE ......................................................................................................... 1
RELIANCE ON OTHER EXPERTS................................................................................................................................ 2
PROPERTY DESCRIPTION AND LOCATION ............................................................................................................... 2
Property Description ............................................................................................................................................... 2
FIGURE 1. LOCATION MAP USA...................................................................................................................... 3
FIGURE 2. LOCATION MAP COLORADOFIGURE 3. LOCATION MAP RICO COLORADO ......................................... 3
Location ................................................................................................................................................................... 6
Mineral Claims ........................................................................................................................................................ 6
FIGURE 4. CLAIMS AND TOPOGRAPHY – RICO AREA ..................................................................................... 9
FIGURE 5. CLAIM SKETCH, CALICO PEAK AREA ............................................................................................ 10
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ..................................... 11
Access .................................................................................................................................................................... 11
Climate .................................................................................................................................................................. 11
Local Resources and Infrastructure ...................................................................................................................... 11
Physiography ......................................................................................................................................................... 11
HISTORY ................................................................................................................................................................ 12
JANUARY 2011
Page |v
GEOLOGICAL SETTING ........................................................................................................................................... 14
Regional Geology .................................................................................................................................................. 14
FIGURE 6. SKETCH OF RICO DOME, AFTER PRATT. ...................................................................................... 15
FIGURE 7. GEOLOGICAL MAP OF CALICO DOME AREA (USGS Special Map 1905) ...................................... 16
LEGEND FOR FIGURE 7.Local Geology .................................................................................................................. 17
Cutler Formation ................................................................................................................................................... 19
Dolores Formation ................................................................................................................................................ 19
Entrada Sandstone and Wanakah Formation ....................................................................................................... 19
Recent Sediments ................................................................................................................................................. 20
Igneous Rocks........................................................................................................................................................ 20
Intermediate Dikes................................................................................................................................................ 21
Calico Peak Porphyry ............................................................................................................................................ 21
Felsite Dikes .......................................................................................................................................................... 22
Structure ............................................................................................................................................................... 23
Alteration and Mineralization ............................................................................................................................... 23
Alunite Zone .......................................................................................................................................................... 23
Argillic zone. .......................................................................................................................................................... 24
Underground Features.......................................................................................................................................... 25
"Mammoth vein". ................................................................................................................................................. 25
FIGURE 8. SKETCH OF ALTERATION (ANACONDA ) ...................................................................................... 26
FIGURE 9. MAMMOTH VEIN ........................................................................................................................ 26
Geothermal Activity .............................................................................................................................................. 28
FIGURE 10. HEAT FLOW IN COLORADO ....................................................................................................... 29
FIGURE 11. HEAT FLOW AT RICO COLORADO .............................................................................................. 29
DEPOSIT TYPES ...................................................................................................................................................... 30
FIGURE 12. GEOLOGICAL CROSS-SECTION THROUGH CALICO PEAK ........................................................... 33
MINERALIZATION .................................................................................................................................................. 34
EXPLORATION ....................................................................................................................................................... 34
2010 Field Work: ................................................................................................................................................... 34
Geochemistry ........................................................................................................................................................ 34
FIGURE 13, CALICO PEAK SOIL GRID ON TOPOGRAPHY ............................................................................... 35
FIGURE 14. CALICO PEAK SOIL GRID (IDEALIZED) ........................................................................................ 35
FIGURE 15. MOLYBDENUM IN SOILS AT CALICO PEAK ................................................................................ 37
FIGURE 16. COLORED MO ANOMALY PLAN – 2010 SOILS ........................................................................... 38
Geophysical survey ............................................................................................................................................... 39
FIGURE 17. I P RECONNAISSANCE LINE 2010 .............................................................................................. 42
FIGURE 18. PRELIMINARY IP LINE 1 AT CALICO PEAK – CHARGEABILITY EQUIVALENT ............................... 43
JANUARY 2011
P a g e | vi
FIGURE 19, PRELIMINARY IP LINE 1 AT CALICO PEAK - RESISTIVITY ............................................................ 43
DRILLING ............................................................................................................................................................... 45
SAMPLING METHOD AND APPROACH .................................................................................................................. 45
SAMPLE PREPARATION, ANALYSES AND SECURITY .............................................................................................. 45
FIGURE 20. LOCATION OF 2010 GEOCHEMICAL SAMPLES .................................................................................. 46
FIGURE 21. SAMPLES AND WAYPOINTS BY J. BAUGHMAN ......................................................................... 47
TABLE OF ROCK SAMPLES FROM 2010 (J. Baughman) ............................................................................... 47
TABLE OF ROCK ASSAYS J.G.BAUGHMAN ..................................................................................................... 50
DATA VERIFICATION .............................................................................................................................................. 54
ADJACENT PROPERTIES ......................................................................................................................................... 54
Silver Creek Molybdenum deposit ........................................................................................................................ 54
FIGURE 22. SKETCH OF SILVER CREEK MOLYBDENITE DEPOSIT ................................................................... 56
FIGURE 23. DRILL SECTION, SILVER CREEK MOLYBDENUM DEPOSIT .............................................................. 57
Model: ................................................................................................................................................................... 57
MINERAL PROCESSING AND METALLURGICAL TESTING ...................................................................................... 58
MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES .................................................................................. 58
Alunite: AlK3(SO4)2(OH)6, Potassium Aluminum Sulfate Hydroxide. .................................................................. 59
OTHER RELEVANT DATA AND INFORMATION ...................................................................................................... 60
Environmental and social notes ............................................................................................................................ 60
Geothermal potential ........................................................................................................................................... 60
INTERPRETATION AND CONCLUSIONS ................................................................................................................. 61
RECOMMENDATIONS ........................................................................................................................................... 61
FIGURE 22. SCHEMATIC DRILL SECTION PROPOSED DRILLING .................................................................... 62
PROPOSED BUDGET .............................................................................................................................................. 63
SIGNATURE PAGE .................................................................................................................................................. 64
REFERENCES .......................................................................................................................................................... 65
CERTIFICATE OF AUTHOR BARRY JAMES PRICE, M.SC., P.GEO ............................................................................. 68
CERTIFICATE OF AUTHOR JAMES G. BAUGHMAN ................................................................................................ 70
APPENDIX I ............................................................................................................................................................ 72
SUMMARY OF RELEVANT GEOLOGIC, GEOENVIRONMENTAL, AND GEOPHYSICAL INFORMATION .................... 72
Deposit geology .................................................................................................................................................... 72
Examples ............................................................................................................................................................... 72
Spatially and (or) genetically related deposit types ............................................................................................. 72
Potential environmental considerations .............................................................................................................. 73
Exploration geophysics ......................................................................................................................................... 73
JANUARY 2011
P a g e | vii
GEOLOGIC FACTORS THAT INFLUENCE POTENTIAL ENVIRONMENTAL EFFECTS ................................................. 74
Deposit size ........................................................................................................................................................... 74
Host rocks.............................................................................................................................................................. 74
Surrounding geologic terrane ............................................................................................................................... 74
Wall-rock alteration .............................................................................................................................................. 74
Nature of ore......................................................................................................................................................... 74
Deposit trace element geochemistry ................................................................................................................... 75
Ore and gangue mineralogy and zonation ........................................................................................................... 75
Mineral characteristics.......................................................................................................................................... 75
Secondary mineralogy .......................................................................................................................................... 75
Topography, physiography ................................................................................................................................... 75
Hydrology .............................................................................................................................................................. 75
Mining and milling methods ................................................................................................................................. 76
ENVIRONMENTAL SIGNATURES ............................................................................................................................ 76
Drainage signatures .............................................................................................................................................. 76
Metal mobility from solid mine wastes ................................................................................................................ 76
Soil, sediment signatures prior to mining ............................................................................................................. 76
Potential environmental concerns associated with mineral processing .............................................................. 76
Smelter signatures ................................................................................................................................................ 76
Geoenvironmental geophysics ............................................................................................................................. 77
REFERENCES CITED................................................................................................................................................ 77
APPENDIX II ........................................................................................................................................................... 79
MINING IN COLORADO ......................................................................................................................................... 79
Molybdenum ......................................................................................................................................................... 80
Background ........................................................................................................................................................... 80
In biology ............................................................................................................................................................... 80
Sources .................................................................................................................................................................. 80
Uses ....................................................................................................................................................................... 81
Substitutes and Alternative Sources ..................................................................................................................... 81
Further Reading .................................................................................................................................................... 81
APPENDIX III – ANALYTICAL SHEETS FROM ROCK AND SOIL SAMPLES .................................... 87
(IN PDF VERSION ONLY)PHOTOGRAPH OF RICO COLORADO ................................................................ 82
JANUARY 2011
Page |1
Technical Report
Rico Area, Colorado
INTRODUCTION AND TERMS OF REFERENCE
The authors have been retained by the Directors of Napier Ventures Inc. to compile available geological data
concerning the Calico Peak area and the molybdenum deposit known to exist nearby. The author has not
visited the property, as it lies at high elevation at the mountain crest and is under snow for much of the year.
Co Author Baughman visited the property September 25-28, 2010 and spent several days on the property
sampling and mapping.
Napier Ventures Inc. is a Canada-based capital pool company (CPC). An American wholly-owned subsidiary is
Napier International LLC, formed to carry on business in Colorado. The principal business of the Company is to
identify, evaluate and acquire mineral assets, properties or businesses with a view to completing a qualifying
transaction for the company. Officers and directors are: Michael P. Raftery, President, Chief Executive Officer,
Chief Financial Officer, Director; Donald Scoretz, Director; and Danny Yu Director.
The purpose of this report is to document the major property acquisition (The Calico Peak Molybdenum
property) as part of the regulatory requirements for a Capital Pool Corporation (CPC)
Co-author Baughman visited the property a number of times, most recently on October 2, 2010. Co Author
Price has not visited the property but has explored and described similar properties in Canada and elsewhere.
Both co-authors are independent consultants and are both Qualified Persons (QP) for the purposes of this
report.
Information used in this report has been provided by Napier and by personal site visits by co-author
Baughman, and data collection as well as review of historic Anaconda Mining Company data files in September
through December 2010. This report also includes personal observations made by JGB in the course of field
visits and on general geologic information available to the public through peer review journals, publications by
the U.S. Geological Survey, and agencies of the State of Colorado.
The purpose of this report is to provide an independent evaluation of the Calico Peak project, the exploration
and discovery potential in that area, past exploration, its relevance and adequacy to assess the mineralization
potential of the area, and provide recommendations for future work. This report conforms to the guidelines
set out by the Canadian National Instrument 43-101.
JANUARY 2011
Page |2
RELIANCE ON OTHER EXPERTS
In this report the author has relied in part on geological descriptions written by others, as outlined in the
Bibliography. For mineral titles the author has relied on title information supplied by J. Baughman. RPG
(Wyoming)
Information for this report was provided to the authors by Napier International LLC and consists of data
generated by ongoing exploration by Napier International during 2010 In addition, the authors spent 10 days
collectively on the site in 2010 examining outcrop, rock sampling, viewing the area from the air and on the
ground, and discussing the project with the on-site geological staff. Mr. Baughman and Mr. Breen also
conducted current and historical research on the property and vicinity, by examination of the Anaconda Data
files housed at the University of Wyoming’s Anaconda Collection located in Laramie, Wyoming; by review of
reports on Calico Peak at the Colorado School of Mines in Golden, Colorado. Minex Exploration collected
approximately 475 soil samples and there were approximately 60 rock samples collected. A Geophysical
Survey was conducted by Zonge Engineering in conjunction with crew support by Minex Exploration and
Geophysical Oversight and Interpretation by Consulting Geophysicist Lou O’Connor.
In the preparation of this report, the authors have relied upon public and private information provided by
Napier International, Minex Exploration, Zonge Engineering, Lou O’Connor Consulting Geophysicist and James
Baughman regarding the property. The authors have reviewed the data provided and checked and verified it.
They have used this information to develop their own opinions and interpretations along with external and
independent understanding of geologic and resource evaluation concepts and best practices. Based on this
validation, it is assumed and believed that the information provided and relied upon for preparation of this
report (e.g. sample locations not checked) is accurate and that interpretations and opinions expressed in them
are reasonable.
The authors have not reviewed the location of claim boundaries however co-author Baughman did identify
claim monuments during site visit.
PROPERTY DESCRIPTION AND LOCATION
Property Description
The property comprises 65 claims covering the height of land at Calico Peak. Each claim is nominally 1500 feet
by 600 feet (20.66 acres) or 8.36 hectares. The 65 claims then cover 1,343 acres.
JANUARY 2011
Page |3
FIGURE 1. LOCATION MAP USA
JANUARY 2011
Page |4
FIGURE 2. LOCATION MAP COLORADO
JANUARY 2011
Page |5
FIGURE 3. LOCATION MAP RICO COLORADO
JANUARY 2011
Page |6
Location
Calico Peak is a mountain summit in Dolores County in the state of Colorado. Calico Peak climbs to 12,018
feet (3,663.09 meters) above sea level and located at latitude - longitude coordinates N 37.710272 and W
-108.090352 (37° 42' 37'' North : 108° 5' 23'' West). The peak is 3.6 miles or 5.7 km west of the town of
Rico Colorado. The property is approximately 200 miles (straight line distance) southwest of Denver
Colorado or about 300 miles southeast of Salt Lake City Utah. Both cities are accessible by road or by air
from major USA or Canadian cities.
The Calico Peak project is located approximately 52 km (32 Miles) north-northwest of Durango, Colorado
and 34 km (20 miles) southwest of Telluride, in Delores County, Colorado in the western portion of the
Rico Mountain Range at approximately 37o715’N, 108o049’W (Figure 1). The property is situated in the
Rico mining district and consists of 65 contiguous Federal mining claims (approximately 1300 acres)
situated in the San Juan National Forest located in portions of Townships 40 N, Range 11 W; Sections 20,
21, 22, 27, 28 and 29 New Mexico Principle Meridian.
Mineral Claims
Napier has acquired 65 contiguous claims covering Calico Peak and adjacent Darling Ridge. Each claim is
nominally 600 feet by 1500 feet (20.66 hectares). All US claims expire on August 31 st midnight and will
require payment of fees, approximately $150 US per claim prior to September 1, 2011. Unlike British
Columbia, assessment may not be banked ahead, and generally no assessment reports are filed. Thus,
often, claim and exploration data may not be preserved historically. The claims are not surveyed.
Sufficient ground is held for exploration purposes. Napier will have to obtain permits for continued
exploration. Of the 65 claims, 44 were initially acquired by staking, and the 21 additional claims acquired
by purchase.
The claims acquired by Napier surround approximately 9 Patented Mining Claims that are owned by
Richard and Karen Lincoln, Margaret and Helen Matzick and Crystal Exploration Production. Their actual
position appears in differing positions on some maps and location would have to be determined by
surveying the corners. The patented claims within the CO claims are owned by Richard and Karen Lincoln.
Napier has initiated discussion with the alien claim holders but has not completed an option or purchase
arrangement with them.
JANUARY 2011
Page |7
CO CLAIM GROUP
Claim Name
CO 1
CO 2
CO 3
CO 4
CO 5
CO 6
CO 7
CO 8
CO 9
CO 10
CO 11
CO 12
CO 13
CO 14
CO 15
CO 16
CO 17
CO 18
CO 19
CO 20
CO 21
CO 22
CO 23
CO 24
CO 25
CO 26
CO 27
CO 28
CO 29
CO 30
CO 31
CO 32
CO 33
CO 34
CO 35
CO 36
CO 37
CO 38
CO 39
Serial No
CMC278384
CMC278385
CMC278386
CMC278387
CMC278388
CMC278389
CMC278390
CMC278391
CMC278392
CMC278393
CMC278394
CMC278395
CMC278396
CMC278397
CMC278398
CMC278399
CMC278400
CMC278401
CMC278402
CMC278403
CMC278404
CMC278405
CMC278406
CMC278407
CMC278408
CMC278409
CMC278410
CMC278411
CMC278412
CMC278413
CMC278414
CMC278415
CMC278416
CMC278417
CMC278418
CMC278419
CMC278420
CMC278421
CMC278422
Dolores County Colorado
MER TWN
RANGE SEC
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W
20
23 0400N 0110W 20,29
23 0400N 0110W 20,29
23 0400N 0110W
29
23 0400N 0110W
29
23 0400N 0110W
29
23 0400N 0110W
29
23 0400N 0110W
20
23 0400N 0110W
21
23 0400N 0110W
20
23 0400N 0110W
21
23 0400N 0110W
20
23 0400N 0110W
21
23 0400N 0110W
20
23 0400N 0110W
21
23 0400N 0110W
21
23 0400N 0110W
21
23 0400N 0110W
20
23 0400N 0110W
21
23 0400N 0110W
20
23 0400N 0110W
21
23 0400N 0110W
20
23 0400N 0110W
21
20,
23 0400N 0110W
29
Subdv
NE NW SW SE
NE NW
NW
NE NW
NW
NE NW
NW
NE NW
NW SW
NE NW SW SE
SW
SW SE
SW
SW SE
SW
SW SE
SW
NE NW
NW
NE NW
NW
NE NW
NE
NW
NE
NW
NE
NW
NE
NW
NE SE
NW SW
SE
SW
SE
SW
SE
SW
LOC DATE
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
SE
09/18/2010
JANUARY 2011
CO 40
CO 41
CO 42
CO 43
CO 44
Page |8
21,
SW
CMC278423
28
23 0400N 0110W
29
NE
CMC278424
23 0400N 0110W
28
NW
CMC278425
23
0400N
0110W
29
NE
CMC278426
23 0400N 0110W
28
NW
CMC278427
Registered in the name of Napier International LLC.
23
0400N 0110W
09/18/2010
09/18/2010
09/18/2010
09/18/2010
09/18/2010
An additional 21 claims were staked later to cover the western part of the Calico Peak area.
DR CLAIM GROUP
Dolores County Colorado
Claim Name
Serial No
MER TWN RANGE
SEC
23 0400N 0110W
22
DR 1
CMC278918
DR 2
23 0400N 0110W
21, 22
CMC278919
DR 3
23
0400N
0110W
22
CMC278920
DR 4
23 0400N 0110W
21,22
CMC278921
DR 5
23 0400N 0110W
21,22
CMC278922
DR 6
23 0400N 0110W
21
CMC278923
DR 7
23 0400N 0110W
27
CMC278924
DR 8
23
0400N
0110W
21,22,
27
CMC278925
DR 10
23 0400N 0110W
27,28
CMC278927
DR 11
23 0400N 0110W
27, 28
CMC278928
DR 12
23 0400N 0110W
27, 28
CMC278929
DR 13
23 0400N 0110W
27
CMC278930
DR 14
23
0400N
0110W
27,28
CMC278931
DR 15
23 0400N 0110W
21
CMC278932
DR 16
23 0400N 0110W
21
CMC278933
DR 17
23 0400N 0110W
21
CMC278934
DR 18
23 0400N 0110W
21
CMC278935
DR 18
23
0400N
0110W
28
CMC278935
DR 19
23 0400N 0110W
28
CMC278936
DR 20
23 0400N 0110W
28
CMC278937
DR 21
23 0400N 0110W
28
CMC278938
Claims are registered in the name of Clearwater Gold Mining Corp.
Subdv
SW
SE
SW
SW
SW
SE
NW
SW
NE
NW
NW
NW
NW
SW SE
SW SE
SW SE
SW SE
NE NW
NE NW
NE NW
NE NW
LOC DATE
10/07/2010
10/07/2010
10/07/2010
10/07/2010
10/07/2010
10/07/2010
10/07/2010
10/07/2010
10/07/2010
10/07/2010
10/08/2010
10/07/2010
10/08/2010
10/08/2010
10/08/2010
10/08/2010
10/08/2010
10/08/2010
10/08/2010
10/08/2010
10/08/2010
There are a number of alien patented claims held by others. Napier is negotiating an option on
these claims but as yet the terms are not finalized.
JANUARY 2011
Page |9
FIGURE 4. CLAIMS AND TOPOGRAPHY – RICO AREA
JANUARY 2011
P a g e | 10
FIGURE 5. CLAIM SKETCH, CALICO PEAK AREA
JANUARY 2011
P a g e | 11
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
Access
The town of Rico is accessed by road from a number of larger centers such as Durango or Grand Junction.
There are a number of logging roads that approach Calico peak, to within a distance of a few miles.
Generally the most practical daily access to the property was by helicopter. Rico is served by the two-lane,
fully paved, County Road 145. Driving conditions can be poor in the winter. The area is served by numerous
off highway vehicle trails. The topography is rugged and will require helicopter access in certain areas.
Climate
Climate in the Rico area is typical of the mountain states, moderately cool in winter and warm in summer.
Average July High Temperature is 74.3 °F and Average January Low Temperature 4.3 °F with Annual
Precipitation 26.7 inches. Of course temperatures at Calico Peak are more extreme as it is at least 2,000
feet higher in elevation. The average annual snowfall exceeds 328 inches (835 cm), and field work is best
accomplished in the summer, between June and October.
Local Resources and Infrastructure
There are limited services available in the town of Rico which has a year-round population of less than 200
(rising to 500 in summer) Accommodation is available in a number of nearby towns including Dolores,
Telluride or Durango. Commercial helicopter services are available from Durango with jet fuel available at
Telluride airport. Vehicles may rented at Durango or Cortez airports.
Physiography
The property is on the height of land above 12,000 feet (3.660 meters) with 2000-3000 feet of relief. Relief
is considerable.
JANUARY 2011
P a g e | 12
HISTORY
General history of the Rico area has been summarized from McKnight (USGS Prof Paper 722, 1974) and
from a recent Technical report for the Silver Creek porphyry molybdenum deposit:
The first claim in the area was staked in 1869 on ground along the river at Rico, including parts of what
later became the Shamrock, Smuggler, and Riverside claims. In the next 10 years, additional claims were
staked within the Rico town area, on Nigger Baby Hill, in the mineralized area up Silver Creek, and in Aztec
Gulch.
In 1879, oxidized silver ores were discovered on Nigger Baby Hill which were rich enough to attract a sharp
influx of prospectors into the district. A mining settlement sprang up, civil government was organized, and
a post office was established at Rico. In the same year, ore was discovered and shipped from one of the
veins in Newman Hill.
In 1880 a small smelter was built on the east bank of the Dolores River at the north edge of town to treat
the ores from the Grandview Mine. A second smelter was built at the southern end of town, beginning in
1882, and operated as a custom plant for nearly 2 years during 1884-86. Silver production rose to a
temporary peak of 193,360 ounces in 1883, but it sagged appreciably in the next 3 years.
In 1887 a prospect shaft on the Enterprise claim, by pure accident, struck the edge of the largest and
richest ore body ever found on Newman Hill. This was a blanket ore body of a type that proved to be very
productive of rich silver ore during the next few years, as further ore bodies were explored and opened in
the extension of mining from this initial discovery. The Enterprise success stimulated development
throughout the camp.
The Rio Grande Southern Railroad Co. completed a narrow-gage line into the camp in 1890, and within a
short time spur lines were operating up Silver Creek and to the portal of the Enterprise Group tunnel.
The fundamental cause for the decline as a silver camp was depletion of the rich silver ores. By 1901, the
Newman Hill mines were largely exhausted of all except low-grade base-metal ores.
In the early 1900's, other parts of the district became relatively more productive, for the combined values
of lead and zinc.
In the mid-1920's the mining industry at Rico revived, chiefly through advances in the metallurgical
industry. Perfection of the flotation process in the previous decade had made attractive such complex
sulfide ores as prevail at Rico, and the mine operators were, for the first time, able to realize a fair profit on
the zinc content of their ores instead of being penalized for it as in past years. At first, the ores were
shipped to new custom flotation mills in the Salt Lake area, Utah, but in 1926 a 250-ton custom mill was
built at Rico, by the International Smelting Co. (subsidiary of Anaconda Mining Co.).
JANUARY 2011
P a g e | 13
The chief producing companies included the Rico Argentine Mining Co., working the mineralized area up
Silver Creek on the south side of the creek; the Falcon Lead Co., working the Yellow Jacket mine and other
properties. The custom mill at Rico operated only from October 1926 to July 1928, when it shut down
permanently.
In 1929 mining at Rico was hit by the Depression, and by 1932, production had ceased. In September 1939,
the Rico Argentine Mining Co. finished a new 135-ton flotation mill and began
a period of steady production that brought a degree of stability to the mining industry at Rico. This
company was the major producer during World War II. The Van Winkle shaft was sunk on the east edge of
town in 1942, and for several years supplied a large share of the Rico Argentine production. The company
has maintained steady production, though not always at mill capacity, to the 1960’s. Mill capacity (1969)
was rated at 150 tons per day.
In September 1955, the Rico Argentine Mining Co. (RAMCO) completed and put in operation a plant for the
production of sulfuric acid from pyrite. The acid was sold to several uranium mills operating in the adjacent
part of the Colorado Plateau. The acid plant ran for 9 years, until a cutback in the uranium program
destroyed the market for the acid. The plant was put on a standby basis in October 1964.
RAMCO was acquired by Crystal Oil Company during July 1974. The properties were then optioned to
Anaconda in 1978, and were explored for porphyry and replacement deposits through early 1983.
Anaconda’s efforts culminated in the discovery of the Silver Creek molybdenum deposit. (McCandlish
2007).
Anaconda began to evaluate the historic exploration data in the Rico area, and concentrated on a recent
discovery by Crystal Oil of the NB Hill zone copper-silver-gold replacement deposit. Additionally,
Anaconda’s team conducted reconnaissance mapping and outcrop sampling, which led them to believe
that there might be a molybdenum porphyry target in the area. This work included the Calico Peak area.
McCandlish (2007) reports that Anaconda applied the Henderson molybdenum porphyry model to the
structurally complex, sediment-dominated host environment in order to help determine exploration
targets. Drilling of a number of holes showed increasing downward gradients in fluorine and tungsten and
therefore provided evidence for a molybdenum porphyry system at depth. Drill hole C-25 intersected
quartz veins with weak molybdenum and tungsten and fluorine gradients suggesting proximity to a
molybdenum porphyry stock. Anaconda purchased the Silver Creek property in August 1980 on the basis
of the results from C-25.
JANUARY 2011
P a g e | 14
At least three drill holes were completed at Calico Peak, two apparently by Anaconda and one other in
2008 by Colorado Minerals and Geology. No geological description, core logs or assay results are as yet
available for these drill holes.
Mapping
In 1967, Walden P. Pratt and others published a geologic map of the Rico quadrangle at 1:24,000. In 1971
Mario Serna Isaza mapped the Calico Peak area while completing a M.Sc. Thesis (Colorado School of
Mines).
GEOLOGICAL SETTING
Regional Geology
Walden Pratt (US Geological Survey summarized the setting of the Rico Dome as follows:
“The Rico Mountains are an elliptical group of 12,000-foot peaks on the southwest edge of the San Juan
Mountains, close to the vague boundary between the San Juans and the Colorado Plateau.
The principal tectonic feature of the Rico Mountains is the Rico dome, in which the sedimentary rocks are
bowed up sharply from their gentle south-westerly regional dip (see fig. 1); at the center of the dome are a
monzonite stock and an up faulted core of Precambrian rocks, and the doming is accentuated by the
inflationary effects of numerous sills and laccoliths, some as much as several hundred feet thick. The dome
and mountains are bisected by the valley of the Dolores River, which flows southward through the area,
producing a relief of more than 3,000 feet and exposing a sedimentary sequence of some 11,000 feet of
rocks from Precambrian quartzite to the Cretaceous Mancos Shale (table 1).
Nestled in this valley in the midst of the Rico Mountains, at an elevation of 8,800 feet, is the town of Rico,
which was established as a silver mining camp in 1879. The principal mineral production of the district has
been ores of silver, zinc, lead, gold, and copper, produced mostly from veins and irregular replacement
deposits in limestones of the Ouray, Leadville, and Hermosa Formations. Uranium-vanadium ores have been
mined from deposits in the Entrada Sandstone east of Rico, and in recent years sulfuric acid was made at
Rico from pyrite, for shipment by truck to nearby uranium mills…..”
JANUARY 2011
P a g e | 15
FIGURE 6. SKETCH OF RICO DOME, AFTER PRATT.
JANUARY 2011
P a g e | 16
FIGURE 7. GEOLOGICAL MAP OF CALICO DOME AREA (USGS Special Map 1905)
JANUARY 2011
P a g e | 17
LEGEND FOR FIGURE 7.
JANUARY 2011
P a g e | 18
Local Geology
The local geology has been studied in detail by Mario j. Serna Isaza in an M.Sc. Thesis (Colorado School of
Mines) from which the following summary has been made:
“Calico Peak, located three miles west of the town of Rico in Dolores County, south-western Colorado t is a
Tertiary volcanic plug 2000 feet in diameter which intruded Permian sandstones and conglomerates and
Tertiary sills and dikes of hornblende latite porphyry.
The plug was emplaced by two separate magmatic pulses, yielding a quartz latite rock which grades from a
facies rich in feldspar phenocrysts to a facies rich in quartz phenocrysts.
Emplacement of the plug was followed by the invasion, along volcanic fissures and vents. of solfataric
solutions and gases, which strongly affected the composition and texture of the original rock. The main
alteration product is alunite [K A13(S04)2(OH)6
Where alteration is most complete, the original rock is replaced by a mosaic of quartz, alunite and native
sulfur. These highly altered zones are surrounded by an argillic envelope in which feldspars have been
largely altered to clay minerals.
The overall effect of the solfataric alteration has been to reduce the amount of calcium and magnesium
present in the plug but to enrich the plug in potassium and sodium. Significant anomalous concentrations of
molybdenum and lead occur in the center of the plug”.
Serna Isaza has estimated that the Calico Peak plug contains 100 million tons of rock averaging 19.9%
alunite. Alunite has been at times, an industrial commodity.
Some of the rock formations in the Calico Peak area are well described in the thesis; some of the data has
been summarized below, directly from Serna Isaza but edited for brevity:
JANUARY 2011
P a g e | 19
Cutler Formation
The Cutler Formation was described originally by Cross and others (1920, p.7) in their description of the
Rico Quadrangle. At its type locality on Cutler Creek near Ouray, Colorado, the Cutler Formation consists of
about 1,000 feet of bright red sandstones, lighter red or pinkish grits and conglomerates, alternating with
sandy shales, and earthy or sandy limestones of various shades of red. The Cutler Formation in the Rico
area is transitional between an arkosic sandstone facies adjacent to the Uncompahgre highlands to the
east and finer-grained clastic rocks and chemical sediments in Utah to the west (Kunkel, 1958).
Only the upper 600 feet of the Cutler Formation are exposed in the Calico Peak area. In the Rico area, the
upper part of the Cutler Formation is composed of pink to reddish, poorly sorted, locally micaceous
siltstones, and interbedded pinkish, sub-angular to subrounded, medium-to coarse-grained, cross-bedded
conglomerates and arkoses. Topographically, the lithology is reflected as outcrops of rounded ledges of
arkoses and conglomerates and slopes of siltstones.
The upper contact of the Cutler Formation with the Dolores Formation is unconformable, but this contact is
not clear in the Rico area. The upper contact of the Cutler Formation was mapped at the highest arkosic
conglomeratic sandstone in the section.
Dolores Formation
The Dolores Formation, named and described by Cross (1899, p.14) from exposures in the valley of Dolores
River in south-western Colorado, at first included the redbeds that are known as the Cutler Formation.
However, the discovery in 1904 near Ouray of an angular unconformity
below the fossiliferous horizon in the Dolores, caused Cross to restrict the name Dolores to the Triassic
strata and to name the underlying more reddish beds the Cutler Formation. The angular unconformity
between the Dolores Formation and the Cutler Formation was not observed in the Calico Peak area. The
contact between the Cutler and the Dolores was mapped at the change of lithology, from interbedded .
siltstone and arkoses of the Cutler to a very fine-grained sandstone of the Dolores Formation. The lithology
of the Dolores Formation is dominated 'by very fine-grained sandstones and siltstones that are light
reddish-brown in color, thin to thick bedded, with minor shale and mudstone beds. This formation has a
thickness of about 150 feet in the thesis area.
Entrada Sandstone and Wanakah Formation
The Wanakah Formation and the Entrada Sandstone cannot be effectively separated in the Calico Peak
area because of the lack of good exposures. Therefore, consistent with the mapping of Pratt and others
(1969), these two units were mapped together in the Calico Peak area.
The lower, massive sandstone of the La Plata of Cross and others represents the Entrada Sandstone. It is
white to cream, of sugary texture, cross-bedded, friable, and made up mostly of quartz grains. It crops out
JANUARY 2011
P a g e | 20
as prominent, nearly white rounded cliffs, which are in marked contrast to the red outcrops of the
underlying Dolores Formation, but are in gross aspect much like the overlying sand stone of the Wanakah
Formation (the upper sandstone of the La Plata of Cross, 1900, p.74). On1y the lowermost part of the
Wanakah Formation crops out in the area, and it is represented by a light-brown to gray, thick-bedded,
fine-grained to silty sandstone with small grains of chert. The total thickness of the Entrada Sandstone plus
the lower part of the Wanakah Formation that occurs in the area is about 200 feet .
Recent Sediments
Gravel deposits containing angular boulders of hornblende-latite porphyry and sedimentary rocks of the
Cutler Formation with a hematitic sandy matrix occur along the upper part of the drainages in the area.
About one-half of Calico Peak is covered by talus deposits of Calico Peak porphyry. These deposits were not
mapped.
Igneous Rocks
Hornblende-latite Porphyry Hornblende-latite porphyry sills in the Cutler and Rico Formations are
abundant and common in the Calico Peak area. These bodies possess a lateral extent many times their
thickness and are topographically represented by ridges and cliffs. The original form and extent of many of
these porphyry bodies were not determinable, since· they occur in the higher peaks, and the remnants left
by erosion may represent either extensive or local masses. Farrish (l892) concluded that the principal cause
of the Rico uplift was the Rico Dome.
Nevertheless, it is the opinion of the author that part of the doming in the Cutler and Dolores Formation
could have been produced by these intrusive sills of hornblende-latite porphyry. The most widespread
igneous unit in the Calico Peak area is this hornblende-latite porphyry that forms sills, laccoliths, and dikes
throughout the Rico Mountains. The rock is composed of abundant white plagioclase phenocrysts, which
are partly altered to sericite and clay, and hornblende crystals, which are moderately altered to clay
minerals, chlorite, and magnetite, and a groundmass which is gray, altered, and cryptofelsitic.
The hornblende-latite porphyry presents minor textural variations which were no doubt caused by local
differences at the time of crystallization and consolidation. The hornblende-monzonite porphyry was
emplaced at a later stage that closely followed the emplacement of the hornblende-latite porphyry and
probably was a result of this differentiation.
JANUARY 2011
P a g e | 21
This differentiation was observed in the northeast corner of the thesis area, and it was
evident in the field by a greater degree of crystallization that gave the rock a remarkable porphyritic
aspect.
The age of two samples of hornblende-latite porphyry were obtained by argon-potassium determinations
in biotite, in the laboratories of the U.S. Geological Survey. The analyses indicated ages of 57 and 63 ± 3
million years. Thus the porphyry was intruded in the Palaeocene.
Intermediate Dikes
Two dikes of intermediate composition have intruded the area. Both dikes exhibit irregular shapes. The
petrography of these dikes is not very clear because of the strong alteration.
The dike in the southwest portion of the mapped area is composed of elongated feldspar phenocrysts,
which are strongly kaolinized, and mafic minerals which have been altered to epidote and chlorite. The
other intermediate dike occurs in the north-central portion of the area on Johnny Bull Mountain. Some
plagioclase phenocrysts (An 28 Ab 72 ) occur in this rock,
but most of the rock is strongly altered. Sericite and chlorite are common alteration minerals. Magnetite is
a common accessory mineral.
These intermediate dikes cut across sills and dikes of hornblende-latite porphyry, therefore, they are
younger than that unit. The intermediate dikes apparently are cut by the Calico Peak porphyry in the north
central area on Johnny Bull Mountain. Therefore, the intermediate
dikes were intruded after the hornblende-latite porphyry (of Paleocene age) and before the Calico Peak
porphyry.
Calico Peak Porphyry
The Calico Peak porphyry is a rock of unusual character, as pointed out by Cross (1900). The rock is a
porphyry which is characterized by large orthoclase phenocrysts at the north side of the peak and a
gradational change to a quartz porphyry southward. Different phases mapped are:




Feldspar porphyry
Transitional phase
Quartz Porphyry
Breccia phase
JANUARY 2011
P a g e | 22
The breccia phase is the most irregular and abundant unit within the peak. It is composed of quartzite and
sandstone fragments from one inch to three feet in diameter, in a quartz-rich phase groundmass . The
quartzite fragments are angular to subangular, red to brown color, well sorted with a fine-grain matrix, and
probably are fragments of the Sawatch quartzite or Precambrian quartzites. Good exposures of the breccia
phase occur in the southern and south-eastern part of the peak s but breccia manifestations are found
everywhere in the peak and also in the talus of the west flank. A large boulder of white medium-grained
quartz sandstone with cross bedding and alunite at its contacts occurs as a xenolith within the Calico Peak
porphyry in the south-western corner of the peak . This boulder is thirty by twenty feet.
The Calico Peak porphyry is a highly altered porphyritic biotite-hornblende latite with abundant
white and dark-gray phenocrysts in a light-gray to dark-olive green groundmass. Plagioclase and potassium
feldspar phenocrysts are completely replaced by various fine-grained mixtures of quartz – alunite- sericite
and clay minerals. Mafic minerals have been completely replaced by chlorite and clay minerals. Zircon is a
common accessory. The groundmass is a fine-to very fine-grained mosaic of quartz and alunite.
The Calico Peak porphyry cuts across sills of the hornblende-latite porphyry the age of which was
determined to be 60 million years (Pratt s personal communications 1970). The Calico Peak porphyry does
not have a clear contact with the intermediate dikes in the north side of the area. Because of the
superimposed solfataric alteration of the intermediate dikes interpreted to be the result of the Calico Peak
intrusions the Calico Peak porphyry is probably younger than the intermediate dikes.
The geologic history of the San Juan volcanics is known to be too complex to allow correlation on the basis
of texture or rock composition. Nevertheless the close proximity of the Calico Peak porphyry to the San
Juan volcanics could make this correlation possible. Based upon this assumption, the Calico Peak porphyry
can probably be correlated with the main period of volcanism of the San Juan mountains during the middle
to late Tertiary period (Larsen and Cross, 1956).
Felsite Dikes
The Calico Peak porphyry has been cut by several felsite dikes of unknown composition. These dikes occupy
the saddles in the profile of the peak (Plates 1 and 2) and show a deep and extensive alteration.
The felsite rocks contain very fine silica and some rounded quartz phenocrysts . Kaolinization is pervasive in
the northern dikes, whereas sericitization is evident in the southern dikes. Traces of biotite and leucoxene,
silica veinlets, quartz and feldspar Phenocrysts occur in these felsite dikes. These dikes contain the only
anomalous copper concentrations within Calico Peak, up to 110 ppm in the rock. The felsite dikes cut the
Calico Peak porphyry, therefore, they are the youngest intrusive unit in the thesis area. The felsite dikes
occur only within the Calico Peak porphyry.
JANUARY 2011
P a g e | 23
Structure
Calico Peak is a volcanic plug that intruded the sediments of the Cutler Formation and the sills and dikes of
hornblende latite porphyry producing fracturing and assimilation phenomenon in the host rock. The
contacts of the Calico Peak volcanic plug with the surrounding units are commonly not precisely
observable or exposed because of the strong alteration within the Peak that sometimes extends to the
adjacent hornblende-latite porphyry and Cutler beds, and also because of the presence of talus deposits.
The similar strike and dips of the hornblende-latite porphyry and the Cutler strata on all sides of the Calico
Peak porphyry indicate that the intrusion of the porphyry did not disturb the adjacent host rock
significantly. The felsite dikes within the Calico Peak porphyry are arcuate, concave toward the center of
the plug. The felsite dike on the north side of the Calico Peak dips to the south and those on the south side
dip north. Most of the joints in the Calico Peak porphyry dip toward the center of the peak. These factors
suggest that the Calico Peak porphyry is mushroom shaped although its contact with the surrounding rocks
is not exposed. The fracture pattern in the sedimentary units, some of which are filled by dikes of Calico
Peak porphyry is radial to the plug. Concentric and radial fracture patterns are developed in the host and
Calico Peak porphyry rocks. No major faulting occurs within the area of the Calico Peak porphyry.
The emplacement of the Calico Peak volcanic plug was the result of forceful injection and assimilation of
the host rock. The emplacement of the plug occurred in two main magmatic pulses, closely spaced in time.
Alteration and Mineralization
Alunite Zone
The rocks in the area of Calico Peak have undergone alterations textural changes. The changes occur both
vertically and laterally. Two different alteration zones occur in the Calico Peak porphyry, a quartz-alunite
zone and an argillic zone.
The quartz-alunite zone is characterized by strong silicification and alunitization. The quartz occurs as a fine
mosaic; alunite occurs as tabular crystals replacing the original feldspar phenocrysts. Pyritization generally
accompanies the silicification ridges and silica dikes. Rutile is formed as an alteration product by the
removal of the calcium from the original sphene crystals.
Much of the zone has been altered into a strongly leached, vuggy, microcrystalline, quartz rock in which all
the original constituents other than quartz have been removed, and they also grade into the softer rock of
the surrounding argillic envelopes. The matrix of the original quartz latite
has been changed to a mixture of variable amounts of quartz and alunite and subordinate amounts of
pyrite, rutile, zircon and locally some opaline silica. Jarosite and limonite are common weathering
products. Traces of plumbojarosite and molybdenite were detected from studies by diffractometer and
JANUARY 2011
P a g e | 24
powder photographs. An average of three percent sodium, derived probably from the natro-alunite, was
detected in the center of the quartz alunite zone.
Another type of rock alteration within the quartz alunite zone, formed under similar acid conditions,
resulted in a vuggy microcrystalline quartz rock from which all the original constituents other than the
quartz, pyrite and some accessories like zircon and rutile, have been removed. This rock is not mapped as
an alteration zone because of its irregular and
sporadic distribution, although it is usually associated with the zones of high silicification. The rock is
cavernous where leaching has removed most of the material from the molds of the original feldspar
phenocrysts. The size of the voids in the vuggy quartz rock increases toward the feldspar-rich phase. They
are modified polygonal molds of the former feldspar phenocrysts.
This alteration is rare in the breccia phase. The time and space significance of the vuggy quartz
rock is not completely understood s although some of the voids probably represent leaching of them
original phenocrysts s and other voids probably once contained a mixture of alunite and kaolinite. The
vuggy aspect is a result of leaching action by very acidic solutions upon the original rock.
The quartz-alunite zone can be recognized in the field by its effect on the relative resistance of this zone to
weathering s so that it forms rough peaks and sharp ridges s and also by its pinkish colors due to the
alunite. Plate 3 shows the distribution of the quartz-alunite zone and the close correlation between
silicification and the quartz-alunite alteration zone.
Argillic zone.
The highly silicified rocks comprising the quartz-alunite zones are surrounded by discontinuous
and irregular argillized envelopes. These envelopes are characterized by abundant sericite and
mixtures of alunite and kaolinite. Only traces of montmorillonite and illite are present. Veinlets of kaolinite
and pyrite are commonly found in this zone. Silica in stockworks and occasional small molybdenite crystals
are common in the northern part of the Calico Peak porphyry. Also in the northern part of the argillic
zone, a large portion of the feldspar phenocrysts have been partially or totally replaced by alunite,
kaolinite, illite, and/or sericite. Illite was recorded by diffractometer analysis but could not be identified
under the microscope. In general, the argillic zone shows a gradational decrease of the alunite content
outward from the quartz-alunite zone, whereas there is an increase in the amount of sericite in the same
sense.
Rocks in the argillic zone are softer and lighter in color than the rocks of the quartz-alunite zone, because of
the low silica content and the higher clay content. The argillic alteration zone of the Calico Peak porphyry
indicates weakly acidic to neutral conditions of origin.
JANUARY 2011
P a g e | 25
Underground Features
Two underground working s were mapped in order to determine the distribution of the alteration and
mineralization in the Calico Peak porphyry with depth. Tunnel B is located in the south-eastern corner of
the Calico Peak porphyry near its contact with the Cutler Formation and tunnel C is located in the northeastern side of the peak. Each of the tunnels is 140 feet long. Tunnel A in the Cutler beds to the south of
the Calico Peak porphyry was caved and not accessible. Chip samples were collected from tunnels B and C
at 20-foot intervals. The samples have been analysed for base metals, potassium ,and aluminum. The
results of the sampling program and the geological maps of the tunnels are plotted on Figures 14, 15, 16
and 17. Tunnel B shows, from east to west, a Calico Peak breccia phase, replaced by quartz alunite . This
rock shows high alunite content. It was exploited in the past for alunite and called
"Mammoth vein".
This vein (mapped by Serna Isaza) is not obvious on surface but coincides with a northwest-trending band
of quartz-alunite, as shown on the accompanying Figure 9. The vein grades laterally into quartz alteration,
with a gradual decrease in the amount of breccia fragments and in the alunite content characterized by a
closely spaced set of microfaults and an increase in the size of the breccia fragments; the alunite content is
very low. Tunnel B shows a strong variation in the size of the fragments in the breccia phase which were
also noticed on the surface. The rock in Tunnel C displays uniform quartz-sericite alteration with numerous
quartz-pyrite veinlets. This tunnel is located within the feldspar-rich phase on the north side of the Calico
Peak porphyry. The porphyritic texture of the rock remains constant along the tunnel. Tunnel C is
characterized by a high molybdenum content. The increase of molybdenum from an average of 20 ppm on
the surface, to 40 ppm in tunnel C is noteworthy.
There are numerous pits and dumps observed by co-author Baughman on the Calico Peak property.
The above Mammoth vein and underground working has not been precisely positioned, and the
working may now be caved.
JANUARY 2011
P a g e | 26
FIGURE 8. SKETCH OF ALTERATION (ANACONDA )
JANUARY 2011
P a g e | 27
FIGURE 9. MAMMOTH VEIN
(Exact location unknown, mapped by Isaza prior to GPS)
JANUARY 2011
P a g e | 28
Geothermal Activity
In the mapping shown below, by the Colorado Geological Survey, the heat flow was color coded by heat
flow intensity. The dark orange is the highest heat flow shown in mW/m2. Several hot spots appear on
the state-wide map with one of the strongest anomalies shown in the southwest part of Colorado and
inclusive of the Rico area hot springs. The geothermal trend coincides with the productive “Colorado
Mineral Belt”.
The geothermal anomaly is shown in the figures on the following page, and is also known as a
paleothermal alteration halo as described by Larsen, Cunningham and Naeser as follows (Economic
geology 1994)
A major 4 Ma paleothermal anomaly is present around the Silver Creek stockwork Mo deposit near Rico,
southwestern Colorado. The anomaly extends at least 8 km outward from the deposit and was formed
from heated, meteoric water circulating around an intrusion related to the deposit. The top of the 4 Ma
(million year old) Mo deposit is located near the center of the anomaly, more than 1 km beneath the
present ground surface. Near-surface contemporaneous vein and replacement base and precious metal
deposits are peripheral to the Mo system; they were the source of historic production in the Rico mining
district. The thermal and chemical effects of the paleothermal anomaly are well developed in 65 Ma
hornblende latite sills that extend throughout the district. They provided an essentially uniform material in
which to measure the effects of water-rock interaction. Hydrothermal alteration in the latite resulted in
several alteration facies. A texturally destructive facies proximal to the center of the system consists of
quartz-illite-calcite and chlorite-epidote assemblages and is restricted to a vertical cylindrical zone, 3 km in
diameter, directly above the stockwork Mo deposit. Peripheral to this, the latite is altered to a propylitic
assemblage, with primary textures preserved. Temperature gradients in the altered latite, …… are
symmetrically distributed about the stockwork Mo deposit and show that temperature increased
gradationally toward the heat source. …. temperatures were less than 200 degrees C in the distal part of
the system and greater than 300 degrees C in the center of the paleothermal anomaly, directly over the
stockwork Mo system.
2011
JANUARY
P a g e | 29
FIGURE 10. HEAT FLOW IN COLORADO
FIGURE 11. HEAT FLOW AT RICO COLORADO
2011
JANUARY
P a g e | 30
Above the Mo deposit, …. nearly all of the Na 2 O has been removed from the rocks. The extent and
distribution of thermal and chemical effects in a vertical cylindrical volume of rock above the heat source
suggests that this marks the pathway for an upwelling geothermal plume, 3 km wide and at least 2 km high.
A horizontal outflow plume moved laterally away from the rising plume 1.5 to 2 km above the stockwork Mo
system. Water/rock ratios within the plume area are greater than 0.5 on a molar oxygen basis, but are less
than 0.45 in the propylitized latite outside the plume. All mineralization in the Rico district is related to this 4
Ma meteoric-magmatic hydrothermal system. The deep stockwork Mo deposit is beneath the plume and the
shallower veins and replacement deposits are at the margins of the plume.
In the 1970’s and the early 1980’s the Rico Argentine Mining Company began investigating the geothermal
resources near Rico. Multiple exploration boreholes were drilled north of the town. Many of the holes
proved to be artesian in nature, and produced hot water at nearly 40 C. In addition, geothermal gradients
were observed to approach 114 C/km.
Megamoly, Inc. conducted a preliminary economic analysis of the Rico geothermal project using the
Renewable Energy Technology Finance Model developed by the National Renewable Energy Laboratory
(NREL). In this analysis the following assumptions were made. First, a 10 MW binary geothermal power
plant would be established. Second, each production well would cost $3 Million and produce 3 MW of
electricity. Third, Resource temperatures would be classified as moderate (not exceeding 200 °C). Fourth,
the power plant would have a 20-year project life, and capital debt would be re-pated in 15 years. Fifth,
Capital would be depreciated over 5 years. Sixth, a 10% investment tax credit would offset other income.
Finally, the plant would be operating 90% of the time. The economic analysis concluded that the cost of
geothermal energy would be 7.62 c/kWh and the equity investor internal rate of return would be 37%. In
their business plan, Megamoly, Inc. noted that these numbers were preliminary and were subject to
change based upon the available resources, tax credits and other capital costs.
DEPOSIT TYPES
The ore deposits of the Rico district as described by Brown et al. (2009) are





Massive sulfide replacement deposits in Pennsylvanian limestone of the Hermosa formation;
Contact metamorphic deposits of sulfides, specularite, and magnetites of the Devonian Ouray and
Mississippian Leadville limestone, but also of the Hermosa Formation;
Veins on fractures and small faults in the Hermosa sandstones and arkoses; and
Replacement deposits in residual debris resulting from solution of a gypsum bed where broken by
fissures in the lower Hermosa Formation.
2011
JANUARY
P a g e | 31
Massive sulfide replacement and contact-metamorphic deposits have been the most productive of base
metals with by-product silver in the present century. The massive sulfide replacement deposits have
also yielded the pyrite for a large output of sulfuric acid. Veins on fractures and small faults and
replacement deposits in residual debris were very productive of silver before 1900
To the above must be added the more significant deposits of:
 Silver Creek molybdenum (a typical High Fluorine type porphyry)
 The alunite deposit known at Calico Peak. The target at Calico peak, below the alunite alteration,
is also a high fluorine molybdenum deposit
Major mines that existed in the Rico area from 1920 on include (McKnight, 1974): (Note that all are in
the Rico area, but outside of the subject claims).
1. The Mountain Spring and Wellington tunnels on the slope of CHC Hill, on the east side of the Dolores
River about 1.5 miles north of Rico.
2. The Pigeon tunnel portal is 1,800 feet north of the Mountain Spring portal at an altitude of 9,320feet.
3. The St. Louis tunnel was driven by the St. Louis Smelting and Refining Company during 1930-31to
explore for deep ore horizons below CHC Hill with an altitude of 8,844 feet. It is on the East bank of the
Dolores River, 1 mile upstream from Rico.
4. The Rico Argentine group of mines is on Silver Creek, about 1.5 miles northeast of Rico. The James G.
Blaine Tunnel (levels 200, 300, 400, 500 and 600) were used to explore a molybdenum deposit at depth.
5. The Yellow Jacket (Phoenix) Group of mine workings is largely in the block of ground between the Last
Chance and Nellie Bly faults on the southeast slope of Nigger Baby Hill with an altitude just above 9,600
feet.
6. The Falcon mine workings consist of three tunnels on the nose of Nigger Baby Hill a short
distance above the mine road up Silver Creek, with altitudes of 9,175 and 9,250 feet.
7. The Aztec mine is west of the Dolores River north of Rico, on the north bank of Aztec Gulch.
The lowermost tunnel has an elevation of 9,540 feet and the upper one at 9,592 feet.
8. The Nora Lily mine consist of two tunnels, now caved; drive eastward on the Last Chance fault zone from
the west side of Nigger Baby Hill with the original mine at an altitude of 9,072 feet.
2011
JANUARY
P a g e | 32
9. The Pro Patria and Revenue tunnels are nearly parallel crosscuts that enter the northern part of
Newman Hill at altitudes of 9,425 and 9,576 feet respectively.
10. The Forest Payroll mine is at an altitude of 10,137 feet, on the spur leading northwest from
Dolores Mountain, high on the left slope of Allyn Gulch.
11. The Iron Clad (Silver Clad) mine is below the Engel’s mine road on the west side of the Dolores River
southwest of Rico, in the first hundred feet above the valley floor; there are two tunnels with altitudes of
8,725 and 8, 800 feet each.
12. The Jones gold mine is on the west side of the Dolores River southwest of Rico, just above the Engel’s
mine road, at an approximate altitude of 8,845 feet.
13. The Atlantic Cable mine is in the town of Rico just west of the main street and just north of Silver
Creek. The mine has 3 levels at 45, 62, and 183 feet. It has lead, zinc, copper, and iron-sulfides.
2011
JANUARY
P a g e | 33
FIGURE 12. GEOLOGICAL CROSS-SECTION THROUGH CALICO PEAK
JANUARY 2011
P a g e | 34
MINERALIZATION
At present, alunite mineralization exists over a large area at Calico Peak, Mineralized quartz veins are
suggested by the numerous workings and tunnels, and occasionally minor molybdenite has been found.
However the target at Calico Peak is a large buried (blind) molybdenum porphyry, comparable to the Silver
Creek molybdenum deposit situated east of Rico.
EXPLORATION
2010 Field Work:
James Baughman completed a data review on September 23rd and 24, 2010 in his Denver office and then
visited the property, September 28 through October 2, 2010 to examine the site with Minex Exploration
Field Geotech Sampling Crew. The field visit included review of the physiographic, geologic and tectonic
setting of the property, drill hole collar locations, as well as detailed examination of outcrop and sampling
of the mine prospects and mineralized zones. Historic Anaconda Mining Company Drill sites were looked
for to identify the location of the historic drill data and examine the relationship of the site to the geologic
target.. A second field visit was conducted by Bill Breen (Minex) October 4 through October 8, 2010. The
drill sites were reviewed from the air, and structural geology of the region was examined in several of the
surrounding ridges via helicopter to help assess the regional setting of mineralization.
A field mapping and sampling program was conducted where the east and west sides of Calico Peak claim
block were mapped and sampled to examine and evaluate the potential for an economic resource. Two
registered consulting geologists (Qualified Persons), James Baughman and William Breen conducted the
geologic survey and spent September 23 through October 8, 2010 on the property. One key to identifying
the presence economic deposits based on Anaconda historic reports is leakage of pathfinder elements
through faults, structures and receptive sedimentary beds. The preliminary data indicate two sample sites
with anomalous gold. The samples are described on the following pages.
Geochemistry
A soil and rock geochemical survey was conducted by Minex Exploration over the property, where
approximately 475 soil samples were collected on a systematic 400ft x 200ft grid. The soil sampling
occurred in September and October 2010 and samples were submitted to ALS Chemex (USA) for
laboratory analysis. These analyses are provided in an Appendix. A sample map with data analysis is
provided in Figures 13-16. In addition, a number of rock samples were taken from various sites by Jim
Baughman.
2011
JANUARY
P a g e | 35
FIGURE 13, CALICO PEAK SOIL GRID ON TOPOGRAPHY
JANUARY 2011
P a g e | 36
FIGURE 14. CALICO PEAK SOIL GRID (IDEALIZED)
JANUARY 2011
P a g e | 37
FIGURE 15. MOLYBDENUM IN SOILS AT CALICO PEAK (ppm)
JANUARY 2011
P a g e | 38
FIGURE 16. COLORED MO ANOMALY PLAN – 2010 SOILS
2011
JANUARY
P a g e | 39
The geochemical soil survey, though preliminary, showed a weak molybdenum anomaly
centered on the north slope of Calico Peak. A number of sites were not sampled as they had
only rock and no soil. Rock samples were not strongly anomalous in Mo. These are shown in
Figures 20 and 21.
Geophysical survey
A preliminary and orientation style one line Induced Polarization (“IP”) dipole-dipole survey was
conducted by Zonge Geophysical and Minex Exploration from October 22 through October 30, 2010.
The survey was conducted under adverse weather conditions. The IP survey was conducted to
determine whether geophysical techniques might be useful to evaluate the presence of subsurface
mineralization. The preliminary sections from the IP survey indicate an anomalous zone of
chargeability below the northwest side of Calico Peak. A brief summary was written by Lou O’Connor;
his comments are reproduced below:
“In late October of 2010 a small IP/Resistivity survey was completed on the Calico Peak property
located just west of the town of Rico in the San Juan Mountains of Colorado. The target of the
survey was a large mineralized system that could be associated with a porphyry molybdenum
deposit. The survey consisted of a single N-S oriented 150 meter dipole-dipole survey using the
Zonge Non- Referenced Complex Resistivity (CR) Method. After several days delay due to low
clouds and snowstorms, the survey began on October 26, 2010 with the helicopter mobilization
of the IP gear and crew to the transmitter site (Tx1) at approximately 11,500 feet. Gear and
people were mobilized by with an A-Star helicopter from a highway pullout just south of Rico,
about 3.5 miles to the east of Calico Peak. The 2.7 kilometer survey line was completed and gear
demobilized from the claim group on October 29, 2010.
The CR IP/Resistivity data were collected by an experienced Zonge operator (Mark Reed) with
the help of four Minex Exploration field assistants. The line location was selected to take
advantage of a ridge line trail located on the west side of Calico Peak. This location allowed the
line to span the entire N-S extent of the claim group with a minimum of terrain changes and no
line cutting. Readings were made to an N spacing of 8 when possible, providing a depth of
investigation along the line in excess of 300 meters. The difficult mountain terrain with
elevations in excess of 11,500 feet and up to 3 feet snow dumped in two back to back winter
storms on the weekend before the survey made the work slow and difficult. Preliminary 2D
Smooth Model Results were generated by Zonge's Tucson office immediately following the
conclusion of the survey.
Previous drill holes by Anaconda in the early 1980's on the NE side of Calico Peak indicated the
possibility of a buried mineralized system within about 500 feet of the surface. The 2010 line
was intended to test that possibility by running a N-S oriented 150 meter dipole-dipole
IP/Resistivity line on the ridge line to the west of Calico Peak. Preliminary two dimensional
inversion modeling of the Zonge Non Referenced Complex Resistivity data indicates IP phase and
resistivity features that could be related to a porphyry system. Modeling also indicates that the
depth of penetration for the survey line is in excess of 300 meters.
2011
JANUARY
P a g e | 40
A modeled >35 milliRadian phase IP anomaly, indicative of possibly 4-6 percent disseminated
sulphides, extends some 1550 meters N-S from about station 700 to station 2250 and is open to
depth off the section. Within this zone a higher response section of up to 60 milliradians extends
some 700 meters from 1000 to 1700 possibly outcropping around station 1350. The resistivity
model indicates two areas of lower resistivities with interpreted resistivities in range of 50 to 60
ohm-meters. The southern anomaly is flat to gently north dipping zone about 100 to 150 meters
deep on the southern margin of the higher response core of the IP anomaly. The second is north
of the north edge of the higher response, is more vertically oriented and about 200 meters deep.
Source of these lows could be increased veining, clay alteration or fracturing.
To best test the IP and resistivity models, they need to be placed in the context of surface
geology, alteration and geochemistry. Integration of mapping, geochemistry and previous work
with the modeled IP and resistivity sections could help prioritize targets in this broad anomalous
IP zone. The best area to test may not be the highest IP response. Highest IP is often associated
heavy pyrite alteration in the pyrite shell of a porphyry deposit. Moderate IP response in-board
from the pyrite shell is often a better target. Integration of previous geophysical data such as
the available Anaconda aeromagnetic map could assist in mapping the potential lateral extent
of this system.
Discussion
The IP/resistivity data were collected using a standard 150 meter dipole-dipole configuration
and a Zonge Non-Referenced Complex Resistivity System. The Zonge system consisted of a GDP32 II digital receiver and a time synchronized 3 kilowatt IP transmitter and motor generator set.
In the Non- Referenced CR method the transmitter outputs a 1/8 Hertz square wave current and
the digital receiver measures the resultant voltage waveform. Through Fourier transform
processing the voltage waveform is decomposed into a 1/8 Hertz fundamental and higher
harmonics. Time synchronization with the transmitter allows the determine of the IP phase shift
parameter in milliradians. The 1/8 Hertz IP phase parameter is generally approximately equal to
the 1/8 Hertz time-domain IP chargeability parameter.
Figures (on the following pages) show the location of the claim block, patented claims and the
N-S oriented 150 meter dipole-dipole IP/resistivity line. Station numbers on Figure 2 correspond
to station numbers on the IP and resistivity sections in Figures 3 and 4. Figure 3 shows three
stacked sections: the 2D smooth modeling of the IP data, the data calculated from this model
and at the bottom, the data observed in the field. The calculated and observed sections show a
good fit. The model section shows a central broad zone of elevated IP response. Greater than 35
milliradian values (comparable to about 35 chargeability units) extend N-S from 700 to about
2250 and to depth off the section. Within this zone values greater than 45 milliradians extend
from about 1000 to 1700. These higher chargeabilities come to the near surface between 1350
and 1600 with the zone practically in outcrop at 1350 where phase values peak at greater than
60 milliradians. For a disseminated sulphide target, phase responses of this magnitude could
indicate approximately 4 to 6 percent sulphides. Overall the higher IP response in the center of
2011
JANUARY
P a g e | 41
the line shows a steep north contact and about a 50 degree south dip on the southern contact.
Outside the central anomalous zone, shallow and thin zones are located at about station 450
and between 750 to 1050. These zones show little depth extent and could represent either local
alteration or vein material.
The resistivity section is shown in Figure 4. The three stacked sections are again the 2D smooth
model, the data calculated from the model and the observed field data at the bottom. Again the
bottom two sections show a good fit between calculated and observed data. Two relative
resistivity lows are visible on the model section. A vertical oriented zone is located below station
1900. Lowest resistivities are about 50 ohm-m at a depth of about 200 meters. This low
resistivity is located in an area of about 35 milliRadian phase north of the north contact of the
higher IP response core. The second low resistivity zone is located between stations 1200 and
1400. This flat lying to gentle north dipping zone is about 100 to 150 meters below the surface.
Modeling suggests that it could approach the surface between 1100 and 1150. This zone
correlates with the shallow south boundary of the high IP core and has model IP phases that
range from the 30's to 50's. The source for these lower resistivities could be or an increase in
veining, clay alteration or simply an increase in fractures. Near surface between about stations
1300 and 1800 higher resistivities are present in the top 50 to 100 meters of the model. These
higher resistivities could be associated with surface conditions, rock type or silicification. The
surface here on the steep western slope of Calico Peak is covered by a large boulder field”.
2011
JANUARY
P a g e | 42
FIGURE 17. I P RECONNAISSANCE LINE 2010
2011
JANUARY
P a g e | 43
FIGURE 18. PRELIMINARY IP LINE 1 AT CALICO PEAK – CHARGEABILITY EQUIVALENT
JANUARY 2011
P a g e | 44
FIGURE 19, PRELIMINARY IP LINE 1 AT CALICO PEAK - RESISTIVITY
JANUARY 2011
P a g e | 45
DRILLING
Napier has not completed any drilling on its own account but plans to do exploratory drilling in 2011. Three
historical drill hole sites from past exploration were noted by J Baughman as shown below:
Label
Colorado DDH
CP81-1
DDH
Description
2008 drill hole by Colorado Minerals & Geology
Anaconda drill hole
Anaconda drill hole
Easting
Northing
Elevation
756796.04
4178058.77
11237.001
756623.87
756490.53
4177872.5
4176929.94
11309.501
Core from one hole has apparently been located but there is no word on its condition.
SAMPLING METHOD AND APPROACH
Rock samples were taken from old dumps and places of interest and positioned with GPS. They are
grab samples, generally 1-5 kg. in size, and are character samples and are not necessarily
representative of grades or rock types in the target.
Soil samples are either soils or talus fines taken as small samples generally filling a kraft soil “bag” –
1/4to ½ kg in size. These were taken where possible from B horizon, but as with most alpine areas,
thick talus fine cover may hide the true soil profile. They may not be representative of the material
at the bedrock interface. The property is at an early stage of exploration, and soil sampling may not
be definitive in this area.
SAMPLE PREPARATION, ANALYSES AND SECURITY
Rock and soil samples remained in the possession of the Minex and/or Baughman samplers until
shipped directly to the prep lab. They were analyzed by ALS Minerals Laboratory (ALS USA) in Reno
Nevada. ALS USA is the USA affiliate of ALS Chemex Laboratory in Canada, a prominent and widely
respected analytical firm. Multi-element analyses were by ICP 41 technique, except for Fluorine
which requires the special F ELE 81a process. Neither the authors nor the samplers have any
connection with ALS laboratories. The sample results are as expected and are considered reliable.
JANUARY 2011
P a g e | 46
FIGURE 20. LOCATION OF 2010 GEOCHEMICAL SAMPLES
(J. Baughman)
JANUARY 2011
P a g e | 47
FIGURE 21. SAMPLES AND WAYPOINTS BY J. BAUGHMAN
JANUARY 2011
P a g e | 48
TABLE OF ROCK SAMPLES FROM 2010 (J. Baughman)
Label
22385
22386
22387
22388
22389
22390
22391
22392
22393
22394
22395
22396
22397
22398
22399
22401
22402
22403
22404
Description
Prospect pit - sample over 1 m Strong argillic alt - original rock texture destroyed
Prospect pit - sample from dump Qtz eye porphyry - Intense argillic alteration Fine qtz veinlets
Outcrop sample just below Calico Peak Kaolin/Sericite w/ hematite riming
Outcrop sample on North ridge of Calico Peak Siliceous rib with N/S jointing Limonite/Hematite
Outcrop sample on north ridge of Calico Peak Intensely altered porphyry - strong Kaolin/sericite
Veinlets - Moly? Box works after sulfides
Prospect pit on north ridge of Calico Peak Sericite altered porphyry with 1-2% box works Weak
veining
Outcrop sample on Johnny Bull prospect 2 m chip sample across outcrop Vent structure? Chalcedonic
& opaline silica fg diss pyrite w/ blebby box works (oxide)
Outcrop - 10 m stockwork zone Pebble breccia dikes and strongly limontic veining sample taken over
5 m. Veining 10 deg Az/65 E dip Outcrop on trail
1 m chip across latite porphyry. Epidote alteration. Weak sulfides Need to look under microscope
Sample taken in drainage below lower DDH.
Dump sample from collapsed adit Acid leach rock with 5% pyrite Sample taken from dump with acid
drainage from old adit
Dump sample from well preserved adit (open) Acid leached rock with >4% pyrite
Prospect pit - 1 m chip across silicified rib with > 5% sulfides. Pyrite with bornite? blebby "peacock"
sulfide. 0 deg 25 deg E dip. Pit just below upper drill hole.
Large prospect with outcrop - 1 m vertical chip sample Strongly alt porphyry with veining and > 5%
sulfides pyrite
Small prospect with outcrop - 1 m chip on outcrop Altered latite porphyry with reddish limonite.
Dump from collapsed adit. Dump sample Opaline silica and clay in latite porphyry. Friable sample
with no solid rock. Sample taken below LZ and Colorado DDH
Outcrop Sample Lt. grey monzonite porphyry? 3% sulfides - 2 types 1 - pyrite 2 - fg blebby Sample
taken near prospect pit. Joint at 310 Az
Small dump from adit (in Timber), dump sample Monzonite wallrock? Sampled sulfide vein - dense dk
grey/blk sulfide Sulfide rick vein material - no qtz
Small dump from collapsed adit. Dump sample Polymetallic qtz vein - vuggy chalcedonic silica w/xtals
Pyrite, sphalerite, galena Maybe sulfosalts (Ag)
Med size dump from collapsed adit - dump sample VUGGY SILICA rock w/dk grey fg pyrite & spotty
JANUARY 2011
Easting
756812.5
756597.2
756494
756497
756470.8
Northing
4177849
4177920
4177682
4177763
4177842
Elevation
11487.7
11581.6
11989.2
11898.5
11795.2
756448
4177992
11715.6
756459.2
4178320
11631.2
756551.4
4178314
11550.8
756880.9
4178146
11207.8
756681.7
4178215
11364.7
756647.9
756643.7
4177959
4177942
11458.6
11498
756643.3
4177891
11574.5
756268.6
756555.2
4177401
4176940
11785
11627.3
757159.2
4176911
11016.2
757540.3
4177118
10859.3
757461.1
4177361
10587.3
757236.5
4177191
10792.3
22405
22406
22407
22408
22409
22410
22411
22412
22413
P a g e | 49
pyrite - 2%. This rock is pure SiO2 w/sulfides. - acid leach vein? No VG but this rock should carry good
grade (Au/Ag).
Well preserved adit on East side of Calico Peak - Dump sample. Silica sponge rock w/quartz eyes.
Strong lim/hem/Jarosite(yellow) w/blebby dk sulfides. Wallrock to 22406.
Well preserved adit on east side of Calico Peak Qtz vein - non vuggy massive qtz vein w/ f.g. diss dk
grey sulfides Some "banding" of sulfides Alunite rich - pale grey soft "creamy" looking mineral.
Small dump with collapsed adit. Dump sample Sandstone with limonite - Cutler Fm? Med grained SS
with limonite stringers. Adjacent to striking breccia unit. (Sample 22408)
Outcrop sample - 1 m vertical chip sample across "punky" strongly limonitic breccia. 50 m E-W
exposure of breccia unit with vuggy box works after sulfides. Very hard rock
Float sample taken from East side of Calico Peak. Main" Phase - Qtz-Feldspar porphyry with limonite
Float taken near 22409 - "Main Phase". 22410 - "Silica Phase". Dense solid Si02 with 2-3% f.g. diss
black sulfides. Also "wispy" sulfide banding
Small dump sample from collapsed adit. Vuggy silica rock. Original texture destroyed. Hematite,
limonite, Jarosite. Possibly a vein - country rock sediments (Cutler?).
Small prospect pit in timber. Latite hornblende porphyry. Limonite/Jarosite - box works after box
works after sulfides aprox. 2%. Within Cutler country rock.
1 m chip across gossanous outcrop. Hornblende feldspar porphyry? Brecciated & veined strong areas
of gossanous limonite. 300 deg joints with NE dip.
Sampling by J. Baughman, October 2010
Assays are shown on the following pages
Analytical sheets are included in an Appendix
JANUARY 2011
756657.2
4177435
11360
756659.5
4177433
11359.2
756623.8
4177327
11360
756577.2
4177333
11445.2
756482.4
756481
4177437
4177439
11531.9
11531.9
757070.2
4177613
11235.4
757028.7
4177471
11267
756805
4177325
11242.5
P a g e | 50
TABLE OF ROCK ASSAYS J.G.BAUGHMAN
Label
Au ppm
Ag ppm
As ppm
Bi ppm
Cd ppm
Cu ppm
Fe %
Mo ppm
Pb ppm
S%
Sb ppm
Sn ppm
W ppm
Zn ppm
22385
0.012
0.16
65.2
2.39
0.06
8.2
2.21
2.92
521
0.23
1.51
2.6
1.6
8
22386
0.017
0.37
2.5
9.92
0.17
14.1
1.19
61.8
117
0.25
0.29
10.1
2.3
23
22387
0.018
0.78
12.2
4.29
0.07
2.8
0.58
0.99
647
1.03
2.24
2
0.9
8
22388
0.017
0.21
9
3.98
0.12
32.4
2.59
11
880
0.85
1.44
3.8
0.9
14
22389
0.017
0.46
1
2.34
0.18
22.1
0.73
19.1
146
0.68
0.39
4.8
2.9
19
22390
0.018
0.15
1.7
1.21
0.11
14.2
0.69
28.8
97.7
0.61
0.25
5.9
4.3
12
22391
0.22
18.95
263
6.65
0.02
21.3
0.57
2.12
346
0.32
102.5
9.9
6.6
5
22392
0.009
0.14
26.2
0.58
0.05
23.4
2.29
0.33
33.5
0.06
1.03
1.2
0.5
17
22393
0.014
0.13
3.2
0.89
0.02
21.2
2.95
0.53
12
0.22
0.56
1.4
0.2
31
22394
0.041
0.8
13.1
1.9
0.05
19.9
2.06
1.35
375
1.72
4.1
5.2
3.4
11
22395
0.02
0.3
1.9
1.92
0.17
47.2
3.55
30.6
166
4.06
0.31
6
1.6
13
22396
0.016
0.42
2.6
2.04
0.09
8.7
1.99
25.5
206
0.75
0.21
6.5
5
8
22397
0.034
0.37
1.1
6.76
0.29
21.2
2.31
25.3
130.5
1.3
0.46
9.3
3.2
30
22398
0.003
0.11
2.2
0.08
0.05
26.4
3.29
1.07
7.8
0.2
0.18
1.3
0.6
58
22399
0.018
0.48
21.8
0.62
0.11
10
1.38
1.57
169.5
0.42
7.21
1.3
13.1
25
22401
0.008
0.19
17.4
0.2
0.03
3.1
3.3
0.71
4.9
1.39
0.55
1.1
0.5
24
22402
0.009
0.26
6.3
0.25
0.02
9.9
5.55
0.4
7.7
2.82
1.71
4.1
2.2
25
22403
0.172
59.2
150.5
5.47
50.9
710
2.97
62.4
6020
3.49
861
13.5
4.7
5940
22404
0.087
4.45
58
4.6
0.17
29.5
1.4
1.32
42.7
1.3
22.7
3.3
2.1
22
22405
0.005
1.5
8.4
1.16
0.41
2.5
0.6
1.47
429
2.32
2.93
1.8
1.5
48
22406
0.004
0.72
33.7
1.17
0.07
51.9
1.32
1.74
240
6.3
4.16
1.6
1
8
22407
0.005
0.08
10.9
0.38
0.02
1.7
0.94
0.23
14
0.15
0.61
0.8
0.3
5
22408
0.029
3.04
466
4.59
0.07
30.4
9.68
1.14
773
0.85
25.1
2.9
0.5
9
22409
0.008
0.2
7.6
1.18
0.14
2.7
1.01
1.12
75.5
2.04
1.78
1.1
1.5
17
22410
0.002
0.03
1.3
0.87
0.02
2.4
0.05
1.2
1600
10
0.39
4.6
3.1
2
22411
0.015
0.37
35.5
1.36
0.1
23.8
1.55
2.15
234
0.22
6.38
3.1
3.8
13
0.15
4
0.13
0.08
25.8
3.72
0.76
13.2
0.03
0.43
1.3
0.4
54
0.14
4.6
0.09
0.02
24.2
3.97
1.48
6.7
0.88
0.4
1.7
0.3
26
22412
22413
0.006
0.009
Sampled by co-author J.G.Baughman
JANUARY 2011
P a g e | 51
BILL BREEN SAMPLE LOCATIONS AND NOTES
Label
DDH
CP81-1
Colorado DDH
17521
17520
17519
17518
17517
17516
17515
17514
17513
17512
17511
17510
17509
17508
17507
17506
17505
17504
Comment
Number uncertain
Cutler Fm float in a tree well
20 meters down hill on hiking
small outcrop, joints 303, 83ne
on dump lt grey silicified Cut
dump on ridge altered cutler F
Mine Dump caved adit Calico Pe
prospect pit/caved adit? 3m x
float in tree well, most rock
outcrop in a tree well from fa
on Johnny Bull trail, .3 m cha
prospect pit 3m x 1m, joint 07
adjacent dump from 17509 about
prospect pit 3m x 2m sampled
prospect pit 2m x 3m x 2m at
prospect pit 1m x 2m, medium g
float, on hiking trail strongly alt.
Cutler Fm outcrop in hiking tr
Dump Sample Pit 3m x 3m x 2m
Easting
Northing Elevation
756796.04 4178059
11237
756623.87 4177873
756490.53 4176930
11309.5
756221.85 4178017
11352.9
756274.66 4178200
11405
756285.58 4178215
11469.6
756399.15 4178266
11502.7
756463.6 4178234
11382.1
756242.48 4178085
11394.7
756220.26 4178065
11346.6
756247.54 4178013
11423.1
756260.08 4178036
11464.1
756307.45 4178105
11464.1
756314.02 4177993
11606.8
756331.75 4178024
11510.6
756331.13 4178024
11515.3
756345.85 4178110
11518.5
756405.15 4178127
11551.6
756446.32 4178143
11598.1
756476.75 4178197
11636.7
756452.81 4178022
11745.6
JANUARY 2011
P a g e | 52
BILL BREEN SAMPLE DESCRIPTIONS
LABEL
DESCRIPTION
DDH
Anaconda drill hole
CP81-1
Colorado
DDH
2008 drill hole by Colorado Minerals & Geology
17521
17520
17519
17518
Cutler Fm float in a tree well, w/ diss py in quartzite <1% py, clay between quartz grains.
20 meters down hill on hiking trail Calico Peak porphyry, py diss in matrix surrounding feldspar crystals, fine grained silicified vuggy with py filling
some vugs, 1-10% py
small outcrop, joits 303, 83ne, Looks like Calico Peak felds porphyry within the Horndblende Latite Porphyry, calico Peak is mineralizied w/ 1-3% py
in matrix surrounding the feldspar crystals. Dike within a Dike
17517
on dump lt grey silicified Cutler Fm? some feld gone to clay and sericite, alunite diss py 1-2% , Yellow Brown Fe-Ox jarosite?
dump on ridge altered cutler Fm quartzite w/ clay alunite alteration, diss py in quartzite <1%, yellow brown, orange brown Fe-Ox on weathered
surfaces
17516
Mine Dump caved adit Calico Peak feldspar porphyry strongly mineralizied py 1-5%, kspar gone to kaolinite, sericite alunite
17515
prospect pit/caved adit? 3m x 6m diss py within a quartz pebble conglomerate and quartzite. Cutler Fm py <1%
17514
float in tree well, most rock is Calico peak felds porphyry, mixed with Cutler Fm quartzite with trace diss py, Fe-Ox stained on weathered surfaces
outcrop in a tree well from fallen over tree, apears to be a vein within quartzite? quartz 80% feld 20%, feld gone to clay, visible py 1%. mineralizied
zone is .6 m wide, There is quartz pebble conglomerate present
17513
17512
17507
on johnny Bull trail, .3 m channel Cutler Fm light grey quartzite w/ some clay between the quartz grains minor Fe-Ox along fractures, boxwork <1%
prospect pit 3m x 1m, joint 072, 62 SE, light grey Cutler Fm fine to med grained quartzite w py 1%, weathered surrounding fresh rock is boxwork up
to 5%
adjacent dump from 17509 about 40 feet to the north white to light grey quartzite with clay between matrix w/ diss py 3%, trace of Mo sulfides
gone to Fe-Ox and boxworks in weathered areas surrounding fresh rock
prospect pit 3m x 2m sampled float from pit orange brown stained on weathered surfaces, fresh surface Cutler fm light grey to white quartzite with
clay and alunite in matrix between quartz grains diss py -5% Mo < 1%
prospect pit 2m x 3m x 2m at toe of collapsed adit. Cutler Fm box work py - Fe-Ox. orange brown Fe-Ox, felds gone to clay. coarse grained altered
Hornblende latite hoprnblende gone to Fe-Ox
prospect pit 1m x 2m, medium grained Cutler Fm. light grey w/ orange to reddish brown Fe-Ox along fractures. minor yellow-brown Fe-Ox within
matrix between quartz grains. < 1% py visible
17506
float, on hiking trail strongly silicified fine grained 1-5% boxworks light grey w/ vugs
17505
Cutler Fm outcrop in hiking trail 0.5 m channel yellow brown Fe-Ox stained quartzite, jarosite? strong Fe-Ox staining on weathered surfaces
17504
Dump Sample Pit 3m x 3m x 2m Cutler light grey to white quartzite yellow brown Fe-Ox on weathered surfaces
17511
17510
17509
17508
JANUARY 2011
P a g e | 53
BILL BREEN SAMPLE VALUES
BREEN SAMPLES 2010
Sample
Description
-Z1
cvd M.
kg
0.02
FELE81a
F
ppm
20
MEICP41
Ag
ppm
0.2
MEICP41
As
ppm
2
17521
1.94
1860
<0.2
<2
17520
1.61
1220
<0.2
17519
1.58
400
17518
1.74
17517
MEICP41
Cu
ppm
1
MEICP41
Fe
%
0.01
MEICP41
Mo
ppm
1
MEICP41
Bi
ppm
2
MEICP41
Pb
ppm
2
MEICP41
S
%
0.01
4
1.44
<1
<2
20
0.79
9
12
3.21
<1
2
73
<0.2
6
8
2.50
<1
<2
970
1.3
34
50
2.98
<1
1.05
740
0.3
9
13
1.22
17516
1.15
1200
<0.2
10
26
17515
1.39
890
0.2
3
17514
1.59
2260
0.3
17513
1.62
1640
17512
1.61
17511
MEICP41
W
ppm
10
MEICP41
ZN ppm
<2
<10
5
2.67
<2
<10
4
12
1.31
<10
20
3
169
3.06
<2
2
<10
4
<1
5
31
0.99
<2
<10
3
2.85
1
2
75
2.69
<2
<10
4
5
1.36
<1
2
37
0.61
<2
<10
8
15
1.62
0.91
2
13
150
0.38
0.17
<2
<2
<10
<10
6
7
<1
1
2
0.2
2
<2
730
<0.2
2
2
0.73
<1
4
26
0.11
<2
<10
4
1.60
1720
<0.2
2
7
1.21
<1
3
26
0.26
<2
<10
5
17510
1.42
1880
<0.2
<2
4
1.64
3
<2
21
0.12
<2
<10
<2
17509
1.25
1590
0.2
16
1.21
730
1.4
16
1.34
23
56
189
0.37
0.15
<2
<2
<10
<10
7
1.46
1
<1
3
17508
<2
<2
36
17507
1.01
830
<0.2
<2
4
0.66
1
6
78
0.10
<2
<10
5
17506
1.14
1120
<0.2
<2
2
0.47
1
4
60
0.25
<2
<10
3
17505
1.05
450
<0.2
8
6
1.92
<1
2
25
0.03
<2
<10
16
17504
1.23
900
0.2
2
4
0.82
45
2
26
0.17
<2
<10
3
Sampled by W. Breen, analyzed by ALS Chemex.
JANUARY 2011
MEICP41
Sb
ppm
2
8
P a g e | 54
DATA VERIFICATION
The rock samples taken by J. Baughman were mainly at old dumps, workings and sites of past
exploration. The soil geochemical grid shows a subdued molybdenum anomaly where expected on
the north side of Calico peak. While only a few of the samples are strongly anomalous in any
element, (mainly base metals) a number of them show weak Mo values, as would be expected for a
buried molybdenite porphyry deposit. In this case there was no specific showing to be
corroborated by sampling as the target is a buried body.
Rock sample descriptions follow Figures 20 and 21.
ADJACENT PROPERTIES
There are a number of patented claims or claim groups in the Calico Peak area. The authors have no
specific information about these claims, but efforts should be made to identify each prospect and
research the history. The most comparable molybdenum deposit, which serves as a target model for
Calico Peak is described below.
The information below is provided as background material for the reader. The writer has not
been able to independently verify the information contained although he has no reason to
doubt the accuracy of the descriptions. The information is not necessarily indicative of the
mineralization on the property that is the subject of this Technical Report. The source of the
information concerning adjacent properties is from publicly available documents, from
company websites and press releases published on the Internet.
Silver Creek Molybdenum deposit
In terms of comparable properties, the Silver Creek molybdenum deposit, situated approximately three
miles east of Rico, serves as a model for exploration. The following brief description is abstracted from
Cameron, Barrett, and Wilson’s paper (AIME Trans)
“Exploration by Anaconda Minerals Co. in the Rico area from 1978 through 1983 resulted in discovery of
the Silver Creek molybdenum deposit. The drill indicated resource 1 is 40 Mt (44 million st) of 0.31% Mo,
and projections suggest that the deposit may exceed 182 Mt (200 million st). No source intrusion has
been intersected by drilling, but its presence is suggested by intramineral silicic alkali-alaskite porphyry
dikes observed at the surface and in drill holes.
1
See Cautionary statement. The resource referred to is a Historical estimate.
JANUARY 2011
P a g e | 55
Age dates and fluid inclusion studies indicate that the deposit was formed 5.2 f 0.2 m.y. ago and that
more than 1200 meters (3937 ft.) of cover has since been removed by erosion.
The deposit is hosted by Precambrian quartzite and greenstone, and Paleozoic sediments. Three
prominent faults intersect in the vicinity of the molybdenum deposit, and one of these, the Last Chance
fault, strongly influenced the shape and location of the deposit. The juxtaposition of host rock across the
Last Chance fault reflects significant offset spanning at least three different periods.
Wallrock alteration associated with the deposit includes potassic, phyllic, and propylitic zones in noncalcareous rocks and garnet and anhydrite-diopside zones in the carbonates. All +0.2% Mo
mineralization is within the potassic and garnet zones. Premineral faults that intersect the deposit
contain the only surface molybdenum, tungsten, and fluorine anomalies. Dispersion halos of the
indicator elements were defined by drilling in the discovery phase of exploration, and are particularly
well-developed in the hanging wall of the Last Chance fault”.
The resource estimates quoted herein are based on data and reports obtained and prepared by
previous operators. This historic resource estimate for Silver Creek is considered to be relevant, and is
believed to be reliable based on the amount and quality of historic work completed. Neither the present
author nor Napier have completed the work necessary to independently verify the classification of the
mineral resource estimates. The Company is not treating the mineral resource estimates as National
Instrument 43-101 defined resources verified by a qualified person. The historical estimates should not
be relied upon.
The property was subject of a Technical report for Bolero Resources Corp. by Keith McCandlish P.Geo,
although Bolero have now abandoned the option and withdrawn from the project.
McCandlish compares alteration patterns at Silver Creek to the Carr Fork porphyry at Bingham
Canyon Utah and states:
The Silver Creek molybdenum mineralization is most likely a Climax-type of molybdenum deposit. They
are quite different from a classical molybdenum porphyry occurrence. They are relatively high-grade
(0.3%-0.5% Mo) with a maximum size of 500 million tons and occur in tensional rift environments with
the intrusion of high-silica porphyritic-granitic (alkalic) igneous plutons with high fluorine: chlorine ratios
and a low copper content. They may be restricted to extensional environments such as the Basin and
Range Province and are not know from South America. The best examples are Climax, Urad-Henderson
and Mount Emmons (recently optioned by Kobex resources Ltd.) in Colorado; Questa in New Mexico and
Pine Grove in Utah.
In operation since 1976, the Henderson Mine has produced 160 million tons of ore and 770 million
pounds of molybdenum. Remaining proven and probable reserves are 148,100,000 tons at a grade of
0.21% Mo. The Climax Mine has remaining proven and probable reserves of 156,400,000 tons at 0.19%
Mo. This deposit may have been considerably larger prior to glacial erosion. Freeport McMoran has
published plans to re-open the Climax Mine in 2009.
JANUARY 2011
P a g e | 56
FIGURE 22. SKETCH OF SILVER CREEK MOLYBDENITE DEPOSIT
JANUARY 2011
57
FIGURE 23. DRILL SECTION, SILVER CREEK MOLYBDENUM DEPOSIT
(Contours are % Mo)
P a g e | 58
Model:
Cameron Barrett and Wilson note: “Application of the Henderson deposit genetic model was essential to the
discovery of the Silver Creek molybdenum deposit. Dispersion halos of fluorine, molybdenum, and tungsten were
key elements used to direct the exploration drilling program. Timely encouragement from drill hole intercepts
kept exploration active long after molybdenum market conditions had deteriorated. Although the Silver Creek
deposit has been only partially defined by drilling, it appears to be very large and high grade. The known
resource from drilling is estimated to be approximately 40 Mt (44 million st) of 0.31% Mo mineralization at a
0.2% MO cut-off. Projections of the outline of +0.2% Mo indicate that the deposit may exceed 182 M tonnes
(200 mil1ion st)' Two factors suggest that the grade may increase with additional drilling: (1) geologic Center
(source intrusion) of the deposit has not been located. (2) the structural control of the Chance fault suggests
that t a high grade keel may occur in an untested area the southeast where the fault intersects the mineralized
zone”.
MINERAL PROCESSING AND METALLURGICAL TESTING
Napier has not completed any mineral processing studies on the property, such studies are premature at this
time.
MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
There are no current mineral reserves or resources on the Calico Peak property, which is at a grass-roots level of
exploration.
Serna Isaza in 1971 sampled the altered zone at Calico Peak and estimated a volume of alunite present. (Alunite
is an alteration mineral with significant content of Potassium and Aluminum)
Detailed sampling, using a grid pattern of 100 foot sample spacing, of the rock in the central area
of the peak was performed in order to estimate its economic potential for alunite. The286 rock samples were
analysed for soluble alumina by atomic absorption. The alunite values were plotted and analyzed statistically.
The average and the mode are both 7.3% soluble alumina
or 19.9% alunite equivalent. The plotted values showed as asymmetrical distribution ranging from 1.7 to 16.7%
of soluble alumina.
Serna Isaza noted: The entire Calico Peak can be considered as mineralized with alunite; for calculation purposes,
the volume of mineralized rock was assumed to be a double cone (surface and subsurface) with an area of the
base of the cones equal to the mineralized base of Calico Peak and a height and depth of 500 feet each. The
volume of mineralized rock is 100 million tons of rock with an average concentration of 19.9% alunite”.
JANUARY 2011
P a g e | 59
This estimate is historical and is not compliant with NI 43-101. Neither the authors not Napier have completed
any work to substantiate the estimate and it should not be relied upon.
Alunite is described below:
Alunite: AlK3(SO4)2(OH)6, Potassium Aluminum Sulfate Hydroxide.
Source: http://alunite.org/en/alunite-mineralization.html
Alunite is a naturally occurring mineral hydroxide that can be found in large deposits throughout the world. Since
the discovery of alunite, in Italy, during the 15th century, it has also been called aluminilite, both which originate
from the Latin “alunit”. Alunite has been, and is currently the subject of laboratory and commercial studies with
the objective of extracting potassium sulfate (K2SO4) and alumina from the mineral. The simple composition of
alunite, and the capable recovery process of alumina, make it attractive to potential developers as its respective
contents are profitable components of aluminum and fertilizer, as well as many other commercial uses. An
surprisingly common commercial use of alunite alum is for the active ingredient of chemically derived
deodorants. There are however natural deodorants which use potassium alum, a completely natural occurring
mineral, however a more cost effective method is to use alum that is chemically synthesized from alunite using
an acid leaching process. The synthetic alum made from alunite is significantly cheaper to manufacturer than to
extract potassium alum from natural sources, thereby making the deodorant manufacturing process also
cheaper.
Alunite is a mineral of many uses. Its chemical composition allows for the recovery of its individual components,
which can be utilized as a source of alum, potassium, and aluminum, as well as mineral specimens. The
recovered chemical components, most notably alumina, obtained through a wet chemical caustic leach, is used
in the commercial manufacturing process of aluminum. The sourced alumina is employed as the base for the
production of aluminum metal via the electrolytic reduction of alumina in a molten bath of natural or synthetic
cryolite (Na3AlF6), known as the Hall-Heroult process.
Alunite Compound Particle Uses:
•Aluminum
•Fertilizer
•Additive in leather and textile industries
•Resins
•Fibres
•Rubbers
•Alloys
JANUARY 2011
P a g e | 60
•Medical astringent
•Baking powder
•Mordant dye
Theoretically, pure Alunite does exist in rare deposits, but the percentage of Alunite in commonly discovered ore
varies from mine to mine, and is usually below 50% pure alunite concentration. Historically, extensive deposits
were mined in Italy, Hungary, and Australia. Currently, the most notable deposits are located in Dashkesan,
Azerbaijan, which records an estimated 300 meters of alunite reserves obtained from a hydro-thermally altered
volcanic tuff with 40-60% alunite in quartz. The largest US deposit was in Beaver County, Utah, USA, where 40%
alunite ore was mined.
OTHER RELEVANT DATA AND INFORMATION
Environmental and social notes
Bolero Resources Corp. , a Vancouver based junior exploration company which optioned the Silver Creek
molybdenum property east of Rico Colorado, may have backed away from the Silver Creek molybdenum
property for a number of reasons, but there have been environmental and social comments about a
mining project in the Rico area (in spite of the origin and long mining history of the town). There are
numerous hiking trails in the Calico peak area, and any exploration will have to be done carefully with
minimal surface impact. There are at present, no environmental factors known to the author at Calico
peak, but considering the large volume of altered rock, including alunite, some background environmental
sampling might be worthwhile.
Geothermal potential
In the course of his Technical report for Silver Creek, McCandlish noted “At least four active hot springs
were note along the east side of the Dolores River including one which had been capped as it tended to act
as a geyser during periods of heavy rain when meteoric water percolated downwards. Anaconda
geologists noted a very high geothermal gradient in the drill holes. The potential for geothermal energy
has also been reviewed by others and should be kept in mind by Napier.
JANUARY 2011
P a g e | 61
INTERPRETATION AND CONCLUSIONS
The Calico peak property was staked as a molybdenum exploration target thought to be similar to the
Silver Creek molybdenum property nearby on the east side of Rico, Colorado, and to other high-fluorine
molybdenum system presently being mined in other parts of Colorado. The high-fluorine model is well
known, and the approach at Calico would be to try and determine a mineralized center by the indicator
elements, molybdenum, tungsten and fluorine.
The presence of a large alunitic alteration zone is encouraging, as is the location in an area of high heat
flow, numerous vein/replacement gold-silver and base-metal veins and replacements nearby which are
often peripheral to the intrusive center.
The strategy at Calico Peak would be to complete some deep IP or Titan 24 surveys over the whole
property, with magnetics, radiometrics and possibly EM surveys. This would be followed by one or more
deep drill holes. While this may be costly, the goal would be to find a Silver Creek type target at shallower
depth than the Silver Creek mineralized body itself, (Note that the ultimate size of the molybdenum zone
at Silver Creek has not yet been determined.
RECOMMENDATIONS

Prepare orthophoto style base maps for the property

Determine ownership of other claims in the area, particularly patented claims

Complete a helicopter airborne geophysical survey across all the claims incorporating Magnetic, EM and
radiometric sensors.

Alternatively complete a deep Induced Polarization (IP) survey or Titan 24 survey across the property
looking for a porphyry type signature at depth.

Based on success in the IP survey, complete three deep diamond drill core holes to test the anomaly.

The drill holes should be deep holes, from 1000 to 3000 feet. Note that the mineralized body at Silver
Creek is 4000 feet below the topography.

In the drillholes, molybdenum, tungsten and fluorine would be checked to determine if a geochemical
vector exists toward an intrusive body or molybdenum mineralized zone.

A positive vector would probably suggest additional diamond drilling.

Actual proposed diamond drill locations cannot be positioned with any certainty at present, as many
factors will have to be taken into account, prior to their location, which should be determined by the geologist
responsible for the program.
JANUARY 2011
P a g e | 62
FIGURE 22. SCHEMATIC DRILL SECTION PROPOSED DRILLING
JANUARY 2011
P a g e | 63
PROPOSED BUDGET
2011 Budgets (US Dollars):
Acquisition (completed)
Geologic Mapping, Rock and Soil Geo Chem Sampling & Analysis,
Geophysics IP Survey
Continued Geologic Evaluation, mapping sampling
Geophysical Exploration
Land Acquisition
Exploration Drilling- 5000 feet assays included
Project Management
Total
Contingency 10%
TOTAL COSTS
$30,000
$150,000
$100,000
$100,000
$75,000
$800,000
$75,000
$1,150,000
$ 115,000
$1,265,000
JANUARY 2011
P a g e | 64
SIGNATURE PAGE
Dated at Vancouver B.C. this 24 th day of March 2011
per:
__________________________________________________
BARRY J. PRICE, P.GEO.
Qualified Person
March 24, 2011
JAMES G. BAUGHMAN
______________________________________
JAMES G. BAUGHMAN, P.GEO.
Qualified Person
March 24, 2011
MARCH 2011
P a g e | 65
REFERENCES
Seklemian. Robert. 1971. Calico Peak, Dolores County, Colorado: Anaconda Company Rept.
Serna-Isaza, M.J., (1971); Geology and geochemistry of Calico Peak, Dolores County. Colorado: Unpub. N. S.
thesis, Colorado School of Mines, Golden, Colorado, 88 pp.
D.E. Cameron, L.F. Barrett, and J.C. Wilson, Discovery of the Silver Creek molybdenum deposit, Rico Colorado,
SME AIME Transactions, Vol. 280 -2099
Baker, R.C.: 1977: Report on the Rico Argentine Mining Company, Rico Mining District, Dolores County,
Colorado, Dated May 13th, 1977.
Bielak, J.W., Silver, D.B., Barrett, L.F.: 1981: Rico Project, 1981 Annual Report Cameron, D.E.: 1982: An Approach
to Study of the Rico District by Comparison to Bingham, Anaconda Minerals Company Internal Correspondence
Dated August 10, 1982.
Rico Molybdenum-Drill Core Testing Program, Anaconda Minerals Company Internal Correspondence Dated
August 18, 1982. 1984: 1982-1983 Geologic Report on the Rico District with Emphasis on the Silver Creek Moly
Deposit, Dated May, 1984.
Brown, Cameron et al., (2009) Rico geology Report. Prepared for Professor Nakagawa, MNGN 598 Pilot
Introduction to Geothermal Energy class,
Cameron, D.E., Barrett, L.F. and Wilson, J.C.: 1983(?): Discovery of the Silver Creek Molybdenum Deposit, Rico,
Colorado; SME/AIME Transactions
Dimo, G.; Larson, P.; Little, M.L. and Wright, W.: 1978: Rico District, Dolores County, Colorado. Volume 1:
General Geology, Alteration, Mineralization and Geochemistry.
Dupree, J.A.: 1982: Rico History from Cross Section Interpretation and Literature Study, Anaconda Minerals
Company Internal Correspondence Dated November 17, 1982
Little, M.L.: 1979: Alteration and Geochemistry of Surface Rocks, Rico District and Horse Creek Areas, Dolores
County, Colorado, Dated March, 1979
Mega Moly, Incorporated, Business Plan for Geothermal Power Production near Rico, Colorado, March 6th,
2009, Prepared by Ausburn Geoscience, Incorporated.
MARCH 2011
P a g e | 66
Norrgran, D.A. and Kling, H.:1983: Flotation Concentration of Rico-Silver Creek Molybdenum Ores, Laboratory
Investigation, Report No. 83-32, Project 124-97616, Dated July, 1983.
Singh, K.H., et al: 1982: Rico Molybdenum Resource Preliminary Engineering Assessment,
Minerals Planning Group, Research and Engineering Division, Anaconda Minerals Company, November,
1982. Report 18 of 25.
EnviroGroup Limited: 2007: Environmental Due Diligence Assessment Report, Rico Colorado.
Pratt, Walden, Summary Of The Geology Of The Rico Region, Colorado-New Mexico Geological SocietyNineteenth Field Conference.
Prepared by EnviroGroup Limited. Prepared for Bolero Resources Corp. and dated August 24, 2007.
Report No.: UB-0599 (draft).
Pruitt, Jr., R.G.: 1996: Digest of Mining Claim Laws, Fifth Edition, Rocky Mountain Mineral
Law Foundation, Denver, Colorado.
Tuck, R.: 1970: Mining Property at Rico, Colorado, Rico Argentine Mining Company
Internal Report.
URS Operating Services Inc.: 2003: Rico-Argentine-Site Reassessment (CERCLIS ID# COD980952519).
Prepared by URS Operating Services Inc. on behalf of START 2, EPA Region VIII, Contract No. 68-W-00-118
Effective Date:
McCandlish, K., (2007); Project No.: 2007CM15 Final Report Silver Creek Molybdenum Deposit, Pioneer
Mining District, Dolores County, Colorado Technical Report on a Mineral Property Pursuant to National
Instrument 43-101 of the Canadian Securities Administrators. Prepared for: Bolero Resources Corp.,
Vancouver, British Columbia Prepared by: Keith McCandlish, P.Geo. Associated Geosciences Ltd. Calgary,
Alberta
C. W. Naeser, C. G. Cunningham, R. F. Marvin and J. D. Obradovich (1980); ., United States Economic
Geology; 1 February 1980; v. 75; no. 1; p. 122-127;
Baars, D. L., 1962, Permian System of Colorado Plateau: Am. Assoc. Petroleum Geologists Bull., v. 46, no.
2, p. 149-218.
Bromfield, C. S., 1967, Geology of the Mount Wilson quadrangle, western San Juan Mountains, Colorado:
U.S. Geol. Survey Bull. 1227, 100 p.
Cross, Whitman, 1910, Description of the Engineer Mountain quadrangle [Colorado]: U.S. Geol. Survey
Geol. Atlas, Folio 171, 14 p.
MARCH 2011
P a g e | 67
Cross, Whitman, and Ransome, F. L., 1905, Description of the Rico quadrangle [Colorado]: U.S. Geol.
Survey Atlas, Folio 130, 20 P.
Cross Whitman, and Spencer, A. C., 1900, Geology of the Rico Mountains, Colorado: U.S. Geol. Survey
21st Ann. Rept., pt. 2, p. 7-165.
Ransome, F. L., 1901, The ore deposits of the Rico Mountains, Colorado: U.S. Geol. Survey 22d Ann. Rept.,
pt. 2, p. 229-397.
MARCH 2011
P a g e | 68
CERTIFICATE OF AUTHOR BARRY JAMES PRICE, M.SC., P.GEO
I, Barry James Price, hereby certify that:
I am an independent Consulting Geologist and Professional Geoscientist residing at 820 East 14th Street,
North Vancouver B.C., with my office at Ste 1028 - 470 Granville Street, Vancouver, B.C., V6C 1V5,
(Telephone: 682-1501)
I graduated from University of British Columbia, Vancouver B.C., in 1965 with a Bachelor’s Degree in
Science (B.Sc.) Honours, in the field of Geology, and received a further Degree of Master of Science (M.Sc.)
in Economic Geology from the same University in 1972.
I have practiced my profession as a Geologist for the past 45 years since graduation, in the fields of Mining
Exploration, Oil and Gas Exploration, and Geological Consulting. I have written a considerable number of
Qualifying Reports, Technical Reports and Opinions of Value for junior companies in the past 35 years.
I have worked in Canada, the United States of America, in Mexico, The Republic of the Philippines,
Indonesia, Cuba, Ecuador, Panama, Nicaragua, Tajikistan, The People's Republic of China, and the Republic
of South Africa, Chile, and Argentina.
My specific experience concerning the subject deposit is related to work on a number of molybdenum
deposits in British Columbia (Huber Lone Pine, Sphinx, Isintok, and others in China and Mexico.
I am a registered as a Professional Geoscientist (P. Geo.) in the Province of British Columbia (No 19810 1992) and I am entitled to use the Seal, which has been affixed to this report.
I have based this report on a review of all available data concerning the subject property supplied by the
property vendors and on other materials obtained from the literature and from web sites.
For the purposes of this Technical Report I am a Qualified Person as defined in National Instrument 43-101.
I have read the Policy and this report is prepared in compliance with its provisions. I am responsible for all
parts of this report, aside from descriptions and data from the field.
I have no direct or indirect interest in the property which is the subject of this report I do not hold, directly
or indirectly, any shares in Napier Ventures Inc.., nor in any related companies, nor do I intend to acquire
any such shares, in full compliance with all provisions of Section 1.4 of National Instrument 43-101.
MARCH 2011
P a g e | 69
I am not aware of any material fact or material change with respect to the subject matter of the technical
report which is not reflected in the technical report, the omission of which would make the technical
report misleading.
Dated at Vancouver B.C. this 24th day of March 2011
per:
__________________________________________________
Barry J. Price, P.Geo.
Qualified Person
MARCH 2011
P a g e | 70
CERTIFICATE OF AUTHOR JAMES G. BAUGHMAN
CERTIFICATE OF AUTHOR JAMES GLEN BAUGHMAN, P.GEO
I, James Glen Baughman, hereby certify that:
I am an independent Consulting Geologist and Professional Geoscientist residing at 2090 s.
Joliet St., Aurora, CO, with my office at 2186 s. Holly St., Denver, CO 80222, (Telephone: 303
800-0678).
I am the co-author of this Technical report Titled: "Technical Report, Calico Peak Molybdenum
deposit, Dolores County Colorado, prepared for Napier International LLC. I last visited the
subject property on October 2, 2010.
I graduated from University of Wyoming, Laramie, Wyoming, in 1983 with a Bachelor’s Degree
in Science (B.Sc.) in the field of Geology.
I have practiced my profession as a Geologist for the past 25 years since graduation, in the
fields of Mining Exploration and Geological Consulting.
I have worked in the United States of America, in Mexico, Panama, Chile, Brazil, Mongolia and
Kyrgyzstan.
My specific experience concerning the subject deposit is related to work done for Rio Tinto at the
Bingham Copper Mine in Utah (2001-2003), the work for a client in Chile during 2003 and 2004 drilling a
copper porphyry project, and the considerable work done at the Chorcha Copper Project in Panama in
1994-95 for Arlo Resources.
I am a registered as a Professional Geoscientist (P. Geo.) in the State of Wyoming (No 2854) and I am
entitled to use the Seal, which has been affixed to this report.
I have based this report on a visit to the subject property from June 20-21, 2004, a review of all available
data concerning the subject property supplied by the property vendors and on other materials obtained
from the literature and from web sites.
For the purposes of this Technical Report I am a Qualified Person as defined in National Instrument 43101. I have read the Policy and this report is prepared in compliance with its provisions.
I have no direct or indirect interest in the property which is the subject of this report I do not hold,
directly or indirectly, any shares in Napier International, Ltd. nor in any related companies, nor do I intend
MARCH 2011
P a g e | 71
to acquire any such shares, in full compliance with all provisions of Section 1.4 of National Instrument 43101.
I do not hold any interest, directly or indirectly, in any claims within the State of Colorado. I will receive
only normal consulting fees for the preparation of this report.
I am not aware of any material fact or material change with respect to the subject matter of the technical
report which is not reflected in the technical report, the omission of which would make the technical
report misleading.
Dated at Denver, CO this 24th day of March, 2011
Respectfully Submitted
MARCH 2011
P a g e | 72
APPENDIX I
CLIMAX MO DEPOSITS
(MODEL 16; Ludington, 1986)
by Steve Ludington, Arthur A. Bookstrom, Robert J. Kamilli, Bruce M. Walker,
and Douglas P. Klein
SUMMARY OF RELEVANT GEOLOGIC, GEOENVIRONMENTAL, AND GEOPHYSICAL INFORMATION
Deposit geology
Deposits are large (100 to 1,000 million metric tons of ore containing 0.06 to about 1 weight percent molybdenum)
and consist of stockworks of molybdenite-bearing veins and veinlets, within larger masses of hydrothermally-altered rock.
Orebodies are in and above the apices and on the apical flanks of small metaluminous porphyry stocks of the high-silica ( >75
weight percent SiO2 ) rhyolite-alkalic suite of Carten and others (1993). Orebodies mimic the shape of and surround the top of
their subjacent stocks. Multiple intrusions and overlapping ore shells are characteristic of productive systems; at Henderson,
Colo., at least eleven intrusions are associated with mineralization processes. Individual ore shells, which coincide with
orthoclase-bearing zones of altered rock, are commonly underlain by highly silicified rock and (or) by characteristic zones of
layered unidirectional solidification features (USTs) or stockscheider; these zones consist of crenulate layers of quartz + fluorite
or other minerals that are separated by layers of aplite and aplite porphyry. These layers parallel contacts between stocks;
crystals terminate inward from these contacts.
Climax molybdenum deposits exhibit distinctive zoned alteration patterns. Early silicic alteration, along with surrounding
potassic alteration (K-feldspar replaces plagioclase) of porphyry and wall rock characterize the inner
zone. Above each ore shell is a much larger, lower temperature, phyllic zone, that consists of stockworks of veinlets that contain
quartz, pyrite, and (or) sericite, and (or) illite, and (or) topaz, with phyllic envelopes, some of which may contain tungsten
(wolframite) and tin (cassiterite). The entire molybdenum system commonly is surrounded by a very large zone of propylitic
alteration, in which iron- and magnesium-bearing minerals are converted to various combinations of chlorite, albite, calcite, and
epidote. At Silver Creek (Rico), Colo., this zone extends nearly 2 km above the molybdenum deposit (Larson and others, 1994).
Shale-hosted deposits may be surrounded by a large zone of biotite hornfels. All alteration assemblages display anomalously
high amounts of fluorine, which is contained in fluorite, topaz, and micas; the deposits share many characteristics with greisen’s.
Examples
Climax (Wallace and others, 1968), Henderson (Carten and others, 1988), Urad, Mount Emmons, Winfield, Middle
Mountain, Silver Creek (Rico), and Redwell Basin, all in Colo.; Questa, N. Mex.; Pine Grove, Utah (Keith and
others, 1986); Mount Hope, Nev. (Westra and Riedell, 1995).
Spatially and (or) genetically related deposit types
Associated deposit types (Cox and Singer, 1986) include minor, silver-rich, polymetallic vein (Models 22c) and
polymetallic replacement deposits (Models 19a) that appear to be concentric and distal to some deposits. Veins
MARCH 2011
P a g e | 73
commonly contain quartz, fluorite, rhodocrosite, base-metal sulfide minerals, and tetrahedrite. These base-metal
systems may be more extensive in some environments, as at Silver Creek (Rico) (Larson, 1987), and Crested Butte
(Sharp, 1978).
Climax deposits, possibly underlain by molybdenum greisen deposits (Kotlyar and others, 1995), are
genetically related to molybdenum, tin, and tungsten greisen systems. Burt and others (1982) have suggested that
rhyolite-hosted tin deposits may also be underlain by Climax type deposits.
Potential environmental considerations
Oxidation of pyrite in large, unmined deposits, such as Winfield, Colo. (Ranta, 1974), may contribute significant
acidic drainage to nearby streams. Mining and milling of large tonnages of sulfide-mineral-bearing stockwork ore
may exacerbate acid drainage problems, although most pyrite is outside orebodies. Tailings may contain finely ground pyritebearing rock that, when oxidized, may generate large quantities of acid. This acid, if not artificially neutralized, may be partially
neutralized as streams traverse plagioclase- or carbonate mineral-bearing bedrock. Most other minerals and elements present in
these deposits are relatively non-toxic.
Molybdenite differs from most sulfide minerals in that it releases molybdenum as an anion, not a cation,
during weathering. Geochemical mobility of most metallic cations increases with acidity, whereas mobility of
molybdate anions increases with alkalinity. The molybdate ion, which is stable at low pH, is geochemically
immobile, because it is strongly coprecipitated with and (or) adsorbed on ferric oxyhydride at low pH. Plants
growing in soil with a pH of 5.5 or less commonly contain only trace amounts of molybdenum, whereas plants
growing in soil with a pH of 6.5 or higher are commonly enriched in molybdenum (Hansuld, 1966).
Molybdenosis is a disease that affects ruminants that graze on molybdenum-rich vegetation that grows on
alkaline soil in which the ratio of bioavailable copper to bioavailable molybdenum (as molybdate) is less than 2:1.
Thus, molybdenosis is more related to climatic factors, soil alkalinity, and the relative bioavailability of copper and
molybdenum, than to point sources of molybdenum.
High fluorine concentrations associated with Climax deposits may be beneficial. Children who grew up at
Climax, Colo., had brown-speckled, but cavity-free teeth, due to the high fluoride content of local drinking water.
Uranium concentrations are anomalously high in Climax molybdenum systems. Granitic rocks associated
with the deposits contain uranium-bearing accessory minerals, most of which are not recovered but deposited with mill tailings;
uranium abundances in Ten Mile Creek, which receives input from Climax tailings ponds, are
significantly elevated, however. Distal veins peripheral to Climax deposits, commonly several kilometers distant,
may also have anomalously high uranium contents. Thus, radon gas in the mines is a potential hazard; radon
abundances must be monitored and mitigated by proper ventilation, as necessary.
Exploration geophysics
Alteration associated with shallow or exposed deposits produce diagnostic color (reflectance) patterns on remote sensing
images. Pyrite and hydrothermal clays in the phyllic alteration zone display reduced resistivity and high induced potential
anomalies (Fritz, 1979). Anomalous uranium, thorium, and potassium abundances can be mapped with airborne gamma-ray
spectrometry. Radon in mines or associated with mine-related ground water can be identified using simple detectors. At Mt.
Emmons, a magnetic anomaly is coincident with a layer of hydrothermal magnetite below the molybdenite zone (Fritz, 1979;
Thomas and Galey, 1982). Local gravity is variable as a function of rock types present in the shallow subsurface; regional gravity
MARCH 2011
P a g e | 74
lows, produced by multistage, high-silica plutons and underlying granitic batholiths are nearly ubiquitous in association with
these deposits. Self potential lows have been reported over phyllic (quartz-sericite-pyrite) alteration zones associated with
several deposits (Corry, 1985).
References
Wallace and others (1968), White and others (1981), Carten and others (1988), and Keith and others (1986).
GEOLOGIC FACTORS THAT INFLUENCE POTENTIAL ENVIRONMENTAL EFFECTS
Deposit size
Most deposits are >100 million metric tons, and they may be as large as 1 billion metric tons. Such large deposits
may result in special waste storage problems that may impact local geography and stream courses. Hydrothermal
alteration may affect an area of many square kilometers, although orebody horizontal cross-sectional areas are usually less than
one kilometer.
Host rocks
Deposits are found in crystalline, volcanic, and sedimentary rocks of diverse ages in the western United States.
Surrounding geologic terrane
Surrounding terrane is not diagnostic nor particularly significant with regard to potential environmental impact.
Many of these deposits are found in young mountain ranges where mining operations may conflict with scenic and
recreational values. Deposits located at high elevations, in the headwaters of drainages, can impact large downstream areas.
Wall-rock alteration
Wall-rock alteration includes (1) high temperature assemblages: quartz + fluorite ± molybdenite, quartz + K-feldspar + fluorite ±
molybdenite, and quartz alone, all found near the center of the hydrothermal system; (2) moderate temperature assemblages:
quartz + K-feldspar + magnetite + brown biotite ± topaz ± fluorite, and quartz + sericite + green biotite ± topaz ± fluorite; and (3)
low temperature assemblages: pyrite + sphalerite + garnet + rhodocrosite + clay, and a large propylitic zone (albite + epidote +
chlorite) that may extend kilometers beyond intrusive centers. Pyrite, a constituent of moderate- and low-temperature
assemblages, is the most significant mineral with regard to environmental concerns. Rocks from the quartz-sericite-pyrite zone
at Climax, Colo., contain about 2 to 10 volume percent (4 to 20 weight percent) pyrite.
Nature of ore
Orebodies are typically overlapping, inverted, and saucer-shaped, and are stacked above one another, with or without offset.
High grade parts of composite orebodies form where individual orebodies associated with discrete stocks overlap. Assay walls of
orebodies are typically quite sharp. Molybdenite is present primarily with high-temperature alteration assemblages, both as a
vein-filling phase and as replacements in vein selvages. Pyrite is rarely present with molybdenite, but rather is found in later,
lower temperature veins and assemblages that cut earlier molybdenite veins. Late, insignificant sphalerite- and galena bearing
veins may cut pyrite veins in distal parts of systems.
Climax molybdenum deposits are relatively barren of other metals, except tin and tungsten, each of which
may form weakly enriched zones in the outer parts or outside molybdenite orebodies. Wolframite was recovered
MARCH 2011
P a g e | 75
for many years as a by-product of mining at Climax, Colo. Tin is present primarily as cassiterite at Climax, but is
in ilmenorutile at Henderson, Colo.
Deposit trace element geochemistry
Source plutons have elevated incompatible element abundances, including 200 to >1,000 ppm rubidium, 1 to >30?
ppm cesium, as much as 10 ppm beryllium, 10 to >100 ppm lithium, 25 to >200 ppm niobium, 2 to >20 ppm
tantalum, and 0.1 to >1 percent fluorine; most have depleted compatible element abundances, including <100 ppm zirconium,
<200 ppm barium, and <100 ppm strontium. Ore-related veins and veinlets contain elevated abundances of other metals,
including 4 to >100 ppm uranium, 10 to >50 ppm thorium, 10 to >200 ppm tin, and 2 to >100 ppm tungsten.
Ore and gangue mineralogy and zonation
Primary accessory minerals in ore-related intrusions at Climax, Colo., are zircon, fluorite, topaz, monazite, rutile,
brannerite, hematite, and magnetite; mill concentrates also contain ilmenorutile, columbite, uraninite, metamict
uranium oxide minerals, xenotime, and euxenite. In addition, ore related intrusions at Henderson, Colo., contain
accessory metamict niobium oxide minerals, uranium-bearing thorite, fluocerite, apatite, and aeschynite (White and others,
1981).
Mineral characteristics
Molybdenite grain size varies widely, from about 0.2 mm in replacement veins to >10 cm in open-space filling.
Pyrite is typically fine-grained and is present in alteration selvages.
Secondary mineralogy
In exposed deposits, most pyrite weathers to limonite and other iron oxide minerals, and molybdenite may alter to
ferrimolybdite and (or) ilsemannite, Mo O •nH O; other secondary minerals include Jarosite and various clay 3 8 2
minerals. In wet areas, some pyrite is totally oxidized causing iron to be dissolved in drainage water; iron
subsequently precipitates as hydrous iron oxide. Where pyrite and molybdenite weather together, weathering products depend
on pH, and on the ratio of iron hydroxide to acid molybdate in water draining the area. Ferrimolybdite forms in strongly acidic
environments (Hansuld, 1966), molybdenum-bearing Jarosite probably forms in moderately acidic environments, molybdenum
bearing iron hydroxide minerals form in weakly acidic to mildly alkaline environments, and geochemically mobile molybdate ion
forms in alkaline environments, where pH >6. Ilsemannite is rare and ephemeral, because conditions for its stability are rarely
encountered in the normal weathering environment (Hansuld, 1966).
Weathered deposits commonly exhibit red hematite, yellow Jarosite and ferrimolybdite, brown goethite, and
peripheral black manganese oxide minerals.
Topography, physiography
Orebodies are high in silica, and may be resistant, but most known deposits are deeply buried. Many known deposits are within
or beneath peaks stained a distinctive red color by iron oxide minerals.
Hydrology
MARCH 2011
P a g e | 76
Annually variable runoff from winter snowmelt may dramatically affect influx into tailings ponds. Most host rocks
have low porosity, but the deposits exhibit high fracture permeability.
Mining and milling methods
These deposits are large, bulk tonnage deposits, and are typically mined by open stope, block caving, and open-pit
methods which typically further fracture the rocks, increasing permeability and exposing the deposit and surrounding pyritic
rocks to increased flow of oxidizing ground water. Molybdenite is typically concentrated on-site by flotation of finely-ground ore.
ENVIRONMENTAL SIGNATURES
Drainage signatures
A limited amount of information is available for deposits in Colorado. Water draining pyrite-molybdenite zones has
a pH of 1 to 3 and contains elevated dissolved metal abundances, including hundreds to thousands of mg/l iron and aluminum,
hundreds of mg/l fluoride, tens of mg/l zinc and copper, and 1 to 10 mg/l uranium. Water draining
intermediate pyrite shells has a pH of 2 to 5 and contains elevated dissolved metal abundances, including hundreds of mg/l iron
and aluminum and <1 to about 10 mg/l zinc and copper. Water draining peripheral base-metal-bearing zones has a pH of about
5.5 and contains elevated dissolved metal abundances, including 1 to 200 mg/l zinc and hundreds of g/l to several mg/l iron and
copper (Plumlee and others, 1995).
Metal mobility from solid mine wastes
Because a significant part of the molybdenite is marketed for use as a lubricant, most ore must be ground very finely in order to
liberate resistant phases such as quartz and minor amounts of pyrite. When not below the water table in tailings ponds, this very
fine pyrite can oxidize rapidly. Acidic drainage that percolates through and seeps from the toes of tailings is typically collected
and recycled to tailings ponds, rather than being released to the environment.
Waste dumps may contain several percent pyrite. Post-treatment release of water from tailings ponds can result in
large abundances of uranium and fluorine in solution.
Soil, sediment signatures prior to mining
Studies of the region surrounding Henderson, Colo. (Theobald and Thompson, 1959), identified significant
concentrations of wolframite, scheelite, and molybdenite in heavy-mineral concentrates from streams that drain the deposit
area; metal contents of stream sediment derived from outcrops of the Urad deposit include as much as 3,000 ppm tungsten, 700
ppm molybdenum, 500 ppm tin, 3,000 ppm lead, 50 ppm copper, and 1.5 ppm silver.
Potential environmental concerns associated with mineral processing
Fine-grained silica tailings may become a dust and (or) health hazard. Molybdate ion in solution is a constituent of
high-pH flotation mill effluent (Le Gendre and Runnells, 1975). However, as pyrite-bearing tailings weather, pH
decreases, and acid molybdate is coprecipitated with and (or) adsorbed on ferric oxyhydride. In dry areas, this effect may be
offset by the alkalinity of surrounding soil, in which geochemically mobile molybdate ions remains stable. Fine-grained pyrite in
tailings is susceptible to rapid oxidation.
Smelter signatures
The lone molybdenum smelter in the United States is in western Pennsylvania; it uses an electrolytic process.
Climate effects on environmental signatures In areas with higher precipitation, pyrite is more rapidly oxidized but molybdate is
more rapidly fixed in iron hydroxide minerals. In most cases the intensity of environmental impact associated with sulfide-
MARCH 2011
P a g e | 77
bearing mineral deposits is greater in wet climates than in dry climates. Acidity and total metal concentrations in mine drainage
in arid environments are several orders of magnitude greater than in more temperate climates because of the concentrating
effects of mine effluent evaporation and the resulting "storage" of metals and acidity in highly soluble metal-sulfate-salt
minerals. However, minimal surface water flow in these areas inhibits generation of significant
volumes of highly acidic, metal-enriched drainage. Concentrated release of these stored contaminants to local
watersheds may be initiated by precipitation following a dry spell.
Geoenvironmental geophysics
Sulfide mineral concentrations can be detected by induced polarization surveys. Acid pore water can be identified
by low resistivity, and usually by enhanced induced polarization, signatures. Self potential surveys may be used to
identify redox centers in tailings; heat from these centers may be identified by infrared surveys or shallow thermal
probes, though numerous interference factors may complicate these investigations. Thickness and structure of tailings may be
determined using shallow seismic refraction, electrical, and ground penetrating radar surveys.
REFERENCES CITED
Burt, D.M., Sheridan, M.F., Bikun, J.G., Christiansen, E.H., Correa, B.P., Murphy, B.A., and Self, S., 1982, Topaz
rhyolites—distribution, origin, and significance for exploration: Economic Geology, v. 77, p. 1818–1836.
Carten, R.B., Geraghty, E.P., Walker, B.M., and Shannon, J.R., 1988, Cyclic generation of weakly and strongly
mineralizing intrusions in the Henderson porphyry molybdenum deposit, Colorado—Correlation of igneous
features with high-temperature hydrothermal alteration: Economic Geology, v. 83, p. 266–296.
Carten, R.B., White, W.H., and Stein, H.J., 1993, High-grade granite-related molybdenum systems—classification
and origin, in Kirkham, R.V., Sinclair, W.D., Thorpe, R.I., and Duke, J.M., eds., Mineral deposit modeling:
Geological Association of Canada Special Paper 40, p. 521–554.
Corry, C.E., 1985, Spontaneous polarization associated with porphyry sulfide mineralization: Geophysics, v. 50, no.6, p. 1985.
Cox, D.P., and Singer, D.A., 1986, Mineral deposit models: U.S. Geological Survey Bulletin 1693, 379 p.
Fritz, F.P., 1979, The geophysical signature of the Mt. Emmons porphyry molybdenum deposit, Gunnison Co.
Colorado [abs], Geophysics v. 44, no. 3, p. 410.
Hansuld, J.A., 1966, Behavior of molybdenum in secondary dispersion media—a new look at an old geochemical
puzzle: Mining Engineering, v. 18, no. 12, p. 73.
Keith, J.D., Shanks, W.C., III, Archibald, D.A., and Farrar, E., 1986, Volcanic and intrusive history of the Pine
Grove porphyry molybdenum system, southwestern Utah: Economic Geology, v. 81, p. 553–577.
Kotlyar, B.B., Ludington, Steve, and Mosier, D.L., 1995, Descriptive, grade, and tonnage models for molybdenumtungsten greisen
deposits: U.S. Geological Survey, Open-File Report 95-584, 30 p.
Larson, P.B., 1987, Stable isotope and fluid inclusion investigations of epithermal vein and porphyry molybdenum
mineralization in the Rico mining district, Colorado: Economic Geology, v. 82, p. 2141–2157.
Larson, P.B., Cunningham, C.G., and Naeser, C.W., 1994, Hydrothermal alteration and mass exchange in the
hornblende latite porphyry, Rico, Colorado: Contributions to Mineralogy and Petrology, v. 116, p. 199–215.
LeGendre, G.R., and Runnells, D.D., 1975, Removal of dissolved molybdenum from wastewaters by precipitates of
MARCH 2011
P a g e | 78
ferric iron: Environmental Science and Technology, v. 9, p. 744.
Ludington, S.D., 1986, Descriptive model of Climax Mo deposits, in Cox, D.P., and Singer, D.A., eds., Mineral
deposit models: U.S. Geological Survey Bulletin 1693, p. 73.
Plumlee, G.S., Streufert, R.K., Smith, K.S., Smith, S.M., Wallace, A.R., Toth, Margo, Nash, J.T., Robinson, Rob,
Ficklin, W.H., and Lee, G.K., 1995, Geology-based map of potential metal-mine drainage hazards in
Colorado: U.S. Geological Survey Open-File Report 95-26, scale 1:750,000, 9 p.
Ranta, D.E., 1974, Geology, alteration, and mineralization of the Winfield (La Plata) district, Chaffee County,
Colorado: Golden, Colorado School of Mines, Ph.D. dissertation, 261 p.
Sharp, J.E., 1978, A molybdenum mineralized breccia pipe complex, Redwell Basin, Colorado: Economic Geology,
v. 73, p. 369–382.
Theobald, P.K., and Thompson, C.E., 1959, Geochemical prospecting with heavy mineral concentrates used to locate a tungsten
deposit: U.S. Geological Survey Circular 411, 13 p.
Thomas, J.A., and Galey, J.T., Jr., 1982, Exploration and geology of the Mt. Emmons molybdenite deposits,
Gunnison County, Colorado: Economic Geology, v. 77, p. 1985-1104.
Multiple intrusion and mineralization at Climax, Colorado, in Ridge, J.D., ed., Ore Deposits of the United
States, 1933–1967, The Graton-Sales Volume: American Institute of Mining, Metallurgical, and Petroleum
Engineers, Inc., New York, NY, p. 605–640.
Westra, Gerhard, and Riedell, K.B., 1995, Geology of the Mount Hope stockwork molybdenum deposit, Eureka
County, Nevada, [abs.]: Geology and ore deposits of the American Cordillera-A symposium, Geological
Society of Nevada, U.S. Geological Survey, Sociedad Geologica de Chile, p. A78-A79.
White, W.H., Bookstrom, A.A., Kamilli, R.J., Ganster, M.W., Smith, R.P., Ranta, D.E., and Steininger, R.C., 1981,
Character and origin of Climax-type molybdenum deposits: Economic Geology, 75th Anniversary Volume,
p. 270–316.
MARCH 2011
P a g e | 79
APPENDIX II
MINING IN COLORADO
Colorado has a rich mining heritage, beginning with the discovery of gold in 1859, and the industry in this
mineral rich state continues to evolve, with the discovery and development of new reserves. Colorado’s
present day industry is a modern, innovative, safe and environmentally responsible citizen that extracts a
wide variety of minerals from the earth valued at more than $2 billion. The following minerals are
produced in significant amounts in Colorado: Coal, gold, gypsum, limestone, silver, molybdenum, soda
ash and sodium bicarbonate. A thriving aggregates industry (sand, gravel, crushed stone) also exists.
When both the direct and indirect benefits of mining are considered, the industry in Colorado contributes
about $8 billion to the state’s economy.
Colorado’s mining industry directly employs 5,000 persons in the mining industry and generates more
than 5,162 jobs in related industries such as engineering, consulting, finance, transportation, geotechnical
and utility services, according to the Colorado Department of Labor and Employment. Colorado ranks 6th
among the states in mineral royalty receipts; In 2008, the state of Colorado received $178.4 million in
coal, other mineral, oil and gas production royalties, half of which are used to fund public schools.
Mineral severance taxes support local governments and important state programs, such as geologic
hazard detection and avalanche prediction and prevention.
Colorado is home to one of the largest primary producers of molybdenum in the world - the Henderson Mine and Mill
operated by Climax Molybdenum Corporation, a subsidiary of Freeport McMoRan Copper and Gold. In
2008, the mine produced 40 million pounds of molybdenum. Although molybdenum is traditionally used
in alloy steels, the "moly" produced in Colorado is used in a variety of applications to protect human
health and safety, as well as the environment. For example, products from the Henderson Mine are used
in the manufacture of automobile safety air bags. Moly is also used to remove sulfur from crude oil,
helping to provide for cleaner air and a cleaner environment. Colorado is the nation's second largest
producer of molybdenum.
Source: National Mining Association Facts About Minerals 2005; Leaming, Mining and the American
Economy, 1999; Colorado Geological Survey Mineral Fuel Inventory Report (2004); Colorado Mining
Association Survey of Coal and Mineral Producers (2004); Colorado Mining Association Survey of Coal
Producers (2008).
MARCH 2011
P a g e | 80
Molybdenum
Background
Wulfenite. (Source: Mineral Information Institute )
Molybdenum is a metallic, silvery-white element, with an atomic number of 42. Its chemical symbol is Mo. Chemically, it is
very stable, but it will react with acids. The physical characteristic that makes molybdenum unique is that it has a very high
melting point at 4,730 degrees Fahrenheit. This is 2,000 degrees higher than the melting point of steel. It is 1,000 degrees
higher than the melting temperature of most rocks. It has the fifth highest melting point of all of the elements.
Molybdenite (MoS2, molybdenum sulfide) is the major ore mineral for molybdenum (sometimes called moly for short). It is
rarely found as crystals, but is commonly found as what mineralogists describe as foliated masses. This means the mineral
forms folia or layers, like the mineral mica. It is metallic gray, has a greasy feel, and is very soft at only 1 on Mohs' hardness
scale. Its softness, metallic lustre and gray color led scientists to mistakenly believe it was a lead mineral. Geologically,
molybdenite forms in high-temperature environments such as in igneous rocks. Some molybdenite forms when igneous
bodies contact rock and metamorphose, or change, the rock. This is called contact metamorphism.
Molybdenum is also found in the mineral wulfenite (Pb(MoO4), lead molybdate). Wulfenite forms colorful, bright orange, red,
and yellow crystals. They can be blocky or so thin that they are transparent.
Molybdenum is a needed element in plants and animals. In plants, for example, the presence of molybdenum in certain
enzymes allows the plant to absorb nitrogen. Soil that has no molybdenum at all cannot support plant life.
Molybdenum was discovered by the Swedish scientist, Peter Hjelm in 1781, three years after Carl Scheele proposed that a
previously unknown element could be found in the mineral molybdenite. In 1778, Swedish chemist Carl William Scheele was
studying, what he thought was lead, in the mineral molybdenite. Molybdenite was named after the Greek word molybdos,
which means lead. Sheele's studies led him to the conclusion that this mineral did not contain lead, but some other element.
He named this new element molybdenum after the mineral molybdenite. (As an aside, the mineral scheelite (Ca(WO4,MoO4),
calcium tungstate-molybdate) was named after Scheele in honor of his discovery of molybdenum.)
In biology
2−
The majority of molybdenum molecules or salts have low aqueous solubility, but the molybdate ion MoO 4 is somewhat
soluble and will form if molybdenum-containing minerals are in contact with oxygen and water. Recent theories suggest that
oxygen respiration (release) by early life forms was important in removing molybdenum from minerals into a soluble form in
the early oceans, where it was used as a catalyst by single-celled organisms. This chain of events may have been key in the
history of life, because molybdenum-containing enzymes then became significant cellular catalysts employed by certain
bacteria to break molecular nitrogen, permitting biological nitrogen fixation. This, in turn allowed biologically driven nitrogenfertilization of the oceans, and thus the development of more complex organisms.
More than fifty molybdenum-containing enzymes have been identified in bacteria and animals, even though only the bacterial
and cyanobacterial enzymes are involved in nitrogen fixation. Due to the diverse functions of some of the molybdenum
enzymes, molybdenum is an essential trace nutrient for life in higher organisms, but not in all bacteria.
Sources
The most important ore source of molybdenum is the mineral molybdenite. A minor amount is recovered from the mineral
wulfenite. Some molybdenum is also recovered as a by-product or co-product from copper mining.
The United States produces significant quantities of molybdenite from mines in Colorado, New Mexico, and Idaho. Other
mines in Arizona, New Mexico, Montana, and Utah produce molybdenum as a by-product. The largest molybdenum resource
MARCH 2011
P a g e | 81
in the U.S. is in Climax, Colorado. It is estimated that there are 5.5 million metric tons of molybdenum in the United States. It is
probable there are more molybdenum resources in the U.S. yet to be discovered.
There are significant molybdenum resources around the world. The leading producers are Canada, China, Chile, Mexico,
Peru, Russia and Mongolia. It is estimated that there are 12 million metric tons of molybdenum in the world. Other ore
deposits may be discovered in the future.
Uses
Molybdenum is alloyed with steel making it stronger and more highly resistant to heat because molybdenum has such a high
melting temperature. The alloys are used to make such things as rifle barrels and filaments for light bulbs. The iron and steel
industries account for more than 75% of molybdenum consumption.
The two largest uses of molybdenum are as an alloy in stainless steels and in alloy steels-these two uses consume about
60% of the molybdenum needs in the United States. Stainless steels have the strength and corrosion-resistant requirements
for water distribution systems, food handling equipment, chemical processing equipment, home, hospital, and laboratory
requirements. Alloy steels include the stronger and tougher steels needed to make automotive parts, construction equipment,
and gas transmission pipes.
Other major uses as an alloy include: Tool steels, for things like bearings, dies, and machining components; cast irons, for
steel mill rolls, auto parts, and crusher parts; super alloys for use in furnace parts, gas turbine parts, and chemical processing
equipment.
Molybdenum also is an important material for the chemicals and lubricant industries. Molybdenum has uses as catalysts, paint
pigments, corrosion inhibitors, smoke and flame retardants, dry lubricant (molybdenum disulfide) on space vehicles and
resistant to high loads and temperatures. As a pure metal, molybdenum is used because of its high melting temperatures
(4,730 degrees F.) as filament supports in light bulbs, metal-working dies and furnace parts. Molybdenum cathodes are used
in special electrical applications. It can also be used as a catalyst in some chemical applications.
General uses for molybdenum are in machinery (35%), for electrical applications (15%), in transportation (15%), in chemicals
(10%), in the oil and gas industry (10%), and assorted others (15%).
Substitutes and Alternative Sources
Possible substitutes for molybdenum as a strengthening alloy in steel include vanadium, chromium, columbium, and boron.
However, such substitution is not presently practiced since molybdenum is plentiful, affordable, and effective.
Further Reading


Common Minerals and Their Uses, Mineral Information Institute.
More than 170 Mineral Photographs, Mineral Information Institute.
MARCH 2011
P a g e | 82
PHOTOGRAPH OF CALICO PEAK
MARCH 2011
P a g e | 83
PHOTOGRAPH OF A TYPICAL SAMPLE SITE – STRONG ALTERATION
MARCH 2011
P a g e | 84
TYPICAL EXPOSURES ON CALICO PEAK
MARCH 2011
P a g e | 85
JOHNNY BULL MOUNTAIN WITH OLD PITS AND DUMPS
MARCH 2011
P a g e | 86
PHOTOGRAPH OF RICO COLORADO
MARCH 2011
P a g e | 87
APPENDIX III – ANALYTICAL SHEETS FROM ROCK AND SOIL SAMPLES
(IN PDF VERSION ONLY)
MARCH 2011

CALICO PEAK MOLYBDENUM PROPERTY NAPIER VENTURES INC.

Transcription

Similar documents

Colorado Springs

Real Estate Advisor Sell Smart, Buy Wise, and Live Well

HOME NEWS... REAL STORIES... ADVICE... RIGHT UP MY STREET

2015 Home Cafe Menu ActualWEB

Parent Newsletter - Mountain View Elementary

2013 - 2014 Colorado Contractors Association New Car Buying

Find the structure for the following molecules: Problem 1.

here - Forensic Applications Consulting Technologies, Inc.