rapport Port-Daniel 06juin2014 - rev hdn

Transcription

GENIUS PROPERTIES LTD.
NI 43-101 TECHNICAL REPORT, PORT-DANIEL PROPERTY
NI 43-101 TECHNICAL REPORT PERTAINING TO THE:
PORT-DANIEL PROPERTY
GASPÉSIE REGION,
BAIE-DES-CHALEURS AREA
Quebec, Canada
NTS 22 A/02-03
April 15, 2014
Prepared for Genius Properties Ltd.
Prepared by: Alain Tremblay, Eng., and
Donald Théberge, Eng., M.B.A.
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DATE AND SIGNATURE PAGE AND CERTIFICATE OF QUALIFICATION
Certificate of Qualified Person
I, Donald Théberge, Eng., M.B.A., do hereby certify that:
a)
I am registered under the name Solumines, and my place of business is located at
54 De La Vigie, Lévis, Province of Quebec, G6V 5W2;
b)
I am the qualified person co-responsible for the preparation of sections 25 and 26 of the
technical report entitled “NI 43-101 Technical Report pertaining to the: Port-Daniel Property,
Gaspésie Region, Baie-des-Chaleurs area, Quebec Canada, NTS 22A/02-03. Prepared for
Genius Properties Ltd.”, dated April 15, 2014;
c)
I graduated with a degree in geological engineering from the University du Québec à
Chicoutimi in 1978. I obtained a Master of Business Administration (M.B.A.) from Laval
University in 1994. I am a member in good standing of the Ordre des Ingénieurs du Québec
(No. 32368). I have worked as a geological engineer since my graduation in 1978. My
relevant experience for the Port-Daniel project was acquired during my years working as a
project geologist for Serem (1978-1981), as a senior geologist for Agnico-Eagle (1982-1989),
as a technical inspector for Natural Resources Canada’s C.E.I.P. program (1989-1990), and
during the course of many mandates for junior exploration companies;
d)
I did not visit the property;
e)
I am co-responsible with Alain Tremblay, Eng., and co-author for Section 25, “Interpretation
and Conclusions” and Section 26, “Recommendations” of the technical report;
f)
I am independent of the issuer in accordance with Section 1.5 of National Instrument 43-101
- Standards of Disclosure for Mineral Projects;
g)
I have read the definition of “qualified person” set out in National Instrument 43-101, and
certify that by reason of my education, affiliation with a professional association (as defined
in National Instrument 43-101) and past relevant work experience, I fulfill the requirements to
be a “qualified person” for the purposes of National Instrument 43-101;
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h)
I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has
been prepared in compliance with that Instrument and Form;
i)
As at April 15, 2014, to the best of my knowledge, information and belief, the Technical
Report contains all the scientific and technical information that is required to be disclosed to
make the Technical Report not misleading.
Dated April 15, 2014,
________________________
Donald Théberge, Eng., M.B.A.
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Certificate of Qualified Person
I, Alain Tremblay, B.A.Sc., do hereby certify that:
a)
I am a geological engineer working for 2419-1538 Quebec Inc., a company otherwise known
as Consultations Géo-Logic, whose place of business is located at 1032 De Fontenay-leComte, Quebec City, Province of Quebec, G1Y 2Y1;
b)
I am the qualified person for the preparation of all sections of the technical report entitled “NI
43-101 Technical Report pertaining to the: Port-Daniel Property, Gaspésie Region, Baie-desChaleurs area, Quebec Canada, NTS 22A/02-03, Prepared for Genius Properties Ltd.”, dated
April 15, 2014, including sections 25 and 26 with co-author Donald Théberge, Eng., M.B.A.
c)
I graduated with a B.A.Sc. degree in geological engineering from École Polytechnique in
Montréal in 1979. I am a member in good standing of the Ordre des Ingénieurs du Québec,
No. 33996. From graduation until 1994, I worked for public, para-public and public companies
and the government in the field of mining exploration. During that time, I conducted or
supervised geological studies and exploration programs on gold, base metals and industrial
minerals in all geological provinces of the province of Quebec. I founded 2419-1538 Quebec
Inc. in 1994 and have since acted as president of the company, which offers geological
services for the exploration and development of mining properties.
d)
I was not involved into previous exploration work on this property. I am responsible for all the
sections of the technical report. However, responsibility for Section 25, “Interpretation and
Conclusions” and Section 26 “Recommendations” is shared with co-author Donald Théberge,
Eng., M.B.A. I did not visit the property recently.
e)
I am independent of the issuer in accordance with Section 1.5 of National Instrument 43-101,
Standards of Disclosure for Mineral Projects;
f)
I have read the definition of “qualified person” set out in National Instrument 43-101 and certify
that by reason of my education, affiliation with a professional association (as defined in
National Instrument 43-101) and past relevant work experience, I fulfill the requirements to be
a “qualified person” for the purposes of National Instrument 43-101;
g)
I have read the National Instrument 43-101 and Form 43-101F1, and the Technical Report has
been prepared in compliance with that Instrument and Form;
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h)
As at April 15, 2014, to the best of my knowledge, information and belief, the Technical Report
contains all the scientific and technical information that is required to be disclosed to make the
Technical Report not misleading.
Signed this 15 day of April, 2014
__________________________________
Alain Tremblay, Geol.Eng, OIQ 33996
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TABLE OF CONTENT
DATE AND SIGNATURE PAGE AND CERTIFICATE OF QUALIFICATION ............................................. 2
GLOSSARY ................................................................................................................................................. 8
1.0) SUMMARY ............................................................................................................................................ 9
2.0) INTRODUCTION ................................................................................................................................. 12
2.1) RECIPIENT ......................................................................................................................................... 12
2.2) OBJECTIVES ...................................................................................................................................... 12
2.3) SOURCE OF DATA AND INFORMATION .................................................................................................. 12
2.4) SCOPE OF THE PERSONAL INSPECTION BY THE QUALIFIED PERSON ...................................................... 12
2.5) UNITS USED IN THIS REPORT ............................................................................................................. 12
3.0) RELIANCE ON OTHER EXPERTS .................................................................................................... 12
4.0) PROPERTY DESCRIPTION AND LOCATION .................................................................................. 13
4.1) AREA ................................................................................................................................................ 13
4.2) LOCATION .......................................................................................................................................... 13
4.3) TYPE OF MINERAL TENURE ................................................................................................................. 13
4.4) NATURE AND EXTENT OF THE ISSUER’S TITLES .................................................................................... 17
4.5) ROYALTIES ........................................................................................................................................ 17
4.6) ENVIRONMENTAL LIABILITIES .............................................................................................................. 17
4.7) REQUIRED PERMITS ........................................................................................................................... 17
5.0) PHYSIOGRAPHY, ACCESSIBILITY, INFRASTRUCTURE AND CLIMATE ..................................... 18
5.1) TOPOGRAPHY, ELEVATION, VEGETATION AND DRAINAGE ..................................................................... 18
5.2) ACCESSIBILITY ................................................................................................................................... 18
5.3) INFRASTRUCTURE .............................................................................................................................. 18
5.4) CLIMATE ............................................................................................................................................ 20
6.0) HISTORY ............................................................................................................................................ 21
6.1) GENERAL GEOLOGICAL SURVEYS ........................................................................................................ 21
6.2) EXPLORATION GEOLOGY WORK.......................................................................................................... 21
6.3) HISTORICAL RESOURCES ................................................................................................................... 25
6.3.1) Colline Daniel............................................................................................................................ 25
6.3.2) Clemville West .......................................................................................................................... 31
6.3.3) Clemville East ........................................................................................................................... 38
6.4) PRODUCTION ..................................................................................................................................... 40
6.5) HISTORICAL DRILLING ......................................................................................................................... 40
7.0) GEOLOGICAL SETTING AND MINERALIZATION ........................................................................... 41
7.1) GENERAL GEOLOGICAL SETTING ........................................................................................................ 41
7.2) REGIONAL GEOLOGY.......................................................................................................................... 44
7.3) PROPERTY GEOLOGY ......................................................................................................................... 47
7.4) MINERALIZATION ................................................................................................................................ 47
8.0) DEPOSIT TYPES ................................................................................................................................ 48
9.0) EXPLORATION .................................................................................................................................. 48
10.0) DRILLING ......................................................................................................................................... 48
11.0) SAMPLE PREPARATION, ANALYSES AND SECURITY .............................................................. 49
12.0) DATA VERIFICATION ...................................................................................................................... 49
13.0) MINERAL PROCESSING AND METALLURGICAL TESTING ....................................................... 49
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14.0) MINERAL RESOURCE ESTIMATES ............................................................................................... 49
ITEMS 15 TO 22 ........................................................................................................................................ 50
23.0) ADJACENT PROPERTIES .............................................................................................................. 50
24.0) OTHER RELEVANT DATA AND INFORMATION .......................................................................... 51
25.0) INTERPRETATION AND CONCLUSIONS ...................................................................................... 51
26.0) RECOMMENDATIONS ..................................................................................................................... 52
27.0) REFERENCES .................................................................................................................................. 53
27.1) PUBLIC REPORTS ............................................................................................................................. 53
27.2) ASSESSMENT REPORTS ................................................................................................................... 54
List of Figures
Figure 1: Location Map ....................................................................................................................... 15
Figure 2: Claims Map .......................................................................................................................... 16
Figure 3: Access Roads ...................................................................................................................... 19
Figure 4: Historical Drilling .................................................................................................................. 23
Figure 5: Detailed Geology of the Colline Daniel Area ...................................................................... 26
Figure 6: Location of the Colline Daniel Resource.............................................................................. 30
Figure 7: Detailed Geology of the Clemville West Area ...................................................................... 32
Figure 8: Stratigraphy of the Clemville West Area .............................................................................. 33
Figure 9: Clemville West Vertical Sections ........................................................................................ 35
Figure 10: Location of the Clemville West Resource ......................................................................... 37
Figure 11: Pure Limestone Potential on Clemville East ..................................................................... 39
Figure 12: Major structural units within the Silurian rocks of the Gaspé Peninsula ............................ 42
Figure 13 Stratigraphy of the Chaleurs Group .................................................................................... 43
Figure 14: Regional geology ............................................................................................................... 45
List of Tables
Table 1: Claims Description ................................................................................................................ 14
Table 2: Weather data for Caplan (west of Port-Daniel) from Environment Canada ......................... 20
Table 3: Exploration History ................................................................................................................ 24
Table 4: Resources summary on Genius property ............................................................................. 51
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GLOSSARY
Term
Anticline
Definition
A fold in which the core contains stratigraphically-older rocks
Anticlinorium
A composite anticlinal structure of regional extent composed of lesser folds
Bioherm
A mound-like, dome-like, lens-like or reef-like mass of rock built up by sedentary
organisms, composed almost exclusively of their calcareous remains and surrounded by
rock of different lithology
A limestone consisting of predominantly (more than 50%) of sand-size recycled calcite
particles
A limestone consisting of predominantly (more than 50%) of silt- and/or clay-size detrital
Calcilutite
calcite particles
Cambro-Ordovician The period of the Paleozoic era aged around 500 millions years
Calcarenite
Cladopora
Clastic
Conglomerate
Crinoide
Detrital
Devonian
Homoclinal
Limestone
Mudstone
Nodular
Oncolites
Orogeny
Reef
Sandstone
Siltstone
Silurian
Stromatolite
Stromatopore
Syncline
Synclinorium
Wackestone
A type of branching coral found in Devonian limestones
Pertaining to a rock or sediment composed principally of broken fragments that are derived
from pre-existing rocks transported from their place of origin.
A coarse-grained clastic sedimentary rock composed of subangular fragments larger than
2mm set in a fine-grained matrix of sand, silt, carbonate and clay
A fossil characterized by quinquaradiate symmetry, a disk-shaped or globular body
enclosed by calcareous plates with radially-extended branches
Composed primarily of particles or fragments detached from pre-existing rocks by erosion
or weathering
A period of the Paleozoic era thought to have covered the span of time between 400 and
345 million years ago
Adjective: a general term for a series of rock strata having the same dip
A sedimentary rock consisting chiefly of calcium carbonate primarily in the form of the
mineral calcite
An indurated mud having the texture and composition of a shale but lacking fine
lamination. More massive clay-size sedimentary rock
Composed of scattered or loosely packed nodules (rounded masses) in a matrix of unlike
character
A small, variously-shaped, concentrically-laminated calcareous sedimentary structure
formed by the accretion of successive layered masses of gelatinous sheaths of algae
Process by which structures in rocks are formed, including thrusting, folding and faulting
A mound-like structure, layered or massive, built by sedentary calcareous organisms, in
particular corals, and consisting mostly in their remains
A medium-grained clastic sedimentary rock composed of abundant rounded or angular
fragments of sand size set in a fine-grained matrix
An indurated silt having the texture and composition of a shale but lacking fine lamination.
More massive silt size sedimentary rock
A period of the Paleozoic era thought to have covered the span of time between 440 and
400 million years ago
An organosedimentary structure produced by sediment trapping and binding as a result of
growth and metabolic activity of algae
A general name for groups of extinct benthic marine organisms of uncertain biologic
affinities
A fold in which the core contains the stratigraphically-younger rocks
A composite synclinal structure of regional extent composed of lesser folds
A mud-supported carbonate sedimentary rock containing more than 10% grains greater
than 20 microns in diameter
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1.0) SUMMARY
The Port-Daniel property consists of two claim blocks totalling 23 map-designated cells for 1,316.21
ha. These claims are located in Port-Daniel Township, in NTS sheets 22A/02 and 22A/03. They
expire on June 20, 2014. Exploration work in the amount of $27,600 will be required upon renewal,
along with mining duties in the amount of $1,259.25. No accrued work is currently registered on the
claims.
On October 2013, Synergy Acquisition Corp., which changed its name to Genius Properties Ltd. on
January 28, 2014, entered into an agreement with two Canadian corporations to purchase 3,200
claims located in Canada, including the Port-Daniel property, in exchange of 10,000,000 common
shares of Genius valued at $0.06 per share. The shares were delivered and Genius now holds a
100% interest in the Port-Daniel property. The vendors retain a 1% NSR, of which one-half can be
purchased by Genius at any time for an amount of $500,000.
To the knowledge of the author, there are no environmental liabilities pertaining to the Port-Daniel
property. As the property is located in private lands, Genius must be cautious and get access to the
land by agreement with the surface owners before proceeding with any exploration work.
The property shows a very hilly topography, with elevations ranging from 180 to 340 m above sea
level. Forest density varies with altitude. There are several creeks and lakes on the property and in
the neighbouring area that can be used as a source of water for drilling and eventually mining, as the
case may be. Based on historical reports, the overburden is thin, ranging in thickness from 0 to a
few metres. The area contains rich wildlife and is a preferred habitat for moose, deer and woodland
caribou. The property is easily accessible by paved and gravel roads. Heavy equipment such as
drill rigs, bulldozers, etc. can be downloaded directly on the property. Room and board can be found
in the village of Port-Daniel.
Before 1960, most of the geological understanding of the area was based on various geological
mapping programs by the Geological Survey of Canada. The Quebec Ministry of Natural Resources
(QMNR) conducted many studies after 1960, ad particularly between 1970 and 1995.
The Port-Daniel area is part of the Chaleurs Bay Synclinorium and the geological formations present
belong to the Chaleurs Group. The stratigraphy of this group includes: 1) A lower clastic sequence
including all units of the Clemville Formation up to the L’Anse à Pierre-Loiselle Formation; 2) a
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median limestone formation consisting of the La Vieille Formation in the Port-Daniel area, and: 3) an
upper mostly clastic sequence that includes the Gascons, West Point (recifal complex) and Indian
Point formations. The stratigraphy of the Port-Daniel area faces south.
Exploration work by private companies and individuals were very limited. Some prospecting here
and there did not return any signs of precious or base metals. The most interesting results came
from work carried out by the QMNR, which drilled some 35 holes on two sites after detailed mapping
and reported potential for the presence of high-calcium-content limestones. The first site is in the La
Vieille Formation (Clemville West) and the other is in the West Point Formation (Colline Daniel).
Historical resource estimates used a notion of pure and impure limestones using a criterion of more
than 90% CaCO3 and less than 5% SiO2 for pure limestone. The historical resources identified
were:
Clemville West:
Pure limestones: 73,790,000 T at 92.95% CaCO3 and 3.32% SiO2
Impure limestones: 119,520,000 MT at 62.21% CaCO3 and 19.74% SiO2
Colline Daniel:
Pure limestones: 124,590,000 T at 92.79% CaCO3 and 3.84% SiO2
Impure limestones: 81,545,000 T at 77.45% CaCO3 and 13.56% SiO2
Additional potential based only on surface mapping was also identified on the eastern extension of
Clemville West, at a site called Clemville East, which was estimated in 1979 to host 112,000,000 T
of pure limestone. The Genius property covers the Clemville West site and parts of Clemville East
and Colline Daniel.
The Port-Daniel property is located in an area where a fair amount of exploration work was done by
the Quebec Ministry of Natural Resources in the late 1970s to assess the potential for pure
limestones.
Detailed geological surveys, drilling and extensive assaying led to the conclusion that large tonnages
with more than 90% CaCO3 and less than 5% SiO2 were readily accessible, as well as more impure
limestones of varying quality.
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In the 1980s, the MRNQ estimated the limestone resources for three areas: Colline Daniel, Clemville
West and Clemville East. The resources on Genius property are in the order of 126,790,000 tonnes
of pure limestone and 129,520,000 tonnes of impure limestone.
Limestone is a mineral commodity that has been conceded to the owner of the surface rights under
Article 5 of the Quebec Mining Act. Certain conditions apply but these are met here, so the claims
do not give Genius the mining rights for this resource.
No other type of mineralization has been identified on the property.
As this project contains a huge pure and impure limestone resource that can be characterized as
partly indicated and partly inferred, based on all the observations made in this technical report, the
logical next phase of the project would be a scoping study.
This scoping study should address the following issues:
1) At present, the claims owned by Genius do not carry the rights to the limestone, as this
commodity is regulated by Article 5 of the Quebec Mining Act, which says that on lands
granted or alienated by the State before January 1, 1966 (which is the case here), the land
owner is also the owner of several commodities, including limestone. In the scoping study,
the land owner directly located on the three areas, namely Colline Daniel and Clemville West
and East, should be contacted, and an evaluation done for the purpose of securing the
surface land;
2) Review the mining potential in light of new environmental and social constraints;
3) Assess the potential markets for aggregates, lime, etc. in Québec and on the East Coast of
the United States;
4) Review the strategy for the McInnis project, and verify whether synergies can be created
between the two projects;
5) Verify the possibility of using the McInnis port facilities;
The budget for this scoping study is estimated at $100,000.
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2.0) INTRODUCTION
2.1) RECIPIENT
This technical report on the Port-Daniel property has been prepared at the request of Genius
Properties Ltd. (‘’Genius’’).
2.2) OBJECTIVES
This report describes the scientific and technical information concerning the exploration activities,
both historical and recent, carried out on the Port-Daniel property.
2.3) SOURCE OF DATA AND INFORMATION
This report is based on the documentation provided by Genius and the statutory work filed with the
Quebec Ministry of Natural Resources (MRNQ). A complete, detailed list of the documentation used
is given in Item 27, “References”.
2.4) SCOPE OF THE PERSONAL INSPECTION BY THE QUALIFIED PERSON
The authors have not visited the property.
2.5) UNITS USED IN THIS REPORT
Unless otherwise indicated, the units used in this report are in the metric system, amounts are in
Canadian dollars, and coordinates are in the UTM system, NAD83, Zone 19.
3.0) RELIANCE ON OTHER EXPERTS
Alain Tremblay, Eng., and Donald Théberge, Eng., M.B.A., are the authors of this report. Alain
Tremblay was involved in all the sections of the technical report. Donald Théberge prepared Section
25, “Interpretation and Conclusions” and Section 26, “Recommendations” in collaboration with Alain
Tremblay. No other experts were involved in the preparation of the report.
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4.0) PROPERTY DESCRIPTION AND LOCATION
4.1) AREA
The property is made up of two claim blocks totalling 23 map-designated claims (CDC), for a total of
1,316.21 ha.
4.2) LOCATION
The two blocks forming the property are located immediately west and southwest of the village of
Port-Daniel, in the Baie-des-Chaleurs area, along the south-central margin of the Gaspé Peninsula,
Quebec. The South Block of the property is made of two claims, both in NTS sheet 22A/02, while
the North Block, consisting of the remaining 21 claims, is along the boundary between NTS sheets
22A/02 (4 claims) and 22A/03 (17 claims). The property is centered on UTM coordinates 350 000E /
5 339 000N. The property boundaries have not been surveyed and do not need to be surveyed, as
they are already defined by the NTS coordinate system. The property location is shown in Figure 1,
"Location Map".
4.3) TYPE OF MINERAL TENURE
The Port-Daniel property is made up of two blocks totalling 23 map-designated claims (CDC) that all
expire on June 20, 2014, with the exception of claim 2355398, which expires on July 16, 2014.
Exploration work in the amount of $27,600 will be required upon renewal, along with mining duties in
the amount of $1,259.25. No accrued work is currently registered on the claims. The claims are
currently registered to the name of Synergy Acquisition Ltd. The claims are described in Table 1,
“Claims Description”, and illustrated in Figure 2, "Claims Map".
However, the reader should be aware that as the target substance is limestone and the lands on
which the claims of Port-Daniel property are located were granted by the State before January 1,
1966, the owner of the surface rights (the land owner) owns the rights to the limestone. This is
clearly stated in Article 5 of the Quebec Mining Act, as cited below:
5. Rights in or over the following mineral substances are surrendered to the owner of the soil where
they are found in lands granted or alienated by the State for purposes other than mining purposes
before 1 January 1966 or in lands wherein the rights in or over mineral substances were revoked in
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favour of the State on or after 1 January 1966: sand, gravel, building stone and stone used for
sculpture, limestone, calcite used as flux, millstones and grindstones, gypsum, common clay used in
making building materials, firebrick, pottery, ceramic substances, mineral waters, infusory earths or
tripoli, fuller's earth, peat, marl, ochre or soapstone, provided that, in their natural state, they are
isolated from other mineral substances, as well as rights in or over mineral substances of the tilth.
1987, c. 64, s. 5; 1988, c. 9, s. 6; 1999, c. 40, s. 178.
A search for the private lands owners was done and given to Genius. For confidentiality reasons,
the authors did not consider it necessary to include it with this technical report. A full list of the
claims is provided in Table 1, below.
TABLE 1: CLAIMS DESCRIPTION
NTS Sheet Title type
22A03
CDC
22A03
CDC
22A03
CDC
22A03
CDC
22A03
CDC
22A03
CDC
22A03
CDC
22A03
CDC
22A02
CDC
22A02
CDC
22A03
CDC
22A03
CDC
22A03
CDC
22A02
CDC
22A02
CDC
22A02
CDC
22A03
CDC
22A03
CDC
22A03
CDC
22A03
CDC
22A03
CDC
22A03
CDC
22A02
CDC
Total
Title #
2352176
2352177
2352178
2352179
2352180
2352181
2352182
2352183
2352189
2352190
2352191
2352192
2352193
2352296
2352390
2352391
2352399
2352400
2352402
2352403
2352405
2352406
2355398
23 claims
Expiry Date
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
June 20, 2014
July 16, 2014
Area (Ha)
57.42
57.42
57.42
57.41
57.41
57.41
57.40
57.40
57.41
57.41
57.42
57.42
57.41
57.45
57.40
57.40
57.41
57.40
57.39
57.39
57.41
57.40
53.20
1,316.21
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Accumulated
Work
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Required
Work
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$1,200
$27,600
Mining Duties
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$54.75
$1,259.25
14
4.4) NATURE AND EXTENT OF THE ISSUER’S TITLES
On October 2013, Synergy (now known as Genius Properties Ltd.) entered into an agreement with
two Canadian corporations to purchase 3,200 claims located in Canada, including the Port-Daniel
property. As consideration for this acquisition, Genius agreed to:
•
Deliver 10,000,000 shares at $0.06 to the vendors at closing. The shares were delivered
and Genius now holds a 100% interest in the Port-Daniel property.
4.5) ROYALTIES
The two Canadian corporations that sold their 3,200 claims to Genius hold a royalty consisting of a
1% NSR,1 of which one-half (0.5%) can be purchased by Genius at any time for an amount of
$500,000.
4.6) ENVIRONMENTAL LIABILITIES
To the knowledge of the author, there are no environmental liabilities pertaining to the Port-Daniel
property.
4.7) REQUIRED PERMITS
As the Port-Daniel property is located on private lands, Genius must negotiate and obtain permission
to carry out exploration from each owner of the land where field work will take place.
1
NSR: Net smelter royalty.
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5.0) PHYSIOGRAPHY, ACCESSIBILITY, INFRASTRUCTURE AND CLIMATE
5.1) TOPOGRAPHY, ELEVATION, VEGETATION AND DRAINAGE
The main block (North Block) of claims covers an area characterized by a pronounced relief made
up of two crescent-shaped limestone ridges that extend on both sides of the Petite Rivière PortDaniel, which crosses the property in a general east-west direction. The ridge to the north of the
river culminates at an altitude of 160 metres, while the one to the south reaches an altitude of 140
metres. Both make up a relative local relief of about 100 metres. The ridges are covered with
deciduous trees and the adjacent low ground with conifers.
The South Block encompasses for the most part a low, spruce-covered hill that extends along the
coast on the west side of Port-Daniel Bay. The hill rises 130 metres above sea level. The hill
overlooks farmland.
5.2) ACCESSIBILITY
Both groups of claims are easily accessible. The North Block is accessible by the paved road that
links Route 132, the main road, to the village of Clemville, and by logging roads that run along the
limestone ridges. For the South Block, Route 132 and the Montreal-Gaspe railway line pass just
north of the hill. A secondary road leads from Route 132 to the top of the hill, where there is a
transmission tower. Figure 3, “Access Roads”, shows the access to the property.
5.3) INFRASTRUCTURE
The property is located within the limits of the municipality of Port-Daniel-Gascons (population 2,500)
which groups together the villages of Gascons, Port-Daniel and Clemville.
The nearest town is Chandler (population 8,000), located along Route 132, some 42 kilometres to
the east. This town hosts a deep sea port that is open year-round and a commercial-industrial
airport that offers charter flights.
There is no mining infrastructure on the property. A transmission line runs across the North Block.
SOLUMINES
18
5.4) CLIMATE
The property is located in the Baie-des-Chaleurs area. Due to the maritime influence, the climate is
temperate, with well-defined summer and winter seasons. The summers are hot and humid and the
winters cold and snowy. According to the most recent data from the Caplan weather station 60 km
west of Port-Daniel, the mean annual temperature on Chaleurs Bay is 3.9 °C, while the mean
temperature is 16.4 °C in summer and -9.4 °C in winter. Annual precipitation is between 1,000 and
1,200 millimetres. In winter, snow coverage can exceed one metre. More weather data is shown in
Table 2.
TABLE 2: WEATHER DATA FOR CAPLAN (WEST OF PORT-DANIEL) FROM ENVIRONMENT CANADA
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
12.4
Oct
Nov
Dec
Year
Temperature:
Daily Average
(°C)
Daily
Maximum (°C)
Daily Minimum
(°C)
-11.3 -9.7
-4.2
2.4
9.1
14.6
17.8
17.1
-6.6
0.5
6.7
14.3
19.8
22.7
22.1
12.9
12.1
-4.7
-16 -14.7 -8.9
-1.9
4 9.3
6.5
0.1
-6.7
3.4
-2.7
-3.3
-10.6 -0.6
79 88.1
70.3
28.7
746.4
0 0.4
15.6
40.8
211.5
86 69.6
956.7
17 10.6
7.8
2.4
4
8.6
Precipitation:
Rainfall (mm)
15.4
10.7
28.9
51.6
91.7
64.4
45.1
31.5
13.6
0.1
79.8
55.7
60.4
86.7
99.8
95.5
Snowfall (cm)
Precipitation
(mm)
64 91.8
0
86.7
0
99.8
SOLUMINES
0
95.5
79 88.5
20
6.0) HISTORY
6.1) GENERAL GEOLOGICAL SURVEYS
The first geological surveys of the Gaspé Peninsula were done by Logan, W., Ells, R.W. and Clark
J.M. between 1843 and 1908. More detailed work was then carried out by Alcock, F.J., Jones, I. W.,
and Northrop, S. A., between 1935 and 1940.
All these surveys were done on behalf of the
Geological Survey of Canada.
The first geological report published by the provincial authorities was the H.W McGerrigle DP 479
report, published in 1977 but based on field work done in 1943-44. In 1960, N.G. Ayrton completed
a more detailed study of the Port-Daniel Silurian formations (RP 447), then a compilation map from
all the existing data was produced by W. B. Skidmore (Map 1642).
Starting in 1973 with DP 231, P.A. Bourque, in association with various authors, did several detailed
studies of the Silurian and basal Devonian rocks of the Port-Daniel area and its surroundings. This
work ended with MB 93-25, a lithological and structural synthesis of the Siluro-Devonian rocks. The
most pertinent publications are listed in Item 27, “References”.
6.2) EXPLORATION GEOLOGY WORK
The exploration history of the Port-Daniel area, particularly on the Genius property blocks, is quite
unique and unusual, as the most extensive work was done by the Quebec Department of Mineral
Resources.
The Port-Daniel area was known for quite a while to host extensive and quite pure limestone
formations. These were recognized during the basic geological mapping coverage carried out by the
government departments described in the previous section.
During the 1970s, the idea emerged of taking advantage of the limestone resource by building a
cement plant and a lime plant in Port-Daniel, with an American East Coast market readily accessible
by boat.
From 1977 to 1979, the Quebec government decided to promote these projects by carrying out
detailed mapping of the most promising limestone areas, followed by diamond drilling.
SOLUMINES
Three
21
different zones were studied in the Port-Daniel area: Colline Daniel, an area located along the coast,
southwest of Port-Daniel Bay, and partly covered by the Genius South Block; and the Clemville West
and East areas, located in the municipality of Port-Daniel and extending up to five kilometres to the
west. The Genius North Block covers the entire Clemville West area and a small portion of the
Clemville East area.
The work done by the Quebec government is described in ET 83-12, Calcaires de l'Est du Quebec,
by Lachambre, G. and Biron, S. First, the three areas were mapped and sampled in detail, then 35
holes totalling 4,435 metres were drilled to produce comprehensive sections of the deposits. All the
holes were entirely sampled in six-metre (20-foot) long samples and analyzed for major oxides.
Surface samples were analyzed as well.
Eighteen holes were drilled on the Clemville West deposit, 17 on the Colline Daniel deposit and
none on Clemville East. Historical resources were calculated based on this work, and are further
discussed in Section 6.3.
Some additional work was done on these three limestone resource areas in 1992. A company
called Ressources Minérales Gaspésie drilled seven holes totalling 640.5 metres, with one hole on
Colline Daniel, two on Clemville East and four on Clemville East. The report submitted does not
reveal the company’s objectives, nor does it contain any assay results.
All the holes drilled by the Quebec government and Ressources Minérales Gaspésie are shown in
Figure 4, “Historical Drilling”.
Between 1988 and 1999, very limited exploration work was done in the area. Only a small amount
of surface prospecting is reported, none of which identified any mineralization.
The only other significant work was done in 2003, when Namca (an associated company of Groupe
Polycor Inc.) studied the potential of certain facies in the limestones for dimensional stone. Work
was concentrated on the Clemville West area, on a 1.5-kilometre long, north-south segment of the
limestones, south of Petite Rivière Port-Daniel. Trenching was done on the southern portion of this
area, close to a power line.
Some 80 metres of sub-vertical wall was exposed and showed
interesting aesthetic features. Some additional work, such as drilling, was recommended but never
done. The reasons for abandoning the project were not mentioned.
Table 3 presents a compilation of historical work on Port-Daniel property.
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22
TABLE 3: EXPLORATION HISTORY
Reference
ET 83-12
Year
1977
1978
1979
Company
Work
Ministere de l’Energie et des Detailed mapping and drilling on
Ressources du Quebec
three promising pure limestone
areas:
Results
Colline Daniel: (South Block)
Drilling: 17 holes totalling 2,205
m.
Historical geological resources of:
124,590,000 mt at 92.79% CaCO3 and 3.84%
SiO2, plus 81,545,000 mt of more impure
limestones.
Clemville West: (North Block)
Drilling: 18 holes totalling 2,230
m
Historical geological resources of:
73,790,000 mt at 92.95% CaCO3 and 3,32%
SiO2 including 34,380,000 mt at 94% CaCO3
and 2.55% SiO2
Clemville East: (North Block)
No drilling.
Historical geological potential resources of:
112,000,000 mt similar quality of Clemville
West
GM 48236
1988
Explorateur-Innovateur de
Qc inc.
Beep Mat prospecting in the area No mineralization reported.
GM 51731
1992
Ressources Minerales
Gaspesie
Drilling but no assay reported
Colline Daniel: 1 hole / 98.5 m
Hole located on the Genius South Block
property
Clemville West: 4 holes / 386.3
m
All holes located on the Genius North Block
Clemville East: 2 holes / 155.7 m
Holes located just east of the Genius property
GM 57011
1993
Fulham Prospection
General prospecting
No anomalies or mineralization reported on the
Genius property
GM 59450
1998
Fond regional d'assistance
propection
Study on the mineral resources
of the entire Gaspé peninsula
Map 4: shows the Clemville West S-shaped
lineament
GM 56745
1999
Roberge, L. and Bernard, F.
General prospecting on NW
North Block
No anomalies or mineralization reported on the
Genius property
GM 60551
2003
GM 60962
2003
Namca (Groupe Polycor inc) Geological reconnaissance,
stripping on Clemville West 2b
facies for dimensional stone
SOLUMINES
Some massive portions identified, drilling
recommended but no other follow-up. May
have been considered too fractured.
24
6.3) HISTORICAL RESOURCES
Historical resources have been calculated on three different zones of the Port-Daniel property (ref.
Figure 4). Originally all the zones were part of a vast area where the Quebec Ministry of Natural
Resources was carrying its investigation. The current Port-Daniel Genius property comprises two
blocks and the zones where historical resources have been estimated are not entirely covered by
the current Genius claims. The following description will explain the different deposits, comment the
historical resources and estimate which portions of these historical resources are covered by the
Genius property.
6.3.1) COLLINE DANIEL
The Colline Daniel area is located along the Baie-des-Chaleurs, south of Port-Daniel, extending
some three kilometres between Pointe de l'Indien and Pointe du Sud-Ouest. It has a lenticular
shape with a maximum horizontal NNW length of approximately one kilometre (see Figure 5).
The Colline Daniel area shows the Gascons Formation (mudstones) to the north, overlain by four
facies of the West Point Formation (see below), which is itself overlain and interstratified with the
Indian Point Formation found along the Coast. These form a homoclinal Silurian sequence oriented
ENE and dipping moderately (60°) to the southeast.
The younger carboniferous Bonaventure
Formation lies over all the other formations.
The area of interest is the West Point Formation, an extended reef complex presenting various
facies. From bottom to top (north to south) the facies observed at Colline Daniel are:
Facies de L'Anse Beebe (6): Mudstone and finely-laminated grey sandstones, locally reddish and
containing some argillaceous nodular limestone layers.
Facies de L'Anse de la Pointe (7): Stratiform grey-to-green micro-sandstones and mudstones
containing limestone and reef debris conglomerates with argillaceous nodular limestone layer and
some stromatopores and reefs.
SOLUMINES
25
Facies de la Colline Daniel (8): Includes two sub-facies; a) the main facies composed of coarse pink
to brown crinoïde calcarenite, generally stratabound to stratified, with rare stromatopores and reef
debris; b) a marginal facies, restricted to the west and composed of massive light-grey-to-pink
crinoïde calcarenite and calcilutite containing numerous stromatopores, rough reefs, algae and
calcite-filled cavities.
Facies Sandy Cove (9):
Well-stratified sequence of one-metre thick beds of: a) Medium grey
limestones containing stromatopores, amphipores and rough reefs; b) Medium grey and locally
reddish argillaceous nodular limestones; and< c) Finely-laminated medium grey, green and red
sandstones.
A major fault striking N10° and dipping 60° to the west cut across the West Point Formation.
Interpretation by detailed mapping and drill sections suggests a dextral displacement along this fault
of 240 metres vertically and 60 metres horizontally.
The best potential for pure limestone is at the heart of the reef complex, represented by facies 8a of
the West Point Formation. The marginal zone, facies 8b, includes some impurities as discontinuous
argillaceous seams.
The goal of the QDNR 1978-79 work was chemical characterization of geological units 8a, 8b and 9,
as these are potential sources of raw material feed for various industrial applications. This work
included detailed mapping, surface sampling (387 samples) and drilling (17 holes totalling 2,205
metres).
Surface samples were analysed for CaCO3 + MgCO3 content using the insoluble residues method.
Some 60 composite of these surface samples were also analysed for all oxide content.
All core recovered by the drilling program was split in half and sent for total oxide determination as
6.1-metre samples, which made for 330 samples from the 17 drill holes.
From these results, 10 vertical sections spaced at an average interval of 200 metres were
interpreted. The surface sampling, geology, drilling and sections are presented on Map A1-1 of ET
83-12 (Figure 5).
SOLUMINES
27
The weighted average of all the assay results gave the following numbers:
Unit
CaCO3
SiO2
MgO
Al2O3
Fe2O3
8a
8b
9
92.79
84.59
74.94
3.84
9.37
15.03
0.63
0.84
1.22
0.85
1.80
2.58
0.37
0.69
1.16
Resource estimate parameters
The historical resources were calculated on the following basis:
Pure limestone:
CaCO3 content greater than 90%
SiO2 content less than 5%
This leads to Unit 8a as pure limestone and Units 8b and 9 as impure limestones.
Tonnages (in tonnes) were estimated using interpreted vertical cross-sections. A resource block is
limited on each side by a drilled section. The mean surface for one type of limestone in the block is
the average surface measured on each section for this limestone.
This surface is then multiplied by the lateral extension of the block, i.e., the distance between the two
drilled sections, which generates a volume in cubic metres. This volume is then multiplied by the
average density of the limestone, which has been established at 2.67 g/cm3.
Locally, it was necessary to construct some intermediate sections due to the quick changes in facies
that occur in such reef complexes, thus limiting the influence of a particularly good or bad section on
the estimate. It appears that care has been taken to keep the estimate on the conservative side.
Also, it is mentioned that the resource estimate is not essentially of a geological nature, as some
conceptual mining criteria were taken into consideration, such as losses entailed by the need to
maintain a stable slope in an eventual open pit operation.
SOLUMINES
28
The historical resources (in tonnes) at Colline Daniel for the different qualities of limestone stand at:
UNIT 8a (92.79% CaCO3 and 3.84% SiO2)
Above sea level:
•
Pure limestone, Unit 8a, above sea level and outcropping: 95,150,000 T
•
Pure limestone, Unit 8a, above sea level but under Unit 9: 29,440,000 T
124,590,000 T
Below sea level:
•
Pure limestone, Unit 8a, below sea level:
64,610,000 T
Grand total Unit 8a:
189,200,000 T
UNIT 8b (84.59% CaCO3 and 9.37% SiO2)
•
Impure limestone, Unit 8b, above sea level:
21,215,000 T
UNIT 9 (74.94% CaCO3 and 15.03% SiO2)
•
Impure limestone, Unit 9, above sea level:
60,330,000 T
This adds up to 124,590,000 tonnes of pure limestones and 81,545,000 tonnes of impure limestones
above sea level. The distribution of the resources at Colline Daniel is shown in Figure 6.
This figure also shows that the Genius South Block covers only the western part of the Colline
Daniel deposit.
In fact, it covers all or part of the original a, b, c and d sections. Tonnages
estimated to be included in the Genius South Block are those calculated for the aa'-bb' section and
the bb'-cc' section and approximately 30% of the tonnage calculated for the cc'-dd' section. In this
area, facies 9 is not present and resources come from the pure limestone Unit 8a and impure
limestone Unit 8b.
In round numbers, the South Block of the Genius property is estimated to cover approximately
23,000,000 tonnes of pure limestone (Unit 8a) and 10,000,000 tonnes of impure limestone (Unit 8b).
SOLUMINES
29
6.3.2) CLEMVILLE WEST
The Clemville West area is located immediately west of the village of Clemville and some three
kilometres north-west of Port-Daniel (ref. Figure 3). The area is accessible by numerous local and
logging roads. The geological zone of interest (Figure 7) is a syncline-anticline structure that forms a
pronounced Z shape that corresponds to the highest topographical features of the area. A major
Hydro-Quebec power line is present in the south part of the zone and Petite Rivière Port-Daniel cuts
through the central portion of the deposit in a generally east-west direction.
Limestones in that area are related to the La Vieille Formation, a Silurian formation encased
between two essentially mudstones dominant formations: the L'Anse à Pierre Loiselle Formation at
the base (to the north); and the Gascons Formation at the top (to the south). The passage between
the limestones of the La Vieille Formation and the mudstones formations on both sides is gradual,
with calcareous nodules present into the mudstones.
Detailed geological mapping, sampling and drilling studies established that the La Vieille Formation
could be divided into three members: 1) a lower member consisting of two units that we can
summarize as argillaceous limestones marking the transition with mudstones of the l'Anse à Pierre
Loiselle Formation; 2) a median member consisting of pure and impure limestone and reef facies,
divided into four units that are described below; and 3) a superior member consisting of calcareous
wackestone and argillaceous limestone marking the transition, this time with the overlying
mudstones of the Gascons Formation.
The potential for high purity limestones is therefore centered on the median member of the La Vieille
Formation.
After the deposition of some calcarenite, living organisms constructed a moundlike
structure called a bioherm. The back reef area became a quiet environment so that high energy
calcarenites continued to accumulate in front of the bioherm while calcilutite deposits formed behind
it. These calcilutite deposits were overlain by a final unit containing a mixture of highly calcareous
mudstones with the particularity of containing a fair amount of oncolites (concentric structures of
biologic origin). Figure 8, extracted from ET 83-12, describes the stratigraphy of these units. The
units of interest are:
SOLUMINES
31
Calcarenite (2a): This unit is composed of a very-fine-to-coarse calcarenite in equal proportions. It
is medium grey and formed of layers typically some 20 centimetres thick. The southern portion of
the median member, which corresponds to the ancient front of the bioherm, is entirely composed of
this unit and is 60 metres thick. Beneath and behind the bioherm, the calcarenite thickness varies
from 20 to 40 metres.
Cladopora unit (2b): This unit is the bioherm mount that formed on the calcarenite. It is located in
the north-south segment of the median member, from 500 m north of the Petite Riviere Port-Daniel,
to the power line to the south. This gives a lateral extension of some 2 kilometres. It is a massive
light grey unit with 15% to 25% Cladopora and 10% large stromatoporoids.
Calcilutite (2c): This unit is a light-to-medium-grey calcilutite formed of 15-centimetre to 1-metre thick
layers. It is interlayered with Unit 2b and reaches its maximum thickness of 45 metres near the
bioherm. Unit 2c thins and becomes interlayered with calcarenite beds as we move away from the
bioherm. These calcarenite beds can constitute 40% of the unit locally.
Oncolites unit (2d): This unit formed behind the bioherm and capped the limy sequence of the
median member. It is observed in the segment to the north of Petite Rivière Port-Daniel. The
thickness of this unit increases from south to north where some 20 metres were observed in a drill
hole. To the south, it is interlayered with the calcilutite Unit 2c, but to the north, calcarenite beds
some 20 centimetre thick are also interlayered. The diagnostic feature of this unit is the presence of
oncolites, a concentric biological structure that constitutes from 5% to 40% of the rock (20% on
average). The rest of the rock is either a calcilutite, a dark grey, very calcareous mudstone or a silty
limestone.
As for the Colline Daniel area, it was the QDMR’s intention to characterize the chemistry of the
obviously-quite-pure limestones of this area. The work took place between 1977 and 1979 and
included detailed geological mapping and drilling (18 holes totalling 2,230 metres).
The core sampling and assaying procedure was similar to the one used for the Colline Daniel area,
generating 200 samples from the 18 drill holes. The locations of these drill holes are shown in
Figure 4, “Historical Drilling”, and the sections are shown in Figure 9.
From these results, 12 vertical sections spaced at an average of 500 metres were interpreted.
Detailed geology, drilling and sections are presented in Figure 10 (Map A2-1 from ET 83-12).
SOLUMINES
34
The weighted average of the all the assay results gave the following numbers for the entire La Vieille
Formation:
Unit
CaCO3
SiO2
MgO
Al2O3
Fe2O3
3
76.77
11.68
1.03
3.35
1.17
2d
2c
2b
2a
80.88
91.36
95.66
93.39
11.45
4.20
1.57
3.83
1.19
0.83
0.50
0.89
2.81
1.04
0.40
0.97
1.11
0.46
0.30
0.43
1c
1b
1a
82.17
57.06
58.03
10.77
23.87
22.48
1.57
2.46
1.83
2.11
4.35
4.27
1.57
1.93
2.31
superior member
median member
lower member
Resource estimate parameters
The historical resources were calculated with the following basis:
Pure limestone:
CaCO3 content greater than 90%
SiO2 content less than 5%
This leads to Units 2a, 2b, and 2c as pure limestones and Units 1a, 1b, 2d, 3 and the transition into
the Gascons Formation as impure limestones.
Tonnages (in tonnes) were estimated using the method described above for the Colline Daniel area.
At Clemville West, the deposit was first divided into four contiguous sectors (Figure 10).
The
average grades for pure and impure limestones were calculated for each sector from the drill hole
intersections. For a specific unit in the sector, the hole data was retained for the estimate only if the
unit was entirely intersected by the hole. If not, no grade was calculated. This situation applied
principally to the impure limestones, as they are located in the footwall and hanging wall of the
median member of the La Vieille Formation, and the holes were designed to intersect that member.
The mining concept for Clemville West considered an open pit with a pit floor no b deeper than the
elevation of Petite Rivière Port-Daniel.
SOLUMINES
36
The historical resources (in tonnes) at Clemville West for the different qualities of limestone stand at:
PURE LIMESTONE (all sectors)
73,790,000 T at 92.95% CaCO3 and 3.32% SiO2, including 34,380,000 T at 94.00% CaCO3 and
2.55% SiO2. A third of these resources are directly accessible while the rest necessitate extraction
of some impure limestone to access the pure limestone.
IMPURE LIMESTONE (all sectors)
The footwall or east to northeast margin of the median member is composed of impure limestones
from Units 1a, 1b and 1c. These amount to 95,130,000 T at 62.59% CaCO3 and 19.36% SiO2 . On
the hanging wall or west to southwest margin of the median member, impure limestones are
constituted of Unit 2d of the median member, Unit 3 of the superior member and the first layers of
the Gascons Formation. These impure limestones amount to 24,390,000 T at 60.72% CaCO3 and
21.21% SiO2 .
These bring the total impure limestones to 119,520,000 T at 62.21% CaCO3 and 19.74% SiO2 .
This summarizes as 73,790,000 tonnes of pure limestones and 119,520,000 tonnes of impure
limestones above the elevation of Petite Rivière Port-Daniel.
Figure 7 shows that the Genius claims cover almost all of the Clemville West deposit. Only a small
portion in the centre east of the deposit is not on the property. This marginal portion of the Clemville
West deposit is principally composed of impure limestone of the lower member.
6.3.3) CLEMVILLE EAST
Additional pure limestones resources have been identified to the east of the Clemville West area.
The continuity of the median member of the La Vieille Formation has been traced up to Port-Daniel
and constitutes the Clemville East area.
Surface mapping indicates that Clemville East and West present a very similar geological sequence.
This sequence has also been folded as shown in Figure 11.
SOLUMINES
38
Surface observations indicate that drilling would confirm that a similar level of purity could be found
in the Clemville East limestone deposit.
Figure 11 locates the area of possible resources at Clemville East. The deposit has been divided
into segments and the possible resource tonnage calculated for each segment is indicated. The
average dip of the formations at Clemville East is 25° and the depth retained is 30 metres from
surface. A historical potential of 112,000,000 tonnes of pure limestones was estimated in 1979.
Mining conditions would be more favourable within the dotted perimeter shown in Figure 11, as the
units dip much more gently in this area. One major segment has a potential for some 46 million
tonnes of pure limestones.
The eastern end of the Genius North Block covers approximately one-
third of that segment, some 15 million tonnes. Another 15 million tonnes has been estimated for the
narrower, northeast-southwest-trending segments to the west, these being much more steeply
dipping formations and therefore presenting less interesting mining conditions. The total potential for
pure limestones of the Clemville East deposit on the Genius property is estimated at 30,000,000
tonnes.
6.4) PRODUCTION
There has never been any production from the Port-Daniel property.
6.5) HISTORICAL DRILLING
As described in Sections 6.3.1 and 6.3.2, all diamond drilling was done during the 1977 to 1979
period by the Quebec Department of Natural Resources.
As mentioned, 17 holes totalling 2,205
metres were drilled at Colline Daniel while 18 holes totalling 2,230 metres were drilled at Clemville
West.
In addition to these, Ressources Minérales Gaspésie drilled seven holes totalling 640.5 metres in
1992. These holes were obviously drilled to confirm previous results obtained by the 1977-1979
campaign, as they are distributed among Colline Daniel and Clemville West and East. Five of these
seven holes are covered by the Genius claims. All historical drilling is shown in Figure 4.
SOLUMINES
40
7.0) GEOLOGICAL SETTING AND MINERALIZATION
7.1) GENERAL GEOLOGICAL SETTING
Most of the following description is taken from MB 93-25: Le Silurien du segment Appalachien
Gaspésie-Matapedia-Témiscouata; Stratigraphie, Géologie structurale et Paléogéographie (Rapport
final) 1993 by Bourque, P.A., et al.
Silurian and lower Devonian rocks form the major part of the Gaspé Peninsula and are encased
between Cambro-Ordovician rocks of the Humber zone to the north and the Miramichi zone to the
south (Figure 13).
Three major structural ENE-WSW units are recognized: 1) The Aroostook-Perce Anticlinorium in the
centre with on each side; 2) The Connecticut-Percé Synclinorium to the north; and 3) the Baie-desChaleurs Synclinorium to the south. Numerous local to regional faults and folds are present in each
of these three major structural units. The Genius Port-Daniel property is located within the Baie-desChaleurs Synclinorium.
Major geological formations within the Baie-des-Chaleurs Synclinorium belong to the Chaleurs
Group. The stratigraphy of this group is presented in Figure 12. The figure also indicates the
stratigraphic position of the Colline Daniel and Clemville East and West deposits.
The various formations of the stratigraphic column shown in Figure 13 can be simplified and grouped
into three main lithological superposed events:
1) A lower clastic sequence including all units of the Clemville Formation up to the L’Anse à PierreLoiselle Formation. These include fine to coarse sediments such as argillites, mudstones, siltstones,
sandstones and conglomerates.
2) A median limestone formation consisting of the La Vieille Formation in the Port-Daniel area.
SOLUMINES
41
3) An upper clastic sequence that includes the Gascons, West Point and Indian Point formations,
which are characterized by fine-grained detritic material such as mudstones, siltstones and very finegrained sandstones. The West Point Formation shows local reef masses such as the one seen at
Colline Daniel.
In the Port-Daniel area, the stratigraphy faces south, which means that we go from older to younger
units from the north to the south. The Genius property covers two pure limestones occurrences, one
located in the median major limestone event (2) just mentioned above, and one as a reef complex in
the West Point Formation, part of the (3) upper clastic sequence.
7.2) REGIONAL GEOLOGY
Figure 14 is taken from QMNR, ES 030, a map prepared by P.A. Bourque and G. Lachambre. It
shows a mass of Cambo-Ordovician formations directly to the north of the Port-Daniel Bay that
belongs to the Mictaw and Maquereau formations. Going to the southwest and south from these
we find the Silurian, starting with the Clemville Formation, in contact with the Cambro-Ordovician
rocks. The sequence from there to the Indian Point Formation to the south along the Baie-desChaleurs coast includes:
Clemville Formation: The lower part of the formation is a pale, quartz-rich sandstone forming thick
beds in which some green mudstones and siltstones are interlayered.
The upper part of the
formation shows quite the opposite, with dominant green mudstones and siltstones and some
interlayered fine-grained sandstone. Thin calcilutite layers are also present. Overall, the thickness
of the Clemville Formation in the Port-Daniel area is estimated at 30 metres.
Weir Formation: Some 20 metres of alternate layers of medium-to-coarse grey-to-pink sandstones
and conglomerate with mudstones and siltstones at a ratio of 2:1. The particularity of the Weir
Formation is the presence of abundant pink feldspar in the sandstones.
Gascons Formation: Similar to the Weir Formation in term of composition with alternate layers of
medium-to-coarse sandstones and conglomerates with mudstones and siltstones.
Here, the
sandstones are beige due to much less pink feldspar. The ratio of coarse to fine units is 1:1. The
thickness of the formation is estimated at 50 metres.
SOLUMINES
44
L’Anse à Pierre Loiselle: This formation is the transition between the Gascons and La Vieille
formations, as the lower part is composed of some 40 metres of mudstones and sandstones and
the upper part contains nodular limestones. The central part of the formation shows a particularly
coarse quartz and feldspar-rich sandstone and conglomerate.
La Vieille: This limestone formation is divided into three distinct members: 1) a rich fossil nodular
limestone at the base; 2) a median member consisting of bioherms, reefs, stromatolites and
calcarenites; and 3) a poor fossil nodular limestone at the summit. A total thickness of 145 metres
is estimated for this formation.
Gascons: This formation consists of a fairly uniform, monotonous 600-metre sequence of finegrained sandstones, mudstones and siltstones with occasional calcareous shales and nodular
mudstones.
West Point:
The West Point Formation is an important reef complex that has a maximum
thickness of some 850 metres. The formation has been divided into different members, each
characterized by various reef facies reflecting different sedimentary conditions and types of living
organisms.
Indian Point:
The Indian Point Formation is interlayered with and overlies the West Point
Formation. It is composed of 700 metres of monotonous, fine siliclastic sediments.
The rocks of the Gaspesian Orogeny have been deformed by three main tectonic events: 1) the
taconic Orogeny (Ordovician); 2) the Acadian Orogeny (Devonian); and 3) the Alleghenian
Orogeny (Carboniferous-Permian). The Chaleurs Group being Silurian in age, it only underwent
the last two orogenies, the Acadian being the most intense. All the orogenies produced NE-SE
striking structures. Detailed mapping of the local geology (Figure 14) has traced northeast-striking
major faults and fold axes developed within the Silurian rocks.
The Clemville deposits are
particularly deformed.
An unconformity is present between the Chaleurs Group formations and the younger Bonaventure
Formation, which lies as almost horizontal stratas over the Silurian and early Devonian rocks. The
Bonaventure Formation occupies a large area along the shore of Chaleurs Bay.
SOLUMINES
46
7.3) PROPERTY GEOLOGY
The Genius property is divided into two blocks that we refer as the North and the South Block. The
more extensive North Block is centred on the La Vieille Formation. In the western part of the North
Block, the limestone formation in encased by clastic units of the L’Anse à Pierre Loiselle Formation
to the northeast and the Gascons Formation to the southwest. The formations were deformed and
now form a Z-shaped box fold with dips to the southwest varying from 35-45° in the northern
anticline part of the fold to steeper 65-70° in the southern syncline part of the fold.
This part of the La Vieille Formation constitutes the Clemville West deposit and has already been
described in detail in Section 6.3.2. Please refer to that section for a description of all the different
facies that have been mapped within the formation at this location.
The above geology was found to extend more to the east (ref. MRNQ report MB 83-12, Figure 11
and Section 6.3.3 of this report), where it constitutes the Clemville East deposit, which is partly on
the Genius North Block property.
The South Block of the Genius property covers a different portion of the Chaleurs Group
stratigraphy. In this case, the claims cover part of a reef complex located in the younger West Point
Formation. At this site, the formation forms a homoclinal sequence dipping 40-70° to the south. As
described in detail in Section 6.3.1 and shown in Figure 5, the South Block was staked to cover pure
recifal limestones in what is known as the Colline Daniel area.
7.4) MINERALIZATION
For this project, mineralization refers to the presence of fairly pure limestone units on both of the
Genius Port-Daniel blocks. Limestones with only a few impurities constitute a source of raw material
for different industrial uses. The level of impurities that can be tolerated varies depending on the
process used and the final product desired. For these reasons, the exploration work carried out by
the Ministère des Ressources Naturelles du Quebec in 1977-79 distinguished between pure and
impure limestones. The criteria retained was over 90% CaCO3 and less than 5% SiO2 for pure
limestone, anything under this being considered impure.
It is important to note that impure
limestones are still a source of raw material for a cement plant, for instance, as long as the limestone
contains over 80% CaCO3.
No other type of mineralization has been identified on the Genius
property.
SOLUMINES
47
8.0) DEPOSIT TYPES
Limestone (in the broad sense) is one of the most mined commodities in the world. It includes
classic limestone formations, but also reef complex and marble, a metamorphic and recristallized
limestone.
While limestone is a quite common formation on Earth, deposits of commercial interest are more
limited, as uses of limestone necessitate a high level of purity. Also, limestones may be calcitic
and/or dolomitic, but calcitic limestones are much less abrasive and therefore preferred.
One of the most abundant products made from limestone are fillers. Crushed limestone (at various
screen sizes) is used in a huge number of applications, but to qualify, the raw material must be a
rock with more than 95-97% CaCO3 and must meet high level of brightness (be white).
Limestones with lower CaCO3 content will find applications but for cheaper products, such as a raw
material for cement production, agricultural lime or aggregates.
In Eastern Canada, there are very few producer of bright, pure limestone. The major one is the
Omya plant in Perth, Ontario, where a pure calcitic marble is mined. Another important supplier is
the Graymont plant in St-Adolphe-de-Dudswell in Quebec’s Eastern Townships, where a Silurian
reef complex is mined.
The Port-Daniel deposits do not meet the highest limestone standards as their CaCO3 content is
around 92% at best, and they do not qualify for the high brightness levels required.
9.0) EXPLORATION
Genius Properties Ltd. has not undertaken any exploration work since acquiring the property.
10.0) DRILLING
Genius Properties Ltd. has not done any drilling since acquiring the property.
SOLUMINES
48
11.0) SAMPLE PREPARATION, ANALYSES AND SECURITY
Genius has not done any sampling on the property. Sampling is reported in historical reports, mainly
from geological surveys and drilling between 1977 and 1979. Most of the work was done by the
government within an objective, scientific study, and we have no reasons to believe that the reported
results might not be reliable.
However, the historical reports do not fully describe sample
preparation, analyses and security.
12.0) DATA VERIFICATION
It is not possible to verify the historical data.
The authors had to rely solely on the reported
exploration results.
13.0) MINERAL PROCESSING AND METALLURGICAL TESTING
Mineral processing and/or metallurgical testing have never been done for the Port-Daniel property.
14.0) MINERAL RESOURCE ESTIMATES
Historical resources have been calculated on three sectors of the Genius Port-Daniel property.
These resources are described in detail in Section 6.3 of this report. The estimates are supported
by an exploration program carried out by the Ministère des Ressources Naturelles du Québec
between 1977 and 1979. The term reserves was used at the time (ref report MB 83-12).
We have revised the parameters of the estimates. The methodology followed for hole location,
drilling, sampling and assaying is considered to be reliable. We also believe that the fact that the
work was done by an independent party with no commercial interest other than promotion of local
development, such as the Ministry, supports the objective character of the estimates.
We believe that considering the nature of the deposit, some additional drilling should be done to
reach an optimal level of definition and eliminate some uncertainty due to potential rapid geological
changes in a reef context.
SOLUMINES
49
We therefore consider that the resources identified on Clemville West and Colline Daniel could
qualify as indicated mineral resources as defined by NI 43-101.
The resources of the Clemville East deposit could be considered as inferred mineral resources.
ITEMS 15 TO 22
Items 15 to 22 are as follows:
15.0) Mineral Reserve Estimates;
16.0) Mining Methods;
17.0) Recovery Methods;
18.0) Project Infrastructure;
19.0) Market Studies and Contracts;
20.0) Environmental Studies, Permitting and Social or Community Impact;
21.0) Capital and Operating Costs;
22.0) Economic Analysis.
These items refer to properties at the development stage and do not apply to the Port-Daniel
property.
23.0) ADJACENT PROPERTIES
Even if not immediately adjacent to the property, the Ciment McInnis project could have a material
impact on the property because of its proximity and the limestone resources contained on the
Genius property.
To briefly illustrate the size of Ciment McInnis project, an adaptation and
translation of a release published by the Soleil newspaper of Quebec City is provided below:
On January 31, 2014, the Ciment McInnis project was officially announced. A total investment of
more than 1 billion dollars will be required. The project will have the capacity to produce 2.2 MT of
cement powder a year, and up to 2.5 MT under optimal conditions. Approximately 100 to 150
permanent jobs will be created, along with up to 600 direct jobs during construction. Cement will be
transported mainly by boat to fill the needs of clients mainly located on the NE coast of the US.
Ciment McInnis is located 5 to 10 km east of the Genius Port-Daniel property.
SOLUMINES
50
24.0) OTHER RELEVANT DATA AND INFORMATION
In early 2014, the Quebec government announced that an agreement had been signed with the
McInnis group providing for the investment of more than $1 billion of public funds in a project for the
construction of a major cement plant and port facilities at Port-Daniel. Since the limestone is the
property of the surface rights owner, the McInnes project operator is said to have acquired ground
east of Port-Daniel to secure adequate supply of raw material for the plant.
Note that the estimates of the resources mentioned in this report were done in the late 1970s and
that environmental criteria and acceptability of a mining project have changed since then. It would
be pertinent to re-examine the different sites to see whether there are any new constraints to be
considered.
25.0) INTERPRETATION AND CONCLUSIONS
The Port-Daniel property is located in an area where a fair amount of exploration work was done by
the Quebec ministry of Natural Resources in the late 1970s to assess the potential for pure
limestones.
Detailed geological surveys, drilling and extensive assaying led to the conclusion that large tonnages
with more than 90%CaCO3 and less than 5%SiO2 are readily accessible, as well as more impure
limestones of varying quality.
In the 1980s, the QMNR estimated the limestone resources for three areas: Colline Daniel, Clemville
West and Clemville East. The resources located on Genius property are as follows:
Area
TABLE 4: RESOURCES SUMMARY ON GENIUS PROPERTY
Pure limestone (tonnes)
Impure limestone (tonnes)
Colline Daniel
23,000,000
10,000,000
Clemville West
73,790,000
119,520,000
Clemville East
30,000,000
Total
126,790,000
129,520,000
Limestone is a mineral commodity that has been conceded to the owner of the surface rights under
Article 5 of the Quebec Mining Act. Certain conditions apply but these are met here, so the claims
do not give Genius the mining rights for this resource.
No other type of mineralization has been identified on the property.
SOLUMINES
51
26.0) RECOMMENDATIONS
As this project contains some 126,790,000 tonnes of pure limestone and 129,520,000 tonnes of
impure limestone that can be characterized as partly indicated and partly inferred, based all the
observations made in this technical report, the logical next phase of the project would be a scoping
study.
This scoping study should address the following issues:
1) At present, the claims owned by Genius do not carry the rights to the limestone, as this
commodity is regulated by Article 5 of the Quebec Mining Act, which says that on the lands
granted or alienated by the State before January 1, 1966 (which is the case here) the land
owner is also the owner of several commodities, including limestone. In the scoping study,
the land owner directly located on the three areas, namely Colline Daniel and Clemville West
and East, should be contacted, and an evaluation done for the purpose of securing the
surface land;
2) Review the mining potential in light of new environmental and social constraints;
3) Assess the potential markets for aggregates, lime, etc. in Québec and on the East Coast of
the United States;
4) Review the strategy in regard to McInnis project, and verify whether synergies can be
created between the two projects;
5) Verify the possibility of using the McInnis port facilities;
The budget for this scoping study is estimated at $100,000.
SOLUMINES
52
27.0) REFERENCES
27.1) PUBLIC REPORTS
DV 93-06 - CARTE MINERALE DE LA GASPESIE - FEUILLE GASPE. 1993, Par BRISEBOIS, D,
LACHAMBRE, G, PICHE, G. 1 page. CARTE 2175 (ECHELLE 1/250 000). 1 microfiche.
MB 93-25 - LE SILURIEN DU SEGMENT APPALACHIEN GASPESIE-MATAPEDIA-TEMISCOUATA:
STRATIGRAPHIE, GEOLOGIE STRUCTURALE ET PALEOGEOGRAPHIE (RAPPORT FINAL). 1993,
Par BOURQUE, P A, GOSSELIN, C, KIRKWOOD, D, MALO, M, ST-JULIEN, P. 115 pages. 33
CARTES /23F (ECHELLES 1/20 000, 1/50 000, 1/100 000, 1/250 000,, 1/500 000, 1/588 235). 8
microfiches.
PLANCHES PHOTOGRAPHIQUES (ANNEXE A). 1993, Par BOURQUE, P A, GOSSELIN, C,
KIRKWOOD, D, MALO, M, ST-JULIEN, P. 90 pages. 2 microfiches.
LOCALITES FOSSILIFERES (ANNEXE B). 1993, Par BOURQUE, P A, GOSSELIN, C, KIRKWOOD, D,
MALO, M, ST-JULIEN, P. 123 pages. 3 microfiches.
ET 83-12 - CALCAIRES DE L'EST DU QUEBEC. 1987, Par LACHAMBRE, G, BIRON, S. 186 pages.
8 CARTES (ECHELLES 1 X 1/5 000, 1 X 1/100 000, 3 X 1/10 000, 3 X 1/20 000) ET 3 FIGURES. 5
microfiches.
MB 86-34 - STRATIGRAPHIE DU SILURIEN ET DU DEVONIEN BASAL DE LA GASPESIE. 1986, Par
BOURQUE, P A, GOSSELIN, C. 55 pages. 14 CARTES (13 X 1/20 000, 1 X 1/100 000) ET 12
COUPES /6F. 3 microfiches.
MB 86-35 - STRATIGRAPHIE, PETROGRAPHIE ET FACIES DU NIVEAU SAYABEC - LAFORCE - LA
VIEILLE, GASPESIE ET VALLEE DE LA MATAPEDIA. 1986, Par LAVOIE, D, BOURQUE, P A. 35
pages. 4 PLANCHES (ECHELLE VERTICALE 1/1 000) ET UNE LEGENDE. 2 microfiches.
DV 84-09 - AIRES D'INTERET GEOCHIMIQUE - BAIE DES CHALEURS - LYSTER. 1984, Par M E R.
11 CARTES (ECHELLE 1/50 000). 2 microfiches.
MB 85-24 - CARTE MINERALE DES APPALACHES DU QUEBEC. 1984, Par AVRAMTCHEV, L,
VALLIERES, A, SKIDMORE, W B, BIRON, S, SAINT-JULIEN, P. 1 CARTE (ECHELLE 1/500 000). 1
microfiche.
SOLUMINES
53
DP-84-09 - GROUPES DE MICTAW ET DE MAQUEREAU, REGION DE PORT-DANIEL. 1983, Par DE
BROUCKER, G. 2 CARTES (ECHELLES 1/50 000 ET 1/20 000) AVEC NOTES MARGINALES. 1
microfiche.
ES 030 - STRATIGRAPHIE DU SILURIEN ET DU DEVONIEN BASAL DU SUD DE LA GASPESIE.
1980, Par BOURQUE, P A, LACHAMBRE, G. 123 pages. CARTES 1929 (ECHELLE 1/100 000), 1930
(ECHELLE 1/50 000), 1953 (ECHELLE 1/20 000), 1958 (ECHELLE 1/50 000), 1959 ET 1960 (ECHELLE
1/20 000) ET 2 FIGURES HORS-TEXTE. 5 microfiches.
DP 231 - STRATIGRAPHIE DU SILURIEN ET DU DEVONIEN BASAL DE L'EST DE LA GASPESIE:
SECTEUR ORIENTAL DU COMPLEXE DE LA BAIE DES CHALEURS (COMTES DE GASPE-SUD ET
DE BONAVENTURE). 1973, Par BOURQUE, P A. 15 pages. COUPES STRATIGRAPHIQUES
(ECHELLE 1/9 000). 1 microfiche.
CARTE 1642 - CARTE GEOLOGIQUE DE LA PENINSULE DE GASPE. 1967, Par McGERRIGLE, H
W, SKIDMORE, W B. (ECHELLE 1/253 440). 1 microfiche.
S 072 - BIBLIOGRAPHIE ANNOTEE SUR LES MINERALISATIONS METALLIQUES DANS LES
APPALACHES DU QUEBEC. 1963, Par M R N. 124 pages. CARTES B-790, B-791 ET B-792
(ECHELLE 1/253 440). 4 microfiches.
RP 447 - RAPPORT PRELIMINAIRE SUR LA REGION DE CHANDLER - PORT-DANIEL, COMTES DE
BONAVENTURE ET DE GASPE-SUD. 1961, Par AYRTON, W G. 13 pages. CARTE 1382 (ECHELLE
1/63 360). 1 microfiche.
CARTE 1000 - CARTE GEOLOGIQUE DE LA PENINSULE DE GASPE. 1953, Par McGERRIGLE, H
W. (ECHELLE 1/253 440). 1 microfiche.
DP 479 - RECONNAISSANCE GEOLOGICAL SURVEY OF SOUTH-CENTRAL AND WESTERN
GASPE PENINSULA, FINAL REPORT. 1943, Par McGERRIGLE, H W. 106 pages. 2 microfiches.
27.2) ASSESSMENT REPORTS
GM 60551 - RAPPORT DE PROSPECTION GEOLOGIQUE, PROPRIETE CLEMVILLE. 2003, Par
LESSARD, M. 11 pages. 1 carte. 2 microfiches.
GM 60962 - RAPPORT DE PROSPECTION EN GASPESIE, PROPRIETE CLEMVILLE. 2003, Par
FRIGON, D, SAMBROTTA, Y. 8 pages. 1 microfiche.
GM 59547 - PROSPECTION GEOCHIMIQUE DE BASE, PROJET PORT-DANIEL/GASCON 99. 1999,
Par DAIGNAULT, M, GALLON, C. 12 pages. 5 cartes. 2 microfiches.
GM 59450 - EVALUATION DU POTENTIEL MINERAL DE LA GASPESIE, RAPPORT FINAL. 1998, Par
BERGER, J, WARES, R. 124 pages. 28 cartes. 13 microfiches.
SOLUMINES
54
GM 56745 - RAPPORT DE PROSPECTION, PROJET FRANCE-LI.
BERNARD, F, CARON, L. 7 pages. 1 microfiche.
1996, Par
ROBERGE, L,
GM 57011 - PROSPECTION FULHAM, PROJET DU MILIEU. 1993, Par FULHAM, V. 11 pages. 1
microfiche.
GM 51731 - JOURNAUX DE SONDAGE DES TROUS DE FORAGE, PROPRIETES McINNES &
CLEMVILLE OUEST. 1992, Par SIMONEAU, P. 21 pages. 4 cartes. 2 microfiches.
GM 48236 - RAPPORT DE PROSPECTION D'UN LEVE AU BEEP MAT EFFECTUE DANS LE CADRE
DU VOLET 3 DU PROGRAMME D'ASSISTANCE FINANCIERE A LA PROSPECTION DU BAS-STLAURENT ET DE LA GASPESIE. 1988, Par CLEMENT, E, ST-PIERRE, R, DUGUAY, G. 8 pages. 1
microfiche.
SOLUMINES
55

rapport Port-Daniel 06juin2014 - rev hdn

Transcription

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