Department of Natural Resources
Request for Proposals
On
Exempt Mineral Land (EML)
Fischells Brook Salt Property
St. George’s Bay
Newfoundland and Labrador, Canada
February 13, 2017
Government of Newfoundland and Labrador
Department of Natural Resources
PO Box 8700
St. John’s, NL A1B 4J6
Summary of Key Information
1.
Date of issue:
February 13, 2017
2.
Closing Date for
March 24, 2017 at 3:00 pm NST
3.
Submissions:
4.
Any inquiries must be directed to the Department Representative:
Brad Way
Geologist, Mineral Development Division
Department of Natural Resources
3rd Floor, Natural Resources Building
50 Elizabeth Avenue
St. John’s, NL A1A 1W5
Tel:
Fax:
e-mail:
5.
(709) 729-1582
(709) 729-3493
[email protected]
Proposals must be submitted to:
c/o
Minister of Natural Resources
Alex Smith
Director, Mineral Development Division
Department of Natural Resources
3rd Floor, Natural Resources Building
50 Elizabeth Avenue
St. John’s, NL A1A 1W5
Tel:
Fax:
e-mail:
(709) 729-6379
(709) 729-3493
[email protected]
2
Table of Contents
1.0
INTRODUCTION…………………………………………………………………………………….4
1.1
Location and Access……………………………………………………………………….4
1.2
Geographic Setting of the Fischells Brook Salt Property……………………………….5
1.3
Geology of the Fischells Brook Salt Property area (after Dimmell, 2001)……….…..6
2.0
EXPLORATION AND RESOURCES………………………………………..…………………..9
2.1
History of Exploration ………………………………………………………….…………9
2.2
Resource Estimate of the Fischells Brook Salt Property……………………………...12
3.0
TERMS OF REFERENCE………………………………………………………………………..14
4.0
REFERENCES……………………………………………………………………………………15
Appendix A – EML Description……………………………………………………………………………16
Tables
Table 1:
Table 2:
Summary Data of the 7 Historical Fischells Brook Drill Holes (Rhoden, 1999)
Select high-grade section of three older drill holes stored in Pasadena (Rhoden,
1999)
List of Maps and Figures
Figure 1:
Figure 2:
Figure 3:
Figure 4a:
Figure 4b:
Figure 5:
Figure 6:
Fischells Brook Salt Property location of the EML
Geomorphological Subdivisions of the Bay St. George Subbasin (Knight, 1983)
Geology of the Fischells Brook area (Knight, 1983)
Location of cross-section through Hooker (DDH1) and Amax (DDH2) showing
possible fault (Knight, 1983)
Cross-section through Hooker (DDH1) and Amax (DDH2) showing possible fault
(Knight, 1983)
Section compiled from the Hooker Chemicals 1968 drill hole (Knight 1983)
Historic drill-hole locations for the Fischells Brook Salt Property (Rhoden, 1999)
3
1.0
INTRODUCTION
An area enclosing 975 hectares, encompassing the Fischells Brook Salt property was designated as
Exempt Mineral Lands (EML) under the Mineral Act on January 20, 2017. The boundary description
for the EML is shown in Appendix A.
The Government of Newfoundland and Labrador (GNL) through the Minister of Natural Resources
invites proposals for the mineral development of all or part of the EML. The deadline for receipt of
proposals is March 24, 2017. The successful proponent will be granted exclusive mineral rights
under the Mineral Act either as an Extended Map Staked Licence or a Mining Lease, as appropriate.
The proponent’s project commitments will be incorporated as terms and conditions of the licence or
lease.
1.1 Location and Access
The Fischells Brook Salt property is located in western Newfoundland, 27 km southeast of
Stephenville, and 11 km inland from the community of Fischells (Figure 1). The property straddles the
Trans-Canada Highway and can be accessed via the Trans-Canada Highway.
Fischells
Figure 1: Location of the Fischells Brook Salt Property EML
4
1.2
Geographic Setting of the Fischells Brook Salt Property
The Fischells Brook Salt property lies in the North-Easterly section of the Carboniferous Bay St.
George Subbasin, which is the northeast extension of the larger Maritimes Basin. Three distinct
geomorphological areas occur in the Bay St. George Subbasin. These are the St. George’s Bay
Lowlands, Anguille Mountains and Bald Mountain, and Codroy Lowlands (Figure 2).
The onshore portion of the Carboniferous Bay St. George Subbasin is in an area 22 km wide
between St. George’s Bay on the west and the Long Range Mountains to the east, and extends
southwest 125 km from the town of Stephenville to the coast near the Codroy Valley to the
southwest.
Fischells Brook is located within the St. George’s Bay lowlands, which consists of a gently rolling
coastal plain, 60 m in elevation that gradually rises to 225 to 300 m as it is traced inland towards the
Long Range Mountains. The lowlands are generally comprised of sedimentary rocks of the Codroy
and Barachois Groups and were shaped by the Wisconsin Glaciation. As a result, they are blanketed
by thick glacial drift and marine deposits.
To the south the topography rises sharply to the Anguille Mountains and Bald Mountain, at an
average of 525 m. These rocks are composed of more resistant Anguille strata.
Fischells Brook Salt
Figure 2: Geomorphological Subdivisions of the Bay St. George Subbasin (Knight, 1983)
5
1.3
Geology of the Fischells Brook Salt Property Area (after Dimmell, 2001)
The Maritimes Basin is a post-orogenic, structural, successor-type basin which accumulated
dominantly non-marine clastic sediments from Late Devonian to Early Permian time.
The mainly Carboniferous sedimentary units of the Bay St. George Subbasin lie unconformably on
Proterozoic anorthosites and mafic gneisses, which have been designated part of the Long Range
Complex. The Carboniferous sedimentary units have been divided into three groups, and from oldest
to youngest are the Anguille Group, the Codroy Group and the Barachois Group (Figure 3). These
are mostly non-marine, terrigenous, clastic sediments, with marine strata found only within the
Codroy Group.
The Anguille Group, the oldest and lower most sedimentary rocks, were deposited coeval with the
formation of the basin. They are mainly fluvial conglomerates and sandstones with minor marine
shales of late Devonian/early Carboniferous age.
The Codroy Group of early Carboniferous age consists of approximately 2700 metres of red shales,
siltstones, limestones, gypsum, salt and sandstones. It disconformably overlies the continental clastic
series of the Anguille Group.
The Barachois Group is believed to conformably overly the Codroy Group although contacts are
now faulted. It consists of fluvial sandstone and siltstone laid down by high-sinuosity rivers that
flowed westward across a floodplain.
Deformation of the Carboniferous strata, including regional compression and tilting, has resulted in:
broad open folds with northeast trending axes, normal and reverse faulting, and contributed to salt
tectonism. To the northwest of the Fischells Brook property, the core of the Anguille Anticline
exposes the Long Range Complex. This is flanked to the southeast by the Codroy Syncline in which
thick sequences of evaporates are preserved. A fault structure is speculated/assumed to explain the
major dislocation between the Hooker and Amax drill holes (Figure 4a & 4b). Further work is
required to verify, or change this interpretation.
The Fischells Brook salt deposit is found within the Codroy Group, which is equivalent to the Windsor
Group as mapped in Nova Scotia and New Brunswick. These stratigraphic units host major salt and
potash deposits, for example, salt at Pugwash and Nappan, Nova Scotia and potash at Sussex, New
Brunswick. The dominant mineral in these sequences is halite (NaCl). The dominant potash mineral
is sylvite (KCl), commonly mixed with halite and termed sylvinite. Carnalite (KMgCl3.6H2O) occurs as
an accessory mineral.
6
Fischells Brook Salt
Figure 3: Geology of Fischells Brook area. (1 – Anguille, 2 – Codroy, 3 – Barachois) (Knight, 1983)
7
FB1
Fischells Brook Salt
FB2
Figure 4a:
Location of cross-section through Hooker (DDH1) and Amax (DDH2) showing
possible fault (Knight, 1983)
8
Figure 4b: Cross-section through Hooker (DDH1) and Amax (DDH2) showing possible fault
(Knight,1983)
2.0
EXPLORATION AND RESOURCES
2.1
History of Exploration
In 1967 Hooker Chemical obtained a concession agreement from the GNL giving rights for
exploration in the area. A detailed gravity survey was conducted over the Fischells Brook area by
Huntec for Hooker in November and December, 1967.
The first drilling on the Fischells Brook gravity structure was carried out by Hooker in 1968 (Figure 6).
The drill hole encountered salt at 358.4 m and remained in salt to abandonment at 1099 m. The
potash zone was noted from 381 to 409.6 m with the first 23.3 m sylvite and the bottom 7.3 m
carnallite. The best potash values were from 318 to 325.8 m at a grade of 7.95% K2O. True thickness
is approximately one half of the drill interval due to steep dips of 50 – 60 degrees (Anderle, 1985).
The salt section was described as excellent quality with an upper, middle and lower salt sequence,
and strong potash enrichment in some areas (Figure 5).
In 1975, Amax Minerals optioned the Hooker development licences. They drilled a hole to 916 m to
test the Fischells Brook anomaly to the north side of Rocky Pond (Figure 6). The hole failed to
intersect any salt or evaporate units.
In 1979 the Fischells Brook area was staked for the R.P.F Syndicate. Development licenses were
9
withdrawn from staking and made an EML by GNL with the intention of entertaining work proposals
for the ground.
Due to pressure from industry the ground was re-opened for staking at the end of June, 1980. Pronto
Exploration Ltd. and Noranda Exploration took on aggressive exploration programs in the Bay St.
George Basin. Between February 27, 1980 and May 2, 1980, the Nova Scotia Research Foundation
Corp. did a gravity survey of the Fischells Brook area for Pronto Exploration. A total of 93.56 km of
line were surveyed at a station interval of 152.4 m. From March to August 1980, Pronto Exploration
drilled two holes (PF-1 and PF-2) to test the potash potential of the northern portion of the inland
negative gravity anomaly at Fischells Brook (Figure 6). The holes hit the salt members of the
evaporite unit at 320 m and 200 m respectively and ended in the basal halite. Both holes also hit
potash bearing units as follows:
- PF-1 – a minor unit 18.9 m thick at 375 m depth and a main unit of low grade carnallite in four
beds ranging in thickness from 5.6 m to 20.7 m starting at 515.1 m and representing 62.2 m
true thickness of carnallite ranging in grade from 3.5 to 9.75% K2O;
- PF-2 – 214.9 to 421.5 m is mixed mudstone, halite and sylvite/carnallite, then a 3 m bed of
sylvite which grades 13% K2O is repeated three times and a 13.6 m carnallite bed which
begins at 551.6 m ranges from 2.6 to 11.6% K 2O (Anderle, 1985).
In 1987, Inco and Pronto in a joint venture drilled one hole in the Fischells deposit (Figure 6). The top
of the salt was 526.9 m and the hole remained in salt to the bottom of the hole at 925 m. Some
potash was intersected with best values 2.4 m at 6.5% K2O and 11.8 MgCl2 (681 – 683.4 m) and 1.9
m at 6.2% K2O and 11.5% MgCl2 (807.2 - 809.1 m).
Up until the 1988 drilling, a total of five holes noted above, focused on locating potash deposits within
the larger salt deposits. The potash exploration drill holes were not necessarily located to allow the
full potential of the salt deposit to be assessed. In 1998, Leeson Resources Inc drilled two holes with
a focus on the salt (Figure 6). The first, L-98-1 was drilled to a depth of 771 m and is the only hole to
pass through the entire sequence and finish in the Anguille Group. The second, L-98-2 was drilled at
the site of the original Hooker drill hole and stopped after it penetrated the top of the salt. L-98-2 was
drilled to attain fresh drill core of the overlying rocks as the original Hooker hole was completed using
tri-cone drilling (Rhoden, 1999).
10
Figure 5: Section compiled from the Hooker Chemicals 1968 drill hole (Knight 1983)
11
2.2
Resource Estimate of the Fischells Brook Salt Property EML Area
Correlation between all seven holes (Figure 6) is uncertain since four were tri-cone drilled through
overlying rocks rather than core-drilled. Also, dissolution of salt from the upper-halite left a residual
cap rock of insoluble clays in some of them which merges into some of the grey shale. Table 1 is
mostly derived from reports by Anderle (1985) and Phipps (1988), and based on Knight (1983)
stratigraphy with some minor interpretation by Rhoden (1999):
Fishells Brook
EML
PF-2
PF-1
L-98-1
Amax
INCO
Hooker
&
L-98-2
Figure 6: Historic drill-hole locations for the Fischells Brook Salt Property (Rhoden, 1999)
12
Table 1: Summary data of the seven historical Fischells Brook drill holes (Rhoden, 1999)
Fischells Brook Boreholes
<------------Woodville Formatiopn--------->
Glacial Barachois Highland Jeffreys Valley Grey Shale
Upper
Middle
Till
Group Formation Formation
or Cap Rock Halite
Halite Basal Halite
1968
0 - 63 63 - 183
183 - 215
215 - 335 335 - 360 360 - 430 430 - 1099*
1976
0 - 59 59 - 270 270 - 338
338 - 665
665 - 794*
1980
0 - 20
20 - 72
72 - 288
288 - 320 320 - 370 370 - 730 730 - 880*
1980
0 - 20
20 - 200
200 - 213 213 - 590 590 - 642*
1987
0 - 15
15 - 439
439 - 527 527 - 640 640 - 860 860 - 925*
1998
0 - 50
70 - 104
104 - 361
361 - 380 380 - 500 500 - 669 669 - 706
1998
0 - 65 65 - 183
183 - ?
? - 224
224 - 338 338 - 357 357 - 358*
*ended in salt
Note: Elevations and depths are in meters
Date
Hole
Elvtn
Hooker
143
Amax
140
Pronto PF-1 135
Pronto PF-2 140
Inco 77501 135
L-98-1
140
L-98-2
143
Based on gravity data, Knight (1983) estimated that the Fischells Brook structure could contain up to
7 billion tonnes of salt. Anderle (1985) recommended a seismic survey to define the depth to the top
of the salt as well as the structure of the deposit.
In 1998, Dr. H Neville Rhoden, Consultant Geologist, conducted a preliminary evaluation of the
Fischells Brook Salt Property on behalf of Leeson Resources Incorporated (Rhoden, 1999). As part
of the evaluation process select samples from three different holes were tested for salt quality (Table
2).
Table 2: Select high-grade section of three older drill holes stored in Pasadena (Rhoden, 1999)
Water
Anhydrite Carnallite Sylvite
Halite
Hole
From - to Insoluables Ca2SO4
KCl
NaCl
KMgCl 3
#
PF-1
PF-2
Hooker
Hooker
Averages
M
740 - 750
610 - 620
425 - 435
525 - 535
%
0.23
0.3
0.14
0.46
0.28
%
8.26
9.91
0.24
7.91
6.58
%
0.063
0.034
0.003
0.007
0.026
%
0.003
0.004
0.02
0.003
0.007
%
93.6
90.8
99.6
92.1
94.1
Dr. Rhoden’s preliminary evaluation was based on production of 3 Million tonnes per year, and
resulted in required capital expenditure of ~$93 Million. It is important to note that the above
evaluation and estimates are based on very limited structural knowledge of the deposit, and make
many assumptions concerning economic parameters. More exploration is required to better
understand and test the structure for its salt and /or potash potential.
13
3.0
TERMS OF REFERENCE
The GNL invites proposals for evaluation and development of the EML described herein.
Experienced and financially competent individuals or companies may submit a proposal to the
Minister of the Department of Natural Resources.
The Proposal must address the following:
- List of all principals involved, including the company’s corporate financial background
o Document experience and capabilities in mineral exploration, mining, other industrial
activities and experience in raising development capital funding;
- Exploration plans and expenditure commitments per year;
- Schedule including decision gate milestones up to Prefeasibility stage;
- Overview of potential benefits to the province including but not limited to employment and
revenue;
- Source of funding the project;
- Risks to the project.
The foregoing is the minimum information required. It is incumbent on proponents to provide as much
information, including financial data and projections, as necessary to support their proposals.
The assessment of proposals will be conducted by the Evaluation Committee. It will be based on the
information submitted and on any further information that the Department may obtain in subsequent
discussions with proponents. The assessment will include the ability/capability of the proponent to
carry through on commitments in the proposal.
The proponent will be granted exclusive mineral rights under the Mineral Act either as an Extended
Map Staked Licence or a Mining Lease, as appropriate. If a mining lease is to be issued, the
proponent will be responsible for providing the legal survey required under section 31.(3)(b) of the
Mineral Act. The proponent's financial and timing commitments will be incorporated as terms and
conditions of the licence or lease.
The Government of Newfoundland and Labrador is not obliged to accept any proposal.
14
4.0
REFERENCES
Anderle, J. P.,
1985: Assessment report on compilation of previous drilling and geology for 1986 submission
on Reid lot 15 in the Fischells Brook area, Newfoundland, for Pronto Explorations Limited.
Newfoundland and Labrador Geological Survey, Assessment File 12B/0285, 72 pages.
Link: http://gis.geosurv.gov.nl.ca/geofilePDFS/Batch05/PDF/012B_0285.pdf
Anger, C, Ruffman, A and Rhoden, H N
1998: First and second year assessment report on compilation for licences 4873m and
5672m on claims in the Fischells Brook area, western Newfoundland, Geostorage Associates
and Leeson Resources Incorporated. Newfoundland and Labrador Geological Survey,
Assessment File 12B/07/0409, 20 pages.
Link: http://gis.geosurv.gov.nl.ca/geofilePDFS/Batch07/PDF/012B_0409.pdf
Dimmell, P.,
2001: Potential for Mining Salt in Western Newfoundland. Department of Mines and
Energy, Newfoundland and Labrador Geological Survey, Internal Collection, Company or
Consultant Report, 2001, 81 pages, [NFLD/2886].
Link: http://gis.geosurv.gov.nl.ca/geofilePDFS/WBox031/NFLD_2886.pdf
Knight, I.,
1983: Geology of the Carboniferous Bay St. George Subbasin, Western Newfoundland.
Mineral Development Division, Newfoundland Department of Mines and Energy, Memoir 1,
358 pages.
Link: http://www.nr.gov.nl.ca/nr/mines/geoscience/publications/NFLD_1314.pdf
Phipps, D, Carter, D C and Rushton, M E,
1988: Third year assessment report on geological and diamond drilling exploration for licence
2573 on claim blocks 4045-4046 and 4463-4464 in the Fischells Brook area, western
Newfoundland, 3 reports. Canadian Nickel Company Limited and Pronto Explorations
Limited. Newfoundland and Labrador Geological Survey, Assessment File 12B/07/0305
Link: http://gis.geosurv.gov.nl.ca/geofilePDFS/Batch05/PDF/012B_0305.pdf
Rhoden, H N, Carter, D C, Amirault, J A and Russell, A S
1999: First year supplementary and second year supplementary assessment report on prefeasibility studies and geophysical and diamond drilling exploration for licences 4873m,
5672m, 5843m-5844m, 5850m and 6065m on claims in the Fischells Brook area, western
Newfoundland, 2 reports. Leeson Resources Incorporated and Geostorage Associates.
Newfoundland and Labrador Geological Survey, Assessment File 12B/0443
Link: http://gis.geosurv.gov.nl.ca/geofilePDFS/Batch12/012B_0443.pdf
15
Appendix A – EML Description
16
Fischells Brook Salt Property EML description
Beginning at the northeast corner of the herein described parcel of land and said corner
having U.T.M. coordinates of 5 353 000 N 386 000 E; of zone 21 thence south 1500
metres, thence west 500 metres, thence south 500 metres, thence west 500 metres, thence
south 1000 metres, thence west 500 metres, thence south 500 metres, thence west 500
metres, thence south 500 metres, thence west 1500 metres, thence north 3000 metres,
thence east 500 metres, thence north 500 metres, thence east 1500 metres, thence north
500 metres, thence east 1500 metres to the point of beginning. All bearings are referred to
the U.T.M. Grid, Zone 21. NAD 27
17