Preliminary Economic Assessment Firebag River Sand Property
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Preliminary Economic Assessment Firebag River Sand Property Submitted to: Athabasca Minerals Incorporated Project Number: 761-1 Report Date: Effective Date: March 3, 2015 November 26, 2014 Norwest Corporation Suite 2700, 411 – 1st Street, S.E. Calgary, Alberta T2G 4Y5 (403) 237-7763 [email protected] Author: Ted Hannah, P.Geo., P. Geol. Theresa Lavender, P. Eng. CERTIFICATE OF QUALIFICATIONS I, Theresa Lavender, P. Eng., do hereby certify that: 1. I am currently employed as Manager, Mining, Suite 2700, 411 – 1st Street SE. Calgary, Alberta, Canada T2G 4Y5. 2. I graduated with a Bachelor of Science degree in Mining Engineering from the University of Alberta in 2000. 3. I am a member of the Association of Professional Engineers and Geoscientists of Alberta, (Member #65015). 4. I have worked as a mining engineer for 15 years since my graduation from university. My work experience includes 5 years of employment at various surface mining operations in Western Canada. Since 2005 I have been employed as a consultant to the mining industry. This work has included various assignments to either existing or potential surface mining operations. 5. I have read the definition of “qualified person” set out in National Instrument 43‐101 (“NI 43‐101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43‐101) and past relevant work experience, I fulfil the requirements to be a “qualified person” for the purposes of NI 43‐101. 6. I am responsible for the preparation of parts of Section 1, and Section 15 through Section 28 of the report titled “Preliminary Economic Assessment Firebag River Sand Property” dated March 3, 2015, Effective Date November 26, 2014 (the “Preliminary Economic Assessment Report”). 7. As at the effective date of the Preliminary Economic Assessment Report, to the best of my knowledge, information and belief, the sections of the Preliminary Economic Assessment Report that I am responsible for contain all the scientific and technical information that is required to be disclosed to make the Preliminary Economic Assessment report not misleading. 8. I personally visited the property Tuesday, October 7, 2014. 9. I am independent of the issuer applying all of the tests in Section 1.5 of National Instrument 43‐ 101. 10. I have read NI 43‐101 and Form 43‐101F1, and the Preliminary Economic Assessment Report has been prepared in compliance with that instrument and form. Dated this 3rd day of March, 2015. “Original Signed and Sealed” by ______________________________ Theresa Lavender, P. Eng. Manager, Mining Athabasca Minerals Incorporated 761‐1 Preliminary Economic Assessment Firebag River Sand Property Auth‐1 CERTIFICATE OF QUALIFICATIONS I, Ted Hannah, P.Geo., P. Geol. do hereby certify that: 1. I am currently employed as Vice President Geology, by Norwest Corporation, Suite 2700, 411 – 1st Street SE., Calgary, Alberta, Canada T2G 4Y5. 2. I graduated with a Bachelor of Science degree from the University of New Brunswick in 1973. 3. I am a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta, (Member #22009) and the Association of Professional Engineers and Geoscientists of British Columbia, (Member #27030). 4. I have worked as a geologist for a total of forty‐one years since my graduation from university. My work experience includes thirty‐nine years of exploration and mining support on a variety of coal properties around the world. I have conducted sampling and supervised drilling at various locations in this coal basin adjacent to this property. I performed numerous geological interpretations and analyses during that period. 5. I have read the definition of “qualified person” set out in National Instrument 43‐101 (“NI 43‐101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43‐101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43‐101. 6. I am responsible for the preparation of parts of Section 1, Sections 2 through 14, and Sections 24 through 28 of the report titled “Preliminary Economic Assessment Firebag River Sand Property” dated March 3, 2015, Effective Date November 26, 2014 (the “Preliminary Economic Assessment Report”). 7. As at the effective date of the Preliminary Economic Assessment Report, to the best of my knowledge, information and belief, the sections of the Preliminary Economic Assessment Report that I am responsible for contain all the scientific and technical information that is required to be disclosed to make the Preliminary Economic Assessment report not misleading. 8. I personally visited the property Tuesday, October 7, 2014. 9. I am independent of the owner/issuer applying all of the tests in Section 1.5 of National Instrument 43‐101. 10. I have read NI 43‐101 and Form 43‐101F1, and the Preliminary Economic Assessment Report has been prepared in compliance with that instrument and form. Dated this 3rd day of March, 2015. “Original Signed and Sealed” by ______________________________ Ted Hannah, P.Geo., P. Geol. Vice President, Geology Athabasca Minerals Incorporated 761‐1 Preliminary Economic Assessment Firebag River Sand Property Auth‐2 Table of Contents 1 SUMMARY ............................................................................................................................... 1-1 1.1 Project Description .................................................................................................................. 1-1 1.2 Property Location .................................................................................................................... 1-1 1.3 Property Geology .................................................................................................................... 1-2 1.4 Exploration .............................................................................................................................. 1-2 1.5 Sand Quality ............................................................................................................................ 1-3 1.6 Frac Sand Resources ................................................................................................................ 1-3 1.7 Mineable Resource Estimates ................................................................................................. 1-4 1.8 Surface Mining ........................................................................................................................ 1-4 1.9 Trans-Loading and Processing ................................................................................................. 1-7 1.10 Offsite Infrastructure ........................................................................................................... 1-7 1.11 Mine Operating and Capital Costs ....................................................................................... 1-7 1.12 Economic Analysis................................................................................................................ 1-8 1.13 Royalties............................................................................................................................... 1-9 1.14 Results .................................................................................................................................. 1-9 1.15 Conclusions ........................................................................................................................ 1-12 1.15.1 Tenure .................................................................................................................... 1-12 1.15.2 Quantity of the Firebag Property Deposit .............................................................. 1-12 1.15.3 Access to Rail Infrastructure................................................................................... 1-12 1.15.4 Local Mining Support Industries ............................................................................. 1-13 1.15.5 Markets .................................................................................................................. 1-13 1.15.6 Economics ............................................................................................................... 1-13 1.16 Recommendations ............................................................................................................. 1-13 2 INTRODUCTION ....................................................................................................................... 2-1 3 RELIANCE ON OTHER EXPERTS .................................................................................................. 3-1 4 PROPERTY DESCRIPTION AND LOCATION .................................................................................. 4-1 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .............. 5-1 6 HISTORY .................................................................................................................................. 6-1 7 GEOLOGICAL SETTING AND MINERALIZATION ........................................................................... 7-1 7.1 Regional Stratigraphy .............................................................................................................. 7-1 7.2 Property Geology .................................................................................................................... 7-1 7.3 Mineralization ........................................................................................................................