/-/// /\/A/ V © I FOR LABYRINTH BAY STONEWORKS 52F11NW2001 2.18107 GARNET BAY (EAGLE LAKE) 010 H MRRKET STUDY OF SORPSTONE POTENTIflL FOR LflBVRINTH BRV STONEUJORKS RECEIVED; DEC 2 2 1997 GEOSCIENCE ASSESSMENT PROJECT # 1301 PROJECT SPONSORS Northern Ontario Heritage Fund Corporation Labyrinth Bay Stoneworks REPORT BY Fraser Advertising Design SUBMITTED February 29,1996 52F11NW2001 2.18107 GARNET BAY (EAGLE LAKE) 0 1 OP THBLE OF CHHRTS 010C f* U D DTC F©£* 1> Am unt of Canadian Imports and Exports of Soapstone..................................7 1* U U U I J j Fig. 2, Value of Canadian Imports and Exports of Soapstone......................................? Fig. 3, U.S. Imports of Talc for Consumption..............................................................8 Fig. 4,1995 Annual Trends Survey, Greatest Activity (tiles)......................................9 Fig. 5,1995 Annual Trends Survey, Expenditures for Residential Repairs & Improvements (tiles).....................................................9 R RT I C L E S Fi8- 6© 1995 Annual Trends Survey, Wall Tile, Color and Price.................................lO Fig. 7, Furniture & Fixtures Industries, 1993 for Canada..........................................U Fig. 8, Shipments of Solid Fuel Burning Heating Products Quarter Ended September 1995.......................................................14 DIRGRRMS Diagram 1, Stone Products for the Kitchen & Household.........................................12 Diagram 2, Competition to Soapstone as Relating toArts & Crafts..........................l8 Diagram 3, Communities and Stone Markets of the North (map).............................26 PHOTOS Photo 1, Quarry, circa 1920©s.......................................................................................4 Photo 2, Quarry, circa 1995.........................................................................................4 Photo 3, Soapstone Used for Native Carving............................................................. 19 Photo 4, Soapstone Used as Tiles for Fireplaces........................................................20 Photo 5, Wood Plaques With Engraved Images.........................................................21 Photo 6, Company Barge on Eagle Lake....................................................................23 Rrticles "Urgent Problems Discussed by Artists" & "Stone Supply An Urgent Problem for Inuit Carvers"...............................................34 P /ll V-l FOR LABYRINTH BAY STONEWORKS On January 30© 1995> Laby 1* BaY Stoneworks, with assistance from the Northern Ontario Heritage Fund Corporation, contracted FraserAdvertising Design to conduct a market study concerning the possible uses and markets for the soapstone located at their quarry on Eagle Lake in Northwestern Ontario. OBJECT! UE & As described in the agreement between Labyrinth Bay Stoneworks and the Northern SCOPE Ontario Heritage Fund Corporation, FraserAdvertising Design was to investigate market opportunities for the soapstone, its by-products or value added products. This study was to include physical and chemical tests on the stone as well as a site evaluation of the quarry by a qualified expert. Specifically, the report was to cover potential products and uses for the stone, the market potential of these products, the standards and specifications required for the markets, current and projected demands, current and projected values, a list of potential buyers with indications of volumes, the cost of transport as well as proposed market strategies for the products that were deemed feasible. Soapstone, sometimes referred to as steatite, is by definition a metamorphic rock made up largely or wholly of talc that does not have a preferred orientation. Soapstone deposits contain talc to a large degree but are impure and therefore not considered talc. Sometimes the stone is mistakenly called serpentine but while serpentine may resemble soapstone in that it is waxy to the feel, serpentine is most often green and is harder than real soapstone. Color of true soapstone can vary from black to grey green or brown, with variations and combinations being found in the same deposits. It will feel greasy or waxy and is soft, with a hardness of 1 to 2 1/2 or being softer than a fingernail. HISTORV Soapstone has a long history of use around the world. From decorative objects carved from & USES talc in early Egypt and Assyria, to cathedrals in Norway, to cooking utensils used by the Inuit, soapstone has shown its versatility as a natural product for thousands of years. In modern memory it has been used in industrial sites because it can stand up to harsh chemi cals and in furnaces and stoves because of its ability to absorb and radiate heat at constant levels with little or no deterioration. The site of the quarry has a long but erratic history of use. The quarry first opened in 1924 and was in operation until 1927. It was not until 1965 that Mr Frank Thorgrimson, the father of Phil Thorgrimson, acquired control of the site. A more extensive history can be found in the Site Evaluation but the recent use has been as a source of carving stone for both Frank and Phil Thorgrimson. There is a considerable amount of stone available in the form of a tailings deposit existing from the earlier part of the century The use of this stone is limited as the quality is inconsistent in lage volumes. Sizes range from a few inches to several hundred pounds. Several potential products and uses were investigated . This study includes all of the evaluated uses which include: tiles, counters, furniture, household/kitchen products, wood stoves, gas stoves, masonery heaters, monuments, architectural stone, landscaping stone, crushed stone, stone powdei; sauna stone, Bar B Q stone, ornamental fireplace stone, carving kits, print making stone, trophy plaques, and carving stone. OBSTACLES TO While this initial list was extensive the information gathered in the course of this study PRODUCTION presented a finished list of potential uses much more limited in scope. As we progressed several factors became evident in the majority of the products. Given the economy of the past several years and changes in buying habits some of the items have sufered in potential sales. There is also the problem of inexpensive offshore soapstone and soapstone products that would compete with many of the items that might be manufactured. There is also the fact that modern replacements have taken over in some areas and in others there are homo geneous products in the same market that would compete with the buyefs dollar. 7 FOR LABYRINTH BAY STONEWORKS GENERRL INFORMATION Information concerning soapstone usage in Canada and the U.S. is limited because of the overall low consumption of the product CONCERNING STONE MRRKETS when compared to other stones and similar products. In Canada total import and export figures cover soapstone, talc and steatite. In the U.S. the figures cover only talc. Figures 1, 2, and 3 give a general overview of the soapstone and talc market for Canada and the U. S. Direct comparisons should not be made between the Canadian and U. S. charts as they are a measure of slightly different products. As seen in figure 1 Canada©s imports of soapstone has been dropping fairly steadily over the past five years and the export market has been erratic with a substantial downturn expected in 1995. By comparison, figure 3 demonstrates that the U.S. has raised its consumption of talc over the last 15 years and that foreign suppliers have eroded Canadian sales from their high point in 1989. Foreign suppliers such as Brazil and China are able to supply the stone at lesser cost when compared to their Canadian counterparts. While the stone industry has an Fig. 1 optimistic view of world markets in Amount of Canadian Imports and Exports of Soapstone general as reported in "StoneWbrld" Includes soapstone, steatite and talc not crushed or powder magazine©s May, 1995 issue, Cana HS Code 252610 da©s role as it relates to our largest market in the U.S. would seem to be erratic. Based on statistics from the U.S. Department of Commerce our Metric role in supplying a variety of differ Tons 2,473 ent stones has been changing over the last three years. ,248 1,062 Bearing in mind that statistics for 1995 cover only one half of the year 90 93 94 95 Canada has both risen and fallen as a Year Jan-Sept supplier in several categories from 1993 to 1995. Canada has risen from Imports 4th to 2nd in the supplying of Exports sandstone and 9th to 7th in slate. Courtesy of: Statistics Canada There is a lack of statistics for the areas of quartzite, dolomite and travertine but indications are that Fig. 2 Canada has significant strength in Value of Canadian Imports and Exports of Soapstone these areas. Canada has fallen from Includes soapstone, steatite and talc not crushed or powder 3rd to 4th in supplying granite, 15th HS Code 252610 to 31st in marble, and 3rd to 8th in the general category of "Other" 800 stones. It is in the area of "Other" 700 that soapstone can be found. Value 600 502 (CDN$000) 500 448 Exports to Canada in all of the above 400 areas have been fairly steady for the 300 same time period with few laige 200 gains or losses. 100 It should be noted by the reader that Year these figures refer to talc in most Imports instances and that the actual use of soapstone is somewhat limited in Exports today©s markets. Since the stone at Courtesy of: Statistics Canada )-/iirtu) V- FOR LABYRINTH BAY STONEWORKS As explained in the preceding pages there are several