Sugar Silica Project · 2020. 12. 12. · f-Take Contract (CNBM)• Of. Sugar Silica Project Operating Parameters 365 Days Per Year. Mine: 2, 8-hr shifts/day ift Production Only1st

Sugar Silica Project


• Project Location• KCA Certified Analytic Services • Product End Uses (i.e. CNBM Premium and Ultra

Premium)• Operating Parameters• Mining Overview • Processing Overview • Infrastructure Overview • Proposed Area of Disturbance• Permitting Overview • Photography of Representative Material • CNBM Premium Products Specifications• CNBM Ultra Premium Specifications • KCA Premium Product Test Results • KCA Process Flow Sheet Premium • KCA Equipment Inventory List• KCA Ultra Premium Product Test Results • KCA Premium Product Test Results • KCA Process Flow Sheet Ultra Premium • KCA Equipment Inventory List• Transportation Analysis from Mine Site to Port of

Los Angeles


Table of Contents


Project Location



Since 1972, Kappes, Cassiday & Associates (KCA) has provided process metallurgical services to the international mining industry. KCA specializes in all aspects of heap leach and cyanide processing, including laboratory testing, project feasibility studies, engineering design, construction, and operations management.

While primarily known for its heap leach expertise, KCA's staff includes experienced professionals with design capabilities in a wide range of metallurgical processes, which include the processing and distribution of silica products throughout the United States.

For several years, KCA has expanded its client base and service capabilities extensively over the past several years. KCA occupies a 3800 square meter building in Reno, NV, which greatly increases KCA's capacity for engineering, manufacturing, purchasing, warehousing, and testing. Florin Analytical Services, part of the KCA group, operates as an independent commercial analytical lab, providing high quality, reliable assays.

https://www.kcareno.com

To review our credentials and qualifications please visit the following:

KCA Certified Analytic Services


Product End Uses

Proposed CNBM Product End Use: Permit under Mining Law / Mineral Materials Act

• CNBM Product End Uses/Industries: • Thin Glass • Fiberglass • Foundry Materials • Abrasives • Filtration

• Permitting | Salable Materials • Subject to Mineral Materials Act • Off-Take Contract (CNBM)


Operating Parameters

365 Days Per YearMine: 2, 8-hr shifts/day 1st Shift Production Only 2nd Shift Production & Maintenance 1,300 tons/day Production (nominal) 700 tons/day Waste 600 tons/day RoM

Plant: 1, 8-hr shift/day 600 tons/day (nominal)

No night production

* Disclaimer: the information provided above is subject to further discussion with CNBM regarding process flow, demand, product use.


Infrastructure Overview

Conventional Quarry

• No Drilling & Blasting • Mining - Front-End Loader • Hauling – Articulated Haul Trucks • Reclamation – Dozers • Support – Grader, Water Trucks


Processing Overview

Dry-Process – No Water Road Dust Control w/ Trucked-in Water Potable Water Hauled In

Crushing Primary-Jaw Crusher Secondary-Cone

Sizing VSI (Vertical Shaft Impact) Crushers Screen Plants

Products – Bulk Silos

Dust Collection – Baghouse System



Infrastructure Overview

Quality 2 Premium Sand • Administration Trailer • Maintenance Shop/Warehouse • Fuel Station • Scale • Water Tanks (for haul road dust control) • Septic System • Gate & FencingElectric Power • Power Line • Substation & DistributionEarthworks • Access Road • Haul Roads • Storm Water Structures


Proposed Area of Disturbance


The following is an internal memo outlining the number and type of federal, state and local environmental permits that have to be obtained. An anticipated time line for receiving the approval is also included. This time line is based on the authorities accepting an updated 2002 study. Based on these timelines the anticipated dates for starting the construction as well as operation need to be revised.

Environmental Permitting Summary Sugar Silica Project, Mercury, Nevada

Assumptions/Limitations:

1. The following environmental permitting summary is based on information obtained at this time. Permitting requirements may change based on project details obtained in the future.

2. Typical time estimates provided in this summary are based on the time required after all necessary information has been provided.

3. ypical time estimates are based on average preparation and agency review times. These estimates may vary based on application complexity and agency staffing.

4. The time estimate for approval of the NEPA Environmental Assessment assumes that BLM and USDA will accept an update of the previous EA prepared in 2003.

5. Based on project information, it is assumed that there will be no discharge of process water. All wastewater, except storm water and domestic sewage, will be transported off-site for disposal.

6. This list is limited to environmental permitting only. Additional safety, training, and registration requirements may exist through U.S. Mine Safety and Health Administration (MSHA).

Permitting Overview


Permitting Overview cont.

Agency Media/Topic Required Permit/Document

Regulation Typical Time Required for Issuance/Approval

Federal Environmental Requirements

U.S. Bureau of Land Management (BLM)

Mining Mining Plan of Operations

43 CFR 3601.40 or 43 CFR 3809.11

13 Weeks

BLM/ U.S. Department of Agriculture (USDA)

All NEPA Environmental Assessment (EA)

43 CFR 3809.401(c )

13 Weeks

BLM Electricity/ Roadways

Right of Way for Electric Transmission Lines and Roadways on BLM Land

43 CFR 2800 13 Weeks

U.S. Environmental Protection Agency (EPA)

Fuels/Oils/ Storage Tanks

Spill Prevention, Control, and Countermeasure (SPCC) Plan - Includes provisions regarding aboveground storage tanks (ASTs) and underground storage tanks(USTs)

40 CFR 112 9 Weeks

EPA Hazardous Waste EPA Generator ID Number

40 CFR 262 1 Week

State Environmental Requirements

NDEP Bureau of Air Pollution Control

Air Class II/Surface Area Disturbance (SAD) Permit

NAC 445B 13 Weeks

NDEP Bureau of Water Pollution Control

Septic System NDEP's Onsite Sewage Disposal System Program

NRS 445A and NAC 445A

13 Weeks

NDEP Bureau of Water Pollution Control

Stormwater NPDES General Permit

NRS 445.465; and 40 CFR 122.26

9 Weeks

Department of Motor Vehicles and Public Safety

Hazardous Materials

Hazardous Materials Permit

NRS 477.045 and NAC 477.325

Obtain within 30 days of start up.


Permitting Overview cont.

Local Environmental Requirements

No city or county environmental permits have been identified at this time. However, the county may require certain permits including, but not limited to, building permits, a business license, or a request for a zoning change.

Other Permitting Requirements

State Fire Marshall Division

Fire and Life Safety

Plans Review NAC 477.740, NAC 477.750, and NRS 477

Prior to construction and operation

Nevada Division of Industrial Relations

Mining Notice of Opening of Mine

NRS 512.160 Submit prior to startup.

Nevada Division of Minerals

Mining Mine Registry Forms

NRS 513.063 and NRS 513.073

Submit within 30 days of startup

Nevada Division of Minerals

Mining Annual Status and Production Report

NRS 513.063 and NRS 513.073

Submit on or before April 15th of each year


Quality 2 Premium Sand

ASDID Holding Jordan, Amman, Khalda Amer Bin Malek Street, Bldg. 39 Mob: +962 (79) 706 5785 Tel: +962 (6) 552 8630 Fax: +962 (6) 553 8568

QUALITY 2 – PREMIUM SAND

CHEMICAL SPECIFICATIONS

SYMBOL NAME PERCENTAGE

SiO2 (total) Crystalline Silica 99.30 % ± 0.20%

Fe2O3 Iron Oxide ≤ 0.008 % ± 0.002

Cr2O3 Chromium(III) Oxide ≤ 0.001%

TiO2 Titanium Dioxide ≤ 0.01 %

Al2O3 Aluminum Oxide 0.30 % ± 0.05%

CaO Calcium Oxide ≤ 0.03 %

MgO Magnesium Oxide ≤ 0.01%

L.O.I Loss on ignition ≤ 0.3 %

PARTICLE SIZE ANALYSIS

RESULTS ( % ) ANALYSIS (MM)

0% + 0.750

2% + 0.500 - 0.750

8% - 0.100

Disclaimer: The information set forth in this Product Data Sheet represents typical properties of the

product described; the information and the typical values are not specification.

Chemical Specifications

Particle Size Analysis






Fe2O3 Iron Oxide ≤ 0.008 % ± 0.002









0% + 0.750

2% + 0.500 - 0.750

8% - 0.100




Quality 3 Ultra Premium Sand


QUALITY 3 – ULTRA PREMIUM SAND




Fe2O3 Iron Oxide ≤ 0.006 % ± 0.002

Cr2O3 Chromium (III) Oxide ≤ 0.001%







RESULTS (%) ANALYSIS (MM)

0% + 0.750

2% + 0.500 - 0.750

8% - 0.100



Particle Size Analysis

Chemical Specifications






Fe2O3 Iron Oxide ≤ 0.008 % ± 0.002









0% + 0.750

2% + 0.500 - 0.750

8% - 0.100




Nevada Quartzite Mine

Nevada Quartzite Mine /Ultra Fine Sand Production Flow Diagram October 2019

▪ 100 tons per hour feed ▪ Screen away 3/8”- Alluvial Gravel ▪ Primary Jaw Crusher 18 inch minus ▪ Vertical Impact Crusher feed 4 inch minus ▪Jet Mill feed 1 inch minus ▪ 160 equipment hours per month ▪ 16,000 tons per month 192,000 tons per year ▪ 10,000 tons storage

-3/8” Alluvial Natural Gravel

Notes

Hydro Cyclones

1 2 3 4

59

7

8Long Jaw

6

1 Grizzly Feed 18”-

2Primary Jaw Crusher

3 2 Deck Screen4 Secondary Crusher5 Screen6 Jet Mill7 Hydro Cyclones8 Dewater/Dryer9 Material Cooler

10 10,000 ton Storage11 Load Out

Grinding Jet Mill

Dryer

Impact Crusher

Screen

Grizzly Feed 2 Deck Screen

3 Deck Screen

Train and Truck Load Out

210

Storage and Loading

211

10,000 Ton Storage

Cooler

Phase 1 at Mine

Processing Equipment At Mine

Phase 2 Ultra Find Sand Production

Nevada Quartzite Mine /Ultra Fine Sand Production Flow DiagramOctober 2019


KCA Final Assay Premium

Florin Analytical Services 7950 Security Circle - Reno, Nevada 89506 - Phone (775) 677-2177 - FAX (775) 972-4567

Submitted by: The Burrell Group Laboratory No.: 192142602 E. Copper Ave., Suite 201 Client Number: F862Aspen, CO 81611 Date Received: 08 Oct 2019Attention: Dale Anderson & Eric Berntsen Date Completed: 09 Oct 2019Method: Lithium metaborate fusion, ICP analysis. Lab Code: 7046Element: SiO2 Al2O3 Fe2O3 CaO MgO Na2O K2O TiO2 MnO SrO BaO Cr2O3 P2O5 LOI1000

oC SUM

Detection Limit: 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.10 Sample ID: % % % % % % % % % % % % % % %

A 98.6 0.29 0.57


Nevada Quartzite Mine cont.

-1/2” Alluvial Natural Gravel

1 2 3

4 5

Long Jaw

Generator

6” to 1/2” Silica

Grizzly Feed 2 Deck Screen

Equipment at Mine

Nevada Quartzite Mine Mining and Sizing 1”- 6” Quartzite for Ultra Fine Sand

Production  

1 Grizzly Feed -12”2 Jaw Crusher _6”3 2 Deck Screen4 300kw Generator5 10,000 gal W/Tank6 Excavator (2)7 Dozer8 Loader9 W/Truck

10 Ground Conveyors11 Stacking Conveyors12 Storage Trailer13 Office Trailer14 Fuel Storage

Notes▪Drill and Blast Quartzite ▪Size and Haul to Grizzly Feed ▪Feed 100 tons per hour ▪ Screen away 1/2”- Alluvial Gravel ▪ Primary Jaw Crusher ▪ 300kw Generator ▪10,000 gal Water Storage ▪ Stockpile 1”- 6” Minus ▪ 160 equipment hours per month ▪ 16,000 tons per month 192,000 tons pr year

Water Tank

11

11

10

10

Storage Trailer

Field Office

14

12

13

Fuel

The Burrell GroupOctober 2019

Phase 1 at Mine

Nevada Quartzite MineMining and Sizing 1”- 6” Quartzite for Ultra Fine Sand

Production


Plan of Operation

Operating Practices

The mine will be open 300 days a year with three, 8-hour shifts a day. The plant is scheduled to produce approximately 200,000 tons in the first year of operation, and then increase to approximately 250,000 tons per year over time. White silica ore will be excavated from the mining area using equipment listed below. Excavated materials will be transported to the processing plant by a conveyor system to be constructed as part of the project. Materials will then be stockpiled near, then loaded into the processing plant. The conveyor and stockpiles will be covered to control dust. The processing plant can process rock sized six inches and below. The feed rock will be sized down and processed into commercial grade products to be used in a broad range of applications and industrial sectors. The processing plant can produce the following sizes: 16, 20, 30, 60, and 90 (standard mesh). The processing plant is designed for a maximum production rate of 50 tons per hour. Storage, production, sales and shipments are synchronized with the production rates.

Equipment

Table 2 summarizes the mobile and portable equipment to be used at the proposed facility. All equipment listed below will be diesel-fueled.

Table 2 – Equipment List

PLAN OF OPERATIONS

Alta Environmental BURL-15-5733 May 27, 2016

6

2.3.3 Operating Practices

The mine will be open 300 days a year with three, 8-hour shifts a day. The plant is scheduled to produce approximately 200,000 tons in the first year of operation, and then increase to approximately 250,000 tons per year over time. White silica ore will be excavated from the mining area discussed in Section 2.3.2 using equipment listed in Section 2.3.4. Excavated materials will be transported to the processing plant by a conveyor system to be constructed as part of the project. Materials will then be stockpiled near, then loaded into the processing plant. The conveyor and stockpiles will be covered to control dust. The processing plant can process rock sized six inches and below. The feed rock will be sized down and processed into commercial grade products to be used in a broad range of applications and industrial sectors. The processing plant can produce the following sizes: 16, 20, 30, 60, and 90 (standard mesh). The processing plant is designed for a maximum production rate of 50 tons per hour. Storage, production, sales and shipments are synchronized with the production rates.

2.3.4 Equipment

Table 2 summarizes the mobile and portable equipment to be used at the proposed facility. All equipment listed below will be diesel-fueled.

Table 2 – Equipment List

Equipment Type Make Model Year Wheel Loader JCB 437 HT 2014

Excavator CASE CX250C 2012 Wheel Loader CAT 950K CFQ V 2012 Wheel Loader CAT 930K 2013

Skid Steer New Holland LS 180 2000 Forklift Tailift FDP35 2014 Forklift Toyota FD30 2015

Water Truck AM General M925 6x6 Water Truck 1985 Portable Light Tower TBD TBD TBD Portable Light Tower TBD TBD TBD Notes: The make, model, and model year of the light plants have not been determined at this time. The light plants are expected to be similar to Generac Model MLT5150M towers.

2.3.5 Devices

Besides mobile equipment, the devices proposed for the WCA Nye County Plant will be contained within the processing plant, plus one conveyor to transport materials from the quarry to the processing plant. The proposed processing plant includes five separate systems:

System-100: Crushing

System-200: Drying and Cooling

System-300: Finishing Screens

System-400: Finished Sand Distribution

System-500: Truck Load-Out and Packaging System.


Devices

Besides mobile equipment, the devices proposed for the BWR Nye County Plant will be contained within the processing plant, plus one conveyor to transport materials from the quarry to the processing plant. The proposed processing plant includes five separate systems:

• System-100: Crushing• System-200: Drying and Cooling• System-300: Finishing Screens• System-400: Finished Sand Distribution• System-500: Truck Load-Out and Packaging System.

Plan of Operation cont.


According to the USGS voluntary survey of U.S. producers, of all industrial sand and gravel produced, 60% was transported by truck from the plant to the site of first sale or use, down by 15% from 2012; 36% was transported by rail, up by 71% from 2012 (owing to increased fracturing sand shipments); and 4% was transported by unspecified modes of transport. Because BWR plans to initially sell in three target states, most transportation will take place via truck. However, depending on future demand for hydraulic fracturing sand or other uses that are prominent in other parts of the country, the list of target customers is expected to grow.

Freight and shipping costs are typically paid by the buyer. Location is a major factor in determining purchase decisions because proximity to product decreases the shipping cost to the buyer. Silica sand product can either be shipped using a flatbed truck or cement tanker. The approximate transportation costs from the BWR plant to major markets using a flatbed truck are outlined below:

• Las Vegas: $15/ton • Los Angeles: $45/ton • Phoenix: $40/ton

Transportation

Documents

Sugar Silica Project · 2020. 12. 12. · f-Take Contract (CNBM)• Of. Sugar Silica Project Operating Parameters 365 Days Per Year. Mine: 2, 8-hr shifts/day ift Production Only1st