barakat-baseline-mountain-pdd.pdf

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BARAKAT RESOURCES LTD.

Proposed Baseline Mountain

Underground Limestone Project

Public Disclosure Document

November, 2002


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Table of Contents

1.0 Introduction......................................................................................................................... 12.0 Location and Facilities........................................................................................................ 1

3.0 Land Use Zoning................................................................................................................. 1

4.0 Schedule.............................................................................................................................. 25.0 Project Description.............................................................................................................. 2

5.1 Geology........................................................................................................................... 25.2 Underground Mining Options......................................................................................... 2

6.0 Limestone Markets.............................................................................................................. 3

7.0 Environmental Impact Assessment..................................................................................... 4

8.0 Public Consultation............................................................................................................. 4

9.0 Socio-Economic Impact Assessment.................................................................................. 410.0 Regulatory Requirements.................................................................................................... 4

List of Figures

Figure 1 Regional Map Baseline Mountain Project ..................................................................6

Figure 2 Local Map Baseline Mountain Project .......................................................................7

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Baseline Mountain Limestone Project

1.0 Introduction

Barakat Resources Ltd. (BRL) is an Edmonton based company that is locally owned andoperated. They have acquired the Metallic and Industrial Mineral Leases for an area near

Baseline Mountain, located approximately 35 kilometres southwest of Rocky Mountain House

(Clearwater County) on secondary Highway No. 752 (Figure 1), which were formerly held byAlberta Cement Inc. The Baseline Mountain area has been identified as a potential source of

limestone on the geological survey maps since 1945. Barakat Resources Ltd. is interested in

developing the limestone resource in this area via underground mining methods. The annualproduction (mining and crushing) is estimated to be 600,000 tonnes per year for over 25 years.

Barakat Resources is in the early stages of evaluating the development potential of the Baseline

Mountain Project. If feasible, this development would be unique in Alberta as one of the only

underground quarries.

Environmental and socio-economic impact assessments to evaluate the project and its effects areunderway, along with preliminary engineering work. As part of this process, the stakeholders in

the area, including First Nations, community associations, environmental organizations, localmunicipalities, provincial regulators, and other public interest groups, are being asked for theirinput. As further technical, economic, environmental and social information becomes available,

BRL will determine the feasibility of developing the project at Baseline Mountain.

2.0 Location and Facilities

Limestone is abundant in the area and the proposed project is located approximately two kmsoutheast of two existing surface quarries.

The facilities associated with the underground quarry will be located in the S 12 & Sec 1-37-

11-W5M including the quarry entrance. The quarry entrance will be located approximately 500

metres southeast of secondary highway No. 752. The location of the metallic and industrial

mineral leases held by BRL and the approximate quarry entrance are shown on Figure 2.

The facilities required for the development and operation of the project are limited and include

an access road, a quarry entrance, a working area which would include an office/administration

building, a crusher, a stockpile site and surface settling pond (to receive groundwater collectedfrom within the underground workings). In addition a crossing of Prairie Creek may be required,

which would be done with a bridge capable of spanning from bank to bank. This is the extent of

the proposed surface disturbance for this project with the possible exception of air ventilation

shafts. A surface stockpile for the crushed limestone will be required but will be kept to aminimum as the limestone will be hauled to market as it is being crushed.

The physical footprint or total surface disturbance for the project is estimated to be between 3.0

and 5.0 hectares similar to a typical well site and access road.

There are no existing surface developments or activities that would conflict with this project.

3.0 Land Use Zoning

The Eastern Slopes Resource Management Plan shows the property to be located in a multiple

use area as does the Rocky North Saskatchewan Integrated Resource Management Plan. This

classification allows multiple uses for a full range of activities in the area.

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The Baseline Mountain Limestone Project is located within the Prairie Creek Resource

Management Area of the Rocky North Saskatchewan Integrated Resource Management Plan(IRP). The IRP states that the primary intent for resource management in the Prairie Creek

Management area is to provide for the use of petroleum, natural gas and mineral development,

coal, timber, outdoor recreational activities, fisheries, wildlife and forage. The majority of thelease area falls in Category 5 lands (Multiple Use) and a small portion fall within Category 2

lands (Critical Wildlife).4.0 Schedule

Subject to the results of its investigations and evaluations, BRL could make application to theNatural Resources Conservation Board for the Baseline Mountain Limestone project in early

2003. At the same time, the Environmental Impact Assessment (EIA) would be submitted to

Alberta Environment. The application will include the appropriate Environmental Protection andEnhancement Act (EPEA) and Water Act applications for approval as well. If a decision to

proceed is made, and if appropriate regulatory approvals are in place, site preparation work could

begin in late 2003 with production commencing in early 2004.

5.0 Project Description

5.1 Geology

The project area is within the Foothills of the Foreland Fold and Thrust Belt of the Western

Canada Sedimentary Basin. The Foothills are a series of long, low ridges developed on thin,

steeply dipping thrust plates of Mesozoic strata.

The limestone in the Baseline Mountain area is located on a vertical limb which means that isstands almost straight up and down. The structural continuity of the limestone in the area

appears to be very good, as a cliff-forming horizon can be seen to be continuous over at least one

kilometre on the south side of Prairie Creek.

The quality of the limestone in the area appears to have an overall grade between 95.4% and

96.4% CaCO3. The geological unit appears to be up to 40m thick. While the data is limited, itappears that a high-grade limestone horizon is present in the area. An exploration program is

planned to verify the limestone quality, quantity and strength.

At this time there is an estimated 16.2 million tonnes of limestone within the prospect area.

5.2 Underground Mining Options

Each year aggregate companies produce about a billion tonnes of raw limestone in NorthAmerica to supply a myriad of construction projects. The bulk of this supply is extracted from

open pits and quarries where limestone bedrock is close to the land surface. Where geologic and

market conditions permit, limestone for aggregate is extracted from underground quarries. Infact, 127 underground limestone facilities were operating in the United States in 1989. Their

total production was 57 Mt or about 7.5% of the total US limestone production. Many of thequarries are in the American midwest, reflecting the abundance of highquality limestone inhorizontal beds in that part of the country.

Most of these underground operations are opened from the floors of existing quarries. An

entrance road or haulway is driven into the quarry wall or floor depending on whether the layers

to be extracted are at the same level as the floor or deeper. The depth of the limestone extractionlevel below the land surface varies from 25 to 124 metres.

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The basic operations in underground facilities include drilling, blasting, loading and hauling,

scaling, and roof bolting. Drilling equipment includes horizontal drill jumbos as well as downhole track drills. This equipment is generally quite different from that used for surface mining

and results in drilling much smaller blast holes that results in lower volumes of rock pulled in

each individual blast. Other equipment required in the underground quarry includes powderloaders, which are used to blow ammonium nitratefuel oil mixtures (ANFO) into the blast

holes. Scaling rigs are used to remove loose rocks from the ribs and roof and roofboltingequipment may also be required in an underground quarry.

Controlling groundwater is another important aspect of underground operations. Water isusually present at some depth below the surface; once encountered, open crevices, fractures, and

solutional voids in the limestone may produce variable flows of groundwater. This inflow must

be routed along drainage slopes and ditches to collection places where it can be discharged to anexternal settling pond. Most operators eventually need to collect water in a sump, or low spot,

within the quarry and pump it out from that point. On rare occasions, a heading may intersect a

fracture or void, which releases hundreds of gallons of water per minute. If the problem cannot

be remedied, a portion or all of the underground operation may be closed.

Proper ventilation also must be maintained in any underground operation. Exhaust fumes from

machinery must be vented and fresh air introduced. Natural ventilation of level headings is

adequate when underground workings are not extensive. Warm air, either from outside or

within, will flow along the ceiling while cool air will move along the floor. As the workings areextended, however, forced ventilation becomes necessary. Fans move air from one or more

exterior openings to the active part of the operation. As workings progress or become deeper,

the producer may have to drill large-diameter vertical ventilation shafts from the surface to thequarry level. Large volume ventilation fans are installed which move air down, usually in colder

weather, and can be reversed to move air up during warmer humid weather.

Although operations of an underground limestone quarry are more expensive and require somespecialized techniques to overcome inherent difficulties, there are also significant advantages to

underground limestone extraction. Stripping unneeded overburden, a costly inconvenience insurface operations, is eliminated. The land above or outside the quarry can be utilized for otherpurposes simultaneously with limestone extraction without the worry of subsidence.

Reclamation of disturbed land and its associated costs are reduced. Noise and dust pollution are

generally contained within the underground operation. Working conditions, while dark, arearguably more comfortable because inside air temperature hovers around 10 degrees C

throughout the hot summers and cold winters.

If geologic conditions are suitable and proper planning has been done, large portions of the

workings may eventually be converted to usable underground space.

The best underground mining method for the Barakat Limestone Property has not been

determined. Both the Room and Pillar and Sub Level Stoping methods show promise for thisapplication and have similar operating and capital costs.

Further exploration and geotechnical evaluations are underway in order to determine the

limestone reserves, water inflows, and geotechnical parameters for both the roof and wall rockfor mining method selection.

6.0 Limestone Markets

Limestone is a very versatile mineral and has many uses in North America. Carbonate rocks (of

which Limestone is the most abundant) are the basic building blocks of the construction industry,

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the material from which aggregate, cement, lime, and building stone are made. Carbonate rocks,

and their derived products, are used as aggregates, fluxes, glass raw material, refractories, fillers,reactive agents in sulfuroxide removal, abrasives, soil conditioners, ingredients in a host of

chemical processes, and much more. Although the use of limestone goes back before recorded

history, new uses and products are continually being found. In Alberta, lime has been used as anagent in the production of sugar from sugar beets in the Taber area, and ground calcium

carbonate has been used as a filler in the pulp and paper industry. In the future, limestone mayalso be used as lining for sulphur pits in Alberta.

BRL has indicated that contractors would be brought in on an as needed basis to develop andproduce limestone to fill the contracts.

7.0 Environmental Impact Assessment

BRL recognizes the important environmental issues surrounding the project development, and is

committed to conducting all activities in an environmentally sensitive manner. BRL hasestablished an EIA team to begin the important task of assessing and understanding the different

aspects of the environment in the project area. The proposed Terms of Reference for the EIA are

issued with the Public Disclosure Document and BRL will work closely with stakeholders to

finalize. The final Terms of Reference will be established through a public review process inearly 2003. The EIA will include detailed plans to address the environmental issues identified.

8.0 Public Consultation

BRL is initiating consultation with identified stakeholders in the project area. Stakeholders willbe consulted through a number of methods including individual contacts and newsletters over the

next few months. During these contacts, BRL will outline the scope and timing of the project

and will be pro-actively seeking input to project plans. BRL will work closely with First Nations

groups in the region to identify concerns and allow meaningful input.

9.0 Socio-Economic Impact Assessment

The design and construction of the project will require significant capital investment. Thiscapital and associated operating expenditures will represent a meaningful contribution to local

and provincial economies. A Socio-Economic Impact Assessment report is being prepared inconsultation with local stakeholders and will be submitted as a component of the EIA.

10.0 Regulatory Requirements

The following are the regulatory requirements for the Baseline Mountain Limestone Project

(Underground Quarry Development):

Application to the Natural Resources Conservation Board (NRCB)

Alberta Environment has determined that an Environmental Impact Assessment

(EIA) report is required.

Application to Alberta Environment for an operating approval under the

Environmental Protection and Enhancement Act (EPEA).

Water Act Application.

Public Lands Act application for a Licence of Occupation (LOC) for the access roadand a Mineral Surface Lease (MSL) for the surface activities related to the quarry.

Application to Alberta Transportation for a Roadside Development Permit.

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Municipality - Clearwater County may require a development permit.

CONTACT INFORMATION

For further information about the Baseline Mountain Limestone project, please contact:

PROJECT MANAGEMENTDane M

cCoy, Project Manager

Millennium EMS Solution Ltd.

#208, 4207-98 Street

Edmonton, Alberta, T6E 5R7Tel: (780) 496-9048

Fax: (780) 496-9049

E-mail: [email protected]

PUBLIC CONSULTATION

Terry MacDougall

IPS Consulting Inc.#208, 4207-98 StreetEdmonton, Alberta, T6E 5R7

Tel: (780) 463-6510

Fax: (780) 496-9049

E-mail: [email protected]

Or visit our web site: www.mems.ca/Barakat

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