Monteith Bay Quarry

 New Global Resources Ltd. is a registered British Columbia company, engaged in the supply of raw materials to the Portland cement manufacturing industry for sales and delivery in British Columbia and the Western United States. New Global Resources Ltd. is entirely owned by lifelong BC residents. Since 1986, the company has focused on the search for and development of base and precious metal and industrial mineral properties throughout British Columbia and Yukon. Pyrophyllite product from the Monteith Bay Quarry mayin part be for the modern "dry" process cement business, of which the best example in the Pacific Northwest is the cement plant at Tilbury in Delta operated by CBR. This assessment document describes geological and prospecting work by New Global Resources Ltd. to develop the Monteith Bay Pyrophyllite Project as a quarry and to supply pyrophyllite to the ceramics, filler and cement industries.

Preliminary exploration on the pyrophyllite deposits has resulted in the definition of a suitable source needed for the cement plant requirements and this source is located around the Easy Three and Easy Eight mineral claims at Monteith Bay, Kyuquot Sound. This report is also intended to initiate a dialogue with the regulatory agencies to establish the terms of reference for mine development approval and related permits.

Portland cement manufacturing is a process of bringing together materials rich in lime (Ca), silica (Si), alumina (Al), iron (Fe), and gypsum (CaSo4). These raw materials; limestone (CaO3), shale and sand (silica), shale (alumina) and iron ore or industry mill scale (iron), are ground to extreme fineness for intimate mixing to meet precise chemistry. The pyrophyllite could replace both the current source of silica and alumina. The powder produced by grinding is then heated or "burned" in a rotary kiln to a temperature of 3,000 degrees, liquifying part of the powder and binding it together in what is called "clinker". Clinker consists of new components called hydraulic compounds. Hydraulic compounds enter into solution when water is added, forming a gel that binds to other minerals when set. The burned material clinker and added gypsum is then ground to extreme fineness. The resulting Portland cement becomes the "glue" to bond sand and aggregates together to form concrete.

Silica and alumina, the relatively minor constituents of Portland cement could be supplied form the Monteith Bay Pyrophyllite property. The entire claim holdings cover about 60 hectares and are owned 100% by New Global Resources Ltd. The company is committed to develop the deposit in a manner that does not cause significant environmental impact during operation or after mine closure.

The international market for pyrophyllite is small ($US 130 million) compared with other mineral commodities. As a medium value ($55/tonne) industrial mineral commodity, freight distances are limited and markets have regionalized and developed where mines and consumers are within three to four thousand kilometers.

Pyrophyllite is consumed in numerous markets and industry sectors where the major ectors are ceramics, refractories and insecticides. Since the latter two industry uses are declining and ceramics and other sectors are growing i.e., mineral fillers, cement and other miscellaneous uses, it is recommended that marketing efforts be focused on these as of increasing demand.

Industrial consumption in the short term is declining to relatively flat, as a result of the current recession. There is a general consensus that a modest level of pyrophyllite growth will take place as a result of the anticipated future expansion in the world economy.

While known internationally, Pyrophyllite is supplied and consumed in a few key regional markets in Asia (87.0%), North America (6.6%), and South America (5.8%). This "regionalized nature" is a function of:

1) The relatively low price of this commodity compared to high freight cost.

2) The need for deposits to be located near shipping facilities and/or manufacturers in order to develop a viable market share and

3) The global availability of many substitute products. For example, pyrophyllite, talc, steatite and soapstone all have common physical characteristics (layered structure, softness, whitish colour, soapy feel and pearly lustre) which in turn gives them common end uses.

In addition, unlike elemental metals each pyrophyllite deposit generally develops it own spectrum of products. One deposit may produce multiple products for multiple end uses which are totally exclusive from those products derived from a second pyrophyllite deposit. Generally there is not a clear definition of what pyrophyllite product. Producers are more inclined to think of themselves in terms of the markets they supply (eg., refractory or ceramic raw material supplier) rather than calling themselves pyrophyllite producers.

Also, a high grade deposit of pyrophyllite is relatively rare compared with talc which is more commonly found. Even where high grade pyrophyllite exists, it rarely attains its theoretical composition (38.3% A1203, 66.7% SiO2, 5% H2O) but contains impurities such as, sericite, quartz, pyrite, chlorite, feldspar, haematite and magnetite.