introduction to whitemud[1]

7/30/2019 Introduction to Whitemud[1]

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January 2007

Introduction to

WhitemudMK

WMK:TSX Venture Exchange

January 2009

Burl Aycock

C.E.O.

Murray Yewchuk

VP Marketing

with.

Fred Sabins President

CSI Technologies


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2

Outline

About Whitemud Resources

Metakaolin:

Background

Manufacturing

Product and uses

Oilwell industry strategy

Cementing in Canada Logistics

Technical presentation


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3

Who is Whitemud Resources?

Canadian public company developing a world-

class kaolin clay deposit in southernSaskatchewan

Incorporated in 2005

Focused on producing and marketing high-reactivity metakaolin (branded WhitemudMK)

163 million tonnes of measured and indicatedresources of kaolin ore (@ grade of 41%)

Completed construction of our mine and plant

Commercial sales in 3rd quarter of 2008quarter


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Metakaolin Background

Metakaolin has a proven history of enhancing the performance of concrete First known use in 1966 (Brazil)

Introduced to North America in mid-1980s

North American introduction and growth due to industry leadership fromkaolin/metakaolin producers and support from scientific community

New Benicia-Martinez Bridge, California with Metakaolin


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What is Metakaolin?

Kaolin

White-coloured clay

Aluminum silicate

Principal uses:

Filler and coating for paper

Paint, plastics, ceramics,refractory, rubber

Metakaolin (WhitemudMK)

Becomes chemically reactive

Principal use:

Highly reactive SCM in

concrete and oil wellcementing

10 to 20% replacement ofcement in concrete

Up to 30+% replacementof cement in oil well

cementing

Heated to800C

Metakaolin is a pozzolanic supplementary cementing material (SCM) created fromkaolin clay and used to produce high performance concrete:

Metakaolin


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Gollier Creek Plant, Wood Mountain SK

Metakaolin Certification for the period

September 30, 2008 - December 31, 2008

Chemical Properties Requirements

CSA ASTM/AASHTO

SO3

0.06 % 3% Max 4% Max

Sum (SiO2, Al2O3, Fe2O3) 93.6 % 70% Min

Total Alkalis as Na2O 1.4 %

Moisture Content 0.2 % 3% Max

Loss On Ignition - 800 C 1 % 10% Max 10% / 5% Max

Available Alkalis as Na2O 0.22 % - / 1.5% Max

Physical Properties

Fineness (45 um % retained) 3 % 34% Max 34% Max

Density 2.56 g/ccAutoclave expansion 0.02 % 0.8% Max 0.8% Max

Water Requirement 105 % of Control 115% Max

Strength Activity Index

7 day 121 % of Control 75% Min 75% Min

28 day 116 % of Control 75% Min 75% Min

Uniformity Requirements

Density 1 % Variation from Ave. 5% Max

Fineness (45 um % retained) 0.4 Variation from Ave. 5% Max

This product conforms to the requirements of Type N Pozzolan in the following Specifications:

CSA A3001-08, ASTM C 618-08 and AASHTO M 295-07

Certified 2 January, 2009

Rick Ketcheson, Director Technical Services & Product Development


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Manufacturing process


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Gollier Creek Plant


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Mining of kaolin ore located below coal seam

Coal Seam

Ball Clay

Kaolin Ore


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Competitive Advantages

Limited existing competition

Current supplies priced at more thantwice Whitemud MK

Metakaolin is currently priced at $450 to$650 per tonne, limiting its use

Only a small amount of North American

kaolin is processed into metakaolin Centrally located to North American

markets

Engineered product with uniqueperformance qualities

State-of-the-art plant to produce aconsistent product

WhitemudMK Value Proposition

To sell metakaolin at a price that will add value to broader

applications in concrete and oil well cementing


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Environmental Benefits

Reduction of Greenhouse Gas emissions

Manufacture of metakaolin generates 55%fewergreenhouse gas emissions than cement

Sustainability Contribution

Using WhitemudMK

improves concretesstrength, durability and reduces permeability

WhitemudMK will contribute to longer servicelives and less maintenance and repairs

Perceived as a Green supplementary

cementing material by specifiers


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Oilwell Strategy

Focus - Make Whitemud MK availablethroughout North America economically in bulk

quantities

Rail shipments to target markets

Sell directly to service companies

Investigate intergrinding / blending options Primary Markets :

Western Canada US Gulf coast TX, LA, OK US Rockies International opportunities

Silica sand opportunities Silica Flour Fine, mineral filler


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Oil Well Cementing update

Canadian activity

Canadian service cos have cemented wells with WhitemudMK

Multiple locations have cemented approximately 20 wells

Performed extensive lab testing to verify performance

Several other well cementers are evaluating in testing lab

A new solution for light weight and higher density slurries

WhitemudMK in oil well cement reduces material and operational costs with itsflexible design capabilities


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Metakaolin vs. Silica Fume

0

1000

2000

3000

4000

50006000

7000

8000

9000

3 Day 7 Day 28 Day 56 Day 91 Day

PSI

Silica Fume Vs Metakaolin807 lb/yd3, w/b 0.39MK (8%)

SF (8%)


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Handling & shipping

Excellent flow characteristics

Ship to customers in pneumatic trucks

Easier to handle than silica fume

Feed back from truckers & customers

Handles like cement or fly ash

15


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Quality Assurance

Fully equipped dry lab Malvern

XRF

CSA / ASTM mill certs

Concrete lab mortar cubes

concrete cylinders

customer testing

full time technician

16


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January 2007

Use of Metakaolin in

Oil Well Cements

Whitemud Resources Inc.

& CSI Technologies


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Oil Well Cementing

Easy to design slurries with additives Thickening time, fluid loss, rheology, free water

Appropriate density

Rapid set and good compressive strength

Tensile strengths

Excellent bond to pipe/formation

Long term isolation


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Metakaolin in Oil Well Cements

Light weight cement Flexible density design

Enhanced mechanical performance

Normal weight cements

Enhanced mechanical performance

Compressive strength, Tensile strength


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Flexible Density Design

SystemWater

gal/sk of

cement

Yieldft3/sk of

blend

Density

ppg

PV/YPFree Fluid

%

CS psi(24 hrs

120F)

CS psi(72 hrs

120F)

1 Type 1, MK* 20.38 2.35 11.75 9/10 1.6 364 499

2 Type 1, MK 15.65 1.91 12.5 6/8 2.4 564 1023

3 Type 1, MK 11.58 1.54 13.5 11/21 0.8 1109 1629

4 Type 1, MK 8.84 1.29 14.5 35/56 0.0 1962 2564

5 Type 1, MK 7.78 1.19 15 57/103 0.0 2524 2876

6 Class H, MK* 20.73 2.35 11.75 9/9 1.2 166 365

7 Class H, MK 15.96 1.91 12.5 8/7 5.2 232 513

8 Class H, MK 11.85 1.54 13.5 15/17 0.0 565 1093

9 Class H, MK 9.08 1.29 14.5 30/50 0.0 1174 1768

10 Class H, MK 8.00 1.19 15 51/79 0.0 1641 2049

* Additional 1% SMS added


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Compressive and Tensile Comparison

System Tests

Cement Dispersant SMS MK Density CS TS FF

bwoc bwoc bwoc ppg 48 hr 120F 48 hr 120F 120F

16 Class H 0.0% 16.4 2532 psi 495 psi 0.4%

17 Class H 10.0 % 16.83 3806 psi 552 psi 0.0%

18 Class H 2.0% 35.0% 17.35 4549 psi 724 psi 0.0%

19 Class H 40% 12.5 435 psi 120 psi 0.8%

46 Class H 2.5% 12.5 301 psi 73 psi 0.2%


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Thickening Times of MK Slurries

Systems TestsCement MK Retarder Density Temp. Thickening Time

bwoc gal/sk ppg F 70 Bc

21 Class H 40% - 12.5 100 4:19*

22 Class H 40% - 13 100 3:51*

23 Class H 40% - 14 100 3:24

24 Class H 40% 0.06 12.5 128 4:22

25 Class H 40% 0.06 13 128 3:21

26 Class H 40% 0.07 14 128 3:21

27 Class H 40% - 12.5 155 -

28 Class H 40% 0.08 13 155 4:54

29 Class H 40% 0.08 14 155 2:35

* Thickening Time based upon point of departure


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Comparison of Lightweight Cements with MK

System Tests

Cement Bentonite SilicaFume

Pozz MK SMS Density CS CS FF

bwoc bwoc bwoc bwoc bwoc ppg24 hr150F

24 hr212F

176F

30Class H

40% 1% 11.75 421psi 0.0%

33Class H 30% 11.75 200 psi 0.0%

31Class H

40% 12.9 568 psi 485 psi 0.0%

36Class H

4% 37% 12.9 366 psi 182 psi 0.4%

32Class H

40% 14.2 946 psi 0.0%

34Class H

4% 14.2 526 psi 1.6%


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Cement Column Seals

System Test Seal Test

Number Cement MK Silica Fume Pozz SMS Bent. Density Temp. Free Fluid Failure

bwoc bwoc bwoc bwoc bwoc ppg F 80F Day

37 Type I 40% 8% 12.5 80 0.40% 1 day no failure

38 Type I 40% 12.5 80 2.40% 34 day no failure

44 Class H 2.5% 12.5 80 1%1


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Cost Comparison

Assumptions:

Cement: $100/ton

Metakaolin: $250/ton

Silica Fume: $500/ton

Cement Bent.SilicaFume

Pozz MK SMS Density24 hrCS

24 hrCS

Yield Cost

bwoc bwoc bwoc bwoc bwoc ppg 150Fpsi 212Fpsi ft3/sk Per ft

3

slurry

30 Class H 40% 1% 11.75 421 3.48 $2.84

33 Class H 30% 11.75 200 3.14 $3.75

31 Class H 40% 12.9 568 485 2.58 $3.64

36 Class H 4% 37% 12.9 366 182 1.66 $2.88

32 Class H 40% 14.2 946 2.01 $4.68

34 Class H 4% 14.2 526 1.53 $3.81

Bentonite: $0.30/lb

Sodium Silicate: $0.50/lb

Poz: $70/ton

TXI LW: $175/ton


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Cost Comparison

Assumptions:

Cement: $100/ton

Metakaolin: $250/ton

TXI LW : $175/ ton

Cement MK Density 24 hr CS Yield Cost

bwoc 120F psi ft3/sk Per ft3 slurry

Type I 40% 12.5 564 2.80 $3.35

TXI LW 12.5 427 1.57 $4.17

Type I 40% 12.5 1109 2.26 $4.16

TXI LW 12.5 1052 1.16 $5.67


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Conclusions

Light weight cement design Very Flexible density design

One base composition

From 15 ppg down to 11.75 ppg Type I

From 15 ppg down to 11.75 ppg, Class H

Lower cost per volume for enhanced properties


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Contacts

Whitemud Resources Corporate Head Office:

301, 3345 8 st. SE

Calgary, AB

T2G 3A4

Tel: (403) 517-0040

Fax: (403) 517-0046

www.whitemudresources.com

Fred Sabins, Technical Consultant

CSI Technologies

2202 Oil Center Court

Houston Texas, 77073

Tel: (713) 725-3078

Fax: (713) 523-9417

www.csi-tech.net

introduction to whitemud[1]

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