Geos-Polissya

Seeking investments for mining basalt


Address:

Main office
Ukraine, 265962, v.Polytsi Volodymyrets district, Rivne province
Branch office
Ukraine, 266028, town Rivne-22, pr.Oleko Dundicha,2/20, r.52
Correspondence
Ukraine, 266028, town Rivne-22, pr.Oleko Dundicha,2/20, r.52
 

Telephone:

Main office - 5-93-10 (call on request)

Branch office - /0362/ 24-47-10

Fax: /0362/ 24-47-10 - automatic

E-Mail

yuskiv@mail.rv.ukrtel.net

Director

Head of Board, Mr. Kuznetsov Vyacheslav Pavlovjch, Engineer/Geologist

Number of working people

At the present time - 25 people

Planned by 1999 - 350-370 persons.

Date of registration number: 22578886

Form of ownership: mixed, share of state capital - 7%.

Fixed capital:

a) License N352 of 04.10.95 for the right of mining the field of basalt "Polytske-2" issued by State committee of Ukraine on geology (approximately $10.5 million)

b) Right for long-term lease of lands for 20 years within confines of the field of 30.2 ha (approximately $500,000).

Bank requisites

Settlement account 26000203320001 in Volodymyrets branch of AK APB "Ukraine" NFO 333283.

Spheres of activity

In accordance with the business plan developed for production in 1998-2003 the Company is planning to set up productions for mining basalt crushed stone, basalt crumb, facing and decorative articles from basalt, granite, tufa, various productions from zeolite containing basalt tufa (radiosorbent-ameliorant, veterinary preparations, dying aggregate for oil paints, industrial product for majolica production), for manufacturing bricks, tiles; form basalt roving heat-insulating plates and mats, formagate-halcedony raw materials - jewelry and decorative articles.

The initial material for the above mentioned productions will be natural local raw materials fields of which are at the disposal of the company. Industrial commercial reserves of raw material guarantee the continuous operation during 35-38 years. They amount: basalt - to 14 million m3; tufas - 6.3 million m3; agate-chalcedony raw material - to 7 thousand tons; granite - to 1 million m3. Fields are characterized by satisfactory mining technical conditions for open casting.

For the production program there are technological solutions and partly - equipment. Among developed and partly implemented research programs we are to underline such ones:

  • immobilization and protective decontamination of sand soils polluted by radionuclides with the help of inorganic natural sorbents;
  • guidelines for improving the fertility of impoverished sand soils by applying inorganic natural ameliorants;
  • the development of industrial equipment for purifying natural waters of existing ameliorative schemes from technogenic radionuclides;
  • the improvement of physiological development of agricultural animals by applying veterinary preparations on the basis of using natural inorganic sorbents;
  • obtaining ecologically clean agricultural produce in zones contaminated by small dozes of radionuclides;
  • system of comprehensive technological approach to mining fields of minerals with the minimal risk for the environment exemplified by basalt fields of Rivne province.

In each of the above mentioned lines there are scientific publications with the participation of Company workers, we also prepare to patent our inventions and discoveries abroad and at home.

To implementation the package of business-programs capital investments are necessary amounting to $41 million, direct investments amounting to $35 million during the period of the program implementation (1998-2003). It is envisaged to build stage by stage the industrial complex of building materials ($4 million.), of the complex of super-thin fiber ($14 million), of the complex of special technologies ($23 million). For the upkeep, development and maintenance of quarries it is necessary to spend not less than $3 million. The estimated period for self repayment of separate programs: 1-4.5 years. The expected economic effect from the production activity constitutes $5-6.5 million of net profit annually beginning from 2003.

Main markets for production sale

Ukraine, CIS countries, foreign countries.

Desired forms of cooperation with foreign partners

  • rendering financial investments on the part of a partner;
  • setting up joint ventures;
  • signing agreements (contracts) for introducing advanced foreign technologies and supplying technological equipment in accordance with guidelines of the chosen production development;
  • concluding agreements (contracts) for participating in selling goods, produce, partner's services;
  • other forms beneficial for both parties.

BASALT FIELD "POLYTSKE-2"

A. Basic information

In the administrative respect the field is situated in Volodymyrets district Rivne province, in the northern west of Ukraine. The total area of the field is 43.6 ha on lands of state farm "Polytsky". The field has no natural boundaries. At a distance of 9 km to the north there is a railway station Rafalivka of Lviv railway, and at a distance of 0.4 km to the southern east there is the v.Ivanchi. At a distance of 0.5 km to the north of the field there is the highway Kyiv-Warsaw (350 km).`

The district center - town Volodymyrets - is located at the distance of 25 km to the north of the field. At a distance of 6 km to the southern east there is a Rafalivka field of basalt connected by the railway with the railway station Rafalivka. The daily capacity of the railway station Rafalivka is up to 100 goods wagons.

On 01.01.98 the western part of the field with the total area of 7.6 ha is being mined. The depth of the quarry pit face is minus 18 m (the absolute mark is 154.0 m). During the period of the field operation 464 thous.m3 basalt in the firm form had been mined. The rated capacity of the quarry is 400 thous.m3 of crushed stone and 12 thous.m3 of basalt screenings a year (1992).

At the field the temporary mining infrastructure is set up: there is an order wagon, a household wagon, a hostel wagon, a storehouse for fuels and oils, m?bile storing premises, the garage box, a weighing facility, access automobile roads. As to the mining and processing equipment we have: a crushing and sorting complex PDSU-200, an escavator, a bulldozer, drilling rigs SBU-100 and SBSH-200, a compressor DK-9, dump trucks KRAZ and MAZ, other equipment leased from Rivneoblavtodor.

The supply of electric power is carried out from high voltage line of 10 Kwt from Rivne atomic power station (situated at 20 km from the field). The supply of drinking and technical water is carried out from underground waters of boring wells. There is no natural gas in the region.

The relief of the locality is flat, level, absolute marks of the ground surface vary from 169.8 m to 172.6 m. The geological structure of the field region may be depicted by the following scheme (the section from top to bottom):

1.

Soil-vegetation layer

0.0-0.3m (0.3m)

2.

Sand fine, clay, quarts, of average density, gray

0.3-3.0 m (2.5m)

3.

Chalk cracked, white

3.0-6.0m (2,0m)

4.

Basalt afanite, cracked, weathered, gray

6.0-8.5m (2.0m)

5.

Tufa basaltic, of medium compactness, ferric, brownish-gray

8.5-12.5 m (4.0m)

6.

Basalt almonds-stone, low-weathered, with almonds (agate, chalcedony), dark-gray

12.5-18.0m (5.0m)

7.

Basalt afanite, low-weathered, strong, with rare layers of tufas and tufobrecchias, dark-gray - deeper than

18.0 m (est.12.0m)

Note: in brackets the average capacity of layer rocks in the field.

Basalt reserves were estimated from layer 4,6,7 (strata I, III and V respectively) and have such values.

Category A

thous.m3-

- 2417 (1953)

Category B

thous.m3

- 4046 (4046)

Category C

thous.m3

- 7961 (7961)

TOTAL: A+B+C1,

thous.m3

- 14424 (13960)

Note: in brackets the remaining industrial basalt reserves for 01.01.96 are indicated.

The said basalt reserves are approved in the State commission on Ukraine reserves (protocol No.4677 of 08.12.87).

Hydrogeological conditions of the field are complicated on account of the presence of 3 aquifers: pressereless - in fluviaglacier sands, with pressure - in deposits of chalk and basalts (tufas) of the berestovets series of upper proterozoy. The estimated ingress of water into worked-out space at the end of mining the field will not exceed 77-80 thous.m3 daily.

The crushed stone of all fractions (40-70, 20-40, 10-20 mm) meets requirements of GOST 8267-82, screenings (less than 10 mm) - GOST 120193-84, basaltic quarry stone - GOST 22132-76. The requirements of European standards are not met. The specialized state radiation examination of the quarry shows the complete radiation safety of crushed stone production - the rate gamma exposure of mined rocks does not exceed 9-14 mcR/h which meets requirements of acting sanitary norms.

The field is mined by the closed mining production joint stock company "GEOS-POLISSYA" in accordance with the license No. 352 of 04.10.95 issued for 20 year by the State committee of Ukraine on geology. There is mining allocation for 43.6 ha and the land allotment for 30.2 ha (for 20 years).

 

B. Prospects of production development of JSC on the basis of mineral raw materials of the field

At the stage of the preparation for mining the field CMPJSC "GEOS-POLISSYA" had carried out additional research to study raw materials to be mined and had gathered many data on the issue.

Determining prospects of production development we had taken into account the results of work of collaborators of JSC, of the departments of exploiting hydroameliorative schemes and construction materials of the Ukrainian state academy of water management (professors, doctors of technical sciences V.A.Gurin and L.I.Dvorkin), of the department of petrography of the geological faculty of Lviv State University (professors, doctors of geological and mineralogical sciences V.A.Khmelyovsky), of the Institute of Epizootology of AAN of Ukraine (director, candidate of veterinary sciences M.S.Mandygra)., of JSC "UkrPKTIpromtekhcomplex" (candidates of technical sciences E.K.Zhmurova and V.I.Bagynsky), of the Ukrainian state enterprise "Ukrburshtyn" (geologists YU.O.Shlyamo and O.S.Kryvychun), of Rivne geological prospecting expedition (chief geologist, candidate of geological and mineralogical sciences I.M.Ivaniv) and of others and of consultations by academician of AAN of Ukraine G.O.Bogdanov, of professor of the university of New-Mexico (state New-Mexico, USA) E.Nuttall Jr, of candidates of technical sciences V.F.Kibol (NVO "Kompozyt") and of D.Dzhygyris (laboratory of basalt fiber of IM AN of Ukraine) etc.

After processing the available information the development of the JSC production on the basis of mineral raw material resources of the field "Polytske-2" is imagined in the following way (in the order of above mentioned section of the field):

  • Soil-vegetation layer - the use for re-cultivating arable lands, hayfields and pastures with zonal agro-technical measures (GOST 17.5.1.03-86);

  • Sand - the use for filling the roadbed of roads being built, for making building mortars for everyday needs of the local population;

  • Chalk - the use for producing deoxidizers of soils and lime fertilizers (TY 10-11-428-87);

  • Basalt afanite weathered - the use for making stone and crushed stone production (GOST 8267-82, GOST 22-132-76 and norm BN-84/6774-02 "Mineral crushed stone. Crushed stone for roadbed");

  • Tufa basaltic is to be used:

    • In connection with the industrial content of zeolite (clinoptilolite) and of montmorilonite (20-70%) - for making sorbent-ameliorant necessary for immobilizing and protective decontamination of sand soils of Polissya and for improving their fertility;

    • For making sorbing aggregates for industrial filters to purify waters of nuclear technologies and industrial wastes;

    • As a dyer-aggregate of standard brown color for paints;

    • As an initial raw material for ceramic production (majolica, facing tile, brick, tile etc.);

    • For making veterinary preparations and fodder additions to make healthier agricultural animals, to increase increment of their live weight, to get ecologically clean agricultural produce in the zone of radionuclide contamination because of the Chernobyl disaster;

    • As a binding material in building when obtaining cement clinker and ferric pellets in metallurgy;

    • As a raw material for making high-quality expanded clay aggregate.

  • Basalt almond-stone is to be used:

    • To make stone and crushed stone production (the same standard );

    • Accompanying agates, chalcedonies, seladonite, amethyst brushes, jasperoids - for manufacturing jewelry and decorative articles, souvenirs;

    • Basalt afinite non-weathered is to be used;

    • For manufacturing basaltic super-thin fiber (TY 21 Ukr.SSR 410-86) and mineral cotton (GOST 4640-84);

    • For producing basalt goods by way of stone casting;

    • During mining basalt without using boring and explosive operations - for obtaining facing materials by a mechanical method.

The estimated yield of blocks of III-V groups - not less than 10-12%.

In most above mentioned lines there nave been developed or are being developed technological schemes for commercial use of natural raw materials.

It is necessary to dwell on peculiarities of geological structural deployment of the field in space and of some interesting data obtained by geologists of Rivne geological prospecting expedition during recent year:

    • Within confines of Lukovo-Ratno graben (Volyn province, Ukraine), among basalts analogous to basalts of the field "Polytske-2", in fact - along the said tectonic structure - there are ore zones with commercial copper mineralization (virgin copper - up to 3.0-5.1%) which are accompanied by the increased content of gold (up to 1.22 g/ton), silver and platinumoids. Facts of discovering in corporations of virgin copper in the main mass of basalts and tufas of the field "Polytske-2" in cracks and its extraction in the form of separate pieces of dendrites weighing up to 0.2-0.3 kg (more seldom - larger), the location of the field in the eastern flank of Lukovo-Ratno graben - make it possible to make an assumption about the possibility of commercial accumulation of virgin copper and of accompanying metals in basalts and tufas of the field;

    • The presence of table mineral waters "Stepanska" and "Velykomidska" in volcanic rocks of berestovets suite (basalts, tufas, lavobrecchias) which take part in the geological buildup of the field "Polytske-2" and also preliminary data about the extent of natural mineralization of underground waters which wedge into the surface in the quarry on the boundary of tufas with almond-stone basalt make it possible to draw conclusions about possibilities of opening within confines of the field mineral waters of table or medical designation.

    • The above mentioned data testify to the necessity of continuing the comprehensive geological study of the unique natural object which is the field "Polytske-2".

    • On the basis of the available information and in case of the comprehensive mining of the field the said guidelines for the development of JSC production are included into business-plan for 1996-2000.

We thank Your for the attention paid to the activities of our company.

Respectfully Yours,

Vyacheslav Kuznetsov,

Head of Board of

CMPJSC "GEOS-POLISSYA",

engineer-geologist

Information supplied by the Company January 1999.  Page last updated: January 19, 2004

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