7/30/2019 Introduction to Whitemud[1]
1/28
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
7/30/2019 Introduction to Whitemud[1]
2/28
2
Outline
About Whitemud Resources
Metakaolin:
Background
Manufacturing
Product and uses
Oilwell industry strategy
Cementing in Canada Logistics
Technical presentation
7/30/2019 Introduction to Whitemud[1]
3/28
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
7/30/2019 Introduction to Whitemud[1]
4/28
4
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
7/30/2019 Introduction to Whitemud[1]
5/28
5
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
7/30/2019 Introduction to Whitemud[1]
6/28
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
7/30/2019 Introduction to Whitemud[1]
7/28
7
Manufacturing process
7/30/2019 Introduction to Whitemud[1]
8/28
Gollier Creek Plant
7/30/2019 Introduction to Whitemud[1]
9/28
Mining of kaolin ore located below coal seam
Coal Seam
Ball Clay
Kaolin Ore
7/30/2019 Introduction to Whitemud[1]
10/28
10
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
7/30/2019 Introduction to Whitemud[1]
11/28
11
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
7/30/2019 Introduction to Whitemud[1]
12/28
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
7/30/2019 Introduction to Whitemud[1]
13/28
13
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
7/30/2019 Introduction to Whitemud[1]
14/28
14
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%)
7/30/2019 Introduction to Whitemud[1]
15/28
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
7/30/2019 Introduction to Whitemud[1]
16/28
Quality Assurance
Fully equipped dry lab Malvern
XRF
CSA / ASTM mill certs
Concrete lab mortar cubes
concrete cylinders
customer testing
full time technician
16
7/30/2019 Introduction to Whitemud[1]
17/28
January 2007
Use of Metakaolin in
Oil Well Cements
Whitemud Resources Inc.
& CSI Technologies
7/30/2019 Introduction to Whitemud[1]
18/28
18
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
7/30/2019 Introduction to Whitemud[1]
19/28
19
Metakaolin in Oil Well Cements
Light weight cement Flexible density design
Enhanced mechanical performance
Normal weight cements
Enhanced mechanical performance
Compressive strength, Tensile strength
7/30/2019 Introduction to Whitemud[1]
20/28
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
7/30/2019 Introduction to Whitemud[1]
21/28
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%
7/30/2019 Introduction to Whitemud[1]
22/28
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
7/30/2019 Introduction to Whitemud[1]
23/28
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%
7/30/2019 Introduction to Whitemud[1]
24/28
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
7/30/2019 Introduction to Whitemud[1]
25/28
25
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
7/30/2019 Introduction to Whitemud[1]
26/28
26
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
7/30/2019 Introduction to Whitemud[1]
27/28
27
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
7/30/2019 Introduction to Whitemud[1]
28/28
28
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