Info about Red Beryl & Red Emerald
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Red Emerald History

Red Emerald was first discovered in Utah in 1904 by Maynard Bixby (the mineral is named "Bixbite" in his honor), although it was in uneconomic concentrations and wasn't of gem-quality. It wasn't until 1958 that gem-quality red emerald was discovered in the Wah Wah Mountains by Lamar Hodges.
Mine History
Geological History
Mine History
1904 Red beryl discovered at Topaz Cove in the Thomas Range of Juab County, Utah, 100 miles north of the Ruby Violet project, by Maynard Bixby. Mineral named "Bixbite" in his honor. Concentrations are non-economic and of non-gem quality.
1958 Gem-quality red crystals were discovered in the Wah Wah mountains of Beaver County, Utah, by Mr. Lamar Hodges, of Fillmore, Utah. Mr. Hodges was prospecting for uranium at the time. Twelve (12) unpatented lode claims staked: Ruby, 1 through 4, and Violet, 1 through 8. Prospect worked as a hobby mine by the Hodges family and by intermittent leases, known as the "Ruby Violet claims".
1967 Hodges sells the mining right to the Harris family of Delta, Utah, for $8000. Harris family begins small-scale, open-cut, artisan mining. Additional mechanization is employed over time, until a maximum production of approximately 2000 tons of ore per year is attained in early 1990's.
1971 The red crystals were identified for the first time as red beryl crystals by GIA.
1993 First visit to Ruby Violet property by a reconnaissance geologist for Kennecott Copper. Two 25-kg samples collected and processed by modified caustic fusion return an average grade in finished goods of approximately 1 carat per ton.
1994 March
KEC negotiates to acquire an Option to Purchase the property from newly-formed joint-venture between the underlying partners, the Rex Harris family and Red Emerald, Inc.

Geologic mapping of the claim block completed. Two (2) five-ton bulk samples collected from the "ore" and "waste" sectors of the artisan mining zone.

First core-drilling campaign completed, comprising a total of seven (7) holes of 6inch diameter with an aggregate depth of 2040 feet. Total sample of 15 tons were processed.
1995 March
Metallurgical refinement tests by KEC indicate that a crush-screen-sort process is the only practical method for gem recovery.

Completion of a technical and commercial "White Paper" by KEC resulting in the decision to fund an accelerated evaluation of the Ruby Violet property.

Second core-drilling campaign completed, comprising a total of forty-nine (49) holes with an aggregate depth of 10,794 feet.
1996 March
Underground mining of bulk sample completed, with the collection of about 11,000 tons of material.

Processing completed on approximately 7,000 tons of material selected form the underground bulk sample. In all, about 83 kilos of red beryl recovered.

Cutting, resulting in a production of 693 carats of finished goods.

Acquisition of KEC and Kennecott Mineral Company (KMC) by Rio Tinto Zinc of London. Resultant KEC and KMC reorganization has profound effect on completion of evaluation/acquisition's hesitancy to exercise Option.
1997 February
KEC calls informally for "expressions of interest" from interested parties within gemstone industry to consider some basis of acquisition of KEC's interest in Option.

Negotiations completed with Amelia Investments Ltd, KEC, the claims two owners Rex Harris family and Red Emerald Inc. That resulted in an "Option Agreement" amongst parties. Amelia established GMI and transferred assets to GMI.

GMI establishes exploration permit bonds with government agencies. Legal work in transferring KEC claims and data to GMI completed.

GMI completes drilling program which includes 13 diamond drill holes. All thirteen (13) drill holes intercepted red beryl mineralization.

GMI completed underground bulk sampling program. Samples from crosscuts within preexisting drifts to acquire additional beryl for processing and cutting. Approximately 2691.9 tons (short tons) of material was sampled.

Claim block mapping at 1"=100'. Several new exploration targets were outlined.
1998 January
Hand reserve estimation and computerized block models created.

Mine planning developed using computerized block model.

Cutting of rough beryl from the GMI bulk sampling program completed. Preliminary engineering study for upgrade and relocation of the processing plant completed. Feasibility study "rough draft" completed.

Neary Resources pays to extend Option period one year (to 24 March 1999).

GMI completes a detailed ore reserve and level plan mine map of the deposit. This information was used to develop a mine plan, Feasibility Study and associated detailed year-by-year discounted cash flow was prepared.

Red Emerald (Gibraltar) Ltd. (REL) renegotiated the Option payment schedule and arranged financing that enabled GMI to exercise the Option. The new payment schedule called for a $2.5 million payment to the property owner in December 1998, a $1.0 million payment plus an interest payment of $1.05 million in December 1999, $2 million plus interest in June 2000. At this point ownership shifts to GMI. $4.5 million plus interest in June 2001, and $2 million plus interest in June 2001 in lieu of 1,000 carats of gemstones to each of the owner parties.

REL and GMI entered into an agreement whereby REL would purchase 100 percent of GMI's production. The purchases would be at a pre-agreed upon price based upon GMI's production costs and a fair and reasonable profit.

GMI began large-scale, mechanical mining of the red beryl deposit. The mine operation combined hand recovery of visible red beryl with the large-scale mechanical recovery of red beryl bearing ore for processing at the processing plant.
1999 March
Environmental Assessments for the Large Mine Permit and the Pipeline Rights-of-Way were approved. The Bureau of Land Management issued the Pipeline Rights-of-Way Permit. GMI received an unusual written accommodation from the US Bureau of Land Management for the outstanding manner in which GMI personnel conducted themselves and cooperated with the Bureau during the permitting process.

The processing plant began operation. With the new primary crusher in operation the plant can process nearly all mine run ore.

The processing plant reached production capacity of 70-tons of ore per day.

An Option payment was made to the property owners.
2000     February
Modifications made to the processing plant greaty enhanced efficiency.

GMI actively entered the marketing arena by selling mineral specimens and gemstones at the Tucson Gem and Minerals Show in Tucson, Arizona. GMI marketed materials as an agent of REL.

Capital payment reaching $5.5 million and transfer of Title to Leases made by landowners to GMI.
Geological History

About 100 to 125 million years ago a significant geologic occurrence began the preparation for the formation of the red beryl deposit in the Wah Wah Mountains of Beaver County, Utah. The event, known as the Sevier orogenic belt, was part of a tremendous mountain building system where a system of faults thrust older layers of rock on top of younger rocks, creating mountains and wide zones of fractures that reached deep into the earth. One of the sets of east-northeast trending fractures resulting from the thrusting, is known as the Blue Ribbon lineament. This set of fractures are believed to be about 60 kilometers wide, 200 miles long and penetrate 1000's of feet into the earth. It is believed that over the years these fractures have actively moved many times.

Approximately 30 to 35 million years ago, the area that is now Southwest Utah, was subjected to a long, hostile period of volcanic activity. For at least 30 million years there were intermittent periods of volcanic flows, eruptions, and intrusions resulting in a thickness of about 1,200 meters of associated volcanic domes and flows. One of these formations of associated volcanic domes/flows, the Blawn Wash topaz rhyolite, is the host formation for the red beryl deposit. The Blawn Wash is a map unit that is believed to be 17 to 24 million years old and the red beryl deposit is located in a portion of the formation that is dated as 22 million years old.

About 17 million years ago it is hypothesized that a topaz rhyolite dome intruded at depth. The intruding rhyolite released gases and vapors that were rich with fluorine that complexed or combined with available beryllium. These gases and vapors traveled toward the surface through preexisting fractures, fractures that were possibly associated with the Blue Ribbon lineament and newly formed fractures associated with the volcanic intrusive.

The rising hot gases and vapors encountered the remnants of a groundwater table in a Blawn Wash topaz rhyolite flow. The water table was depleted by boiling, but a steam-rich area remained to react with the mineral rich gases and vapors. The red beryl precipitated from the rising gas and vapor mixture at particular locations because of favorable chemical conditions. Additional introduction of groundwater may have resulted in a rapid and radical lowering of the temperature and the pH within the zone of deposition and beryl would no longer precipitate.
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