Apache Mesa Assessment September 2016 MINERAL RESOURCE ASSESSMENT OF HEAVY MINERAL, BEACH- PLACER SANDSTONE DEPOSITS AT APACHE MESA, JICARILLA APACHE RESERVATION, RIO ARRIBA COUNTY, NEW MEXICO Virginia T. McLemore1, John Asafo-Akowuah2, and Alanna Robison3 1Senior Economic Geologist, Certified Professional Geologist #CPG-7438, New Mexico Bureau of Geology and Mineral Resources, New Mexico Institute of Mining and Technology, Socorro, NM 87801 2Department of Mineral Engineering, New Mexico Institute of Mining and Technology, Socorro, NM 87801 3Department of Earth and Environmental Sciences, New Mexico Institute of Mining and Technology, Socorro, NM 87801 OPEN-FILE REPORT 587 September 30, 2016 New Mexico Bureau of Geology and Mineral Resources A division of New Mexico Institute of Mining and Technology 1 Apache Mesa Assessment September 2016 SUMMARY Several Cretaceous heavy mineral, beach-placer sandstone deposits are found in the Point Lookout Sandstone on the Jicarilla Apache Reservation, Rio Arriba County, New Mexico. Beach-placer sandstone deposits are accumulations of heavy, resistant minerals (i.e. high specific gravity) that form on the upper regions of beaches or in long-shore bars in a marginal-marine environment. They form by mechanical concentration (i.e. settling) of heavy minerals by the action of waves, currents, and winds. Modern examples are found along the Atlantic Coast in the United States, southeastern Australia, and Andhra Pradesh, India, where they are mined for titanium, zircon, and locally, monazite (a Ce-bearing rare earth elements, REE, mineral). Other potential commodities include niobium, chromium, thorium, and rare earth elements (REE). The Apache Mesa beach-placer sandstone deposit is similar in origin, texture, mineralogy, and chemical composition to beach-placer sandstone deposits elsewhere in the San Juan Basin and in the world. Although, some individual analyses of samples from Apache Mesa contained high concentrations of TiO (15%), Cr (590 ppm), Nb (260 ppm), Zr (10,000 ppm), Th (258 ppm), 2 and TREE (2,692 ppm); the Apache Mesa beach-placer sandstone deposit contains only 132,900 short tons (120,564 metric tons) of ore with grades of 3% TiO , 108 ppm Cr, 46 ppm Nb, 2,187 2 ppm Zr, 40 ppm Th, and 522 ppm TREE. In conclusion, the Apache Mesa heavy mineral, beach- placer sandstone deposit is too small and low grade to be economic in today’s market. No further investigation is recommended at this time. 2 Apache Mesa Assessment September 2016 TABLE OF CONTENTS SUMMARY .................................................................................................................................... 2 INTRODUCTION .......................................................................................................................... 9 Purpose ...................................................................................................................................... 13 History and previous work ........................................................................................................ 13 PROPERTY DESCRIPTION ....................................................................................................... 14 Location .................................................................................................................................... 14 Access ....................................................................................................................................... 14 Physiography............................................................................................................................. 14 Climate ...................................................................................................................................... 14 Vegetation and Wildlife ............................................................................................................ 16 Infrastructure ............................................................................................................................. 16 ANALYTICAL METHODS ........................................................................................................ 17 Mapping and Sample Collection ............................................................................................... 17 Drilling ...................................................................................................................................... 18 Petrographic Descriptions ......................................................................................................... 21 Chemical Analyses.................................................................................................................... 21 Electron Microprobe Mineralogical Analyses .......................................................................... 22 Specific Gravity Measurements ................................................................................................ 24 Calculation of Ore Resources ................................................................................................... 25 Quality Control Procedures and Sample Security .................................................................... 26 REGIONAL GEOLOGICAL SETTING ...................................................................................... 27 GEOLOGY OF APACHE MESA ................................................................................................ 27 Geologic Setting........................................................................................................................ 27 3 Apache Mesa Assessment September 2016 Structure .................................................................................................................................... 34 Mineralogy and Chemistry of the Apache Mesa Beach-placer Sandstone Deposit ................. 35 Hydrology ................................................................................................................................. 36 Environmental concerns............................................................................................................ 36 DESCRIPTIONS OF OTHER BEACH-PLACER SANDSTONE DEPOSITS .......................... 36 San Juan Basin, New Mexico ................................................................................................... 36 Sanostee deposit, San Juan County ....................................................................................... 36 Standing Rock (Flat Top Hill) deposit, McKinley County ................................................... 39 B.P. Hovey Ranch, Sandoval County ................................................................................... 40 Descriptions of Pliocene beach-placer sandstone deposits, Virginia ........................................ 42 COMPARISON OF MINERALOGY AND CHEMISTRY OF BEACH-PLACER SANDSTONE DEPOSITS ........................................................................................................... 44 ORIGIN OF BEACH-PLACER SANDSTONE DEPOSITS ....................................................... 48 MINERAL RESOURCE POTENTIAL ....................................................................................... 49 CONCLUSIONS........................................................................................................................... 50 ACKNOWLEDGMENTS ............................................................................................................ 51 REFERENCES ............................................................................................................................. 51 FIGURES FIGURE 1. Idealized cross-section of formation of heavy mineral, beach-placer sandstone deposits (Houston and Murphy, 1970, 1977). FIGURE 2. Location of Late Cretaceous heavy mineral, beach-placer sandstone deposits in the San Juan Basin, New Mexico. Deposits are described in McLemore (2010) and McLemore and Robinson (2016). FIGURE 3. Location of Apache Mesa deposit, Jicarilla Apache Reservation, Rio Arriba County, New Mexico. 4 Apache Mesa Assessment September 2016 FIGURE 4. Topographic map of Apache Mesa deposit, Jicarilla Apache Reservation, Rio Arriba County, New Mexico (Apache Mesa topographic quadrangle). FIGURE 5. Location of stratigraphic section described in Appendix 2. FIGURE 6. Location of drill holes on Apache Mesa, Rio Arriba County. Details are in Table 3 and Appendix 3. FIGURE 7. Location of surface and drill hole samples for chemical analyses. Details are in Appendix 6. FIGURE 8. Location of polygons for calculating the ore reserves at Apache Mesa. Note that two ore blocks, 19 and 20 are in the subsurface. The two polygons without numbers cannot be mined because of steep topography. FIGURE 9. Stratigraphic framework and nomenclature of the Late Cretaceous sedimentary rocks in the San Juan Basin (simplified from Molenaar, 1989; Craigg et al., 1990). Gray-shaded sandstone units are hosts of known beach-placer sandstone deposits in the San Juan Basin. FIGURE 10. Geologic map of the Apache Mesa area, Rio Arriba County, New Mexico. Cross sections are below. FIGURE 11. Point Lookout Sandstone forming cliffs overlying Mancos Shale (covered slopes) at Apache Mesa (looking east). Photograph by V.T. McLemore. FIGURE 12. Trough cross beds in the yellow sandstone on Apache Mesa. Photograph by V.T. McLemore. FIGURE 13. Contact between the older, underlying yellow sandstone and younger, overlying white sandstone. Photograph by V.T. McLemore. FIGURE 14. Beach-placer sandstone deposit overlying the white sandstone in the Point Lookout Sandstone at Apache Mesa. Photograph by V.T. McLemore. FIGURE 15. Close-up of beach-placer sandstone at Apache Mesa. Photograph by V.T. McLemore. FIGURE 16. North-south cross sections across Apache Mesa. Location of cross sections are in Figure 10. 5 Apache Mesa Assessment September 2016 FIGURE 17. East-west cross section across Apache Mesa. FIGURE 18. Western fault trending northeast (left of Dan Koning). Photograph by V.T. McLemore. FIGURE 19. Electron microprobe picture of sample SL 16 (Apache Mesa). Zircon grains are labeled in red. Chromite is labeled in blue. Mottled, lighter colored cement is iron oxide (hematite). Dark grains are mainly quartz. Photograph by A. Robison. FIGURE 20. Geologic map of the Sanostee beach-placer sandstone deposits, in section 31, T26N, R19W, McKinley County, New Mexico. Mapping of the deposit was by V.T. McLemore in 2009, modified from Beaumont (1954), Dow and Batty (1961), Bingler (1963), and Force (2000). FIGURE 21. Beach-placer sandstone at Sanostee, McKinley County, New Mexico. Photograph by V.T. McLemore. FIGURE 22. Electron microprobe photo showing distribution of zircon, ilmenite and monazite grains in sample SAN 6 (Sanostee). Zircon grains are labeled in red, ilmenite in blue, and monazite in yellow. Mottled, lighter colored cement is iron oxide (hematite). Dark grey grains are mainly quartz. Black areas are pore spaces. Photograph by A. Robison. FIGURE 23. Geologic map of the Standing Rock beach-placer sandstone deposit in section 35, T18N, R14W, McKinley County, New Mexico. Mapping of the deposit was by V.T. McLemore in 2009, sedimentary geology modified from Kirk and Sullivan (1987). FIGURE 24. Beach-placer sandstone at Standing Rock, McKinley County, New Mexico. Photograph by V.T. McLemore. FIGURE 25. Geologic map of the B.P. Hovey beach-placer sandstone deposit, Sandoval County, New Mexico. Mapping of the deposit was by V.T. McLemore in 1981 and 2015. Sedimentary geology is modified from Tabet and Frost (1979). FIGURE 26. Beach-placer sandstone at B.P. Hovey, Sandoval County, New Mexico. Photograph by V.T. McLemore. FIGURE 27. Small beach placer sandstone deposit along the James River, Virginia. This deposit is less than 1 ft thick and several 10s of ft long. It formed in a small cove along the edge of the river. Photograph by V.T. McLemore. 6 Apache Mesa Assessment September 2016 FIGURE 28. Orange to light brown, unconsolidated, heavy mineral, beach-placer sands mined at the Concord mine, Virginia. Photograph by V.T. McLemore. FIGURE 29. Lenses of high-grade, black sand lense at the Concord mine, Virginia. Photograph by V.T. McLemore. FIGURE 30. Chondrite-normalized REE plot of selected beach-placer deposits, Apache Mesa (red), Standing Rock (light blue), Sanostee (dark blue), B.P. Hovey (black), San Juan Basin, New Mexico and Virginia (green). Chemical analyses are in Appendix 6. Chondrite values are from Nakamura (1974). FIGURE 31. Zr-TiO plot of selected beach-placer deposits, Apache Mesa (red), Standing Rock 2 (light blue), Sanostee (dark blue), and B.P. Hovey (black), San Juan Basin, New Mexico and Virginia (green). Chemical analyses are in Appendix 6. FIGURE 32. U-Th plot of selected beach-placer deposits, Apache Mesa (red), Standing Rock (light blue), Sanostee (dark blue), and B.P. Hovey (black), San Juan Basin, New Mexico and Virginia (green). Chemical analyses are in Appendix 6. FIGURE 33. Chondrite-normalized REE plot of selected monazites from beach-placer deposits, Apache Mesa (red), Sanostee (dark blue), San Juan Basin, New Mexico and Virginia (green). Chemical analyses are in Appendix 9. Chondrite values are from Nakamura (1974). FIGURE 34. Th+U+Si verses TREE of selected monazites from beach-placer deposits, Apache Mesa (red), Sanostee (dark blue), San Juan Basin, New Mexico and Virginia (green). Chemical analyses are in Appendix 9. TABLES TABLE 1. Some uses of selected commodities found in Cretaceous heavy mineral, beach-placer sandstone deposits in New Mexico. Price from U.S. Geological Survey (2016) for 2015. TABLE 2. Summary of climate data for Dulce, New Mexico at an elevation of 6,791 ft http://www.usclimatedata.com/climate/dulce/new-mexico/united-states/usnm0096 (accessed on 6/1/16). 7 Apache Mesa Assessment September 2016 TABLE 3. Completed drill locations, Apache Mesa REE project. UTM coordinates are in NAD27 and represent final drill hole locations. Drill holes are located in Figure 6 and final drilling report is in Appendix 3. TABLE 4. Specific gravity measurements for selected samples. Sample locations and descriptions are in Appendix 5. Specific areas are described below. TABLE 5. Required data for calculating the value of a potential mineral deposit. TABLE 6. Ore reserves for the Apache Mesa beach-placer sandstone deposit, New Mexico. New Mexico data are in Appendix 9. TABLE 7. Ore reserves for other heavy mineral beach-placer sandstone deposits in the world. Iluka ore reserves are from http://www.iluka.com/docs/default-source/3.2-ore-reserves- mineral-resources/annual-statement-of-reserves-and-resources2014.pdf?sfvrsn=4 (accessed 6/7/2016). APPENDICES APPENDIX 1. Glossary APPENDIX 2. Stratigraphic section APPENDIX 3. Final drilling report APPENDIX 4. Drill hole graphic logs APPENDIX 5. Petrographic descriptions APPENDIX 6. Chemical analyses APPENDIX 7. Quality control and quality assurance (QA/QC) report. APPENDIX 8. Microprobe descriptions. APPENDIX 9. Monazite compositions from electron microprobe analyses APPENDIX 10. Ore reserves PLATE 1. Geologic Map of Apache Mesa, Rio Arriba County, New Mexico PLATE 2. Cross Sections of Apache Mesa, Rio Arriba County, New Mexico 8 Apache Mesa Assessment September 2016 INTRODUCTION Several Cretaceous heavy mineral, beach-placer sandstone deposits are found in the Point Lookout Sandstone on the Jicarilla Apache Reservation in Rio Arriba County. Beach-placer sandstone deposits are accumulations of heavy, resistant minerals (i.e. high specific gravity) that form on the upper regions of beaches or in long-shore bars in a marginal-marine environment. They form by mechanical concentration (i.e. settling) of heavy minerals by the action of waves, currents, and winds (Fig. 1; Bryan et al., 2007; van Gosen et al., 2014). Modern examples are found along the Atlantic Coast in the United States (Koch, 1986; Carpenter and Carpenter, 1991; Pirkel et al., 2009), Oregon (Peterson et al., 1986), southeastern Australia (Roy, 1999; Reid et al., 2013), west coast of South Africa (Philander and Rozendall, 2015), Tartous, Syria (Kattaa, 2002), and Andhra Pradesh, India (Rao et al., 2008), where they are mined for titanium, zircon, and locally, monazite (a Ce-bearing rare earth elements mineral). Other potential commodities include niobium, chromium, thorium, and rare earth elements (REE). Detrital heavy minerals comprise approximately 50–60% of these sandstones and typically consist of titanite, zircon, magnetite, ilmenite, monazite, apatite, rutile, xenotime, garnet, and allanite, among other heavy minerals. Most of these minerals have a high specific gravity exceeding 4 and are dark colored, giving the sandstones a dark color, resulting in them also being called black sandstones. Although beach-placer sandstone deposits are found in strata of all ages; the deposits in the San Juan Basin in New Mexico are restricted to Late Cretaceous rocks belonging to the Gallup, Dalton, Point Lookout, and Pictured Cliffs Sandstones (Fig. 2; Murphy, 1956; Allen, 1956; Chenoweth, 1957; Houston and Murphy, 1970, 1977; Brookins, 1977; McLemore, 2010; McLemore and Robinson, 2016). The beach-placer sandstones in New Mexico are black, dark gray, to olive-brown, resistant to erosion, and radioactive due to radioactive zircon, monazite, apatite, and thorium minerals. Anomalously high concentrations of titanium, iron, niobium, thorium, uranium, zirconium, scandium, yttrium, and REE are characteristic of these deposits. Similar Upper Cretaceous heavy mineral, beach-placer sandstone deposits are found throughout Montana, Wyoming, Utah, Arizona, and Colorado (Dow and Batty, 1961; Houston and Murphy, 1970, 1977; Zech et al., 1994). 9 Apache Mesa Assessment September 2016 FIGURE 1. Idealized cross-section of formation of heavy mineral, beach-placer sandstone deposits (Houston and Murphy, 1970, 1977). The mineral sands industry refers to deposits containing concentrations of heavy minerals in alluvial (beach or river system) or aeolian (dune sands) environments and consists of two important products: titanium minerals (rutile, ilmenite, leucoxene) and zircon (Jones, 2009; Pirkle et al., 2009). Other heavy minerals are found in many mineral sands that can be economic (Table 1; such as monazite, garnet, staurolite, kyanite) and are mined locally. Only India is currently mining monazite for REE (http://seekingalpha.com/article/3585086-big-rare-earth- story-one-talking, accessed 6/1/2016). Many of the elements potentially found in beach-placer sandstone deposits, especially titanium and REE (including yttrium and scandium), are increasingly becoming more important in our technological society and are used in many of our electronic devices, such as cell phones, computer monitors, televisions, solar panels, wind turbines, etc. (Table 1; Morteani, 1991; Long et al., 2010; McLemore, 2011). Titanium is a major component of pigment, glazes, and light- weight metal alloys (Force, 1991, 2000; Jones, 2009). Titanium in pigment is an important ingredient in paint, plastics, and paper, not only for its white color but also because it has a high refractive index. Titanium metal has a high strength to weight ratio and is resistant to corrosion. Zircon is important in the refractory industry (Jones, 2009). REE include the 15 lanthanide elements (atomic number 57–71), yttrium (Y, atomic number 39), and scandium (Sc) and are commonly divided into two chemical groups, the light 10