Zeolites for Compressive Strength and Harsh Environments in Down-hole

Cementing

Abstract

In down-hole cementing; we are often challenged with finding a lightweight, higher compressive strength material. There are new products used to greatly reduce the density of down hole drilling cements, while simultaneously improving their workability and mechanical properties. St Cloud Mining Company has introduced the SCM product line base on the natural zeolites chabazite and clinoptilolite. Careful control of mineral blends, their particle size distribution, and the accelerators and retarders have created unique cementaceous products previously unavailable for oil and coal gasification well completions. The products are based on technologies initially used in Canada and refined in the US.

Future Need and Trends in Market

Changes in Regulatory Markets

EPA may classify Fly Ash as Hazardous

30 million tons of Fly Ash may need to be replaced

Location of deposits in relation to cement plants and Bulk Plants

Physical minerals or Chemical Minerals

High Volume Low Margin products that did not immediately fit the SCM Business Model

Corporate Overview

Products and Resources

Construction and Drilling Products SCM® Zeofume Products Admixtures and additives Response to rapid growth in Coal Bed Methane,

Oil Field Development and Oil Sands in Canada and US

What are ZeoFume Products

Particle Size Distribution

D50 7 microns

D90 90 microns

Total Surface area

350 m2/g

External Surface area

65 m2/g

Average chabazite

crystallite .2 microns

Amorphous silica 35-

45%

Chemistry

TYPICAL PROPERTIES

Form: Powder

Color: Light Brown (Dry Brightness 43)

Crystal Size: Chabazite Less than 1 micron

Crystallinity: 50-60%

Density: 1.73

Total Pore Volume .468 cm3/g

Surface Area: 350 m2/g

Packing Density: Approx. 577kg/m3 (36 lbs/ft3)

SiO2/Al2O3 Ratio: Approx. 4:1

Moisture packaged: Less than 10% by weight

Stability: pH of 3 through 12

CEC 1.80 meq/g

TYPICAL CHEMICAL ANALYSIS (equilibrated at 20oC. and 40% relative humidity)

SiO2 Al2O3 Fe2O3 CaO MgO Na2O K2O LOI

54.6 14.9 2.28 0.22 0.60 6.67 0.90 19.4

Dominant Cation Na

Advantages

Lightweight – densities in the range of 1.25- 1.1 are

achievable. Densities variable through changes in

water ratios

Strength retrogression at high temps and early

strength development at low temps

Less imbedded materials – 20-25% less material

needed compared to flyash cement mixtures

Cost – project completion times greatly reduced.

Flow ability in transport create less fume

Reduction in waste and disposable materials

High CEC in cement performs overtime in H2S and

heavy metal environments

Operations

Ash Meadows, Nevada Winston, New Mexico

Operations

Current Processing/Distribution Facilities

Ash Meadows Plant - Amargosa Valley, NVWinston Plant - Winston, NMHeemskirk Facility - Lethbridge, BC Canada Riverland Plant - Baton Rouge, LAATC plant - Van Horne, TXMuldoon Minerals - Muldoon,TX

DepositsAsh Meadows - ClinoptiloliteBowie - ChabaziteBurro Creek - SaponiteRome - MordeniteWinston - Clinoptilolite

In Relation to Cement Plants

Conclusion – Potential Markets

Business model – control of supply and process

Strategic Partnerships

Zeolite Cements - Industrial Minerals

Specialty Clays - Drilling Fluids

Water Purification

Oil Sand Technology

Environmental Benefits