The Montana Queen A Rock Creek Sapphire A Review of North America s Largest Sapphire Producer Presentation at the Canadian Gemmological Association October 20-22, 2017 The National Club Toronto Ontario Presented by Warren F. Boyd, BSc, FGAC, FCGmA, FGA Director of Marketing Potentate Mining LLC
POTENTATE MINING LLC AMERICA S SOURCE FOR SAPPHIRES Rock Creek Sapphires 2
Montana Sapphire Deposits - Location 3
Montana Sapphire Deposits Yogo Gulch Deep blue or purple hard rock in a Lamprophyre dike. No new production. Economic? Missouri River Alluvial Gravel benches - current sapphire production from old Dredge tailings flooded small scale Dry Cottonwood Creek Alluvial gravel with little current production Rock Creek heavily weathered volcanic rocks & secondary concentration in small gulches over 3000 acres - very rich deposit 90% owned by Potentate. Significant production in 2016 & 2017! 4
Rock Creek - Discovery in 1893 M.H. Bryan of Philipsburg was prospecting for gold on West Fork of Rock Creek Saved the shiny pebbles for his grandchildren Pebbles turned out to be Sapphires when viewed by Jeweller Whalen Sapphire found in abundance
Rock Creek - Discovery in 1893 Hydraulic Mining on lower ground only Environmentally unacceptable due to slurry & moon scape afterwards Now banned in USA/Canada Mined from 1890s to 1930s - Industrial 6
Rock Creek Sapphire District Known locally as Rock Creek and/or Gem Mountain Summer tourist operation called Gem Mountain hence Potentate refers to their mine as Rock Creek Over 60 Tons of Sapphires recovered between 1900 and 1930 watch movements & industrial applications. Focus on small stones. Heat Treatment technologies in the 1980s /1990s radically improved pale greenish colours of the bulk of the sapphires to beautiful blues, yellows, pastels Sporadic small scale production since the 1980s 7
Abundant Wildlife / Pristine Environment 8
Blue Ribbon Trout Steam Fly fishermen from across America seek out Rock Creek 9
Eureka Gulch & West Fork Rock Creek Grey areas known sapphire occurrences SAPPHIRE MOUNTAIN RANGE Eureka Gulch Eureka Gulch purchased in 2011 producing gold/minor sapphire The West Fork Property was acquired in 2014. Potentate has been testing this area showing Sapphire/minor gold 2017 Wash plant @ Eureka Gulch to be relocated to West Fork property 4 Miles West Fork/Rock Creek The Meadows 20 Miles (From Berg 2015)
Rock Creek Historical Production Anaconda Gulch/ Sapphire Gulch /Fork Gulch / Wild Cat Gulch/Meyer Gulch/Queen Gulch The Meadows Produced over 60 tons of sapphire since discovery in 1893 to 1930 Industrial & Watch Industry shipped to Switzerland From Berg 2015 11
Rock Creek Historical Production TWO MILES From Berg 2015 12
Mining Area West Fork Rock Creek Mining Area Near D Block West Fork Rock Creek 13
Excavator Loading the Mine Truck 14
Screening Plant -West Fork Rock Creek UNDERSIZE GEM ORE OVERSIZE Undersize (<1/8 ), Oversize (>1 ), Ore (>1/8 & <1 )
Trucking to Eureka Gulch - Jig Processing Ore Trucked from West Fork to Eureka Transport Weight reduced by 60% 16
Trucking to Eureka Gulch Processing 17
Excavator Puts Ore In Hopper Oversize/trash removed to conveyer Under One Inch in Slurry Pump Pump to the Large Jig
Gravel Slurry to the Jigs Larger Gravel under 1 and over 1/8 Under 1/8 to smaller Jig fine gold Water to Sluice to verify gold captured Can process up to 20 Cu/Yard per 19 Hour
Inspecting the Jig Bed - Cleanup 20
Recovery of Jig Concentrates 21
Daily Cleaning of Jig baskets Recovering sapphires Scoop & Vacuum Concentrates Locked Screens
Recovery of Jig Concentrates Screen 1/8 x 1 Steel Balls Scoop 6 across 30% Sapphire 23
Jig Concentrates are Screened & Iron Shot Removed
Concentrates Dried & Sapphires Recovered by Hand Picking
Sapphire Rough Ready For Cleaning 26
Acid Cleaning & Preparation Sapphires are cleaned with a solution of Hydrofluoric & Hydrochloric Acids Outsourced to licensed laboratories who have the proper safety equipment & fume hoods required for such work Too dangerous for mine site at this time No acids or toxic substances are used at the mine site 27
Cleaned Sapphire Ready for Sale 28
Select Assortment of Natural No Heat Sapphire Crystals No damage from alluvial transport (unlike Missouri River) Weights range from 2 carats to 34 carats The Montana Queen 29
Thermal Technologies Using Oxidizing & Reducing Atmospheres Ovens Operating at Columbia Gem House - USA 30
Dissolving Rutile Silk (Titanium) 31
BEFORE/AFTER HEAT TREATMENT 32
Example of Heat Treatment - Silk Original Weight of Grey Crystal was 11.42 Carat Opaque and evidence of minor asterism. Geuda? Attempts to find a star in the natural rough were unsuccessful The rough was then heated which dissolved the fine silk (rutile) and generated this fine finished gem of 3.39 carats. 33
Spectacular Orange - Heated 26.2 carats Greenish & Opaque Core Rare Whiskey Orange Oval 7.90 carat 34
The Montana Queen Possibly one of the largest and most valuable intense blue sapphire ever recovered from the Rock Creek sapphire mine in Montana The recovered rough weighed was 31.84 carats One of the few rare gems where a precise GPS coordinate can be provided Comes with an impeccable supply chain guarantee GIA Monograph certifying source & treatments 35
The Montana Queen Discovery - June 22 nd 2016 Field Photograph Including Stock No.
The Montana Queen Beautiful Pristine Crystal with Trigons 31.85 carats
The Montana Queen Window Polished Heat Treated Silk & Core Gone
The Montana Queen Cutting Process Jeff Hapeman
North America s Largest Fine Blue Sapphire? 40
The Montana Queen
GIA Monograph Montana Queen
Sotheby s Magnificent Jewels Auction November 2015 The Big Sky Sapphire GIA Monograph #6173139524 What is the The Montana Queen worth? The Big Sky Sapphire 12.54 carat No Heat Lot 344 Nov/15 Est:$300-500K Hammer Price US$394,000 or > US$31k/carat Less due to Heat treatment Larger 12.62 vs 12.54
More Spectacular Stones Coming 2016 Season produced 220 kg of +3.35 mm rough sapphire 2017 Season projected at 190 kg of +3.35 mm rough sapphire Forest fires, evacuation orders, water issues 44
America s Largest Gem Sapphire 59.5 Carat Clean Crystal Largest ever recorded in USA 45
27 Carat Green Sapphire Silk Core 2015 Exploration Pit Discovery 27 ct Rough Sapphire Found in 2015 Test Pit 9.85 Carat Green Sapphire Heat Treated to Clarify 27 Carats Crystal 46
Original Weight 11.76 carat Preform 9.10 carat Heat Treated
Glenn Lehrer - TorusRing Deep Pinto Blue Sapphire Weight 4.92 carat Heat Treated To Be Designed into a Unique Jewelry Pieces
Pinto Sapphire Rich Blue Sapphire Weight 5.57 carat No Heat Sri Lanka Cutting $10,000 / carat PM1205
Rich Blue Sapphire Pinto Sapphire Weight 5.57 carat No Heat Sri Lanka Cutting $10,000 / carat PM1205
Purple-Orange Bi-Colour 1.52 carat Pinto Heat Sapphire Treated $1980 / carat PM1221
Orange Sapphire Weight 7.86 carat Pinto Heat Sapphire Treated $2500 / carat SOLD
Violet-Orange / Purple Color-Change Pinto Weight Sapphire 1.53 carat No Heat $1960 / carat PM1015
Peacock Blue Weight 1.76 carat Pinto Sapphire No Heat $1300 / carat PM1005
Purplish Pink Weight 1.99 carat Pinto Sapphire No Heat $2000 / carat SOLD
Gold & Blue Bi-coloured Weight 2.83 carat Pinto Sapphire No Heat $2500/ carat PM 1156
Yellowish Green Weight 3.06 carat Pinto Heat Sapphire Treated $2500 / carat PM1145
Blue-Orange Bi-Colour Weight 2.41 carat Pinto Heat Sapphire Treated $1000 / carat PM1326
Bright Sky Blue Weight 2.10 carat Pinto Heat Sapphire Treated $2000 / carat PM1438
Bright Orange Weight 2.17 carat Pinto Heat Sapphire Treated $1650 / carat PM1287
Pinto Sapphire Weight 1.83 carat Pinto Sapphire No Heat $2000 / carat PM1143
Blue-Orange Bi-Colour Weight 2.74carat Pinto Sapphire No Heat $2000 / carat PM1234
Precision Cutting Production Global Markets including USA Ideal Product for Production Manufacturers 63
Marketing Objectives Potentate Mining LLC is planning to have Rock Creek Sapphires in designer & production jewellery throughout North America, Europe & Asia through select clients & manufacturers Ethically Sourced / Supply chain warranties Environmentally responsible All American Gemstone Every mall in America within the next few years
Acknowledgments Photography by Warren Boyd, Keith Barron, John Rae, Andrea Rae, Jeffrey Scovil, Jeffrey Hapeman, Arlan Able, Kiwon Jang Gemstone cutting Earth s Treasury & Americut, Sri Lankan dealers & others 65
Potentate Promo Video https://vimeo.com/183364616