McAdoo Project - Latest Drilling Results
February 2008 - Positive Drilling for Nylon in Kingston
In the beginning of February 2008 we started the last phase of our 4 stage program of investigations at the McAdoo Landfill Site in Kingston. Throughout the period of the assessment we had collected comprehensive information that a huge amount of nylon had been buried on this 10 acre site during the 1960's and early 1970's. The results from our recent drilling program have proven that there is a significant amount of nylon in the Kingston landfill site. Please watch the video below to observe how the auger performed in bringing the Nylon to the surface.
Click here to watch the video about the drilling with Quick-Time player
XCG Consultants Ltd.- Environmental Engineers & Scientists oversee Drilling Operations
XCG Consultants Ltd., an engineering firm in Kingston, started the drilling program on February 11th through to February 13th. Eight holes were drilled in the north and central areas of the landfill site using a drill rig with an 8 inch auger. Due to the slope of the site, platforms were pre-built to stabilize the drilling rig. At the request of the City of Kingston, we agreed to only drill when the landfill was in a frozen state. The temperature during our drill program was minus seventeen degrees Celsius (-17C).
Mr. Kevin Shipley, M.A.Sc, P.Eng, from XCG Consultants Ltd. states:
"The drilling operations focused on areas where the initial testpit operations were not able to reach the bottom of the landfill (i.e., the top of the bedrock), and in areas where individuals familiar with the site indicated the nylon was buried.
Eight boreholes were advanced in the north and central areas of the landfill, based on information provided by one individual who had been involved in the hauling of the waste nylon to the site in the 1970’s. Nylon was encountered in six of the eight boreholes.
Of the six boreholes that encountered nylon, four found nylon at 1.5 metres below the surface, reaching depths of 10 metres. The remaining boreholes encountered nylon at 4.5 and 7.5 meters respectively.
At this stage, it can be concluded, based on the drilling observations, that a significant deposit of waste nylon is present in the central area of the landfill."
Drilling results were more than positive - Large quantity of Nylon found
We were very surprised that the first drill hole to locate the nylon was at a very shallow depth - only 5 feet below the surface. Additional drill holes located solid nylon from a depth of 5 feet all the way down to 35 feet. In some instances the nylon was so thick that the auger became too entangled in the nylon to bore any deeper that 15 feet.
The initial rich area of nylon deposit appears to be in a circle spanning 390 feet (120 metres), near the top of the landfill site. Overall, the results of the drilling program have proven to be extremly positive.
Mr. Randy Hayward, President and CEO of Poly Pacific states:
This is what we have been waiting for. We are very encouraged about the recent drilling results.
The McAdoo project is one of the first in the world to reclaim nylon from a municipal landfill. These positive results are bringing us one step further to become the number one Nylon-Recycling company in the world.
Mr. Rick Gliege, head of Operations with Poly-Pacific states:
“I am extremely pleased with the results of our drilling program. To have encountered nylon so near the surface and continue to depths of over ten metres has exceeded our expectations.”
Analysis of Nylon samples classifies McAdoo Nylon as Type 6.6
The submitted samples underwent analyses by Cambridge Materials Testing Ltd., an ISO 17025 Accredited facility, in Ontario, Canada on March 3, 2008 for identification of the polymer material. The submitted samples underwent the following analyses:
Infrared Analysis:
Using a Fourier Transform Infrared (FTIR) Spectrometer as per ASTM E1252-98 (2002) to confirm the general nature of the resin material.
Thermal Characterization Analysis:
Using Differential Scanning Calorimetry (DSC) as per ASTM D3418-03 to confirm whether the material consisted of a single material or a blend of various materials.
The samples were analyzed according to the specified test methods. The generated data shows all samples are consistent with Polyamide (Nylon 6.6).
Nylon 6.6 is the most common commercial grade of nylon and is in high demand worldwide. Nylon 6.6's longer molecular chain and denser structure qualifies it as a premium nylon fibre. Nylon 6.6 has the highest melting point (256° C) of all synthetic fibres, making it the most resistant to heat and friction - enabling it to withstand excellent heat setting for twist retention.
Nylon 6.6 is a part of the second largest industry in the world – the polymer industry. Nylon is a plastic that requires petroleum derivatives in its manufacturing process. As oil touches record price levels, the enormous demand for nylon will also see its commodity price rise.
Nylon Prices at March 11th, 2008
Type 66 Natural Nylon Scrap
(cleaned nylon fibre)
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|
Delivery Location |
Type |
TL in $/lb |
|
Current Spot Market |
Spot |
0.74 |
|
|
Market Average |
0.77 |
Type 66 Natural Nylon Regrind
(Type 66 Natural Nylon Regrind shall consist of sorted natural nylon 66 scrap that has been reground)
|
|
Delivery Location |
Type |
TL in $/lb |
|
Current Spot Market |
Spot |
0.99 |
|
|
Market Average |
0.99 |
Type 66 Natural Nylon Repro
(Type 66 Natural Nylon Repro shall consist of sorted natural nylon 66 scrap that has been reprocessed into a certified specification)
|
|
Delivery Location |
Type |
TL in $/lb |
|
Current Spot Market |
Spot |
1.24 |
|
|
Market Average |
1.24 |
Common Trading Terms
TL: TL prices refer to sorted and prepared materials, packaged and ready for shipment in typical
Truck Load quantity weights of 40,000 lbs. unless otherwise stipulated.
Daily updated nylon-prices: Link
Next Steps leading to excavation of the Nylon from the landfill site
The Company must now complete a feasibility study and provide this to the City of Kingston for their review. We estimate this will take an additional few months to complete.
McAdoo Project - History: Steps to Success
The McAdoo's Lane Landfill in Kingston (Ontario,CA)
The City of Kingston wishes to investigate the potential for removal and recycling polymer fibres (nylons and polyesters) that are believed to be present in the former Kingston West Landfill Site (also know as the McAdoo's Lane Landfill). The McAdoo's Lane Landfill Site was operated as a licensed landfill from 1970 through to its closure in 1987. Although no formal records of landfilling were kept, it is estimated that approximately 180,000 tonnes (360 million pounds) of industrial waste were landfilled between 1970 and 1987 and that the overall volume of the present landfill is in the order of 1 million cubic metres.
Poly-Pacific receives Kingston approval
On February 23, 2007
we responded to an RFP (Request for Proposal) with an application for access for assessment to the landfill site containing waste nylon and polyesters, allowing Poly-Pacific to conduct an assessment of the old Kingston Township dump in exchange for $1.
In a Kingston Whig-Standard Newspaper, an article by staff writer Ian Elliot, dated February 22, 2007, Mr. Elliot wrote:
"Standard So-called "garbage mining" is common in some countries and is growing in the United States, either by companies who want to extract recyclable materials and valuable metals from dumpsites, or by public agencies who evacuate a dump, compact the material and rebury it to gain more space."
The City Council of
Kingston has approved an agreement , subject to certain conditions being fulfilled, will
allow Poly-Pacific to gain access for the assessment of fibre resource located
at the Kingston West (McAdoo) landfill site and to access the site for the sole
purpose of assessing the feasibility of extracting fibre resource from the
site and the size and quality of the nylon
fibre resource.
We have signed
this access agreement with the City of Kingston on April 27,
2007.
Stipulated requirements that were to be met by the Company :
Poly-Pacific shall provide to the City an updated Project Plan for Assessment of the Fibre Resource.
Poly-Pacific shall provide an irrevocable replacement letter of credit in a form acceptable to the City from a chartered Canadian Bank in the amount of three hundred thousand dollars (CAN$300,000).
Poly-Pacific shall provide the City with a certificate of insurance confirming that the Assignee has obtained comprehensive general liability and environmental insurance with exclusive limits of not less than five million dollars (CAN$5,000,000) per occurrence.
We have satisfied all of the conditions outlined in the Agreement.
Having met these requirements,
Mr. Randy Hayward, President and CEO, states:
"
The opportunity to work with the City of Kingston on a nylon reclamation project of this magnitude fulfills the new direction our company has taken in environmental recycling and will be of great benefit to both the City of Kingston and to the shareholders of Poly-Pacific."
We have retained the engineering services of Kleinfeldt
Consultants Ltd. of Toronto, Ontario, Canada, to undertake the assessment and
feasibility of this project and to establish the project's
viability and assist Poly-Pacific to formulate plans for the operations,
logistics and commencement of the nylon recovery.
Mr. Randy Hayward, President, states:
"The McAdoo Lane Landfill site
presents Poly-Pacific with a unique opportunity to use our expertise to
reclaim significant quantities of a valuable fibre resource. Subject to
proving the commercial viability of this project, we are enthusiastic
regarding the economic benefits that will accrue to the City of Kingston and
the shareholders of Poly-Pacific.
Now that the City of Kingston has
signed a formal access agreement with Poly-Pacific, we look forward to
initiating our due diligence over the next few weeks to prove out the
commercial value of the McAdoo Nylon Site. Based on our initial research, I am
extremely optimistic as to the commercial viability of the reclamation of this
110 acre landfill site in Kingston."
Mr. Charlie Mignault, Director of Business Development of the Kingston
Economic Development Corporation (KEDCO) states:
"Poly-Pacific, an
environmental remediation company with a strong R&D focus, is exactly the type
of business Kingston is looking for. I am confident that this opportunity will
leverage a strong manufacturing presence and create employment for our
manufacturing sector. This exciting opportunity is further evidence that
Kingston is the best place in Ontario to live, work and raise a family! The
Poly-Pacific advantage puts them in a cutting edge position and there are
strong indications of future growth for this company."
Poly-Pacific acquires 100% control of the McAdoo Site
We had a successful negotiation
with Poly-Ran Reclamation Inc. to acquire its 30% interest in the McAdoo Lane
Landfill Site located near Kingston, Ontario.
Mr. Randy Hayward, President, stated:
"This is a significant step in
acquiring 100% beneficial control of the McAdoo Lane Landfill Site for
Poly-Pacific. Management is pleased to be able to provide this added value to
its shareholders. "
Further to a prior press release dated June 20, 2007 which was filed with SEDAR and EDGAR which was not properly disseminated in Canada, that it has purchased all of the issued and outstanding shares of Polyran Reclamation Inc. ("Polyran") pursuant to an exempt take over bid. In consideration for the shares of Polyran, the Company has issued an aggregate of 7,999,996 of its common shares at a deemed price of $0.23 per share pro rata to the shareholders of Polyran. The acquisition of the Polyran shares was completed as an Expedited Acquisition under the policies of the TSX Venture Exchange and is subject to the Exchange's final approval.
History of Polyran
Polyran was incorporated under the laws of Alberta on September 11, 2006. Polyran was founded with an intention to participate in a joint venture with Poly-Pacific which was pursuing a nylon reclamation project near Kingston, Ontario. At the time of incorporation, the sole officer and director of Polyran was Mr. Randy Hayward who became the President of Poly-Pacific on October 10, 2006 and subsequently became a director of Poly-Pacific on February 16, 2007. Due to a potential conflict of interest Mr. Hayward resigned as officer and director of Polyran on January 10, 2007, at which time, Mr. John Primose assumed the duties of President and sole director; and Ms. Angela Cole assumed duties as Secretary-Treasurer.
Joint Venture Agreement
Further to the Company's press release of May 1, 2007 whereby the Company signed an access agreement with the City of Kingston, Ontario the Company had a 100% interest in the "McAdoo Project". Polyran had raised $600,000 through share subscriptions proceeds which was advanced by Polyran to the Company in tranches from September 11, 2006 through April 30, 2007. These funds were used for the purposes of evaluation and due diligence with respect to the nylon deposit joint venture. This was recorded in the Company's balance sheet as a non-controlling interest of a variable interest entity.
To assist in the joint venture evaluation, management of Polyran sourced and retained experts in polymer reclamation, specialized cleaning and processing equipment, engineering expertise, and individuals with in-depth knowledge of the North American and Asian markets. Polyran has earned a 30% financial interest in the McAdoo Project by providing financial and technical contributions to the Company. As a result, a joint venture agreement was formalized on May 15, 2007 between the Company and Polyran.
With the acquisition of Polyran, we now have a 100% interest in the McAdoo Project.
Poly-Pacific Hires Specialists
Greg Pendura was newly elected to Poly-Pacific's Board of Directors, subject to regulatory approval.
Mr. Pendura has more than 35 years of experience in founding, financing and advising emerging private and public companies. Mr. Pendura has spent the last 12 years in the public sector with Resin Systems Inc. An original founder of the company, he recently retired as President, CEO and Chairman of the Board. During his tenure with Resin Systems Inc., Mr. Pendura was instrumental in the company achieving a market capitalization of over $200 million as well as raising more than $100 million of investment capital during its formative years.
Mr. Randy Hayward, President and CEO states:
"
Mr. Pendura will be assisting management in strategic planning and building the team necessary to optimize the future development of the company's numerous business opportunities."
Mr. Angus Ross, M.Sc., P. Eng. was hired for the position of Director of Reclamation Operations, overseeing the McAdoo's Lane Landfill nylon reclamation project. Mr. Ross, from Kingston, Ontario, Canada, is a municipal and environmental engineer with over twenty year's experience in teaching, management and consulting engineering. Mr. Ross had a long and successful career as a professor and senior manager holding positions as Dean of Development and of Engineering Technology at the St. Lawrence College in Kingston, Ontario.
Mr. Ross subsequently worked as an Engineer for the municipality of the Township of Kingston during the 1970's and was responsible for the planning of the major water and sewer projects in addition to managing the technological operations, which included the McAdoo's Lane Landfill Site for the municipality.
Mr. Ross is a member of the Professional Engineers of Ontario, Canada. He is the author of a number of technical paper and training programs in the environmental field. He has organized and delivered training sessions for the Ontario Ministry of the Environment and for Environment Canada.
Randy Hayward, President and CEO states:
"
Mr. Ross's knowledge as a municipal and environmental engineer, combined with his experience with the Township of Kingston, where he oversaw the McAdoo's Lane Landfill Site, will allow us to streamline the nylon reclamation project."
McAdoo's Lane Landfill Assessment
The City of Kingston has granted Poly-Pacific a license to access the McAdoo's Lane Landfill Site for the sole purpose of assessing the feasibility of extracting Fibre from the property, under the direction of Angus Ross, M.Sc., P. Eng., of Kingston, Ontario,
We have commenced working on the assessment phase of the McAdoo's Lane Landfill Site. Under the direction of Angus Ross M. Sc., P. Eng., Poly-Pacific's Director of Engineering and Reclamation, and, XCG Consulting Ltd, an engineering firm, of Kingston, Ontario we began the activities required to characterize the site with respect to the nylon fiber resource that is believed to be present in the McAdoo's Lane Landfill Site.
The assessment period, which is a seven stage process, was estimated to last approximately sixteen weeks.
16 Weeks Plan:
Topographic Surveys (2 weeks)
Geophysical Surveys (3 weeks)
Letter Report (2 weeks)
Subsurface Investigation Fieldwork (3 weeks)
Letter Report (2 weeks)
Feasibility Report (4 weeks)
The completion of the above will reveal where in McAdoo the nylon is located, the estimated quantity of nylon present, the quality of the nylon within the site, and will provide the City of Kingston with all the necessary evidence to provide the permit for Poly-Pacific to proceed with recovery operations of McAdoo.
To facilitate the assessment phase of McAdoo, the work completed on behalf of the Company by Mr. Angus Ross, and XCG Consulting Ltd to date includes:
A site visit to examine the landfill and surrounding area.
Visitation of the site of existing nylon extraction on McKendry Road, north of the site.
Conducting interviews with past staff from the site and individuals familiar with the development of the landfill.
Obtaining and reviewing historic aerial photographs of the site.
Reviewing all existing available documents and reports pertaining to the site, including documents provided by Poly-Pacific, Kleinfeldt Consulting and the City of Kingston.
Mr. Randy Hayward, President of Poly-Pacific, stated:
"We are extremely excited to finally be at this stage with the McAdoo's Lane Landfill Site. This is the culmination of over one year efforts in working with the City of Kingston on this project. The additional information we have gained from our Joint Venture on the nearby McKendry Nylon Landfill Site is of great value to our investigation of the McAdoo's Lane Landfill Site."
Subsurface Investigations on McAdoo Landfill
We have completed the geophysical survey required for the assessment phase of the McAdoo's Lane Landfill Site.
The purpose of this survey was to initially identify, using a non-intrusive investigative method, areas of the site that may potentially contain buried nylon fiber. The findings of the geophysical survey have identified several significant areas of low conductivity within the landfill that is indicative of buried nylon. These findings warrant the immediate commencement of subsurface investigations in these areas to determine whether buried nylon is the cause of the low conductivity readings.
Under the direction of Angus Ross and XCG Consulting Ltd., work will now begin on excavation of strategic test pits to characterize the site with respect to the nylon fiber resource that is believed to be present in the McAdoo's Lane Landfill Site.
Mr. Randy Hayward, President of Poly-Pacific, stated:
"I am very pleased with the progress and findings made to date on the McAdoo site. The assessment phase is on time and on budget. The optimism surrounding this project combined with the Company's ongoing negotiations for additional acquisitions should prove to be very rewarding for the Company and its shareholders."
Recent Progress
We are continuing our assessment. We have requested an extension to the agreement, entitled "Agreement to Access and Grant Rights to Fibre Resource", to allow for access to the site to continue with fibre resource assessment investigations through a drilling program. The proposed drilling program was described in the original project plan dated July 19, 2007 and is intended to supplement the information that has been obtained so far through the geophysical survey and test pit investigation at the project site. At the request of the City oj Kingston, we will complete the work when the ground surface is frozen, to minimize damage to the ground surface by the drill rig. The extension of the agreement will allow us sufficient time to complete the feasibility study and return to the site during the spring of 2008 to complete the agreed restoration.
Randy Hayward, President, commented:
"It is important to understand that the McAdoo project is one of the first in the world to reclaim nylon from a municipal landfill. The Company is striving to complete the investigation in a timely fashion to prove out the quality and quantity of nylon believed to be buried within the site. We are very pleased with the level of cooperation the Company has received from the City of Kingston in allowing a complete investigation to take place. We are confident that with the strong worldwide demand for nylon, this project will be rewarding to our shareholders and to the citizens of Kingston."
Drilling on McAdoo, February 2008 on frozen ground
While drilling, Nylon is brought to the surface
Nylon Samples are packed in bags after drilling, to be sent to laboratories for analysis 
Darker fibre
Lighter fibre
February 2008, the drill hits the ground
While the drill is being withdrawn, it brings gray Nylon with it out of the ground
Nylon is being removed while drill is being withdrawn
Still more and more Nylon coming to the surface
The first piece of nylon stand to come up on our drilling program
