NORAMEX CORP.
THERMAL GRADIENT BOREHOLES - DRILLING OPERATIONS PLAN
Blue Mountain, Humboldt County, Nevada
August 2005
PROJECT DESCRIPTION
Noramex Corp. ("Noramex") plans to drill 3 geothermal gradient boreholes (Figure I), on
federal land at Blue Mountain; two boreholes on Section 14 and one borehole on Section
22 at T36N, R34E in Humboldt County, Nevada.
The thermal gradient holes will be drilled to further map the aerial distribution of the
thermal anomaly. The wells are designed as vertical, mud rotary drilled gradient holes to
a nominal target depth of 500 meters (nominal 1640 feet). These holes are intended to
obtain temperature measurements and determine thermal gradients. The thermal gradient
holes will be terminated immediately if mud return temperatures reach 80°C (176°F). The
project is estimated to be completed in 2 - 3 weeks.
After the thermal gradient boreholes are completed Noramex intends to deepen the
boreholes in 2006 to a maximum depth of 1830 meters (6000 ft) using a conventional
coring drill rig. A BOP would be installed and tested on the cemented casing. The
required permits would be submitted at the appropriate time to the BLM and DOM.
LOCATION
The project area is accessible year round and can be reached by an existing all-weather
road (Jungo Road), approximately 30 km (20 miles) west of Winnemucca.
DRILLING EQUIPMENT
WDC Exploration & Wells out of Ellto, Nevada has been contracted to perform the mud
rotary drilling. The rig will be a Gefco 30K tophead drive drill rig.
DRILLING PROCEDURES
The holes will be triconed, 13 % inch, and conductor casing set to 61 meters (200 ft)
using an air rotary hammer system. The conductor casing is not cemented and will be
pulled before the surface casing is cemented.
A diverter will be installed on the casing for rotary drilling to direct fluid returns from the
center tube to a cyclone, separating the air from the fluids, and returning the mud to the
tanks and mud cleaning system.
Mud rotary drilling, 9 7/s inch continues from 61 meters to 500 meters total depth (200 ft
to 1640 ft) with surface casing cemented back to surface. The 4 % inch welded surface
casing, Schedule 40, A53 Grade B mild steel casing will be cemented using Portland
Type I1 cement with 20% silica flour for added strength. With the larger annulus the
casing can be cemented more rigorously, using a tremmie line to place cement down
inside the annulus. The larger cemented annulus also improves the overall integrity of the
cemented casing string. See well schematic Figure 2.
The holes will have a cement plug at the bottom (TD) and a flush mount cover at surface.
The holes will be monitored and temperatures taken over the course of the project.
CASING PROGRAM
Boreholes TG-7, 12 and 15 will be collared in Quaternary valley fill. Approximately 3
meters (10 feet) of cement will be left inside the casing, above the casing shoe, to ensure
that the casing shoe is properly cemented. An excess volume of cement will be used to
counter any losses of circulation.
MUD MATERIALS
The drilling media will be a water-based combination of bentonite and polymer drilling
mud using Quick Gel bentonite and E-Z mud polymer.
LOGGING
A geologist will be on site throughout the drilling operations to log the drill cuttings,
coordinate with the drilling staff and file daily drilling reports to the DOM. Drill cuttings
will be collected by the rig crew at 3-meter (10-foot) intervals, washed, dried, and
bagged. A geologist will examine the drill cuttings on site and prepare a written
description of the cuttings. A copy of the geological log and all temperature surveys will
be sent to the DOM. A set of the drill cuttings will be sent to NBMG after the drilling
program is completed.
BLOWOUT PREVENTION EQUIPMENT
No blow out prevention equipment is required. Drilling will terminate at 500 m (1640 ft)
or if mud return temperatures reach 80°C (176"F), whichever comes first. A water truck
will be on site to pump cold water down the well in case it is necessary to kill the well.
FRESH-WATER ZONES
The wells will be sealed from surface to total depth with cement to prevent any
contamination.
TEMPERATURE GRADIENT
A detailed gradient will be obtained upon conzpletion and an equilibrated temperature
profile will be obtained after completion. The drilling will cease at 500 m (1640 ft) or if
mud return temperatures reach 80°C (176"F), whichever comes first.
BOREHOLE SITE LAYOUT AND ROAD ACCESS
The sites have been selected with only very limited surface disturbance necessary as they
are located on existing dirt access roads. The drill sites will be approximately 15 x 15
meters (approx. 50 by 50 feet; 0.055 acre), the same as the previously permitted thermal
gradient holes. A 3 x 3 x 2-meter drilling reserve pit will be dug at the drill site.
Permission has been obtained from John Russum at the Road Dept to use Humboldt
County's well at Milepost 19 on the Jungo Road.
SURVEY PLAT
The well locations will be surveyed by a certified land surveyor and a survey plat will be
filed with the DOM within 30 days of drilling completion.
BOND COVERAGE
The $50,000.00 federal statewide bond required for drilling on public land has been
supplied.
SURFACE DISTURBANCE AND RECLAMATION
The amount of surface disturbance for each drill site is estimated to be 0.055 acres. Drill
cuttings will be removed for storage to our warehouse in Winnemucca. The drilling
reserve pit wiIl be dewatered and leveled. The site will be reclaimed and re-seeded in
accordance with state regulations.
WELL ABANDONMENT
Once equilibrated temperatures have been taken the wells will be sealed and abandoned
at the end of the program.
ENVIRONMENTAL PROTECTION
Only minimal short-term impacts would result from the project. The Negative Cultural
Resources Report (BLM Report CR2-1509(N)) is on file with the BLM Winnernucca
District Office.
LEGEND NGP INC / NORAMEX C O W
Roads
BLUE MOUNTAIN PROJECT
hainage
1 HUMBOI.DTCOUNP(. NEVADA
Township and Range Boundary DAIE.
AUOIOOJ
Lease Outlme m
SCALE
~EVISW: PROPOSED THERMAL
Yroposed 'ibermal Gradient Holes GRADIEbK HOLE LOCAYIONS
Drill Sites a L ZM
U M D LlN
NAD ,917
PRNECT NO
-
UTMZUNE: 1IN
lm
D K \ F' BY: SCALE A s $ h a ! >
Rotary hole 13 518"
surface to approx~mately
Conductor caslnq
13 518" alr rotary hammer
landed @ 61 m (200ft)
Surface casing 4 X'
welded casing, cemented back
to surface, wcth a cement plug
on bottom @ 500m (164Oft)
TD @ 500m (1640ft)
Figure 2 : Blue Mountain Schematic of
Thermal Gradient Hole to 500m (1640ft)
STATEOFNEVADA Las wegas Branch:
COMMISSION ON MINERAL RESOURCES 1771 E. Flam~ngo Rd.
Suite #120-A
BIVIS16N OF MINERALS Las Vegas, Nevada 891 19
400 W. King Street, Suite 106 (702) 486-4343
Fax (702) 486-4345
Carson City, Nevada 89703
KENNY C.GUINN
(775) 684-7040 B, Fax (775) 684-7652
ALAN W. COYNER
Goven~or hPtp://minera~s.state.nv.us/ Administrator
August 31, 2005
Kim Niggemann
Noramex Corporation
Suite 900 - 409 Granville Street
Vancouver, BC V6C 1T2
Re: Blue Mountain Thermal Gradient Permits #613 thru 615
Dear Ms. Niggemann:
With this letter, I am sending the signed copies of the original permits issued to
Noramex Corporation for the Thermal Gradient Wells in the Blue Mountain area. These
permits were issued on August 31, 2005 and will expire on August 31, 2007 if the wells
are not drilled.
During drilling, upon completion, and during production andlor injection of the well, if
applicable, submission of certain forms and other actions are required as described in
the Geothermal Regulations and Rules of Practice and Procedure. Most of these
requirements are summarized in the permit conditions. Copies of the forms can be
found and downloaded from our website.
Please contact Christy Morris at the Division of Minerals 48 hours prior to all
drilling activities that need witnessing at 775-684-7045. If you have any questions
regarding these matters, please feel free to contact the Division. Thank you for your
continued cooperation.
Sincerely,
"P a
~ i n d Wells, Administrative Assistant IV
Enclosures
cc: Nevada Bureau of Mines & Geology
Dennis Bryan; Smalf-Sct?leMining andPmspecting Mineral R
Cg4M~~9sjOn ~ s ~ ~ c ~ ~
~Eugene Kozlowski; Oil and Gas
Jatnes Chavis; Large-ScafeNIining Jay Parmer; General Pubic
Patrick Fagan; Geofhennai F?e.souri-es Fred D. Gibson, Jr., Chairmall; Large-Scab Mining Ron Parralt, V. Chair.; Exp/oration andDevelopment
STATE OF NEVADA
COMMISSION ON MINERAL RESOURCES
DIVISION OF MI NERALS
400 W. King Street, Suite 106 NOV 2 8 2005
Carson City, Nevada 89703
(775) 684-7040 $ Fax (775) 684-7052 Division of Minerals
OIL, GAS, AND GEOTHERMAL NOTICE OF CHANGE OF OWNER
ORIGINAL PERMITTEE:
Name: Noramex Corp.
Address: 900 -409 Granville Street, Vancouver. BC Canada V6C IT2
Permit No.: Please see attached list API No.:
Well Name: Please see attached list
Well Location: Section: Please see attached list M.D.B.&M.
..
Manaqer & Proiect Director
Position: Ex~loration
Date: Nov 23,2005
TRANSFEREE:
Name: Nevada Geothermal Power Com~anv
Address: 900- 409 Granville Street, Vancouver, BC Canada V6C I T 2
Telephone: 604-688-1553
Effective Date:
Manqer & Proiect Director
Position: Ex~ioration
Date: Nov 23, 2005
Bonding Information: $50.000, cheque # 00101567, dated 611 112004
Approval Date:
R
11 1 '28 j Q<
By:
OGGNoticeOfChangeOfOwner (DOC 11/2712004 1REV 5/10/2001 LV)
Nevada Geothermal Power Inc.
-
-
-
Suite 900
409 Granville St.
Tel: 604.688.1 553
Fax: 604.688.5926
42 P..
O h R$3
Tw . Vancouver, B.C.
Canada V6C IT2
Toll:
Web:
866.688.0808
www.nevadageotherrnal.com NOV 2 fd 2005
Division of Minerals
November 23,2005
State of Nevada
Commission of Mineral Resources
Division of Minerals
400 W. King Street, Suite 106
Carson City, NV 89703
Attn: Christy Morris
RE: Noramex Corp. Name Change to Nevada Geothermal Power Company
Dear Christy,
Please find enclosed a copy of the "Oil, Gas, and Geothermal Notice of Change of Owner" form and a
cheque for $3500.00 to cover the name change on our 35 permits listed on the accompanying printout.
A new "GeothermaI Organization Report" form has also been included.
Regarding the $50,000 (cheque # 00101567) on file with the DOM for the state wide bond, the Company
would like to have the name changed fi-omNoramex Corp. to Nevada Geothermal Power Company.
Thank you for your help in this matter. If you need any further information please do not hesitate to contact -
me.
Kim Y.~ i & e m a n n / H
Exploration Manager & Project Director
Nevada Geothermal Power Inc.
Observation Well
NGPC e
~ e Blue # I~
NGPC
Observation Well
Deep Blue #2
Thermal Gradient
14, T36N,
R34E 1 1 1 1
SWl4 NEl4 S
11/3/2005
3/25/2004
Lang Drilling 5/24/2005
NGPC TG-1
Thermal Gradient
NGPC TG-1A
l
~ h e r m aGradient
NGPC TG-2
Thermal Gradient
NGPC TG-3
Thermal Gradient
NGPC TG-3A
1 )
9/22/2005 27-013-90047 I 6 1 9 + HU NGPC
SW/4 NEl4 S
14, T36N,
IND. PROD. 63-14 R34E