Aqua Newsletter February 2010

Dr. Jeff Owens (AFRL):
Progress continues on using magnesium hydroxide Mg[OH]2 nanoplatelets bonded with fabrics to make them super hydrophobic (repels water) as well as oleophobic (repels petroleum products).  At Tyndall AFB research labs (AFRL), Dr. Jeff Owens has successfully put Aqua Resources’ magnesium hydroxide Mg[OH]2 nanoplatelets into fabrics using microwave chemistry.  The fabrics so treated work wonderfully at repelling petroleum products, oils and water just like the proverbial water off a duck’s back.  The way it is working is nothing short of incredible.  Dr. Jeff Owens has really done an outstanding job there at AFRL; he has been able to bond Mg[OH]2 nanoplatelets with cotton, nylon, and nomex.  It appears that he can put Mg[OH]2 nanoplatelets into all types of fabrics, either in the raw cloth on the bolt or in finished attire. 

Dominion Chemical Company:
Making wood composites more water repellant is a project with Dominion Chemical Company of Petersburg, Virginia http://www.dominionchemical.com/index.php and has great potential to provide Aqua with a business activity which will provide a recurring revenue stream.   There has been significant activity since Lee Maddan met with Dominion Chemical Company in September 2009.  Dominion has been in the business for some time of providing additives for the purpose of making composite wood products water repellant.  When they observed the hydrophobic qualities of products with Mg[OH]2 nanoplatelet additives, Dominion immediately became interested in a venture involving the Aqua product.  As we reported then, a sample of calcium carbonate which had been specially prepared by Dr. Yulin Deng at Georgia Tech to make it super hydrophobic was given to Dominion for testing to prove the concept that this type of additive could be infused into composite wood products.  The test result yielded water repellency which was 25% better than the state of the art industry standard.  As the calcium carbonate additive would likely be our closest competition, we have since collaborated with Dr. Deng to provide Dominion with an additional 5 gallons of calcium carbonate plus 5 gallons of specially prepared Aqua Resources Mg[OH]2 nanoplatelets.  The size of the calcium carbonate particulate measures in many microns, whereas Aqua’s Mg[OH]2 nanoplatelets measure as a 200 nanometer nanoplatelet and have surface area about a thousand times greater than the calcium carbonate.  This, we expect, means that the Aqua products will be considerably more effective than the calcium carbonate at repelling water.

Dominion Chemical Company has the lab facilities to make and test one square foot samples using different materials. Through the next 90 days we will be working to determine the right processes and the proper ratios to introduce our material into the composite wood products line.  Dominion will nail down how much material it takes to get the optimal results and we will learn how much material needs to go into each board foot.  With that testing and an analysis of the world wide market, we can calculate how much production capacity should be planned to satisfy demand.  Look for another newsletter in about 90 days to learn where we are with this exciting project and Dominion Chemical Company.

Body armor and transparent ceramics:
In the September 2009 news update, we mentioned a project with Dr. Noubar Yemenidjian and KDH Defense Systems Inc. (Body Armor) [http://www.kdhdefensesystems.com/ ]  KDH and Dr. Yemenidjian work together but we actually have a couple of different projects involved here.  KDH has paid Aqua Resources a consulting fee to produce a feedstock material composed of Magnesium and Aluminum nanoplatelets.  KDH is interested in producing small ballistic resistant plates to go into flack jackets and bullet proof vests.  Dr. Yemenidjian is helping KDH with that project.  Dr. Yemenidjian also paid Aqua for consulting with him on the Aluminum Magnesium composite.  Dr. Yemenidjian has the capacity in his line of work to take what Aqua will produce and to turn it into a material that looks like glass. It is extremely rugged.  It can be used for windshields for aircraft or many, many different applications.  We have all of the materials in the shop now to produce the Aluminum Magnesium composites.


Plant and Equipment Update

Small Precipitator:
We have the smaller precipitator unit up and running.  David Ward, our Operations Director has worked tirelessly and has it successfully up and operating. We have already used it on a number of occasions to make copper oxides and hydroxides.  Shortly we will be ready to run the magnesium/aluminum combination(s) for Dr. Noubar Yemenidjian and KDH Defense Systems Inc.  It is an exciting time that we have coming.  We also have plans to bring in a second centrifuge for processing materials other than Mg[OH]2.

Explosive Dryer:
We have moved forward with the development of an explosive dryer.  Between Christmas 2009 and New Years, Lee Maddan went to Indianapolis, Indiana to inspect the newly built unit and witnessed a very successful test of its capability.  This concluded two phases of a three phase process and phase III is currently underway which is to build a catch mechanism which we expect to be finished by the end of February 2010.  We hope to see the unit at our facilities in Fort Walton Beach in March 2010.  This unit is smaller than a full scale production model but bigger than a lab model and more than sufficient for the current requirements.  It should be capable of processing about 5 pounds per hour.  We look forward to moving forward on the numerous applications that require the discreet dry form of Aqua’s magnesium hydroxide Mg[OH]2 nanoplatelets.  Among these projects is one to put Aqua Resources magnesium hydroxide Mg[OH]2 nanoplatelets into fire trucks for foaming runways and putting out chemical and aircraft fires.  Another possibility is that of adding Aqua’s magnesium hydroxide Mg[OH]2 nanoplatelets to another company’s  product which is already in use for decontamination.  These “swipes” do not presently have an anti biological component so we think we can enhance them by adding the Aqua product, thereby making the “swipes” multi purposeful.  Dry product will also open up the possibilities in thermal setting plastics.  We already have two companies wanting to test the dry form of magnesium hydroxide Mg[OH]2 nanoplatelets for thermal sets.  We would also like to meet with the US Army’s mortuary services to explore the possibility for using magnesium hydroxide Mg[OH]2 nanoplatelets in body bags. 

Dr. John Cairney:
We are elated to report that we are near to having a small microbiology lab in the Atlanta area with Dr. John Cairney a microbiologist and geneticist who spoke at our annual shareholder’s meeting in 2008 and has been collaborating with Aqua for some time.  We have joined with Dr. Cairney in establishing a facility located near a hospital there.  Aqua Resources has partially funded the purchase of equipment and Dr. Cairney has bought the business license and will be operating independently under the name, Cairney and Associates.  We hope to have this capability up and running within the next two weeks. We are very excited about that work and the capabilities that it adds to our company.  Expect to hear more in the future about the things that will be happening there.

Ineos company:
We have met with the Ineos company [http://www.ineos.com/index.php] out of Runcorn, England.  They make very large scale equipment that is very similar to our own.  Their equipment is suitable for Aqua to use right off the shelf with only the addition of one component.  We can have this proprietary component fabricated and add it ourselves while requiring no other change to the Ineos equipment from its normal production line.  It is quite exciting to consider when we look at the potential of the work we have with Dominion Chemical Company and that we can grow a plant to whatever size is needed given the availability of room and raw materials like electricity available at that site.  Ineos also has significant production facilities of its own for the Chlor-Alkali Industry.  At Runcorn England they have a plant that produces 450,000 metric tons of sodium hydroxide (NaOH) each year.  That is a lot of material.  The electrical consumption and the chemical reactions of sodium hydroxide are very similar to that of magnesium hydroxide Mg[OH]2  As soon as we are financially able, we will test the Ineos equipment by purchasing one of their cells and the ancillary equipment needed to operate it.  At present the price of that equipment is about $50,000.

CEO Search:
Referring back to the shareholder’s meeting in October 2009, we announced that Aqua Resources would be searching for a capable business CEO to run the commercial operations side.  Aqua Resources hasn’t had a commercial operations manager heretofore, but as we move forward we will need such an individual as we change from a research and development company to a commercial and industrial enterprise.   The research and development facility will continue to operate independently under Lee Maddan.   Our new CEO will run the commercial side as we move forward into actual production.   We have considered that among our shareholders there is likely an individual with the right skill set and the burning desire to take up this challenge and welcome it as an exciting and fun job to do.  We continue to ask that such individuals contact us so that we can explore the possibilities.