That frame is toasted... they told you right. Actually your lucky the breakage did not injure you.. count yourself lucky in that regard.
Carbon bikes are accidents waiting to happen. Many of those incidents mean serious injury. When carbon forks go.. it's usually NOW. Your on your face.. or worse.
Hi John;
The frame is scrap. When the frame was built, the carbon was wrapped around the aluminum dropout, which cannot be removed without destroying the carbon. Any attempt to weld the aluminum will also destroy the carbon.
I would suggest contacting the manufacturer to ask about a replacement frame, and/or look at other frames and swap the components to the other frame.
Nigel
Hard to tell from the pics, would like to see some clearer pics of the the lug drop edge and what the carbon tube looks like. If the frame is toast by most then what are out by trying a repair and easy test riding. For a low cost possible remedy try axe handle epoxy. clean the inside of the tube with a wire brush (gently) clean/sand the lug.
If there is enough room in the stay and enough flex that you could drill and screw a screw partway in the lug and still slip into place that would help too. insert a piece of sponge in the tube to hold the epoxy and smear it on the lug and drizzle in the stay,put together and strap it tight to hold till it sets. wipe off excess. leave alone for a day or two to set. test ride carefully and see what goes. works great for metal axes and fiberglass handles that take a hell of a beating.
http://www.amazon.com/Ames-True-Temper-3010600-Fiberglass/dp/B002JGC9SY/ref=pd_sim_sbs_lg_1
There are two kinds of people in the world, "Those who help themselves to people, and those who help people!"
"could drill and screw a screw partway in the lug"
Suggest.. a hole alone in that lug enough. Glue will fill it and add to the 'hold'.
Surface prep per the bonding agent's directions.. the main issue.
I did not start out as a carbon basher.... but after doing some extensive searching.. I was a convert. Carbon is typical 'modern day' nonsense... cheep to make & sold to a gullible public who does not weigh out the consequences of the material's failure. That failure more often than not is NOW.. click.. and your down. And the failure rate is something bike marketing people won't discuss much.. in any meaningful way. Then you in the hospital.... or worse.. who do you litigate?
This broken frame scenario has been played out thousands of times. Fortunately those owners usually has sense enough to junk them.
I certainly agree that the frame has met its demise, it should never be sold to be ridden again. Welcome to the world of carbon fiber bicycles. Fine if you had a sponsor to toss you another when it breaks or have a thick dime. I am just saying if you felt like dinking with it for 10 bucks to check it out and are willing to pay the price, well up to you. Who knows, the frame could have been mended before you got it. Just don't do someone else the favor. Wall art is nice too! "All good things come to an end" sometimes!
There are two kinds of people in the world, "Those who help themselves to people, and those who help people!"