Highlights of the Technical Report
- The MRE is based on a commodity price of
US$80.00 per pound of U3O8 using an underground mining cut-off grade of 0.072% eU3O8 and an open pit mining cut-off grade of 0.024% eU3O8, reported as an:- Indicated Mineral Resource totaling 18.6 million pounds of eU3O8 (6.6 million short tons at an average grade of 0.14% eU3O8).
- Inferred Mineral Resource totaling 4.9 million pounds eU3O8 (2.6 million short tons at an average grade of 0.10% eU3O8).
- The MRE underscores the Project’s extensive exploration and operating history, incorporating reliable historical data and previously unaccounted areas such as the St. Anthony North pit, while factoring in depletion from past production (Figure 1).
- The current MRE exceeds the historical Inferred Mineral Resource that was prepared for
Uranium Resources, Inc. (AMPS’ predecessor) in 2014, upgrading approximately 80% of previous Inferred Mineral Resource to the Indicated Mineral Resource category. - Key recommendations outlined in the Technical Report include:
- Exploration to expand the deposit footprint with potentially positive implications to a mining scenario.
- Collection of additional bulk density and chemical assays in future drilling to confirm historical reported density and radiometric equilibrium results.
- Updating the MRE with additional drill hole data and completing a PEA.
- Strong exploration potential remains at the Project with potential to increase total mineral resources through exploration and expansion drilling in previously untested areas where the mineralized horizons of the Jackpile sandstone are open ended beyond the currently drilled area. Further work to de-risk the Project is expected to include infill drilling to upgrade Inferred Mineral Resource to Indicated Mineral Resource along currently mapped uranium mineralization. The Willie P area, which is not included in the MRE but was the site of previous underground mine operations, is believed to have resource potential which may be augmented by integrating additional historic radiometric logs and grade information into the resource model.
Table 1: Summary of Mineral Resources – Effective Date of
Classification | Zone | Grade Cut-off (% eU308) | Tonnage (Million st) | Grade (% eU308) | Contained Metal (Million lb eU308) | AMPS Basis (%) | Recovery U308 (%) |
Underground | |||||||
Indicated | Area I | 0.072 | 0.8 | 0.168 | 2.6 | 100 | 95 |
Area II | 0.072 | 2.3 | 0.193 | 8.7 | 100 | 95 | |
Area III | 0.072 | 0.7 | 0.192 | 2.7 | 100 | 95 | |
Area IV | 0.072 | 0.0 | - | 0.0 | 100 | 95 | |
Area V | 0.072 | 0.4 | 0.208 | 1.6 | 100 | 95 | |
Subtotal Indicated | 4.1 | 0.189 | 15.6 | 100 | 95 | ||
Depletion JJ#1 | -0.9 | 0.123 | -2.2 | ||||
Total Indicated | 3.2 | 0.208 | 13.4 | ||||
Inferred | Area I | 0.072 | 0.2 | 0.118 | 0.4 | 100 | 95 |
Area II | 0.072 | 0.3 | 0.131 | 0.8 | 100 | 95 | |
Area III | 0.072 | 0.2 | 0.156 | 0.6 | 100 | 95 | |
Area IV | 0.072 | 0.1 | 0.105 | 0.3 | 100 | 95 | |
Area V | 0.072 | 0.2 | 0.161 | 0.5 | 100 | 95 | |
Total Inferred | 1.0 | 0.135 | 2.6 | 100 | 95 | ||
Indicated | 0.024 | 3.3 | 0.081 | 5.4 | 100 | 95 | |
0.024 | 0.1 | 0.084 | 0.2 | 100 | 95 | ||
Subtotal Indicated | 3.4 | 0.081 | 5.5 | 100 | 95 | ||
Depletion Climax M6 | -0.1 | 0.205 | -0.3 | ||||
Total Indicated | 3.3 | 0.078 | 5.2 | ||||
Inferred | 0.024 | 1.3 | 0.070 | 1.8 | 100 | 95 | |
0.024 | 0.3 | 0.078 | 0.5 | 100 | 95 | ||
Total Inferred | 1.6 | 0.072 | 2.3 | 100 | 95 |
Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at a cut-off grade of 0.072% eU3O8 for underground based on Deswik MSO stope
shapes and 0.024% eU3O8 for open pit using Whittle pit optimization.
3. Mineral Resources are estimated using a long-term uranium price of
4. Mineral Resources have been depleted based on past reported production numbers from the underground JJ#1 and
Climax M6 mines.
5. A minimum mining width of two feet was used.
6. Tonnage Factor is 16 ft3/st (Density is 0.625 st/ft3 or 2.00 t/m3).
7. Numbers may not add due to rounding.
Mineral Resources are not Mineral Reserves, and do not have demonstrated economic viability. The authors of the Technical Report were not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the MRE.
Technical Report
Mineral Resources have been classified in accordance with
The MRE was completed using a conventional block modelling approach. The general workflow used by SLR included the construction of a geological or stratigraphic model representing the Jurassic Morrison Formation in Seequent’s Leapfrog Geo (Leapfrog Geo) from mapping, drill hole logging, and sampling data, which was used to define discrete domain and surfaces representing the upper and lower contact of the Jackpile Sandstone Member. The geologic models were then used to constrain resource estimation completed using Seequent’s Leapfrog Edge (Leapfrog Edge) software. The MRE used a regularized, unrotated whole block approach, inverse distance cubed (ID3) interpolation methodology, and one-foot uncapped composites to estimate the eU3O8 grades in a three-pass search approach. Hard boundaries were used with ellipsoidal search ranges, and search ellipse orientation was informed by geology and mineralization wireframing. Density values were assigned based on historical bulk density records.
Estimates were validated using standard industry techniques including statistical comparisons with composite samples and parallel inverse distance squared (ID2), ordinary kriging (OK) and nearest neighbor (NN) estimates, swath plots, and visual reviews in cross section and plan. A visual review comparing blocks to drill holes was completed after the block modelling work was performed to ensure general lithologic and analytical conformance and was peer reviewed prior to finalization.
Table 2: Summary of Drill Hole Data used in Mineral Resource Estimation
Area | No. Holes | Total Depth (ft) | Avg Depth (ft) | Number of Records | ||
Survey | Lithology | Probe | ||||
Area I | 296 | 115,364 | 390 | 1,337 | 361 | 292,349 |
Area II | 380 | 243,232 | 640 | 1,205 | 415 | 478,456 |
Area III | 234 | 116,021 | 496 | 447 | 1,439 | 207,699 |
Area IV | 125 | 81,464 | 652 | 247 | 112,191 | |
Area V | 223 | 139,712 | 627 | 1,720 | 250,023 | |
Area Sohio_1 | 23 | 9,486 | 412 | 23 | 9,459 | |
Area Sohio_2 | 16 | 8,354 | 522 | 16 | 8,252 | |
1,198 | 550,854 | 460 | 1,298 | 98 | 5,737 | |
215 | 113,679 | 529 | 216 | 40 | 367 | |
Exploratory | 3 | 1,875 | 625 | 3 | 2,692 | |
Grand Total | 2,713 | 1,380,041 | 509 | 6,512 | 1,953 | 1,367,225 |
The Project is located in the northeastern corner of Cibola County, approximately 40 miles west of the city of
Figure 1: Plan View Map of the
As described below and depicted above in Figure 1, the deposits that comprise the Project are classified as sandstone hosted uranium deposits with eight deposits occurring as a series of tabular bodies within the Jackpile Sandstone Member of the Upper Jurassic Morrison Formation within the boundaries of property.
These deposits are part of a broad and extensive area of uranium mineralization, including the Jackpile-Paguate deposit, located adjacent to the southern boundary of the property, which was one of the largest concentrations of uranium mineralization in
The production history of the Project is as follows:
Climax M6 Mine (1956 to 1960): 78,722 short tons (71,415 tonnes) that averaged 0.20% uranium oxide (U3O8) and contained 320,942 pounds of U3O8.St. Anthony Mine Complex (1975 to 1979): 1.6 million pounds of U3O8.- Sohio JJ#1 Mine (1976-1981): 898,600 short tons averaging 0.123% U3O8 and yielding 2,218,800 pounds of U3O8.
Significant exploration potential is believed to remain on the Project. The mineralized horizons of the Jackpile sandstone are open ended and potentially trend beyond the external limits of the drill hole grid. Potential exists to extend mineralization into previously untested areas of the Project, where this mineralized zone is present but not drill tested in a comprehensive manner.
Qualified Person
The scientific and technical information contained in this news release was reviewed and approved by
Technical Report
A Technical Report prepared in accordance with NI 43-101 for the Project is being filed under PUR and AMPS’ respective profiles on SEDAR+ at www.sedarplus.ca. Readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the Mineral Resource. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.
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Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to activities, events or developments that PUR and AMPS expect or anticipate will or may occur in the future including, but not limited to, the anticipated timing for closing of the Arrangement, mineral resource estimates, future work programs and the interpretation of exploration results, expectations with respect to advancing the Project, expectations regarding completion of a PEA. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof. Such forward-looking information and statements are based on numerous assumptions, including the satisfactory completion of the Arrangement and the timing thereof, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, and that third party contractors, equipment and supplies and governmental and other approvals required to conduct PUR and AMPS' planned exploration activities will be available on reasonable terms and in a timely manner. Although the assumptions made by PUR and AMPS in providing forward-looking information or making forward-looking statements are considered reasonable by management of, as applicable, PUR and AMPS at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: the failure to obtain regulatory or stock exchange approvals in connection with the Arrangement, material adverse change in the timing of completion and the terms and conditions upon which the Arrangement is completed, inability to satisfy or waive all conditions to complete the Arrangement as set out in the arrangement agreement, failure to complete the Arrangement, negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves, reliance on key management and other personnel, potential downturns in economic conditions, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, and risks generally associated with the mineral exploration industry, environmental risks, changes in laws and regulations, community relations and delays in obtaining governmental or other approvals and the risk factors with respect to Premier American Uranium set out in PUR’s annual information form in respect of the year ended
Although AMPS and PUR have attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. AMPS and PUR undertake no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/32e592fd-092e-4b7a-b160-54ff4fef20a2
Figure 1
Plan View Map of the Cebolleta Uranium Project and Uranium Deposits
Source:
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