Aladdin Uranium Deposit (100% owned)
The Aladdin Uranium Deposit is comprised of approximately 5,100 acres of surface rights and 4,600 acres of mineral rights located in Wyoming along the Wyoming/South Dakota border on the northwestern flank of the Black Hills Uplift, within sandstones of the Lower Cretaceous-age Inyan Kara Group. The Aladdin property is 80 miles northwest of the Dewey Burdock Project. Uranium resources at the Aladdin Uranium Deposit have developed within the same host rocks that contain the Dewey Burdock uranium resources.
In June 2012, the Company completed a National Instrument 43-101 (“NI 43-101”) compliant technical report for the Aladdin Uranium Deposit, with an effective date of June 21, 2012, describing the results of the Company’s confirmation drilling program and continued evaluation of the historic exploration drilling data from the Teton Exploration Company.
The Aladdin Uranium Deposit contains indicated uranium resources of 1,038,023 pounds at 0.111% U3O8 and inferred uranium resources of 101,255 pounds at 0.119% U3O8 at a 0.20 GT cut-off. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
In addition, using the same cut-off, the quantity of mineralization for the exploration target was determined to be 5.0 to 11.0 million pounds of uranium, averaging 0.11% – 0.12% U3O8. In over 80% of the project area, the density of exploration drilling is light and insufficient to calculate resources. In these lightly explored areas, there is sufficient drill hole control for subsurface geochemical mapping and thirteen mineralized trends were identified. This estimation used a range of i) mineralized trend lengths, ii) widths of mineralization and iii) grades of mineralization.
The grade and quantity of this exploration target is conceptual in nature and there has been insufficient exploration work performed with respect to the exploration target to define a NI 43-101 compliant resource. It is uncertain whether further exploration of the exploration target will result in the delineation of a NI 43-101 compliant resource. Details of the assumptions and parameters used with respect to the Aladdin NI 43-101 Technical Report, including quality estimates and information on data verification, are available under the Company’s profile on SEDAR at www.sedar.com.
Subsequent to the NI 43-101 compliant technical report being completed, certain lease agreements/claims were not renewed; however the impact to the Aladdin NI 43-101 Technical Report is immaterial.
The Company is currently evaluating the Aladdin Uranium Deposit in order to determine how to maximize the value that can be extracted from this deposit.
Dewey Terrace Uranium Prospect
The Dewey Terrace Project is located in the Weston and Niobrara Counties of Wyoming. The Company acquired this project primarily through the staking of federal mining claims, along with the acquisition of lease agreements. Through mining leases and mining claims, the Dewey Terrace Project is comprised of approximately 1,874 acres of surface rights and approximately 7,514 acres of net mineral rights. The Dewey Terrace Project is located adjacent to the Company’s NRC licensed Dewey Burdock Project.
The Company has identified uranium mineralization at the Dewey Terrace Project through the review and analysis of historical data owned by the Company (the “Data Set”). The Data Set identified 259 mineralized drill holes indicating significant potential for a new resource area at the Dewey Terrace Project. Further, deposition is consistent with sand channel systems categorized within the Dewey Burdock Project and conditions that indicate possible in-situ recovery amenability. Several drill holes encountered multiple intercepts demonstrating a vertically stacked group of separate mineralized zones similar to those at the Dewey Burdock Project. The uranium mineralization covers seven separate mineralized zones over a trend of approximately 2.5 miles.
The Data Set analysis has identified 91 mineralized drill holes with 129 intercepts equal to or exceeding a 0.2 GT cutoff using a 0.02% grade cutoff with an average eU308 grade of 0.062% and an average thickness of 7.4 feet. The Company also identified 93 drill holes with 112 intercepts that had GT values ranging from 0.1 to 0.2 GT based on review of the Data Set. These intercepts had an average thickness of 4.1 feet with an average grade of 0.041% eU3O8. The remaining 187 drill holes reviewed range from barren to an average GT of 0.1.
The Data Set includes historical drilling information that has been reviewed by the Company’s geological team, as well as 20 exploratory drill holes completed by the Company in a previous exploration campaign. The exploratory drill holes completed by the Company confirm the presence of uranium mineralization at the Dewey Terrace Project. The Company’s review of the records and information within the Data Set reasonably substantiate the validity of this information; however, the Company cannot directly verify the accuracy of the historical data, including the procedures used for sample collection and analysis. Therefore, the Company encourages investors not to place undue weight on these results.
The objective of the Data Set analysis is to identify uranium mineralization in a cost effective manner in the vicinity of the Company’s Dewey Terrace Project and Dewey Burdock Project. The Company is continuing its review of the Data Set for further uranium mineralization with the objective of identifying additional uranium resources.
Savageton Uranium Prospect
The Savageton Uranium Prospect is located in northeast Wyoming near the center of the Powder River Basin. The Savageton Uranium Prospect consists of claims and private mineral leases totaling 3,980 acres.
Included within the claims is a historic uranium resource of 1.0 million pounds U3O8. This historic resource was calculated by the Colorado School of Mines Research Institute (CSMRI) in 1976 using exploration drill hole data provided by the Getty Oil Company. CSMRI was a professional research organization and well respected by the uranium industry. A geo-statistical method of resource estimation, specifically developed for sedimentary basin roll front deposits, was used by CSMRI. This method utilized uranium intercept data obtained from closely spaced drill holes, along drill-hole fences oriented perpendicular to the mineralized trend.
This methodology provides no categorization of uranium resources and is not compliant with NI 43-101. A qualified person has not done sufficient work to classify the historic estimate as current mineral resources or mineral reserves in accordance with NI 43-101 and the company is not treating the historic estimate as current mineral resources or mineral reserves. Potential conversion of the historic estimates to NI 43-101 resource categories is expected to be achievable with an updated review of the CSMRI data and confirmatory drilling at the project site.
Subsurface gamma data on oil and gas electric logs indicate anomalous mineralization at depths ranging from 200 to 700 feet. An exploration program will be required to test these anomalies for uranium potential.
Uranium was discovered in the Shirley Basin, Carbon County, in 1955. Production began in 1960 from underground and open-pit mines. Mining by in-situ leaching began in 1961, the first in-situ leach mining of uranium in the United States. The ore occurs as roll fronts in Eocene sandstone of the Wind River Formation, as uraninite with pyrite, marcasite, hematite, calcite, and organic matter. The Shirley Basin project area and district is home to other notable companies Cameco and Pathfinder.
John Mays, P.E. and Chief Operating Officer for Azarga Uranium is a Qualified Person under NI 43-101 – Standards of Disclosure for Mineral Projects and is responsible for and has approved the technical disclosure on this website.