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REG - Thor Energy PLC - Uranium Drilling

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RNS Number : 2350P  Thor Energy PLC  09 December 2024

9 December 2024

Thor Energy

 

("Thor" or the "Company")

 

Uranium Drilling - Groundhog, Colorado USA

Narrow, High-Grade Extends Known Mineralisation 100m to the North and 300m to
the East

 

Thor Energy PLC ("Thor") (AIM, ASX: THR, OTCQB: THORF) is pleased to report
downhole gamma logging results (eU(3)O(8)) from a recently completed drilling
programme at the Groundhog Project in Colorado, USA, nine (9) Reverse
Circulation ("RC") drillholes totalling 979m were completed at Groundhog Mine
Prospect. Drilling was designed to test areas along strike of uranium and
vanadium mineralisation from Thor's successful 2022 and 2023 drilling
programs.

 

Highlights:

 

·      Shallow, narrow, high-grade uranium mineralisation intersected
with uranium grades from downhole gamma logging up to 0.16% (0.5m @ 1574ppm)
eU(3)O(8) in 24WBRA009 at 114m extends the known mineralisation 100m to the
North.

 

·      Shallow, narrow, high-grade uranium mineralisation intersected
with uranium grades from downhole gamma logging up to 0.06% (0.6m @ 643ppm)
eU(3)O(8) in 24WBRA007 at 109m extends the known mineralisation 300m to the
East.

 

·      Shallow, narrow, high-grade uranium mineralisation intersected
with uranium grades from downhole gamma logging up to 0.11% (0.3m @ 1062ppm)
eU(3)O(8) in 24WBRA001 at 83m.

 

·      Drill programme halted due to heavy early-season snow. Thor has
permits to continue drilling across the Wedding Bell Project in 2025,
including Rimrock Mine Prospect, Groundhog and Section 23 prospects.

 

Alastair Clayton, Executive Chairman, commented: "These Saltwash-style Uranium
deposits typically pinch and swell over relatively small distances, so we are
pleased to have extended the known mineralised footprint by so much. On the
flip side, we are ideally targeting high-grade horizons of several meters in
width, so the intersections indicated in gamma logging from this programme are
narrower than we had hoped. With the Colorado winter arriving early, we will
look to outline our next steps once the thaw begins in Spring."

 

Figure 1: Groundhog Drillhole Location Plan. Extensional holes highlighted in green.

 

Table A: Drill Collar

 

 Drillhole  Easting  Northing  Elevation (m)  Total Depth (m)  Azimuth  Inclination
 24WBRA001  688092   4223970   2091           104              360      -80
 24WBRA002  688093   4223969   2091           104              90       -80
 24WBRA003  688092   4223968   2091           104              180      -80
 24WBRA004  688092   4223969   2091           104              270      -80
 24WBRA005  688144   4224065   2088           102              360      -90
 24WBRA006  688135   4224093   2091           104              360      -90
 24WBRA007  688788   4223957   2095           116              360      -90
 24WBRA008  688128   4224077   2091           113              360      -90
 24WBRA009  688117   4224206   2116           130              360      -90

 

1.    WGS84 Zone 12

 

Table B: Drillhole Results (100ppm Cutoff)

 

 Drillhole Name  Interval (m)  EU308 %       eU308 ppm     Depth (m)
 24WBRA 001      0.8           0.06          619           82
 including       0.3           0.11          1062          83
 24WBRA 002      0.5           0.02          162           82
 24WBRA 003      0.5           0.02          216           81
 24WBRA 004                    No grade above 100ppm
 24WBRA 005      1.4           0.013         132           79
 including       0.6           0.018         180           79
                               Hit workings at 279 ft
 24WBRA 006      0.6           0.01          110           58
 and             0.5           0.02          202           91
 and             0.6           0.01          147           94
 24WBRA 007      0.6           0.06          643           109
 24WBRA 008      0.6           0.01          116           90
 24WBRA 009      1.4           0.05          450           114
 including       0.5           0.16          1574          114
 and             0.5           0.04          426           116

 

The Board of Thor Energy Plc has approved this announcement and authorised its
release.

 

For further information on the Company, please visit the website
(https://thorenergyplc.com/)  or please contact the following:

 

Thor Energy PLC

Alastair Clayton, Executive Chairman

Rowan Harland, Company Secretary

Tel: +61 (8) 6555 2950

 

Zeus Capital Limited (Nominated Adviser and Joint Broker)

Antonio Bossi / Darshan Patel

Tel: +44 (0) 203 829 5000

 

SI Capital Limited (Joint Broker)

Nick Emerson

Tel: +44 (0) 1483 413 500

 

Yellow Jersey (Financial PR)

Dom Barretto / Shivantha Thambirajah / Bessie Elliot

thor@yellowjerseypr.com (mailto:thor@yellowjerseypr.com)

Tel: +44 (0) 20 3004 9512

 

About Thor Energy Plc:

The Company is focused on uranium, energy metals and recently Hydrogen and
Helium that are crucial in the shift to a clean energy economy.

The Company notes that for the relevant market announcements noted above, it
is not aware of any new information or data that materially affects this
information and that all material assumptions and technical parameters
underpinning any estimates continue to apply and have not materially changed.

For further information on Thor Energy and to see an overview of its projects,
please visit the Company's website at www.thorenergyplc.com.

 

 

1.      JORC Code, 2012 Edition - Table 1

1.      Section 1 Sampling Techniques and Data

 

 Criteria                                                   JORC Code explanation                                                            Commentary
 Sampling techniques                                        ·           Nature and quality of sampling (eg cut channels, random              Reverse circulation drill samples were collected off the cyclone at 5ft (1.5m)
                                                            chips, or specific specialised industry standard measurement tools appropriate   intervals and split to 3kg
                                                            to the minerals under investigation, such as down hole gamma sondes, or

                                                            handheld XRF instruments, etc). These examples should not be taken as limiting   An pXRF (Olympus Vanta Series C) and scintillometer reading was taken for each
                                                            the broad meaning of sampling.                                                   sample.

                                                            ·           Include reference to measures taken to ensure sample                 All the holes were electric-logged (e-logged), on a call-out basis, by Hawkins
                                                            representivity and the appropriate calibration of any measurement tools or       CBM Logging Inc. from Cody Wyoming. Hawkins followed industry standards for
                                                            systems used.                                                                    probing holes on uranium properties.  They calibrate their gamma probes at

                                                                                the Department of Energy test pits located in Casper, Wyoming. Logs run were
                                                            ·           Aspects of the determination of mineralisation that are              natural gamma, single point resistivity (SPR), self-potential (SP), deep and
                                                            Material to the Public Report.                                                   medium induction resistivity (DIR and MIR), and selected holes had directional

                                                                                surveys done.  First-pass logging speeds were 35 ft (10.7m)/minute and for
                                                            ·           In cases where 'industry standard' work has been done                gamma reruns, logging rates were 15 ft (4.6m)/minute.  On first-pass runs
                                                            this would be relatively simple (eg 'reverse circulation drilling was used to    gamma readings were taken every 0.3 ft (10cm), and for reruns, every 0.1 ft
                                                            obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for   (3.0cm).
                                                            fire assay'). In other cases more explanation may be required, such as where
                                                            there is coarse gold that has inherent sampling problems. Unusual commodities
                                                            or mineralisation types (eg submarine nodules) may warrant disclosure of
                                                            detailed information.
 Drilling techniques                                        ·           Drill type (eg core, reverse circulation, open-hole                  Track mounted reverse circulation rig (hole diameter 6 inches).
                                                            hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core

                                                            diameter, triple or standard tube, depth of diamond tails, face-sampling bit
                                                            or other type, whether core is oriented and if so, by what method, etc).

 Drill sample recovery                                      ·           Method of recording and assessing core and chip sample               Sample recovery was good with no variation within mineralised zones. Each
                                                            recoveries and results assessed.                                                 drill cutting pile size is logged and any deviation from expected was raised

                                                                                with the driller, and if undersize, to check for blockages.
                                                            ·           Measures taken to maximise sample recovery and ensure

                                                            representative nature of the samples.                                            No sample biases expected, and no relationship is known to exist between

                                                                                sample recovery and grade.
                                                            ·           Whether a relationship exists between sample recovery
                                                            and grade and whether sample bias may have occurred due to preferential
                                                            loss/gain of fine/coarse material.
 Logging                                                    ·           Whether core and chip samples have been geologically                 All chip samples are qualitatively geologically logged (lithology, structure,
                                                            and geotechnically logged to a level of detail to support appropriate Mineral    alteration, veining, mineralisation (based on scintillometer cps for each
                                                            Resource estimation, mining studies and metallurgical studies.                   interval), weathering, colour and other features).

                                                            ·           Whether logging is qualitative or quantitative in                    No mineral resource estimation, mining studies or metallurgical studies have
                                                            nature. Core (or costean, channel, etc) photography.                             been conducted at this stage, but samples have been logged in sufficient

                                                                                detail to use for this function.
                                                            ·           The total length and percentage of the relevant

                                                            intersections logged.                                                            During the logging process representative samples are stored in chip trays for
                                                                                                                                             future reference. The RC chip trays are photographed and electronically
                                                                                                                                             stored.
 Sub- sampling techniques and sample preparation            ·           If core, whether cut or sawn and whether quarter, half               Samples were collected as described in the above sampling technique section.

                                                          or all core taken.

                                                          ·           If non-core, whether riffled, tube sampled, rotary

                                                            split, etc and whether sampled wet or dry.                                       No assays reported. Physical samples yet to assayed.

                                                            ·           For all sample types, the nature, quality and                        All holes e-logged by Hawkins CBN Logging inc.

                                                          appropriateness of the sample preparation technique.

                                                          ·           Quality control procedures adopted for all sub-sampling
                                                            stages to maximise representivity of samples.

                                                            ·           Measures taken to ensure that the sampling is

                                                          representative of the in situ material collected, including for instance
                                                            results for field duplicate/second-half sampling.

                                                            ·           Whether sample sizes are appropriate to the grain size
                                                            of the material being sampled.
 Quality of assay data and laboratory tests                 ·           The nature, quality and appropriateness of the assaying              No Assays Reported
                                                            and laboratory procedures used and whether the technique is considered partial

                                                            or total.                                                                        All the holes were electric-logged (e-logged), probes are calibrate at the

                                                                                Department of Energy test pits located in Casper, Wyoming. Logs run were
                                                            ·           For geophysical tools, spectrometers, handheld XRF                   natural gamma, resistivityand conductivity. All holes had diectional surveys
                                                            instruments, etc, the parameters used in determining the analysis including      done.  The logging speed was 30ft (9.1m)/minute. Sample intervals were every
                                                            instrument make and model, reading times, calibrations factors applied and       0.1ft (3 cm).
                                                            their derivation, etc.

                                                                                Handheld pXRF readings
                                                            ·           Nature of quality control procedures adopted (eg

                                                            standards, blanks, duplicates, external laboratory checks) and whether           readings are taken on -2mm sieved samples on every drill metre, using an
                                                            acceptable levels of accuracy (ie lack of bias) and precision have been          Olympus vanta Series C  with a 40 second reading time.
                                                            established.

                                                                                                                                             Instrument is calibrated at start of each day, along with QAQC of 1 standard
                                                                                                                                             and 1 blank. External instrument calibration completed annually.
 Verification of sampling and assaying                      ·    The verification of significant intersections by either independent         All significant intersections have been verified by an onsite geologist.
                                                            or alternative company personnel.

                                                                                There are no twinned drillholes.
                                                            ·    The use of twinned holes.

                                                                                All drilling data is collected in a series of templates in excel including
                                                            ·    Documentation of primary data, data entry procedures, data                  geological logging, sample information, collar and survey information.
                                                            verification, data storage (physical and electronic) protocols.

                                                                                All data is digitally recorded in the company's electronic database, managed
                                                            ·    Discuss any adjustment to assay data.                                       by external database company utilising Datashed5 software.
 Location of data points                                    ·    Accuracy and quality of surveys used to locate drill holes (collar          Drill collars were surveyed using a handheld Garmin 64 GPS with an accuracy of
                                                            and down-hole surveys), trenches, mine workings and other locations used in      +/-3m. Grid system is WGS84 UTM zone 12. All holes were vertical
                                                            Mineral Resource estimation.

                                                                                Topographic control using the GPS is suitable for early- stage exploration.
                                                            ·    Specification of the grid system used.

                                                            ·    Quality and adequacy of topographic control.
 Data spacing and distribution                              ·    Data spacing for reporting of Exploration Results.                          Data spacing for preliminary exploration work is deemed sufficient on a

                                                                                first-pass basis to assess areas of potential.  Such areas of potential may
                                                            ·    Whether the data spacing and distribution is sufficient to establish        be further assessed by more detailed work.
                                                            the degree of geological and grade continuity appropriate for the Mineral
                                                            Resource and Ore Reserve estimation procedure(s) and classifications
                                                            applied.

                                                            ·    Whether sample compositing has been applied.
 Orientation of data in relation to geological structure    ·    Whether the orientation of sampling achieves unbiased sampling of           Orientational bias is not applicable to the drilling at this stage but samples
                                                            possible structures and the extent to which this is known, considering the       and drill lines were orientated approximately perpendicular to the assumed
                                                            deposit type.                                                                    strike of mineralisation. The vertical holes were oriented approximately

                                                                                perpendicular to the very gently NE dipping stratabound mineralization.
                                                            ·    If the relationship between the drilling orientation and the

                                                            orientation of key mineralised structures is considered to have introduced a
                                                            sampling bias, this should be assessed and reported if material.
 Sample security                                            ·       The measures taken to ensure sample security.                            Samples are kept in a secure facility.

                                                                                                                                             Sample Security levels are considered appropriate for RC Drilling.
 Audits or reviews                                          ·       The results of any audits or reviews of sampling techniques and          None undertaken. Thor's sampling procedure conforms to industry standard
                                                            data.                                                                            practice and each assay program is reviewed internally for any
                                                                                                                                             discrepancies.

 

1.1   Section 2 Reporting of Exploration Results

 

 Criteria                                                            JORC Code explanation                                                            Commentary
 Mineral tenement and land tenure status                             ·   Type, reference name/number, location and ownership including                Mineral rights are held by the U.S. Government, who transfers those rights to
                                                                     agreements or material issues with third parties such as joint ventures,         holders of valid mining claims located on open ground through the General
                                                                     partnerships, overriding royalties, native title interests, historical sites,    Mining Law of 1872, as amended by other Federal, State and County
                                                                     wilderness or national park and environmental settings.                          regulations.   Claim holders, with a few exceptions that don't apply to this

                                                                                project, must make annual payments to the government to maintain their
                                                                     ·   The security of the tenure held at the time of reporting along with any      rights.  Holder of valid claims can transfer their rights to others.
                                                                     known impediments to obtaining a licence to operate in the area.                 Surface ownership is also by the U.S. and managed by the Bureau of Land
                                                                                                                                                      Management.

                                                                                                                                                      Thor's property position consists of 199 unpatented mining claims (approx.
                                                                                                                                                      1,663Ha), leased from underlying owners.

                                                                                                                                                      As long as Thor meets its' contractual obligations and keeps the claims in
                                                                                                                                                      good standing with the US, then the security of tenure should be good.

                                                                                                                                                      Depending on the location of the drill holes, the license to operate in the
                                                                                                                                                      area is a function of permitting at differing levels of government (Local,
                                                                                                                                                      State and Federal).  The holes were in San Miguel County. In addition to the
                                                                                                                                                      normal State and Federal permitting San Miguel imposes its own set of
                                                                                                                                                      regulations.   To date, Thor has met those permitting requirements.
 Exploration done by other parties                                   ·    Acknowledgment and appraisal of exploration by other parties.               There are no systems of consistent data archiving for mineral exploration or
                                                                                                                                                      exploitation done under the Mining Law on Federal or on other lands within the
                                                                                                                                                      State of Colorado. Furthermore, with some exceptions, there was not, nor is
                                                                                                                                                      not, a requirement that explorers provide copies of their data to governmental
                                                                                                                                                      agencies. That data was retained by private entities.  It now exists in a
                                                                                                                                                      piecemeal manner, with the data having been discarded, abandoned or available
                                                                                                                                                      by vendors that managed to acquire and store some of it over the years.

                                                                                                                                                      Thor's properties have bountiful surface evidence of historic drill
                                                                                                                                                      exploration, and in some cases, mining exploitation, which appears to be
                                                                                                                                                      mostly from the 1950's through the early 1970's.  There are several mines
                                                                                                                                                      located in the western portion of the property.   Unpublished reports list
                                                                                                                                                      these mines as producing, in aggregate, over 700,000 lbs (318,181 kg) of
                                                                                                                                                      uranium.  To the author's knowledge, very little of the historic drilling or
                                                                                                                                                      mining data is available to Thor, and certainly not enough to help guide an
                                                                                                                                                      exploration program.  Antecdotal evidence suggests that some of the work on
                                                                                                                                                      the property was done by Union Carbide (now defunct), the largest company that
                                                                                                                                                      worked in the Uravan Mineral Belt.
 Geology                                                             ·    Deposit type, geological setting and style of mineralisation.               According to the USGS Bulletin 1693 (Cox, D.P., and Singer, D. A., eds.,
                                                                                                                                                      1986), the Deposit Model for the project is Sandstone Uranium - Tabular
                                                                                                                                                      subtype.
 Drill hole Information                                              ·    A summary of all information material to the understanding of the           Tables, plans and sections summarising significant drill results are included
                                                                     exploration results including a tabulation of the following information for      in the report
                                                                     all Material drill holes:

                                                                     o easting and northing of the drill hole collar

                                                                     o elevation or RL (Reduced Level - elevation above sea level in metres) of the
                                                                     drill hole collar

                                                                     o dip and azimuth of the hole

                                                                     o down hole length and interception depth

                                                                     o hole length.

                                                                     ·    If the exclusion of this information is justified on the basis that
                                                                     the information is not Material and this exclusion does not detract from the
                                                                     understanding of the report, the Competent Person should clearly explain why
                                                                     this is the case.
 Data aggregation methods                                            ·    In reporting Exploration Results, weighting averaging techniques,           Gamma data was aggregated to determine equivalent uranium oxide grades (%
                                                                     maximum and/or minimum grade truncations (eg cutting of high grades) and         eU3O8), thicknesses and base of mineralization. Uranium grades and thicknesses
                                                                     cut-off grades are usually Material and should be stated.                        were based on a method originally devised by the AEC, which is a manual

                                                                                graphic method based on the shape of the gamma curve on an e-log.  It
                                                                     ·    Where aggregate intercepts incorporate short lengths of high-grade          consists of, for a single peak, determining the cps for the peak, and using
                                                                     results and longer lengths of low-grade results, the procedure used for such     one-half that value to determine the upper mineralization boundary.
                                                                     aggregation should be stated and some typical examples of such aggregations      Successive cps picks on 0.5 ft (15.2cm) intervals are taken until the last
                                                                     should be shown in detail.                                                       interval drops below the one-half peak value.  This is the lower

                                                                                mineralization boundary. These boundary values, plus the intervening 0.5 ft
                                                                     ·    assumptions used for any reporting of metal equivalent                      (15.2cm) interval values, are used, in conjuction with parameters such as hole

                                                                                diameter, whether or not the hole is dry or water-filled, if the hole is
                                                                     ·    The values should be clearly stated.                                        probed in an open or cased or through drill steel, gamma detector dead time
                                                                                                                                                      and tool specific K factors, to arrive at a grade in %eU3O8, thickness and the
                                                                                                                                                      base of mineralization, of each peak.  Slight modifications to the method are
                                                                                                                                                      made if more than one peak occurs close together.
 Relationship between mineralisation widths and intercept lengths    ·      These relationships are particularly important in the reporting           All results are assumed to be true width but is not definitively known at this
                                                                     of Exploration Results.                                                          stage.

                                                                     ·      If the geometry of the mineralisation with respect to the drill
                                                                     hole angle is known, its nature should be reported.

                                                                     ·      If it is not known and only the down hole lengths are reported,
                                                                     there should be a clear statement to this effect (eg 'down hole length, true
                                                                     width not known').
 Diagrams                                                            ·      Appropriate maps and sections (with scales) and tabulations of            Appropriate maps and sections are included in the report.
                                                                     intercepts should be included for any significant discovery being reported
                                                                     These should include, but not be limited to a plan view of drill hole collar
                                                                     locations and appropriate sectional views.
 Balanced reporting                                                  ·    Where comprehensive reporting of all Exploration Results is not             All results have been reported
                                                                     practicable, representative reporting of both low and high grades and/or
                                                                     widths should be practiced to avoid misleading reporting of Exploration
                                                                     Results.
 Other substantive exploration data                                  ·    Other exploration data, if meaningful and material, should be               No meaningful or material information has been omitted from this release.
                                                                     reported including (but not limited to): geological observations; geophysical
                                                                     survey results; geochemical survey results; bulk samples - size and method of
                                                                     treatment; metallurgical test results; bulk density, groundwater, geotechnical
                                                                     and rock characteristics; potential deleterious or contaminating substances.
 Further work                                                        ·    The nature and scale of planned further work (eg tests for lateral          The drill results suggest that several areas of potentially economic
                                                                     extensions or depth extensions or large-scale step- out drilling).               mineralization could be investigated in greater detail. A couple of these

                                                                                areas have had historic mining in the vicinity.  Maps of where they mined are
                                                                     ·    Diagrams clearly highlighting the areas of possible extensions,             scarce, so any delineation work needs to be cognisant of that mining
                                                                     including the main geological interpretations and future drilling areas,
                                                                     provided this information is not commercially sensitive.

 JORC Code explanation

Commentary

Mineral tenement and land tenure status

·   Type, reference name/number, location and ownership including
agreements or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests, historical sites,
wilderness or national park and environmental settings.

·   The security of the tenure held at the time of reporting along with any
known impediments to obtaining a licence to operate in the area.

Mineral rights are held by the U.S. Government, who transfers those rights to
holders of valid mining claims located on open ground through the General
Mining Law of 1872, as amended by other Federal, State and County
regulations.   Claim holders, with a few exceptions that don't apply to this
project, must make annual payments to the government to maintain their
rights.  Holder of valid claims can transfer their rights to others.
Surface ownership is also by the U.S. and managed by the Bureau of Land
Management.

Thor's property position consists of 199 unpatented mining claims (approx.
1,663Ha), leased from underlying owners.

As long as Thor meets its' contractual obligations and keeps the claims in
good standing with the US, then the security of tenure should be good.

Depending on the location of the drill holes, the license to operate in the
area is a function of permitting at differing levels of government (Local,
State and Federal).  The holes were in San Miguel County. In addition to the
normal State and Federal permitting San Miguel imposes its own set of
regulations.   To date, Thor has met those permitting requirements.

Exploration done by other parties

·    Acknowledgment and appraisal of exploration by other parties.

There are no systems of consistent data archiving for mineral exploration or
exploitation done under the Mining Law on Federal or on other lands within the
State of Colorado. Furthermore, with some exceptions, there was not, nor is
not, a requirement that explorers provide copies of their data to governmental
agencies. That data was retained by private entities.  It now exists in a
piecemeal manner, with the data having been discarded, abandoned or available
by vendors that managed to acquire and store some of it over the years.

 

Thor's properties have bountiful surface evidence of historic drill
exploration, and in some cases, mining exploitation, which appears to be
mostly from the 1950's through the early 1970's.  There are several mines
located in the western portion of the property.   Unpublished reports list
these mines as producing, in aggregate, over 700,000 lbs (318,181 kg) of
uranium.  To the author's knowledge, very little of the historic drilling or
mining data is available to Thor, and certainly not enough to help guide an
exploration program.  Antecdotal evidence suggests that some of the work on
the property was done by Union Carbide (now defunct), the largest company that
worked in the Uravan Mineral Belt.

Geology

·    Deposit type, geological setting and style of mineralisation.

According to the USGS Bulletin 1693 (Cox, D.P., and Singer, D. A., eds.,
1986), the Deposit Model for the project is Sandstone Uranium - Tabular
subtype.

Drill hole Information

·    A summary of all information material to the understanding of the
exploration results including a tabulation of the following information for
all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the
drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

·    If the exclusion of this information is justified on the basis that
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.

Tables, plans and sections summarising significant drill results are included
in the report

Data aggregation methods

·    In reporting Exploration Results, weighting averaging techniques,
maximum and/or minimum grade truncations (eg cutting of high grades) and
cut-off grades are usually Material and should be stated.

·    Where aggregate intercepts incorporate short lengths of high-grade
results and longer lengths of low-grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations
should be shown in detail.

·    assumptions used for any reporting of metal equivalent

·    The values should be clearly stated.

Gamma data was aggregated to determine equivalent uranium oxide grades (%
eU3O8), thicknesses and base of mineralization. Uranium grades and thicknesses
were based on a method originally devised by the AEC, which is a manual
graphic method based on the shape of the gamma curve on an e-log.  It
consists of, for a single peak, determining the cps for the peak, and using
one-half that value to determine the upper mineralization boundary.
Successive cps picks on 0.5 ft (15.2cm) intervals are taken until the last
interval drops below the one-half peak value.  This is the lower
mineralization boundary. These boundary values, plus the intervening 0.5 ft
(15.2cm) interval values, are used, in conjuction with parameters such as hole
diameter, whether or not the hole is dry or water-filled, if the hole is
probed in an open or cased or through drill steel, gamma detector dead time
and tool specific K factors, to arrive at a grade in %eU3O8, thickness and the
base of mineralization, of each peak.  Slight modifications to the method are
made if more than one peak occurs close together.

Relationship between mineralisation widths and intercept lengths

·      These relationships are particularly important in the reporting
of Exploration Results.

·      If the geometry of the mineralisation with respect to the drill
hole angle is known, its nature should be reported.

·      If it is not known and only the down hole lengths are reported,
there should be a clear statement to this effect (eg 'down hole length, true
width not known').

All results are assumed to be true width but is not definitively known at this
stage.

Diagrams

·      Appropriate maps and sections (with scales) and tabulations of
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.

Appropriate maps and sections are included in the report.

Balanced reporting

·    Where comprehensive reporting of all Exploration Results is not
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.

All results have been reported

Other substantive exploration data

·    Other exploration data, if meaningful and material, should be
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.

No meaningful or material information has been omitted from this release.

Further work

·    The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step- out drilling).

·    Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.

The drill results suggest that several areas of potentially economic
mineralization could be investigated in greater detail. A couple of these
areas have had historic mining in the vicinity.  Maps of where they mined are
scarce, so any delineation work needs to be cognisant of that mining

 

 

 

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