Verdera holds key assets situated in the Grants Uranium District in New Mexico and include control of mineral rights over approximately 400 square miles containing uranium resources located in several different deposits.
New Mexico’s Grants Uranium District is one of the largest and most historically significant uranium regions, accounting for nearly 40% of all uranium mined in the U.S. Since production began in 1948, the region has produced ~350 million pounds of U₃O₈.
Several known uranium resources lie within this large area of mineral rights along with very good exploration potential to increase these existing resources and/or discover additional uranium resources. The Grants Uranium District remains vital for the future of U.S. uranium supply.
Crownpoint and Hosta Butte: Comprised of approximately 3,020 acres mineral estate outright.
Nose Rock: Consists of deeded mineral rights with no holding costs covering 6,400 acres and 42 unpatented lode mining claims comprising approximately 800 acres.
West Largo: The majority of the property is held through deeded mineral rights and also includes 75 unpatented lode claims.
Ambrosia Lake: Consists of deeded mineral rights totaling 24,555 acres and a mining lease along with certain unpatented mining claims covering approximately 1,700 acres.
Treeline: Consists of a mining lease along with certain unpatented mining claims covering approximately 2,000 acres.
| Resource Category |
Million Tons |
Grade eU3O8% |
Attributable U3O8 (M lbs) |
|
|---|---|---|---|---|
| Crownpoint | Indicated | 6.09 | 0.121 | 14.82 |
| Hosta Butte | Indicated | 2.95 | 0.146 | 8.60 |
| Total Indicated Mineral Resource | 9.04 | 0.129 | 23.42 | |
| Crownpoint | Inferred | 0.57 | 0.112 | 1.27 |
| Hosta Butte | Inferred | 1.43 | 0.143 | 4.10 |
| Total Inferred Mineral Resource | 1.99 | 0.134 | 5.36 |
| Million Tons | Grade eU3O8% | Attributable U3O8 (M lbs.) |
|
|---|---|---|---|
| Nose Rock | 11.8 | 0.148 | 35.0 |
| West Largo | 2.9 | 0.30 | 17.2 |
| Ambrosia Lake | 1.4 | 5.6 | |
| Treeline | 0.6 | 0.13 | 1.5 |
| Total Historic Mineral Resources | 59.3 |
The Crownpoint and Hosta Butte Project is located in the Grants Uranium Region and offers a long-term development opportunity for the Company. Surface rights on the Project are held separately from the mineral rights and have not been removed from development and are not under other restrictions. The Crownpoint area is fully covered under NuFuels, Inc.’s (a wholly owned subsidiary of Laramide Resources LTD) NRC-issued Source Materials License SUA-1580 for uranium ISR Water rights have been approved by the New Mexico State Engineer for a portion of the Crownpoint area.
| Crownpoint and Hosta Butte Current Mineral Resource Estimate 20221 | |||||||
| Resource | Million | Grade | Attributable | ||||
| Category | Tons | eU3O8% | eU3O8% | ||||
| (M lbs.) | |||||||
| Crownpoint | Indicated | 7.32 | 0.111 | 16.22 | |||
| Hosta Butte | Indicated | 3.64 | 0.13 | 9.48 | |||
| Total Indicated Mineral Resource | 10.96 | 0.117 | 25.70 | ||||
| Crownpoint | Inferred | 0.68 | 0.103 | 1.39 | |||
| Hosta Butte | Inferred | 1.71 | 0.131 | 4.48 | |||
| Total Inferred Mineral Resource | 2.39 | 0.121 | 5.87 | ||||
The Project is compromised of approximately 3,020 acres mineral estate outright. There are no annual payments, maintenance, or other requirements to be met to maintain the mineral estate subject only to a 3% gross proceeds royalty on uranium mined from the Project. Surface rights are held separately from the mineral rights on the Project. The surface rights have not been removed from development and are not under other restrictions. The property is outside of the Navajo Reservation and is situated on the western edge and to the southwest of the small town of Crownpoint, New Mexico. A portion of the Project is included within the existing NRC source material license area that is held by a subsidiary of Laramide Resources, Ltd.
The Crownpoint area of the Project is wholly within NuFuels, Inc.’s (a wholly owned subsidiary of Laramide Resources LTD) Source Materials License SUA-1580 for the in-situ recovery (ISR) of uranium which was issued by the US Nuclear Regulatory Commission (NRC) (http://www.nrc.gov/info-finder/materials/uranium). Water rights have been approved by the New Mexico State Engineer for a portion of the Crownpoint area. Other permits will be required to operate the project at the Crownpoint area. There have been no permits or licenses issued for the Hosta Butte property.
Uranium mineralization is typical of sandstone hosted roll-front deposits found within the Western US. The Westwater Canyon member of the Morrison Formation is the principal host of uranium mineralization in the vicinity of the Project and is approximately 360 feet thick. For the purposes of estimating mineral resources, the authors subdivided the Westwater Canyon into four vertically and laterally distinct sand units/zones.
In the Crownpoint area, mineralized thickness ranges from the minimum of 2 feet to over 40 feet. Average thickness of all intercepts was 7.6 feet. Average grade – thickness (GT) of all intercepts was 0.77 ft. Grade varies from the minimum grade cutoff of 0.02 % eU3O8 to a maximum grade by intercept of 0.38 % eU3O8. Individual mineralized trends may persist for several thousand feet with trend width typically in the range from 100 up to 400 feet.
In the Hosta Butte area, mineralized thickness ranges from the minimum of 2 feet to over 33 feet. Average thickness of all intercepts was 7.4 feet. Average GT of all intercepts was 0.83 ft. Grade varies from the minimum grade cutoff of 0.02 % eU3O8 to a maximum grade by intercept of 0.52 % eU3O8. Individual mineralized trends may persist for 2,000 feet or more with trend width typically in the range of 100 to 300 feet. Previous drilling within the Crownpoint area focused on portions of Sections 19 and 29, T17N, R12W and Section 24 T17N, R13W. Within the Crownpoint area, 482 rotary drill holes and 37 core holes were completed.
Previous drilling within the Hosta Butte area was conducted with sections, 3, 9, and 11, T16N, R13W. Previous drilling at Hosta Butte focused primarily on Section 3 with 133 rotary holes and 2 cores holes completed. In Sections 9 and 11, T16N, R13W, 14 rotary drill holes and 32 rotary drill holes were completed, respectively
Uranium was first discovered on the grant lands in New Mexico in 1968 and the project area was extensively explored in the 1970s by Conoco and Westinghouse. Three shafts were sunk into the Section 24 location but with declining uranium prices in the early 1980s, Conoco elected to shut down operations and cap the shafts. Mobil Oil Company also conducted extensive ISR pilot testing in an area 4 miles northwest of the Verdera Energy property which successfully confirmed the potential for ISR uranium extraction from the Westwater Canyon Formation.
The Crownpoint and Hosta Butte Project is located in the Grants Uranium Region and offers a long-term development opportunity for the Company. Surface rights on the Project are held separately from the mineral rights and have not been removed from development and are not under other restrictions. The Crownpoint area is fully covered under NuFuels, Inc.’s (a wholly owned subsidiary of Laramide Resources LTD) NRC-issued Source Materials License SUA-1580 for uranium ISR Water rights have been approved by the New Mexico State Engineer for a portion of the Crownpoint area.
A Qualified Person (as defined in NI 43-101) has not done sufficient work to classify the historical estimate as a current mineral resource. Additional work will be required to verify and update historical estimates, including a review of assumptions, parameters, methods and testing. Historical estimates do not use the current mineral resources categories prescribed under NI 43-101. Verdera is not treating the historical estimate as a current mineral resource and it should not be relied upon.
The Nose Rock property is located in McKinley County, New Mexico, on the northern edge of the Grants Uranium District, approximately 10 miles north-northeast of the Company’s Crownpoint & Hosta Butte project. The property consists of deeded mineral rights with no holding costs covering 6,400 acres and 42 unpatented lode mining claims comprising approximately 800 acres.
The property and surrounding area were extensively explored during the 1970s and 1980s by Phillips Uranium Corp. Approximately 1,199 drill holes were completed within deeded mineral rights while more than 185 holes were drilled within unpatented lode claims that collectively comprise the project.
In 1977, a feasibility study was completed and Phillips began mine planning for the greater Nose Rock area, with production expected to begin using conventional underground mining methods. The study included the development of five underground mines and a 2,500 tons per day mill with potential to expand to 5,000 tons per day. However, the Nose Rock project was suspended because of an abrupt decline in the uranium market price in the early 1980s.
The Nose Rock project has potential for ISR as mineralization is located below the water table.
| Historical Mineral Resource Estimate for the Nose Rock Uranium Property (Mining diluted to at least 8 ft @ 0.075% U3O8, or GxT = 0.6 %ft)(1)(2) | |||
Category | Tons | Grade eU3O8% | U3O8 (lbs) |
Measured | 3,009,570 | 0.143 | 8,605,681 |
Indicated | 5,374,521 | 0.151 | 16,187,805 |
Total (M+I) | 8,384,091 | 0.148 | 24,793,486 |
Inferred | 3,403,756 | 0.149 | 10,161,166 |
Most of the uranium deposits in the Grants Mineral Belt, including in the Nose Rock area, are hosted by the fluvial sand units of the Westwater Canyon Member of the Morrison Formation. The Westwater Canyon ranges from 50 feet to over 300 feet in thickness in the Grants Mineral Belt. The larger uranium deposits tend to occur in the relatively thicker sand units.
Uranium mineralization at the Nose Rock project is hosted in the 18 foot thick middle Westwater Canyon arkosic and medium to fine grained sand of the 305 foot thick Westwater Canyon. Uranium mineralization occurs as both tabular and roll-types within three units of the Westwater Canyon sand. The sand units are separated by semi-continuous mudstone units.
Note: The U.S. Energy Research and Development Administration (ERDA) prepared independent uranium resource estimates for Sections 31 and 36, that are within 10% of those reported here thus providing verification of the measured and indicated estimates for those Verdera mineral properties. In addition, the chemical analysis of 46 samples from 24 core holes on Sections 31, 32 and 36, indicate the uranium mineralization is in equilibrium. (Clark, Dean, memos titled “Ore Reserve Calculations”, Phillips Uranium Corp, May 25, 1977, and “Equilibrium Data, Nose Rock Area”, 8/17/1977)
The Nose Rock property is located in McKinley County, New Mexico, on the northern edge of the Grants Uranium District, approximately 10 miles north-northeast of the Company’s Crownpoint & Hosta Butte project. The property consists of deeded mineral rights with no holding costs covering 6,400 acres and 42 unpatented lode mining claims comprising approximately 800 acres.
The property and surrounding area were extensively explored during the 1970s and 1980s by Phillips Uranium Corp. Approximately 1,199 drill holes were completed within deeded mineral rights while more than 185 holes were drilled within unpatented lode claims that collectively comprise the project.
In 1977, a feasibility study was completed and Phillips began mine planning for the greater Nose Rock area, with production expected to begin using conventional underground mining methods. The study included the development of five underground mines and a 2,500 tons per day mill with potential to expand to 5,000 tons per day. However, the Nose Rock project was suspended because of an abrupt decline in the uranium market price in the early 1980s.
The Nose Rock project has potential for ISR as mineralization is located below the water table.
Most of the uranium deposits in the Grants Mineral Belt, including in the Nose Rock area, are hosted by the fluvial sand units of the Westwater Canyon Member of the Morrison Formation. The Westwater Canyon ranges from 50 feet to over 300 feet in thickness in the Grants Mineral Belt. The larger uranium deposits tend to occur in the relatively thicker sand units.
Uranium mineralization at the Nose Rock project is hosted in the 18 foot thick middle Westwater Canyon arkosic and medium to fine grained sand of the 305 foot thick Westwater Canyon. Uranium mineralization occurs as both tabular and roll-types within three units of the Westwater Canyon sand. The sand units are separated by semi-continuous mudstone units.
Note: The U.S. Energy Research and Development Administration (ERDA) prepared independent uranium resource estimates for Sections 31 and 36, that are within 10% of those reported here thus providing verification of the measured and indicated estimates for those Verdera mineral properties. In addition, the chemical analysis of 46 samples from 24 core holes on Sections 31, 32 and 36, indicate the uranium mineralization is in equilibrium. (Clark, Dean, memos titled “Ore Reserve Calculations”, Phillips Uranium Corp, May 25, 1977, and “Equilibrium Data, Nose Rock Area”, 8/17/1977)
A Qualified Person (as defined in NI 43-101) has not done sufficient work to classify the historical estimate as a current mineral resource. Additional work will be required to verify and update historical estimates, including a review of assumptions, parameters, methods and testing. Historical estimates do not use the current mineral resources categories prescribed under NI 43-101. Verdera is not treating the historical estimate as a current mineral resource and it should not be relied upon.
The West Largo project consists of approximately 3,840 acres in McKinley County, New Mexico, along the north-central edge of the Grants Uranium District, approximately 25 miles north of Grants.
The majority of the property is held through deeded mineral rights and also includes 75 unpatented lode claims. The property is located on six contiguous sections of land.
The West Largo Project is about 6 miles northwest of the westernmost deposits in the Ambrosia Lake District and about 5 miles east-northeast of the West Ranch area deposits. The project is accessed via New Mexico Highway 605 north from Grants, N. M. Highway 509 northwest from Ambrosia Lake and unimproved roads west from Highway 509.
Gulf Minerals discovered uranium mineralization in the area in 1968. Subsequent drilling by the major mining companies including Gulf, Kerr McGee, Pathfinder, and Santa Fe Minerals delineated the deposit on the West Largo properties in the 1970s and 1980s.
| Table 1 – Historical Mineral Resource Estimate for the West Largo Uranium Property (80% of estimated resources used cutoff 6.0 ft @ 0.10% U3O8; the balance used lower cutoff)(1) | |||
Category | Tons | Grade eU3O8% | U3O8 (lbs) |
Indicated | 2,800,000 | 0.30 | 16,900,000 |
Inferred | 64,546 | 0.217 | 280,130 |
The Jurassic age Morrison Formation Member hosting most of the sandstone-type uranium deposits in the Grants Mineral Belt, including the West Largo area, is the Westwater Canyon sandstone. Uranium mineralization is hosted in in at least five sand units, predominately in the A, B, C and E sands, and has been mapped for about 4.3 miles along a North 70° Westerly trend extending to about 500 feet in width. Uranium usually occurs as carnotite, coffinite, or other uranium oxides in grain interstices and is adsorbed to amorphous organic matter.
There are no current Mineral Reserves or Mineral Resources on the West Largo property. Further compilation of the historic geological and drilling data, resource modelling and possible confirmation drilling will be necessary to convert the historic estimates outlined below to NI 43-101 compliant resources/reserves.
A 1982 report by Nakaoka states the resource estimate factored in a “disequilibrium” factor. His comparison of closed can and drill hole log radiometric equivalents with assay values resulted in “… an average [sic] variance of 126% to 136% in favor of the Chemical…” Maxwell reports it is unclear if the ratio represents a condition of secular disequilibrium or may include a log correction factor.
The West Largo project consists of approximately 3,840 acres in McKinley County, New Mexico, along the north-central edge of the Grants Uranium District, approximately 25 miles north of Grants.
The majority of the property is held through deeded mineral rights and also includes 75 unpatented lode claims. The property is located on six contiguous sections of land.
The West Largo Project is about 6 miles northwest of the westernmost deposits in the Ambrosia Lake District and about 5 miles east-northeast of the West Ranch area deposits. The project is accessed via New Mexico Highway 605 north from Grants, N. M. Highway 509 northwest from Ambrosia Lake and unimproved roads west from Highway 509.
Gulf Minerals discovered uranium mineralization in the area in 1968. Subsequent drilling by the major mining companies including Gulf, Kerr McGee, Pathfinder, and Santa Fe Minerals delineated the deposit on the West Largo properties in the 1970s and 1980s.
The Jurassic age Morrison Formation Member hosting most of the sandstone-type uranium deposits in the Grants Mineral Belt, including the West Largo area, is the Westwater Canyon sandstone. Uranium mineralization is hosted in in at least five sand units, predominately in the A, B, C and E sands, and has been mapped for about 4.3 miles along a North 70° Westerly trend extending to about 500 feet in width. Uranium usually occurs as carnotite, coffinite, or other uranium oxides in grain interstices and is adsorbed to amorphous organic matter.
There are no current Mineral Reserves or Mineral Resources on the West Largo property. Further compilation of the historic geological and drilling data, resource modelling and possible confirmation drilling will be necessary to convert the historic estimates outlined below to NI 43-101 compliant resources/reserves.
A 1982 report by Nakaoka states the resource estimate factored in a “disequilibrium” factor. His comparison of closed can and drill hole log radiometric equivalents with assay values resulted in “… an average [sic] variance of 126% to 136% in favor of the Chemical…” Maxwell reports it is unclear if the ratio represents a condition of secular disequilibrium or may include a log correction factor.
A Qualified Person (as defined in NI 43-101) has not done sufficient work to classify the historical estimate as a current mineral resource. Additional work will be required to verify and update historical estimates, including a review of assumptions, parameters, methods and testing. Historical estimates do not use the current mineral resources categories prescribed under NI 43-101. Verdera is not treating the historical estimate as a current mineral resource and it should not be relied upon.
The project is located approximately 115 miles west-northwest of Albuquerque, in McKinley and Cibola Counties, Grants Uranium District, New Mexico.
The project is situated within the boundaries of the Ambrosia Lake mining district, which is the largest uranium mining area (in terms of pounds of U3O8 production) in the United States. Initial exploration for sandstone-hosted uranium deposits started in the early 1950s while commercial production commenced in the mid-1950s and continued uninterrupted until the late 1990s. During the active mining period of the Ambrosia Lake mining district nearly 22 million pounds of U3O8 were produced from eight mines on Company-owned properties in the project area.
Property (Section,Township, Range) | Tons | Grade; % U3O8 | Pounds, U3O8 |
13 -13N – 9W | 259,000 | 0.16 | 855,313(2) |
17 -13N – 9W | 149,000 | 0.06 | 631,263(3) |
5-14N – 10W | 327,724 | 0.105 | 688,913(4) |
7-14N-10W | 160,478 | 0.174 | 630,425(5) |
23-14N – 10W | 211,058 | 0.29 | 1,211,502(6) |
25-14N – 10W | 158,632 | 0.17 | 538,375(7) |
27 -14N – 10W | 170,000 | 0.31 | 1,050,000(8) |
Total | 1,435,892 |
| 5,605,791 |
There are no current Mineral Reserves or Mineral Resources on the Ambrosia Lake property. Further compilation of the historic geological and drilling data, resource modelling and possible confirmation drilling will be necessary to convert the historic estimates outlined below to NI 43-101 compliant resources/reserves.
The Ambrosia Lake Project lies on the Chaco Slope of the 100-mile wide San Juan Sedimentary Basin. The basin is filled with up to 15,000 feet of Paleozoic and Mesozoic sediments consisting predominantly of sandstone, siltstone and shale with minor limestone. The basin is asymmetric with the southern limb dipping gently to the north and the northern limb dipping steeply to the south.
Within the basin, the Jurassic Morrison Formation is the primary host for the uranium mineralization. The Morrison Formation is divided into three members. The lowest is the 255 foot thick Recapture Shale Member which is overlain by the 350 foot thick Westwater Member, which in turn is overlain by the 115 foot thick Brushy Basin Shale. The Westwater Member is the host to significant uranium mineralization. It is composed of a fine- to coarse-grained, poorly sorted, feldspathic sandstone with conglomeritic zones and minor discontinuous mudstone and shale units.
The sandstone units of the Westwater Member strike west-northwest and dip gently to the northeast. The units are generally oxidized up dip and to the south of the mineralized zone and reduced down dip and to the north of the mineralized zone. The oxidized units are generally reddish-brown from the iron content, whereas the reduced units are generally green to grey due to the organic compounds, reduced iron compounds, or clay-chlorite assemblages.
Considerable exploration and mining has been carried out on lands that make up the project and on adjoining properties, and this activity continued for an extended period from the 1950s through the late 1990s.
Utah Construction, Kerr McGee, Teton UNC, and UNC-Homestake Partners drilled on the land Sections comprising the Ambrosia Lake Project. Verdera possesses what are thought to be nearly complete and map and drill-hole log files, except for some of the UNC-Homestake Partners logs.
The project is located approximately 115 miles west-northwest of Albuquerque, in McKinley and Cibola Counties, Grants Uranium District, New Mexico.
The project is situated within the boundaries of the Ambrosia Lake mining district, which is the largest uranium mining area (in terms of pounds of U3O8 production) in the United States. Initial exploration for sandstone-hosted uranium deposits started in the early 1950s while commercial production commenced in the mid-1950s and continued uninterrupted until the late 1990s. During the active mining period of the Ambrosia Lake mining district nearly 22 million pounds of U3O8 were produced from eight mines on Company-owned properties in the project area.
Capitan, M. (2008, February 25). Ore Reserve Calculation Sheet 3, T14N, R10W, Section 27. Uranium Resources Inc. In R. D. Maxwell & B. Guarnera (2010, March 1), Technical Report on Ambrosia Lake Project, Section 27 et al. (Behre Dolbear Report 07-019). Indicated resources; cutoff = 0.04%; circle tangent method, max radius 50 ft.
There are no current Mineral Reserves or Mineral Resources on the Ambrosia Lake property. Further compilation of the historic geological and drilling data, resource modelling and possible confirmation drilling will be necessary to convert the historic estimates outlined below to NI 43-101 compliant resources/reserves.
The Ambrosia Lake Project lies on the Chaco Slope of the 100-mile wide San Juan Sedimentary Basin. The basin is filled with up to 15,000 feet of Paleozoic and Mesozoic sediments consisting predominantly of sandstone, siltstone and shale with minor limestone. The basin is asymmetric with the southern limb dipping gently to the north and the northern limb dipping steeply to the south.
Within the basin, the Jurassic Morrison Formation is the primary host for the uranium mineralization. The Morrison Formation is divided into three members. The lowest is the 255 foot thick Recapture Shale Member which is overlain by the 350 foot thick Westwater Member, which in turn is overlain by the 115 foot thick Brushy Basin Shale. The Westwater Member is the host to significant uranium mineralization. It is composed of a fine- to coarse-grained, poorly sorted, feldspathic sandstone with conglomeritic zones and minor discontinuous mudstone and shale units.
The sandstone units of the Westwater Member strike west-northwest and dip gently to the northeast. The units are generally oxidized up dip and to the south of the mineralized zone and reduced down dip and to the north of the mineralized zone. The oxidized units are generally reddish-brown from the iron content, whereas the reduced units are generally green to grey due to the organic compounds, reduced iron compounds, or clay-chlorite assemblages.
Considerable exploration and mining has been carried out on lands that make up the project and on adjoining properties, and this activity continued for an extended period from the 1950s through the late 1990s.
Utah Construction, Kerr McGee, Teton UNC, and UNC-Homestake Partners drilled on the land Sections comprising the Ambrosia Lake Project. Verdera possesses what are thought to be nearly complete and map and drill-hole log files, except for some of the UNC-Homestake Partners logs.
A Qualified Person (as defined in NI 43-101) has not done sufficient work to classify the historical estimate as a current mineral resource. Additional work will be required to verify and update historical estimates, including a review of assumptions, parameters, methods and testing. Historical estimates do not use the current mineral resources categories prescribed under NI 43-101. Verdera is not treating the historical estimate as a current mineral resource and it should not be relied upon.
This project consists of a mining lease along with certain unpatented mining claims covering approximately 2,000 acres.
Conoco Inc. (1978). Tree Line Project: Internal Mine Planning Memo. 61 unpatented mineral claims in multiple sections (T13N–T14N). Cutoff = 6 ft of 0.05% U₃O₈. Unclassified historic resources.
A Qualified Person (as defined in NI 43-101) has not done sufficient work to classify the historical estimate as a current mineral resource. Additional work will be required to verify and update historical estimates, including a review of assumptions, parameters, methods and testing. Historical estimates do not use the current mineral resources categories prescribed under NI 43-101. Verdera is not treating the historical estimate as a current mineral resource and it should not be relied upon.
