The Crownpoint and Hosta Butte uranium project area covers 3,020 acres located in the Grants Uranium Belt, New Mexico, which has produced over 347 MM lbs U308 and remains well endowed with uranium mineralization. The project area was extensively explored during the 1970s, with more than 600 holes drilled(1) and contains the current resource estimate described below. The project area includes portions of Sections 24, Township 17 North, Range 13 West; Sections 19 and 29, Township 17 North, Range 12 West; and Sections, 3, 9, and 11, Township 16 North, Range 13 West. enCore Energy owns the mineral estate outright (subjected only to a 3% gross proceeds royalty on Uranium produced) and the property is not subject to any ongoing holding costs or expenditure requirements.
|Crownpoint and Hosta Butte Uranium Project Mineral Resource Estimate(1)|
|Resource Category||Million Tons||Grade eU3O8%||Contained eU3O8 (Million Pounds)|
The report also opines that the project has potential to be developed as an ISR project and accordingly uses a minimum cutoff grade of 0.02% eU308 and a grade thickness (“GT”) of 0.10.
Geology and Mineralization
Uranium mineralization in the project area 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 ft thick. Mineralization is concentrated along the boundary between oxidized and reduced sandstone units within the formation.
In the Crownpoint area mineralized thickness ranges from the minimum of 2 ft to over 40 ft. Average thickness of all intercepts was 7.6 ft. Average GT of all intercepts was 0.77. Grade varies from the minimum grade cutoff of 0.02 % eU308 to a maximum grade by intercept of 0.38 % eU308. Individual mineralized trends may persist for several thousand ft with trend width typically in the range from 100 up to 400 ft.
In the Hosta Butte area mineralized thickness ranges from the minimum of 2 ft to over 33 ft. Average thickness of all intercepts was 7.4 ft. Average GT of all intercepts was 0.83. Grade varies from the minimum grade cutoff of 0.02 % eU308 to a maximum grade by intercept of 0.52% eU308. Individual mineralized trends may persist for 2,000 ft or more with trend width typically in the range of 100 to 300 ft.
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 enCore Energy property which successfully confirmed the potential for ISR uranium extraction from the Westwater Canyon Formation.
Douglas H. Underhill, PhD, CPG, enCore’s Chief Geologist, is the Qualified Person as defined under National Instrument 43-101 and has reviewed and verified the information presented throughout this enCore Energy website.