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Wyoming

Wyoming Uranium Exploration

Project Highlights

Project Details

35-75

Target

Sandstone-hosted roll-front uranium deposits with potential for in-situ recovery

(enCore’s 35-75 Property is located adjacent to, and along the southern boundary of the Company’s Coal Hill Property described in the next section of this presentation. Therefore several of the attributes of the Coal Hill Property are similar to those of the 35-75 Property as described in this section.)

Property Overview

The 35-75 Property contains two private mineral leases and 26 unpatented mineral claims covering approximately 1,170 acres.

The property hosts uranium-bearing sandstones of the Eocene Wasatch Formation and is adjacent to and on trend with Cameco’s Smith Ranch ISR uranium mine.

enCore Uranium entered a purchase and sale agreement with Energy Fuels Inc. to acquire the 35-75 property.

Mineral Resources

There are no current uranium resources or reserves on the 35-75 property.

Geology and Mineralization

The 35-75 Property (as well as the Coal Hill Property) is located within the southern Powder River Basin, on the western side of the basin axis. The Powder River Basin is the most prolific ISR producing uranium district in the U.S.  The basin is a north-northwest trending, asymmetrical syncline that extends from central Wyoming into southern Montana and from the western slopes of the Black Hills to the eastern flank of the Big Horn Mountains. The area is characterized by shallow, northeast dipping strata forming low bluffs and broad flat uplands cut by gullies from recent erosion. Cretaceous and early Tertiary sedimentary and volcaniclastic rocks cover most of the surface within the basin.

Locally the surface units are members of the Paleocene Fort Union Formation and the overlying Eocene Wasatch Formation. The Fort Union Formation is a fluvial sedimentary unit consisting of fine- to coarse-grained arkosic sandstone interbedded with siltstone, mudstone, and carbonaceous material. The Wasatch formation is the youngest strata on the 35-75 Property and contains sandstones, clays and shales. On other properties in the Powder River Basin, uranium has been mined from several sandstone horizons within each of these formations.

During a period of deformation and uplift of the Powder River Basin, layers of clastic rock were deposited into the Wasatch formation along with bentonitic clay layers. The clay layers were the result of intermittent silicic volcanism and were important to the formation of the uranium mineralization.

The uranium deposits of the Powder River Basin are classified as roll-front style mineralization produced by the dissolution, transport and deposition of uranium at irregular, active boundaries where a reducing environment balances the oxidative capacity of the uranium-bearing ground water.

The deposits of the Powder River Basin are typically multiple “C-shaped” roll fronts distorted by variations in the gross lithology of the host sandstone unit. Individual rolls range in thickness from 3 to 20 feet and may be 3,000 feet in length. The individual ore-grade beds are dispersed throughout the mineralized zone, but the mineralized sections of sandstone may approach 500 feet in thickness, as they occur in stacked deposits.

Based on the results of exploration drilling conducted in the 1960s and 1970s, together with anomalous areas identified by an alpha track radon survey conducted by Magnum Uranium Corp., Magnum estimated the property may host a mineral resource occurring as stacked roll front type. The target of further exploration has a potential of about one million or more, pounds U3O8, at an average grade in the range of 0.1% to 0.12% U3O8. The potential quantity and grade is conceptual in nature, as there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.(Tigris Uranium Corp., Press Release 7/26/2011).

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 Uranium website.


Coal Hill

Sandstone-hosted roll-front uranium deposits with potential for in-situ recovery

(enCore’s Coal Hill Property is located adjacent to the Company’s 35-75 Property. Therefore several of the attributes of the Coal Hill Property are similar to those of the 35-75 Property.)

Property Overview

The Coal Hill Property consists of 28 unpatented lode mining claims covering approximately 577 acres (233.5ha), located on privately owned surface lands with federal mineral rights. It is located 16 miles north of the town of Glenrock.

The Coal Hill Property covers mineralized stratigraphy along strike and adjacent to the Highland – Smith Ranch ISR facility and has the potential to host similar roll-front style uranium mineralization.

enCore Uranium has purchased 100% interest in the property, which is subject to a 2% gross proceeds royalty (half of which may be repurchased for $200,000).

Mineral Resources

There are no current uranium resources or reserves on the Coal Hill Property.

Geology and Mineralization

(The Coal Hill Property is located adjacent to enCore’s 35-75 Property in the Powder River Basin as described in the previous section of this presentation. For related information the reader is referred to the: 35-75  Geology and Mineralization, as described in the previous section of this presentation.)

The Coal Hill Property is located within the southern Powder River Basin, on the western side of the basin axis. The basin is a north-northwest trending, asymmetrical syncline that extends from central Wyoming into southern Montana and from the western slopes of the Black Hills to the eastern flank of the Big Horn Mountains. The area is characterized by shallow, northeast dipping strata forming low bluffs and broad flat uplands cut by gullies from recent erosion. Cretaceous and early Tertiary sedimentary and volcaniclastic rocks cover most of the surface within the basin.

Locally the surface units are members of the Paleocene Fort Union Formation and the overlying Eocene Wasatch Formation. The Fort Union Formation is a fluvial sedimentary unit consisting of fine- to coarse-grained arkosic sandstone interbedded with siltstone, mudstone, and carbonaceous material. The Wasatch formation is the youngest strata on the Coal Hill Property and contains sandstones, clays and shales. On other properties in the Powder River Basin, uranium has been mined from several sandstone horizons within each of these formations.

The uranium deposits of the Powder River Basin are classified as roll-front style mineralization produced by the dissolution, transport and deposition of uranium at irregular, active boundaries where a reducing environment balances the oxidative capacity of the uranium-bearing ground water.

The deposits of the Powder River Basin are typically multiple “C-shaped” roll fronts distorted by variations in the gross lithology of the host sandstone unit. Individual rolls range in thickness from 3 to 20 feet and may be 3,000 feet in length. The individual ore-grade beds are dispersed throughout the mineralized zone, but the mineralized sections of sandstone may approach 500 feet in thickness, as they occur in stacked deposits.

Historical Exploration

Previous uranium exploration in the area throughout the 1970s and 1980s included widespread drilling by companies such as Kerr McGee, Plateau Exploration, Pioneer Nuclear and Exxon.

During the life of the Dave Johnson coal mine (late 1960s until 2000), water well drilling intercepted two uranium roll-front gamma log signatures from the Fort Union sandstone. The coal mine did not follow up on these intercepts. The reclaimed mine site lies between the Coal Hill Property and the Smith Ranch – Highland Property.

The Smith Ranch – Highland ISR facility is located adjacent to Coal Hill on the east side. Owned by Cameco, this facility is the largest uranium producing ISR field in the United States. Cameco’s claims surround the Coal Hill claims to the east and south. The same stratigraphic section of ore-host rock units found on the Smith Ranch Property occur on the Coal Hill Property.

Limited exploration drilling for uranium has been conducted on the Coal Hill Property and the results of this exploration are unknown to enCore’s management. Further research is ongoing to locate the drill logs and geological data for all water, oil, gas and uranium exploration drilling on the property.

Drill hole logs from several decades show that the sandstone hosting the uranium on the Cameco property can be traced in drill hole well logs on the eastern central parts of the Coal Hill claims.

The Wild Buck Property lies just north of the Coal Hill claims and is northwest of Smith Ranch. The Nuclear Exploration and Development Company drilled a number of strong mineral intercepts in the 1970s on this property. The Uranium One (formerly Energy Metals Corporation) Peterson Ranch project is located approximately fifteen miles southeast of the Coal Hill Property. Mineralization at Peterson Ranch has been defined in three major sandstone units of the upper Fort Union Formation (the Wasatch Formation has been removed by erosion at the Peterson Ranch site). This mineralization demonstrates that economic mineralization has been defined along strike for over fifteen miles on land adjacent to the eastern margin of Coal Hill.

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 Uranium website.


LMB Shirley Basin

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 Uranium website.


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.

IndicatedInferred
TonsGrade
(U3O8)
Pounds
(U3O8)
TonsGrade
(U3O8)
Pounds
(U3O8)
466,2320.11%1,038,02342,6110.12%101,255

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.


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.


Shirley Basin

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.

Qualified Person

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.

ISR Uranium Mining