Douglas L. Beahm, P.E., P.G., June, 2017, reports that based on the density of drilling, continuity of geology and mineralization, data verification including the confirmation drilling completed in 2007-2013, the mineral resource estimates meet the criteria for either Indicated Mineral Resources or Inferred Mineral Resources as shown in Tables 1.1 and 1.2, respectively, in accordance with the CIM Definition Standards. Outside the mineral resource estimate areas, geological trends were defined based on limited wide-spaced drill data and the location of past mining. For these areas tons and grade ranges of exploration targets were defined as described in Section 9.
Substantial data was previously developed for the project including exploration drilling which lead towards preparation of both Mine Permit and Mill Permit applications. Although somewhat dated, the permit data could be recovered and utilized where practical in new permitting and to guide future studies and work programs recommended in Section 26 of this report. If additional study data can be located, this could diminish the level of work required for future studies, provided the data and/or conclusions of such previous data and information is properly verified and confirmed. The Project is located in an area which has been extensively mined in the past and where recently active mine and mill permits have been received by other mining companies.
Wyoming is a State with a long history of uranium mining operations, is currently the largest producer of mined uranium in the USA, and is considered by the mining industry to be a State with a highly favorable Policy Perception Index. Assumptions regarding uranium prices, mining costs, and metallurgical recoveries are by their
nature, forward-looking, and actual prices, costs, and performance results may be significantly different. The author considers the risks to the Gas Hills mineral resource estimates to be reasonably understood, and can be mitigated during the recommended exploration work program. The author is not aware of any other specific risks or uncertainties that might significantly affect the mineral resource estimates.
Overall it is recommended that future resource estimations consider alternative mine extraction assumptions and mineral recovery methodologies including conventional open pit mining with heap leach or conventional mill recovery and/or In Situ Recovery (ISR). The depth, local geologic and hydrologic conditions, and local variations in the character of mineralization, will influence the ultimate selection of mining method. Leach solutions from heap leach and/or ISR would require a similar central processing facility for final product production. As there are currently three other prominent mineral owners in the Gas Hills District, considerations should be given to consolidation and/or sharing of facilities and infrastructure.
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