Douglas L. Beahm, P.E., P.G.and Terence P. (Terry) McNulty, P.E., D. Sc. reported in June, 2017, that based on the deposit type, confidence in the geological interpretation, quantity and reliability of supporting testwork, density of drilling and verification drilling completed in 2011 and 2012, and the author’s data verification of project data, the author considers the mineral resource estimates meet the confidence category for either Indicated Mineral Resources, as shown in Table 1.1, orInferred Mineral Resources, as shown on Table 1.2, in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014). The Project is at a PEA level of study thus, no current Mineral Reserves can be declared.
The base case for the PEA considers open pit mining in conjunction with on-site heap leach processing, producing an intermediate uranium concentrate in the form of loaded resin which would be shipped to a third party Central Processing Plant (CPP). Given the assumptions described herein, the PEA indicates, at a conceptual level, a positive return on investment. Further studies may also consider alternatives of on-site upgrading with off-site processing. The PEA is based on open pit mining and heap leach extraction of uranium, utilizing known technologies and methodologies, equipment, and a generalized mine design which has been employed at the site and/or similar sites in the past. The Mineral Resource estimates and mine designs are subject to risks typical of uranium mines that have successfully operated in the state of Wyoming. The Project risks are considered reasonably well understood and can be mitigated during Preliminary Feasibility and Feasibility Studies. Mineral resources are not mineral reserves and do not have demonstrated economic viability. The PEA is preliminary in nature and includes Inferred Mineral Resources (less than 1% of the total Mineral Resources included in the PEA mine plan). Inferred mineral resources are too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
The State of Wyoming has a long history of uranium mining and was a major source of U for the US. The Juniper Property was a past uranium producer. In the “Fraser Institute Annual Survey of Mining Companies 2016 (Feb. 2017), Wyoming is rated highly favorably by the mining industry, 7th out of 104 jurisdictions rated, in the Policy Perception Index, which is an assessment of the attractiveness of mining policies. The Policy Perception Index is a composite index that captures the opinions of managers and executives on the effects of policies in jurisdictions with which they are familiar. All survey policy questions (i.e., uncertainty concerning the administration, interpretation, and enforcement of existing regulations; environmental regulations; regulatory duplication and inconsistencies; taxation; uncertainty concerning disputed land claims and protected areas; infrastructure; socioeconomic agreements; political stability; labor issues; geological database; and security) are included in its calculation.
Within and adjacent to the Project, there is oil and gas development. Oil and gas are leasable commodities whose rights are independent of the uranium mineral rights, which are locatable under US laws and regulations. While neither mineral should preclude the development of the other, the presence of the oil and gas development may limit access and/or impact activities such as groundwater monitoring. It is recommended that the oil and gas lessees be contacted as to potential conflicts and to gain a full understanding of their processes, as they may affect environmental baseline and monitoring programs. Oil and gas development in the vicinity of the Project is at depths in excess of 2,500 feet in geologic formations separate from the Browns Park.
Search of the Wyoming Oil and Gas Commission website (http://wogcc.state.wy.us/) shows one well with log data located in the SESW of Section 28, Township 13 North, Range 92 West. This well, North Gamblers Fed 30-28, was completed to a depth of 8,700 feet and targeted potential oil and gas in the Fort Union, Lance, Fox Hills, and Lewis Shale formations. Other shallower wells are located in the vicinity, but depth of completion is not known. To the author’s knowledge, there are no conditions of a political or environmental nature that would preclude the development of the Project, provided that all applicable state and federal regulations are met. Any estimation or reference to costs and uranium prices within the context of this report over the potential life of mine are by their nature forward-looking and subject to various risks and uncertainties. The author is not aware of any other specific risks or uncertainties that might significantly affect the mineral resource estimates or the projected economic outcomes of the PEA
Recommendations to prepare for, and complete a Preliminary Feasibility Study are broadly divided into the following major categories: drilling, metallurgical studies, geotechnical and groundwater studies, preliminary feasibility studies, and baseline studies. The major categories are generally listed in order of importance although some studies need to be completed, all or in part, before the Preliminary Feasibility Study can proceed.
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