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Cotter Corporation Uranium Mill
Virtually all of the properties have been previously owned, drilled or worked on by one of the major uranium companies that operated in the area during the last uranium boom that took place in the late 1970's and early 1980's. These companies include: Union Carbide, Cypress Mining, Urania, Westinghouse and the Cotter Corporation.
The property package that the company has assembled focuses primarily on roll front uranium deposits hosted in Oligocene Tallahassee Creek Conglomerate, the Eocene Echo Park Formation and Wall Mountain Pass Formations. These formations represent fluvial and/or or alluvial deposits, laid down in palaeochannels. The palaeochannel sediments were deposited unconformably on older Precambrian granites.
The source of uranium is believed to be the overlying volcanic tuffaceous units and intrusive phonolite plugs. Uranium is postulated to have leached from the weathering volcanic tuff by oxidized ground water, and been transported in the old river channels. The uranium was deposited where the water came into contact with reductants in the channel fill material (usually organic material or pyrite).
Each claim covers a land surface area of 20 acres. The claims are grouped into 6 separate properties, each property consisting of a varying number of uranium claims. Most of the claims are located within a 50 mile radius of the Cotter Corporation uranium mill located in Cañon City.
The following map indicates the location of all of the Company's properties in Colorado.
The following is an outline of the company's primary claims:
High Park
Location: Located in sections 25, 30, 31 and 36, T15S, R71W, in Teller County, and 6th New Mexico Meridian. The property is located approximately 30 miles northwest of Cañon City and is accessible by a well maintained county road.
Land holdings: The property consists of 54 unpatented uranium mining claims. The High Park project is the company's primary property in Colorado.
Exploration history: During the 1970's and 1980's, a total of 354 holes were previously drilled on the High Park property. Of these, 339 holes are located on section 25 of the property where uranium ore reserves have been partially delineated. Mineral trends are open ended and identified in at least five horizons within the project area related to braided stream channel deposits in the Tallahassee Creek Conglomerate. Fifteen holes were previously drilled in the northwest corner of section 31, of which two holes contained U3O8 ore grade intercepts at open pit depths. No holes have been drilled on section 30. A pit was previously opened on section 36 for pre-mining evaluation and test showed U3O8 ore reserves also exist on this property as well.
Geological setting: The project area is covered predominantly with sediments, gravel and cobble size material. Vegetation in the area consists of sage brush, assorted cacti, bristle cone pine trees and buffalo grass. The existing claims are accessible by a well maintained county road which crosses the North East ¼ of section 25. Topography in the area consists of rolling hills to the north, south and west. To the east the claims goes into rough canyon country and extended elevations approximately 1,500 to 2,000 feet above the desert floor.
Mineralization: The company has completed a comprehensive review of all the data available on the project and has carried out a ground scintillation survey to identify possible new drill targets. Three initial surface grab samples yielded assays of: 0.290%, 0.383% and 0.504% of U3O8 respectively. These samples were taken during the initial evaluation of the property and were assayed by Grand Junction Laboratories.
Exploration Program: All of the High Park claims have now all been surveyed in and the company has two drills on location as it believes additional drilling should successfully convert most of the inferred ore blocks to proven ore reserves and substantiate the indicated mineral trends.
Buckingham has completed a comprehensive review of all the data available on the project and has carried out a ground scintillation survey to identify possible new drill targets. Three initial surface grab samples yielded assays of: 0.290%, 0.383% and 0.504% of uranium respectively.
Reserve potential and a feasibility study will be carried out upon completion of the drill program.
Alpha Beta Gamma
Location: Northeast ¼, Section 27, T51N, R11E, Fremont County; located 30 miles northwest of the Cotter Corporation's uranium mill, in Cañon City. Road access is good.
Land holdings: 24 claims covering the potentially economic lithology.
Exploration history: A fence of seven drill holes was drilled in 1980 as part of a generative exploration program. The claims were allowed to lapse in the 1980's when the uranium price collapsed; the company has restaked the property. The Hansen ore body is located 12 miles to the east of the Alpha Beta Gamma property. This was drilled in the late 1970's by Rampart Minerals Co. and Cyprus Mines Corp. who blocked out between 18 and 30 million pounds U3O8. The collapse of the uranium price halted development before mining could begin.
Geological setting: The area is identified as the Tallahassee Creek Mineral Complex; a structurally contained braided Eocene palaeo-channel system, contained by Pre-Cambrian granites on the east and west. Individual channels range in width from several hundred feet to well over a mile. Mineralization is hosted by the Tallahassee Conglomerate, one of the main hosts at the nearby Hansen deposit which lies on a similar palaeo drainage system. It consists of medium to large granitic boulders, volcanic tuff and smaller sand and gravels and also contains carbonized wood.
Mineralization: Uranium mineralization occurs as autunite, uraninite and gummite. Individual grades from the historic drilling are reported as ranging from 0.1% to several percent U3O8. The original drilling was on 100 feet to a center depth of 250 feet. The holes were reportedly mineralized throughout, with grades ranging from 0.08% U3O8 at the top of the holes to 0.35% U3O8 at the bottom. The holes were reportedly stopped in mineralization. Two 800 foot long channel samples along a leached surface road cutting assayed 0.07% and 0.04% U3O8 respectively.
Exploration Program: Additional claims are currently being staked. The 2007/2008 exploration drill program will twin some of the original fence of holes to test the reported mineralization for grade and continuity. An airborne radiometric and magnetic survey will be flown to define palaeo-channel boundaries and to identify surface uranium anomalies. Once this data has been analyzed, wide-spaced fences will be drilled to test the most promising portions of the channels at depth. A 4,000 foot drill program is planned, with a follow-up program as required.
Elk
Location: NW Fremont County. Approximately 20 miles west, northwest of the Cotter Corporation's uranium mill, and 10 miles west of the Hansen orebody. Access to the northern portion of the property is good; access to the central and south is more difficult.
Land holdings: A large property (approximately 12 square miles) consisting of 320 claims. The property is located immediately south and contiguous with the Alpha Beta Gamma property.
Exploration history: The company has restaked the property.
Geological setting: The claims cover the southern continuation of the Alpha Beta Gamma palaeo channel.
Mineralization: Ground scintillometer traverses indicate that anomalous uranium occurs along the palaeo channel and also in primary form in structures in older rocks underlying the channel sediments. No assay data is available at this time.
Exploration Program: The airborne radiometric and magnetic survey being carried out over the Alpha Beta Gamma property will be extended south to cover the entire Elk property to confirm the mapped limits of the palaeochannel and to identify surface uranium anomalies. Ground work will initially concentrate on the northernmost portion of the Elk claims, and these will be treated as part of the Alpha Beta Gamma exploration program, to be drilled on a wide spacing initially, with infill drilling in encouraging areas.
Barbara
Location: 6 miles southeast of the Hansen orebody in Fremont County; approximately 15 miles northwest of Cañon City. There is road access to the property, subject to a third party's surface rights.
Land holdings: The company currently holds 40 claims in good standing.
Exploration history: The property was originally held by the Urania, a French uranium company that evaluated it during the early 1980's. Urania allowed the claims to lapse after the uranium price collapsed; the company has restaked the property.
Geological setting: The property is thought to cover a portion of the same Eocene palaeo channel sediments that host the Hansen orebody to the northwest, and the Elk property further to the west. The hosts to the mineralization are probably of the Tallahassee Creek Formation. The mineralized horizon is located under a mesa and is overlain by up to 160 foot of un-mineralized basalts.
Mineralization: A Urania report estimated a non-NI 43-101 compliant resource over a 360,000 square foot area with a thickness of 16 to 30 feet and an average grade of 0.58% U3O8. There is no background data on this estimate at hand and this estimate cannot be relied upon as a current estimate.
Exploration Program: The property will be field checked for signs of Urania's drilling and a program of channel sampling will be carried out along the outcrop of the mineralized horizon. Geological mapping will be carried out to define the potential extent of the potentially mineralized unit.
Bob
Location: 40 miles northwest of Colorado Springs.
Land holdings: the company currently holds 4 claims in good standing.
Exploration history: The company has restaked the property.
Geological setting: Eocene paleo-channel deposits.
Mineralization: 12 to15 feet of Paleo River Channel; mineralization in weakly consolidated bedded sandstone with opalized wood. Grades reported to be generally 0.16 - 0.30% U3O8, with grab samples reported up to 6%-9% U3O8. These reports have not yet been checked.
Exploration Program: Check sampling, followed by field mapping and ground radiometrics to define areas of interest.
Winners
Location: 50 miles west of Cañon City and the Cotter Corporation's uranium mill, with excellent access to the area.
Land holdings: The company currently holds 42 claims in good standing.
Exploration history: The claims were held by Urania in the 1970's; the company has restaked the property.
Geological setting: Precambrian high grade metamorphic rocks underlie Tertiary volcanics. The Precambrian rocks consist of biotite gneiss, mica schists and occasional amphibolites.
Mineralization: The uranium mineralization occurs in a series of uraninite bearing quartz veins and fractures within the gneisses, in proximity to the unconformity. Higher values occur in the southwest of the property. Urania reported grab samples of 0.02% U3O8 and 0.26% U3O8.
Exploration Program: Check sampling, followed by field mapping and ground radiometrics to define areas of interest.