La Sal District

The project is comprised of 52 claims spanning over 2,150 acres (8.7 square kilometers) and covers the probable extension zones of the La Sal Mineral Belt.  This Belt has produced over 7 million pounds of uranium and over 30 million pounds of vanadium. This is the same mineralized channel that hosts an active mining company’s  La Sal Mines Complex, of which the Pandora, La Sal, and Beaver mines are currently producing.  Excellent infrastructure exists with nearby powerlines, access roads and workforce with Highway 46 bisecting the West La Sal Property.  The West La Sal Property covers the historic Bandit and Sunset Mines which were operated by Union Carbide in the 1980’s.  The La Sal District has produced the highest grade of any Salt Wash mining district on the Colorado Plateau.

The Company has access to detailed mine maps of the Sunset Mine, which include critical information such as thickness, grade, and elevation. It also has access to reports from Union Carbide that provide resource calculations, though these indicate that only minimal resources remain unmined. Additionally, the Company has acquired detailed mine and drill maps created by Union Carbide, Mineral Reserve Corporation, Cotter Corporation, and General Electric that highlight adjacent mineralization that extends directly to the Company’s property line on both the east and west sides.  Data verification and integration will be applied to target future drilling along trend from known mineralization. 

Urano’s Blue Jay Mine Uranium Project comprises 28 mineral claims covering about 560 acres, located approximately 30 miles south of Moab, San Juan County, Utah, within the La Sal Uranium District. The claims are located about 2 to 3 miles northwesterly from three historic uranium producing mines, including the Rattlesnake Mine – one of the top four past producing uranium-vanadium mines in the La Sal District. The project area is also within, or adjacent to, the largest favorable channel trend in the western part of the La Sal Uranium Mining District, Utah, which hosts many of the largest uranium deposits in the La Sal District.

The claim area saw extensive drilling by URADCO, a subsidiary of Pennsylvania Power and Light Corp (PPL), with some drill sites still visible today. Using URADCO”s drill results from 22 holes, in March 1981, Atlas Minerals’ Chief Mining Engineer prepared a preliminary economic evaluation for Atlas’ President of  a deposit on the project estimating about 110,000 pounds U₃O₈, at an average grade of about 0.25% U₃O₈, at depths of 330 to 360 ft. The Atlas report classified the uranium resources as “economically viable reserves.” Other information in the Atlas historic records suggests there may be additional lower grade mineralization including 140,000 lbs. U₃O₈, on project covered by Urano’s claims. The Atlas engineer also estimated the V2O5 deposit grade to be 1.25%, based on a historic V2O5:U₃O₈ ratio of 5:1 for the La Sal District, suggesting an estimated 550,000 lbs. V2O5 included with the estimated uranium resource. At the 1981 Atlas report date, the uranium market price had been falling precipitously, and Atas elected not to acquire the URADCO drilled project. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource.  It is uncertain if further exploration will result in the target being delineated as a mineral resources.

The historic resource estimate is based on a report prepared by Atlas Minerals dated 1981, and does not comply with mineral resource categories set out in National Instrument 43-101.   A Qualified Person (as defined in NI 43-101) has not done sufficient work to classify the historical estimate as current mineral resources and the company is not treating the historical estimate as current mineral resource.  The company considers the historic information relevant and reliable, however additional work, including drilling, will be required to confirm the presence of a uranium deposit, and if present, to establish the amount and grade of any mineralization that is found.