On May 25, 2010, the company had completed an NI43-101 resource of 695,000lbs U3O8 grading 0.80% U3O8 on the Wate Pipe.
The JV intends to complete limited additional drilling in order to increase the resource to 1 million pounds U3O8 which is the resource needed, based on internal guidelines, to move the project to pre-feasibility.
The collar of Hole WT-37 is located 30ft west of previously identified mineralization. The hole encountered two main mineralized zones using a cutoff grade of 0.20% U3O8: 1,299.5 – 1,318.0ft (18.5ft) @ 0.35% U3O8; 1,362.5 – 1,374.0ft (11.5ft) @ 1.25% U3O8
Due to hole deviation at depth, the mineralized intercepts are approximately 35ft, S55W from where the hole was collared. These new intercepts add more dimension to the mineralization and pipe diameter in a southwest direction. The next hole is planned for a location designed to test for mineralization in the inferred location of the southeast part of the pipe.
As new mineralized intercepts are encountered, the data will be provided to SRK to update the resource model until the 1mm lbs total is obtained. Previous drilling from surface by Rocky Mountain Energy (RME) resulted in resources calculated by RME of between 1.1mm and 2.4mm lbs U3O8 grading 0.80% to 0.83% U3O8.
