This property acquisition includes all available data including geophysical logs and lithologs from Neutron. These two properties are both in near proximity to drilled out ore bearing pipes, and one of these properties is a geologically confirmed mineralized breccia pipe.
Neutron will retain a 2% net smelter royalty on any production. If an ore body is drilled out and upon completion of a feasibility study conducted by ASP, Neutron has a one time option to elect to participate in that project at a 30% working interest, by surrendering its royalty and paying to ASP a 150% reimbursement of 30% of ASP’s costs, incurred to the point of completion of the feasibility study.
The two properties, known as the cyclone target and the horsey target are mineral exploration permits acquired by Neutron through the Arizona State Lands Department and not regulated by either the Bureau of Land Management or the US Forest Service.
The properties are located south of the Grand Canyon and both are outside the boundary of the US Department of Interiors’ withdrawal area, currently undergoing a two year environmental impact study. Each mineral exploration permit is good for five years and, should a minable discovery be made, can be converted to an Arizona state mining lease, subject to a production royalty.
Cyclone target is a confirmed mineralized breccia pipe. Rocky Mountain Energy drilled two shallow holes and seven deep holes in 1990 that confirmed mineralization. Neutron drilled four deep holes in 2008 and mineralization from 0.01% U3O8e up to 0.076% U3O8e was encountered in each of the Neutron drill holes.
Horsey target consists of 87.67 acres. There has been no drilling done however a track-etch survey was completed on the target. The target exhibits good surficial characteristics of a potential pipe and a good surface collapse structure was observed by ASP field examination.
