As per the terms of the purchase agreement, U1 retains a 2% gross royalty on the federal lode claims and a 1% gross royalty on the state lease. In addition, U1 may elect to convert the royalties to working interest from 10% – 35% prior to feasibility.
The agreement, which covers approximately 4900 acres and is subject to terms, comprises 213 federal lode claims and one Colorado state lease. The area has undergone exploration drilling in the 1970s that discovered high-grade uranium hosted in lignite.
Available historical information includes historical drill intercepts, which show the mineralized zones in the region including: Hole 101, Hole 113, Hole 150, and Hole 104. Holes 101 and 104 are located 1 mile apart. Hole 150 is located 1200ft north of 101 and Hole 113 is located 1200ft southeast of Hole 104. The potential of the area of the high-grade intercepts is estimated at 50mm pounds of contained U3O8.
The company said that it plans to conduct confirmation drilling of the mineralized holes and obtain core for metallurgical testing to determine the recoverability of the uranium. Uranium has been recovered from coal historically. Assuming favorable metallurgical test results, Vane plans to follow up with delineation drilling to determine the size of the mineralization.
Steve Van Nort, CEO of Vane, said: “Vane management believes this project has the potential to contain in excess of the 50mm pounds of uranium oxide estimated in the high grade drilled area. We look forward to commencing our drilling program to confirm the historic data, obtain core for metallurgical testing and to establish the extent and distribution of the mineralization in the area.
“Vane has had significant success with its existing joint venture with U1 at the Wate breccia pipe in Northern Arizona during 2009.”
