"We are very pleased to be able to update Bootheel's Mineral Resource Estimate, as a result of our successful 2011 drill program." says Stewart Wallis, President of Crosshair. "These strong numbers, in combination with the hydrological data being acquired from the property, will provide a solid foundation upon which to complete our Preliminary Economic Assessment later this year."
TABLE 1 Bootheel Mineral Resource Estimate as of January 16, 2012 | ||||
Classification | Formation | Short tons | % eU3O8 | Pounds eU3O8 |
Indicated | Sundance | 2,068,000 | 0.036 | 1,482,000 |
Inferred | Sundance | 3,039,000 | 0.032 | 1,942,000 |
Inferred | Wind River | 955,000 | 0.062 | 1,184,000 |
Inferred | Total | 3,994,000 | 0.039 | 3,126,000 |
Notes:
1. Mineral Resources are classified according to CIM Definition Standards, which are incorporated by reference in National Instrument 43-101.
2. High U3O8 grades have not been cut for the Mineral Resource estimate.
3. Tonnage, average grade, and contained uranium are rounded.
Uranium mineralization occurs within several different
sandstone beds within the Sundance Formation at the Bootheel
Property. This formation has the potential to be recovered
using in-situ recovery (ISR) techniques (see news release
dated February 5, 2009). ISR techniques are more
environmentally friendly and less capital intensive than
conventional mining methods.
Resource Estimate Details
This updated resource estimate for the Bootheel Project is
based on results from 169 Crosshair drill holes totaling
85,923 feet (26,189 metres) and approximately 1,450 historic
drill holes for which detailed information is available.
Crosshair used cut-off grades based on a US$70 per pound long
term price of U3O8 and the estimated mining costs of a
typical ISR project. The cut-off grade used for the resource
contained within the Sundance Formation is 0.015% eU3O8. The
cut-off for the resource contained within the Wind River
Formation was increased to 0.020% eU3O8 to allow for the
possibility of lower recoveries in the formation and
increased drill density required for the development of the
well fields.
A stratigraphic analysis based on mineralized and barren
drill holes was performed in preparation for the resource
estimation. The individual mineralized lenses were drawn on
cross sections and interpreted on a section by section basis.
The complex morphology of roll front mineralization within
the Sundance Formation was divided into three categories then
each category was contoured. The geological interpretation of
mineralization in the Wind River Formation was strongly
influenced by the lithological logs and only mineralization
hosted by sandstones and/or the basal conglomerate with a
minimum thickness of four feet, were included in the
composite database used for the resource estimate.
Composites within the selected formation were determined
using the grade cut-off combined with a minimum grade
thickness (GT, product of %eU3O8 x interval thickness) of
0.15 %-ft. Generally no more than three feet of intermediate
material below cut-off between adjacent mineralized intervals
was included in the composites but in several cases
interpretation suggested that the interval should be
extended. The majority of the Inferred Resource was drilled
off on a spacing of 200 ft. lines with drill holes 100 ft.
apart. The Indicated Resource that lies within the Sundance
Formation (Zone 6) was drilled off with hole spacing in the
order of 100 ft. by 100 ft. to 150 ft.
The Sundance Formation resource was estimated using the GT
contour method. The drill hole composites were plotted on
horizontal plans depicting vertical thickness and GT values
for each midpoint of the mineralized intersection of the
drill hole. The thickness and GT values were contoured on a
horizontal plan and the area enclosed within each contour was
measured. The mineralized volume was calculated by
multiplying each contoured area by its average thickness then
all individual volumes were summed. Tonnage was estimated by
dividing the total volume by the tonnage factor of the
appropriate formation. The tonnage factor for the Sundance
Formation is 16 cubic feet per short ton and 15 cubic feet
per short ton for the Wind River Formation. The average grade
was estimated by dividing the total tonnage grade (