Project Description

In March 2022, Gold Express Mines concluded an Option to Purchase Mineral Lease with Gold Eagle Mining, Inc. (GEMI) and Golden Eagle Uranium (GEU) for a 33-month option period during which Gold Express Mines has the right to purchase the package of 12 Department of Energy (DOE) mining leases listed below. The 33-month option payment may be applied to the purchase price should the Company proceed with the decision to purchase the lease tracts.

In accordance with the option agreement Gold Express Mines signed with GEU and GEMI, advance royalty payments that are due during the option period shall be paid by the Company by reimbursement to each of GEU and GEMI of these holding costs. Also there may be some reclamation costs and maintenance costs, such as weed control, that the Company has agreed to reimburse the Optioners during the option period.

The plan for the next 12 months is to pay the balance due on the Option Agreement, the annual advance royalty payment due January 6, 2023, and the additional costs related to minor reclamation and weed control. The Company plans to do work verifying existing resources, data scanning and organization and preparation of an independent NI 43-101 technical report. 

History

Radioactive mineralization contained in uranium and vanadium deposits, within the Uravan Mineral Belt, was discovered in the late 1800s. In the early 1900s, Madame Curie lived and worked, for a time, at a location within the eastern portion of Paradox Valley. Her experiments with radium, and the development of her understanding of radioactivity, were possible because of the available resources found in this area. Sporadic mining continued during the early 1900s. Vanadium ores were mined and processed in the 1930s and used to form alloys of steel and iron. 

Union Carbide Nuclear Corporation explored and mined deposits in the Uravan Mineral Belt from the 1950s to the 1980s. Several of the lease tracts described were controlled and mined by Union Carbide during that time. 

A report by William L. Chenoweth, “The Uranium-Vanadium Deposits of the Uravan Mineral Belt and Adjacent Areas, Colorado and Utah,” published in the New Mexico Geological Society Guidebook, 32nd Field Conference, 1981, describes the above in detail.

Geology and Resource Potential

The Salt Wash members of the Morrison formation, Jurassic age, are the host-rocks for most of the uranium/vanadium mineralization in the Uravan Mineral Belt. The Salt Wash members are defined as fluvial paleo-channels derived from the erosion of highland areas in south-central Utah. Significant carbonaceous material was present within these units that allowed for the precipitation of uranium and vanadium minerals, in part, on coalified plant remains. 

The Company has a compilation of numerous technical reports, data and resource estimates provided by GEMI and GEU. In addition, there is readily available published information, data, reports and maps, including considerable compilation of mining, exploration and development by the DOE generally available at the DOE offices in Grand Junction, Colorado. 

The “Resource Potential” for the optioned DOE Lease Tracts has been estimated by other third parties to be as follows:

Lease Tract Tons of Ore Pounds Uranium Pounds Vanadium
C-JD-5 70,500 289,000 1,243,000
C-SR-13 74,000 372,000 2,430,000
C-SR-15 15,000 84,000 504,000
C-JD-5A 6,700 30,000 115,000
C-SR-10 122,000 500,000 4,250,000
C-SR-11A 79,000 300,000 2,520,000
C-SR-15A 35,000 126,000 794,000
C-SR-16 23,000 150,000 945,000
C-WM-17 50,000 250,000 1,500,000
C-LP-22 55,000 300,000 1,440,000
C-LP-22A 63,000 365,000 1,900,000
C-LP-23 95,000 500,000 2,670,000
Total 688,200 3,266,000 20,311,000

Past and Possible Future Production 

One major advantage of acquisition of these lease tracts is the fact that most of these tracts have had significant historical production which greatly mitigates the risk associated with many mining projects. Items such as economic viability and grade, ground control, costs associated with mining, metallurgical issues and milling costs are well understood due to the past extensive production history which provides a vast amount of data about the operations of the projects. This data is generally available to the Company from various repositories including that of the DOE. 

As an example, the production history of one lease tract, the C-JD-5, is tabulated below

Year Dry Tons Uranium Pounds Vanadium Pounds Uranium % Vanadium % Ratio U:V
1977 22,244 87,728 418,786 0.197% 0.94% 1:4.8
1978 36,001 148,840 623,130 0.208% 0.87% 1:4.2
1979 32,639 127,131 500,190 0.195% 0.77% 1:3.9
1980 3,722 14,398 55,466 0.193% 0.75% 1:3.9
1989 4,803 25,629 100,386 0.267% 1.05% 1:3.9
1990 899 7,225 34,508 0.402% 1.92% 1:4.8
Total 100,308 410,951 1,732,466 0.205% 0.864% 1:4.2

Future production from these leases is dependent primarily on the prices of the saleable products which are uranium and vanadium. Both metals have a bright outlook in that both of these are classified as “green energy metals.”

Electrical production from nuclear reactors using uranium is carbon emission free. Vanadium is sought for use in vanadium redox flow batteries which are being developed with very large storage capacities. Installations of these large storage batteries would be at solar and wind facilities for storage of the produced energy. 

Future production will be dependent not only on favorable pricing but also on the availability for the raw ore. The only available mill currently is owned by Energy Fuels, Inc. and located about 180 miles from the lease tracts in Blanding, Utah. The Company has had no discussions with Energy Fuels about a milling contract at this point and will not likely undertake such discussions until uranium and vanadium advance further from existing levels. 

The Company believes that the pricing trajectory of both uranium and vanadium, in light of green energy applications, is highly favorable. Recent prices of uranium and vanadium of approximately $50 and $12 per pound respectively give confidence that prices may rise further in the coming years which could trigger a production decision with respect to these leases. 

The existing lease terms of the optioned property have a 10-year term which is generally renewable by the existing Lessee, provided the lease is in good standing at the time of the renewal. The current leases were renewed in January 2020 and run through January 2030.

The Company’s future plans include:

  • Paying the balance due on the Option Agreement and the annual advanced royalty payment;
  • Performing minor reclamation and weed control as needed;
  • Verifying existing resources, data scanning and organization; and,
  • Preparation of an independent NI 43-101 technical report.