Commencement of Production

In December 2015 Strata received the United States Nuclear Regulatory Commission’s (NRC) authorization to begin in-situ uranium recovery operations from the Ross Permit Area at the Lance Projects in Wyoming, USA (Lance Projects).

The NRC preoperational inspections were held during November 2015, and confirmed that the constructed plant and associated site systems up to the ion exchange columns, including wellfields, indicated that the plant is physically capable of conducting in-situ uranium recovery operations. The NRC also confirmed that written operating procedures and approved radiation safety and environmental monitoring programs were in place, and verified that preoperational testing was complete.

Introduction

The Lance Projects are located on the North-East flank of the Powder River Basin in Wyoming. The original NuBeth Joint Venture between Nuclear Dynamics Inc, Bethlehem Steel Corporation and later Pacific Power and Hydro (NuBeth JV), discovered thirteen substantial zones of uranium mineralization associated with an extensive system of roll fronts confirmed by drilling between 1970 and 1979. As part of this exploration program, the NuBeth JV drilled more than 5,000 exploration and development holes, totaling in excess of 997,375 yards (912,000 meters). A proprietary database of the historic drilling and pilot plant data was acquired by Peninsula in 2007, defining a then relatively unknown uranium district of which Peninsula is now the dominant mineral rights holder.

The Company has explored only part of this area in the last five years and has successfully delineated over 53.7 mlbs of U3O8 JORC Code (2012) compliant resource.

The Lance Projects have 190 line miles (305 kilometers) of identified roll fronts and an exploration target of 104-163mlbs U3O8, which is in addition to the JORC Code (2012) compliant resource. These roll fronts stretch over 50 kilometers north-south and are open to the north, south and west.

20151016_wyoming_uranium_deposits_test

Figure 1: Lance Projects Location, Wyoming, USA

Unlike most in-situ recovery (ISR) projects, Strata’s mineral resources are located on contiguous landholdings that we control. This allows Strata to develop the Lance Projects in a cost-effective manner, without having to incur infrastructure and facility development costs that would otherwise be required if our landholdings were not contiguous.

JORC Code-Compliant Resource

On January 24, 2013 Strata announced a further upgrade to the JORC-compliant Resource Estimate for the Lance Projects. This upgrade was achieved by the completion of an additional 676 rotary mud drill holes completed in the seven months subsequent to the March 2012 resource estimate.

The resource, now totaling 53.7Mlbs, has been calculated by applying a combined constraint of a GT of 0.2 contour and 200ppm eU3O8. These cut offs are considered to be appropriate for both calculating and reporting of ISR resources at the Lance Projects.

The measured, indicated and inferred resources are located in host sandstones that have demonstrated positive uranium recovery from test-work. Geological modelling of the extensive down-hole geophysical data has accurately defined the impermeable shale and mudstone horizons that form the confining horizons to the mineralized sandstones.

Table 1: Lance Projects, Wyoming USA – Classified Resource Summary (U3O8)

TotalTonnes Ore
(M)
U3O8 kg
(M)
U3O8 lbs
(M)
Grade
(ppm U3O8)
Total51.224.453.7476
Measured4.12.14.5495
Indicated11.65.712.7497
Inferred35.516.636.5467
(JORC resource is reported above a lower grade cut-off of 200ppm and a GT of 0.2.)

Table 2: Lance Projects Classified Resource by Resource Unit (U3O8)
RossTonnesGrade
(ppm U3O8)
U3O8 lbsAverage
Thickness
(ft)
Average GT
Total9,793,09151811,184,6129.00.47
Measured2,824,5715003,112,02910.00.50
Indicated5,823,1435316,818,8228.40.45
Inferred1,145,3774971,253,76210.50.52
KendrickTonnesGrade
(ppm U3O8)
U3O8 lbsAverage
Thickness
(ft)
Average GT
Total28,222,96847629,617,0209.90.47
Measured682,078506761,0869.30.47
Indicated3,706,8084964,056,8669.40.47
Inferred23,834,08247224,799,06810.00.47
BarberTonnesGrade
(ppm U3O8)
U3O8 lbsAverage
Thickness
(ft)
Average GT
Total13,137,06044412,872,5929.50.42
Measured636,302461647,0459.50.44
Indicated2,002,1844001,765,2639.80.39
Inferred10,498,57445210,460,2849.70.44
TotalTonnesGrade
(ppm U3O8)
U3O8 lbsAverage
Thickness
(ft)
Average GT
Total51,153,11947653,674,2249.70.46
Measured4,142,9514954,520,1599.80.49
Indicated11,532,13549712,640,9519.00.45
Inferred35,478,03346736,513,1149.790.46

*Joint Ore Reserves Committee, Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves

 

Exploration Target

The Lance Projects covers an area of over 46 mi2 (120 km²) within which there is a combined total of 190 line miles (305 kilometers) of known stacked roll fronts. Of this total, only a small percentage has been explored, with over 90% of the drilling concentrated within the more advanced Ross, Kendrick and Barber areas. Based on the historic conversion rate from roll front length to a drill-defined resource, the exploration target of the Lance Project, which is in addition to the JORC-compliant resource, is assessed at between 104 and 163 Mlbs U3O8. The exploration target is based on an anticipated grade range of 426ppm to 530ppm U3O8. This grade range approximates the minimum and maximum modelled grades respectively.

Table 3: Lance Projects Exploration Target

Exploration AreasTonnes
(M)
Grade
(ppm U3O8)
eU3O8
RangeFromToFromToFromTo
Total168.9185.9426530157.7217
(Totals include existing JORC Resource)

Please note that in accordance with Clause 17 of the JORC (2012) Code, the potential quantity and grade of the ”Exploration Target” must be considered conceptual in nature as there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.