Overview
Urex Energy Corp. owns a 100% interest in 137 unpatented mining claims (approximately 2,740 acres) in Grants Mining District Cibola County, New Mexico that lie adjacent to Homestake's La Jara Mesa and Melrich uranium deposits. Between 1950 and 1978 the Grants Mining District produced 135,891 tons of uranium, which ranks it as the most prolific uranium district in the United States.
The uranium mineralization occurs as tabular units within Brushy Basin member of the Jurassic Morrison formation. The host sandstone is equivalent to the production zone at the Jackpile Mine operated by Anaconda to the east of the project area. The formation is near horizontal and is dry.
Homestake La Jara Mesa Deposit lies on the southwest boundary of the Urex claim block (figure 1) and contains five separate areas have a combined mineral inventory (drill indicated and inferred) of 1,133,310 tons at 0.30% eU3O8 containing 7,133,310 pounds utilizing a 15% diluted thickness/grade cutoff of 6 ft. at 0.16% eU3O8. Within the above total is the Dena Rich deposit, which contains 804,199 tons at 0.36% eU3O8 containing 5,084, 692 pounds. Homestake completed a feasibility study in 1983. No mine access or development work was initiated. Much of the property remains unexplored. Drilled mineral intercepts have not been fully delineated. The potential remains to double the current 7 million pound U3O8 resource.
The Homestake Melrich ore body lies on northeast boundary of the Urex claim block (figure 1) and is a north-south trending tabular unit containing an indicated/Inferred/Potential resource of 1,045,500 tons at an undiluted grade 0.154% eU3O8 for a total of 3,217,000 pounds when using a 0.08% eU3O8 cutoff. The ore body is approximately 2600 feet in length 500 feet in width and an average thickness of 11.8 feet.
)
The property is well drilled with very little additional potential. Several scoping studies have been conducted to consider conventional mining by shaft entrance as well as extraction by in-situ leach. The Jurassic Morrison formation's Brushy Basin member uranium host rock exists under the Urex's claim block and with drilled uranium reserves on the boundaries; it is estimated that a uranium potential of 20 to 40 million pounds of U3O8 could exist on Urex's property.
View to the east of Urex Energy La Jara Mesa Uranium Project, New Mexico with Mt. Taylor in the background.
Independent Review of the La Jara Mesa Uranium Project (PDF, 3 mb)
Cibola County, New Mexico
Prepared by: Brian Cole, P. Geo.
August 31, 2006
Maps & Photos
