Elliot Lake

The 8,092 ha property is located in northern Ontario, Canada some 11 km east of the city of Elliot Lake.

The project hosts more than 42-million pounds of NI 43-101 compliant U3O8 resources and has received a positive Scoping Study, providing the basis for economically-viable, environmentally-compliant uranium mining and processing operations. The Scoping Study is preliminary in nature and includes both indicated and inferred mineral resources.

The mine is expected to have an 18-year mine life, producing 826,000 pounds of U3O8 annually at a cash operating cost of US$55.51 per pound.

The proposed mining methods are a combination of panel drifting and longhole slashing. Approximately 40% of the mine production will be broken by mechanized drifting methods. This material will be transferred to surface using trucks and processed in a conventional acid-leach plant.

The remaining 60% of the production will be broken by mechanized horizontal longhole mining and left in place underground for extraction of the uranium by bioleaching. The bioleaching will be carried out by sealing and periodically flooding the room. Air will be introduced to enhance the bioleaching process. The solution carrying the uranium from the underground leaching will be pumped to surface and combined with the pregnant solution from counter-current decantation as feed to a clarification circuit.

The production rate at full production is projected at 3,214 tonnes per day (tpd), with 1,260 tpd from panel drifting trucked to surface and processed in a conventional acid leach plant and 1,954 tpd from longhole mining with underground bioleaching. The production grade averages 0.045% U3O8 over the mine life. The production grade is based on the mineral resource estimates and the production from the panel drifting has been reduced by 10% for dilution. Personnel requirements are estimated to be 186.

The tailings are contained and supported by a care and maintenance programs. The discharge water is treated until treatment is demonstrated to be unnecessary and no adverse environmental conditions are assured. On closure, the tailings will be covered with impermeable barriers to prevent oxygen and water penetration.