Henry Mountains Project Utah

 High Grade Uranium & Vanadium Properties in Utah, USA

Henry Mountains Uranium & Vanadium Projects, Utah, USA

The Company, as reported to ASX on 21 July 2021, recently concluded uranium and vanadium exploration drilling on its Section 36 project area. 40 holes were drilled to an average depth of 74 feet (23 metres), using a buggy rig, and logged with a gamma probe. Geophysical logging of an additional 32 existing drill holes also took place.

The program focused on Section 36 and the 21 July 2021 report included drill maps, cross sections, and a complete listing of drill results. This drilling campaign followed the successful logging of 56 existing holes and mapping of existing underground adits completed earlier this year (refer to ASX release 19 May 2021). All results are reported as % eU3O8 (weight percent as per US convention, ppm = Wt% x 1,000).

Highlights from the program were:

  • 40 holes drilled with 23 of the holes mineralised.Hole #36-1034 contained 5 feet at an average grade of 0.179% eU3O8 (1790ppm) from 24.5 to 29.5 feet below the ground surface.
  • The best hole, 36-0318 contained 4.5 feet at an average grade of 0.143% eU3O8 (1,430ppm) from 39 to 43.5 feet below the ground surface.
  • Three of these holes showed thicknesses and grade of mineralisation similar to the average reported mining heights and grades. The best hole, 36-1034 contained 5 feet at an average grade of 0.179% eU3O8 (1,790ppm) from 24.5 to 29.5 feet below the ground surface.
  • In addition, 32 existing holes were geophysically logged with 10 encountering mineralisation. Hole #36-0318 contained 4.5 feet at an average grade of 0.143% eU3O8 (1430ppm) from 39 to 43.5 feet below the ground surface.
  • These results were consistent with the geophysical logging of 56 existing holes reported 19 May 2021 where 52% of the holes were mineralised. The best hole, 36-14 contained 4.5 feet at an average grade of 0.19% eU3O8 (1,900ppm) from 41 to 45.5 feet below the ground surface
  • Mineralisation was discovered in the West Exploration Target Area and drilling confirmed mineralisation extensions in proximity to historical underground mine workings between the South & East portals and between the East portal and the outcrop to the south.
  • Mineralisation was also encountered in a slightly deeper horizon northeast of the East Portal.
  • The thickness and grade of uranium mineralisation encountered is consistent with that observed in the region’s past producing mines that produced in excess of 17.5Mt @ 2,400ppm U3O8 (92 mlbs U3O8) and 12,500 ppm V2O5 (482 mlbs V2O5)[1]

[1] Geology and recognition criteria uranium deposits of the salt wash types, Colorado Plateau Province, Union Carbine Corp, 1981, page 33

The Company previously completed core drilling and geophysical logging of existing drill holes on the Jeffery Project as reported to the ASX on 25 June 2020.  

 The Company believes that additional drilling is warranted as follows:

  • In the Jeffery area along the southwest to northest trend between the areas of past mining,
  • In Section 36 inclduing offset drilling related to the 2021 drilling and drilling in the northest poriton of the section adjacent to Jeffery, and
  • In the Rat’s Nest Area and in the northeastern portion of Section 2. 

The shallow nature of the mineralisation can support low-cost, rapid exploration advancements and the Company is working to further interpret results in advance of confirming follow-up fieldwork. Pending receipt of final assay results, GTI will finalise planning of further fieldwork.

The Company notes that these projects have been mined historically using low capital intensive underground mining methods with ore sold, either directly or via a consolidator or buying station, to one of the conventional uranium processing mills in the area e.g., the White Mesa Mill at Blanding which also paid for the usually significant vanadium content (often a 5 to 1 ratio) of the local ore.

This mining activity is believed to have occurred during the mid-1970’s & early 1980’s when uranium price was at the accepted industry incentive pricing of US$50-$60 per pound with vanadium trading at around US$4 -$5 per pound.

The Company will continue to progress these projects in anticipation of uranium & vanadium pricing improving such that the White Mesa Mill recommences processing of uranium & vanadium mined ores. 

The Company notes that on July 15, 2021, International Consolidated Uranium Inc. (CUR) (TSXV: CUR) (OTCQB: CURUF) and Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels”) announced that CUR has entered into a definitive asset purchase agreement (the “Purchase Agreement”) with certain wholly-owned subsidiaries of Energy Fuels (collectively, the “EF Parties”) whereby CUR will acquire a portfolio of conventional uranium projects located in Utah and Colorado (the “Projects”) from the EF Parties (collectively, the “Transaction”).

In connection with the closing of the Transaction, the companies have also agreed to enter into toll-milling and operating agreements with respect to the Projects which positions CUR as a potential near-term US Uranium producer subject to an improvement in uranium market conditions and/or CUR entering into acceptable uranium supply agreements[2].

The Company see this move by Energy Fuels and CUR as encouraging, particularly because it appears to affirm Energy Fuels intention to toll treat district ore in the future.  The Company intends to take a measured approach to additional drilling and development of the project as Energy Fuels is not yet purchasing ore due to current uranium market conditions.

 

[2]https://www.energyfuels.com/2021-07-15-International-Consolidated-Uranium-Enters-the-U-S-Uranium-Sector-with-Transformational-Acquisition-and-Strategic-Alliance-with-Energy-Fuels

Location of historical drilling within the Moki Project and surrounding area

GTI’s Henry Mountains (Utah) claim group location map

Section 36, Henry Mountains Utah, Drill Data and Mineralized Trend

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GTI Resources Ltd

Level 1
89 St Georges Terrace,
Perth, WA 6000

PO Box Z5187
Perth WA 6831

+61 (0) 8 9226 2011

info@gtiresources.com.au

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