Ashley Provides Historical Drilling Summary of Sahara Utah Uranium-Vanadium Property
Ashley Provides Historical Drilling Summary of Sahara Utah Uranium-Vanadium Property Ashley Gold Corp. (CSE: “ASHL”) (“Ashley” or the “Company”) has
Emery County
Uranium-Vanadium
Advanced – Resource Definition – Production
Earning 100% Interest
40² Kilometres
Sandstone Channel Hosted
Ashley Gold Corp
Mine modernization – Infill and Step Out Drilling.
The Sahara Property is located 12 miles southwest of Green River, Utah and consists of over 400 claims totalling over 10,000 acres. The region has produced 4,000,000 lbs of Uranium and 5,000,000 lbs of Vanadium with some historical production occurring on the Property until 1980. The Project is located one mile off of the I-70 and is accessed by state and county maintained paved roads as well as all weather gravel roads. Water wells are located on the property as well as power. In addition, a nearby telecommunicaions tower and fibre optics at the property provide internet and phone access.
Original mine was developed in the late 1950s. Energy Fuels acquired the property and did extensive drilling in the 1970s. In the late 70s Energy Fuels developed the mine plan and drove an adit to the primary ore body. They also put a drive over to the 1959 mine workings. There are more than 1,175 meters (3855 feet) of access drives. Energy Fuels mined some ore from the original 59 workings. Uranium prices dropped so mining was suspended. Prices stayed low long enough that eventually Energy Fuels dropped the project.
Ashley is actively assessing the mine to determine the path to production. It is anticipated that production could commence late 2025 or early 2026.
Highlights
*Historical drill data currently non-43-101 compliant
Declines and Workings
Figure 1 shows the declines to the ore bodies and underground workings in blue. The original decline running roughly south to north was used to produce ore out of the mine until 1977. Energy Fuels drove an 800m (2,600ft) low angle decline into the deposit in 1979 for higher haulage rates (west-east). The older decline was used for a secondary exit and air circulation. The production operation was put on standby due to the Three Mile Island incident in 1979. Focus was put on expansion of the Sahara reserve in anticpation of Uranium price rebound however this did not occur with prices falling below 20 US dollars a pound for two decades. It is Ashley’s intent to reopen the modern decline in the near future to evaluate the decline and workings.
Historical Drilling
Energy Fuels conducted multiple drill programs over the greater Sahara property 1990 with a total of 776 holes comprising of 325,988 ft (~99,000m). In today’s dollars this represents and expenditure of $15-20 million in exploration drilling. Drill density was as tight as 10m over the reserve area with almost 400 holes exceeding 0.1% eU3O8*. Highlights of the top 30 holes ordered by Grade X Thickness (ft) are outlined in Figure 1. Grade as high as 3.92% eU3O8* were documented as well as several intercepts over 10ft (3m). Additional programs in 2006 and 2009 were also documented and will be outlined in a future release.
*Historical drill data currently non-43-101 compliant
Historical Reserve and First Pass Modelling
By 1987 Energy Fuels outlined a historical ore reserve of almost 500,000 lb of eU3O8* at the Sahara mine. An ore reserve is defined as economically minable ore and represents a high level of confidence. Subsequent modelling in Vulcan as part of a Master’s Thesis reports a non-compliant resource of over 2,240,000 lbs of eU3O8* and nearly 4,000,000 lbs of Vanadium*. As part of Ashley’s due diligence the drill data from the Vulcan model was loaded and modelled in Leapfrog. The modelled bodies look to match the thesis model in size and shape. Infill and step out opportunities for the upcoming drill program are identified and will be used to confirm. Additional historic resources outside of the Sahara Ore-body have been documented within the Property and data for these are currently being digitized to be summarized in future releases.
Option Agreement Terms
Under the terms of the Agreement, Ashley has the right to acquire a 100% undivided interest in the Property through staged cash and share payments, plus minimum work expenditures totaling USD $10 million over a three-year period, as summarized below:
To earn an initial 30% interest to the Property:
To earn a 50% interest to the Property:
To earn 100% of the Property:
In addition to the 100% earn-in, Ashley has agreed to issue additional common shares to San Rafael based on certain economic Uranium Resource identified in a Preliminary Economic Assessment, as follows:
Upon completion of the acquisition of a 100% interest in the Property, Ashley will grant a 2% Net Smelter Return Royalty (the “NSR”) to San Rafael. Ashley will have the option to buy back 50% of the NSR for USD $2,000,000 prior to the commencement of commercial production.
As a prerequisite to executing the Agreement, Ashley has entered in to an investor rights agreement with San Rafael which gives San Rafael the right to participate in future financings on equal terms as well as the right to top up their equity position in any dilutive issuance (i.e., convertible securities) at the average 20-day Volume Weighted Average Price to maintain minimum ownership percentage. San Rafael shall also have the right to nominate a director to join the Board of Directors as Chairman upon initial earn-in, subject to regulatory approval.
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