Treeline
The Treeline Property is located in the east central portion of the prolific Grants Uranium Belt in northwestern New Mexico. Over the past 60 years the Grants District has produced over 340 million pounds of uranium. Historic estimates indicate that approximately 2.0 million pounds of uranium are present within the Section 24 lease area of the Treeline property (not NI 43-101 compliant). Six drill holes completed in 2006 confirmed uranium mineralization previously identified by Conoco Resources. A Plan of Operations for up to 47 exploration drill holes has been submitted to the U. S. Forest Service and drilling is scheduled to begin in Summer, 2007.
SUMMARY
The Treeline property and contained uranium resources were acquired by WEDC in October 2004 through a lease with Sedi-Met, Inc. In March, 2005 WEDC exercised its option to purchase and acquired the property through 2017. Treeline is located in both Cibola and McKinley counties, approximately 20 road miles west-northwest of the community of Grants. The project includes 480 acres of private land leased by WEDC and approximately 3,380 acres of lode mining claims located by WEDC.
Uranium mineralization at Treeline occurs as primary trend ore found in basal stream channel sequences and as secondary, remobilized roll front mineralization. The property was originally drilled by Conoco and others during the early to mid 1970’s. Treeline is on trend between two past uranium producers, the Marquez Mine and the San Mateo Mine whose combined production was over 6.5 million pounds of uranium at + 0.20% U3O8. Uranium mineralization on the Treeline property lies at a depth of between 500 and 1000 feet and is below the water table. This setting suggests that portions of the deposit may be amenable to “In Situ Leach” (ISL) recovery methods.
Contained in the acquisition was a substantial historical database compiled by Conoco for the Treeline project. The Conoco data set includes all probe data, chemical assay information, geologic maps, and summary reports. WEDC has reviewed, cataloged, and digitized all the Conoco data. Additionally, the TSX.V has accepted a NI 43-101 report on the project prepared by Mine Development Associates of Reno, Nevada. WEDC is in the process of bringing Conoco’s historical resource figures into compliance with NI 43-101 requirements.
CURRENT AND FUTURE WORK PLANS
Six drill holes completed in March, 2006 confirmed uranium mineralization in Section 24. A Plan of Operations has been submitted to the U.S. Forest Service for 47 drill holes to expand the uranium resource found by Conoco and others.
The small orientation survey initiated in 2006 will be expanded. The program included both modern and historical methods of detecting uranium mineralization. The 2007 expansion will include track etch, surface alpha meter and soil geochemistry (mobile metal ion) surveys. The goal is to identify additional fluvial channels containing uranium mineralization.
National Instrument 43-101 Disclosure
The information and statements on historical exploration were provided by Victor R. Calloway, P. Geo., Western Energy Development Corporation’s Vice President of Exploration and a Qualified Person as defined by National Instrument 43-101. Readers are cautioned that while the resource estimates are considered to be reliable and relevant they do not use categories as defined in National Instrument 43-101. All resource estimates quoted herein are based on historical data and reports obtained and prepared by previous operators, and the reader is cautioned that none of the calculations conform to NI 43-101 requirements for reporting reserves and resources. WEDC has not done the work necessary to verify the classification of the mineral resource estimates. WEDC is not treating the mineral resource estimates as a NI 43-101 defined resource verified by a Qualified Person. The historical estimates should not be relied upon.
|
