Waterval Prospect

The Waterval uranium deposit, like most of the deposits in the Karoo, is a typical sedimentary sandstone-type deposit. This deposit was explored in the 1970’s by both Union Carbide Corporation and The Essex Mineral Company and in the early 1980’s by the Geological Survey. During these various phases of exploration two uraniferous outcrops were identified which form prominent cliffs varying in thickness between 4 metres and 24 metres. Approximately 150 previous holes on a 100 metre by 100 metre grid were drilled. The drilling encountered uranium mineralisation as shallow as 8 metres to 13 metres in depth and at an average thickness of 1.04 metres. The average grade was calculated to be between 1,690 and 1,820 parts per million ("ppm") uranium oxide (“U3O8“) and 910 ppm molybdenum (“Mo”).

Figure 3:  Areas underlain by potentially uraniferous (+Mo) sandstones on the Waterval Prospect.

SRK Consulting stated that based on the assumption that between 5% and 10% of the area underlain by uraniferous sandstone may be mineralised and typical mineralisation grades for Waterval, the magnitude of the total in-situ mineralisation that the Company is targeting in its exploration is likely to fall within a range of 11 million and 21 million pounds of U3O8 and between 5 million and 11 million pounds of Mo.