This property consists of 133 unpatented mining claims (2,734 acres or approximately 11 square kilometers) located in 14 separate blocks of claims in the northern portion of Arizona. Historically, breccia pipes in the region produce very high grade output averaging 0.65% U3O8. This has made exploration in the area attractive.

Two geophysical exploration techniques were used to locate breccia pipe targets in the Arizona Strip. The first was the Helicopter-borne Time Domain Electromagnetic Geophysical Survey with a VTEM- M system. The second was a 3-D Seismic Survey. Both methods identified breccia pipes for follow up drilling. We are very encouraged by the success we have had using these advanced geophysical techniques in identifying breccia pipe targets. Discovering these pipes is much like looking for a needle in a haystack, but we’ve taken much of the guess work out of the equation with this technology.

Recently, two drill holes to depths of 1,240 feet and 1,340 feet have been completed on one of the target pipes. The two drill holes clearly confirmed the presence of a very large breccia pipe structure, however neither intersected the pipe throat where uranium mineralization is most likely to be. The Company is currently evaluating information from drilling and the surveys to determine additional drilling plans.

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