The properties include:
1. 94 unpatented mining claims (1,645 acres or approximately 7 square kilometres), which straddle the Colorado-Utah border. A technical report was prepared to NI 43-101 standards for prior owner U.S. Energy Corporation 1 and refers to historic mineralization estimates of 107,350 tons @ 0.23% U3O8 and 1.45% V2O5 containing 483,000 lbs. U3O8 and 3.1 million lbs. V2O5 on the Sage Plain claim block. This historic resource is not NI 43-101 compliant. There is no new information that would indicate the information is inaccurate or misleading. The U308 uranium grade ranges up to 0.24% averaging around 0.23%, or 4 to 5 lbs. per ton. The property includes the Sage Mine and borders the famous Deremo and Calliham Mines that had a combined historic production of over 8 million pounds (3,600 tons) U3O8 and 70 million pounds (32,000 tons) V2O5.
2. Four Utah State Mineral Leases covering five parcels (2,013 acres or approximately 9 square kilometres).
Reports by Umetco Minerals Corp. (successor to Union Carbide Corp.) indicated mineralization on the
southern State lease (ML49301) of some 84,800 tons @ 0.195% U3O8 and 1.60% V2O5 containing 344,880
lbs. U3O8 and 2.7 million lbs. V2O5
3
. This resource pre-dates the adoption of NI 43-101 and is not NI 43-
101 compliant.
3. The Crain Lease and the Calliham Lease have been recently added to the Sage Plain Complex and are
described below.
| Area |
Property Type |
Acres |
Historical Resources Lbs. U2O8 |
Historical Resources Lbs V2O5 |
Sage Plain |
BLM Mining Claims |
1645 |
483,400 |
3,100,000 |
ML 51145 |
Utah SITLA Lease |
160 |
Unknown |
Unknown |
ML 51963 |
Utah SITLA Lease |
480 |
Unknown |
Unknown |
ML 51146 |
Utah SITLA Lease |
640 |
Unknown |
Unknown |
ML 49301 |
Utah SITLA Lease |
733 |
344,880 |
2,700,000 |
Crain |
Private Mineral Lease |
640 |
225,000 |
1,400,000 |
Calliham |
Private Mineral Lease |
320 |
520,800 |
3,500,000 |
TOTAL |
|
4,915 |
1,574,080 |
10,800,000 |
The resources in the above Table are historical in nature and were compiled before the implementation of NI 43-101
reporting standards; they are not NI 43-101 compliant. Recent independent verification of the data has not been
performed and CPP has not completed sufficient exploration work to verify the historical resource estimates. The
historical resources were believed to be reliable at the time and prepared to industry standards in place at the time.
CPP is not treating the historical estimates as NI 43-101 defined resources or reserves verified by a qualified person
and the historical estimates should not be relied upon.
The combined historic resource in the potential mining unit created by the Crain Lease and other properties owned
or controlled by EFR and CPP is approximately 1.5 million lbs. U3O8 and 10.7 million lbs. V2O5. These historic
resource estimates are based on drilling and reporting undertaken by Umetco Minerals
2
. The estimates are not NI
43-101 compliant, but are deemed reliable by Royal and EFR's geologists. The mining in this area ceased at the
time of Umetco’s report so the resources are deemed to still be in place. The Company will immediately evaluate
the data package acquired as part of this property purchase, and complete an NI 43-101 technical report by the end
of the year
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