The Roca Honda Project area is located in the southeast part of the Ambrosia Lake sub-district of the Grants uranium district and is near the boundary between the Chaco slope and the Acoma sag tectonic features. This sub-district is in the southeastern part of the Colorado Plateau physiographic province and is mostly on the south flank (referred to as the Chaco slope) of the San Juan Basin.

Rocks exposed in the Ambrosia Lake sub-district of the Grants Mineral Belt, which includes the Roca Honda Project area, comprise marine and non-marine sediments of Late Cretaceous age, unconformably overlying the uranium-bearing Upper Jurassic Morrison Formation. The uppermost sequence of conformable strata consists of the Mesaverde Group, Mancos Shale, and Dakota Sandstone. All rocks that outcrop at the Roca Honda Project area are of Late Cretaceous age.

The uranium found in the Roca Honda Project area is contained within five sandstone units of the Westwater Canyon Member. Zones of mineralization vary from approximately one foot to 30 feet thick, 100 feet to 600 feet wide, and 200 feet to 3,000 feet in length. Uranium mineralization in the Project area trends west-northwest, consistent with trends of the fluvial sedimentary structureso the Westwater Canyon Member, and the general trend of mineralization across the Ambrosia Lake sub district.

Core recovery from the 2007 drilling program indicates that uranium occurs in sandstones with large amounts of orga ........

As currently envisaged, mining at the Project will be based on an average production rate of 1,050 stpd using a combination of step room-and-pillar (SRP) and drift-and-fill (DF) mining methods. Rubber tired mechanized mining equipment will provide operational flexibility in the mine in response to changing orebody geometry. Broken mineralized material will be transported by truck to ore passes leading to a skip pocket and hoisted to surface from either the Section 16 or Section 17 shaft. Cemented rockfill will be placed in mined out areas for ground control. Mining will prioritize the highest-grade areas first by Section, and in the case of stacked mineralized zones, top-down. Mineralized material will be stockpiled on surface and hauled by truck to EFR's White Mesa Mill for processing.

Mine surface infrastructure will be based at the Section 16 shaft area and include all support buildings, mine ventilation fans, batch plant, ore and waste stockpiles, pump infrastructure and a water treatment plant with associated holding ponds.

A minor amount of infrastructure will also be required on Section 17 (Lee Ranch) to support mine operations. A concrete lined shaft, with a 14 ft finished diameter, exists in Section 17 to a depth of 1,475 ft. An additional 186 ft of sinking is required to reach its design elevation. Existing infrastructure on Section 17 includes line power, a hoist house, maintenance building, and a one-acre pond used to hold water during shaft ........

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