Uranium deposits and prospects on the Hidden Bay property are of the unconformity type. Three deposits for which National Instrument (“N.I.”) 43-101 resources have been estimated occur on the Hidden Bay property: Horseshoe, Raven and West Bear. The Horseshoe and Raven deposits are located in north central portions of the Hidden Bay property. Mineralization at the Horseshoe and Raven deposits comprises shallow dipping zones of hematization with disseminated and veinlet pitchblende-boltwoodite-uranophane that is hosted by folded arkosic quartzite gneiss of the Hidden Bay Assemblage. Mineralization comprises a combination of disseminated pitchblende-chloritehematite, and narrower, higher grade nodular and veinlet pitchblende in hematite-clay alteration.

Mineralization at the Horseshoe and Raven deposits is entirely hosted by folded arkosic quartzite, quartzite and calc-arkosic gneisses of the Hidden Bay Assemblage and occurs at depths ranging from a few tens of m up to 460 m below surface. The mineralization is locally open at depth. The Athabasca sandstone is eroded from and absent in the area of the deposits, but local sandstone outliers that occur to the southeast of Hidden Bay and sub-Athabasca paleoweathering that is preserved in the near surface in some nearby drill holes suggest that the current surface is just below the elevation of the original sub-Athabasca unconformity in the deposit area, prior to its erosion.

The West Bear deposit, located in t ........

The preliminary mining investigation revealed that the Horseshoe deposit would be amenable to underground mining methods and the Raven deposit suitable for open pit (“OP”) mining. Raven also has the potential to support an underground (“UG”) operation, under the open pit, but it would need higher than the Case A U3O8 price of US$60/lb to be economic.

The choice of mining method was determined after taking into consideration all of the known contextual factors of the Horseshoe deposit. The main factors for determining an appropriate mining method for the Horseshoe deposit were: the irregular geometry of the mineralization with varying thicknesses and a 25° average dip angle, that makes the caving and sub-level open stoping mining methods unsuitable for the deposit.

Three mining methods were initially proposed to be appropriate based on the mineral deposit size, geometry and preliminary geotechnical assessment:
• Cut and Fill (“C&F”) mining method to be used where the mineral deposit thickness and dip would not allow taking more than one cut at the same elevation;
• Drift and Fill (“D&F”) mining method to be used for the wider portion of the mineral deposit which require more than one cut at the same elevation and where the grades of mineralized material would require a higher extraction rate;
• Room and Pillar (“R&P”) mining method would be used for low grade mineralization, where D&F mining would be uneconomic.

90% of total mine ........

The Hidden Bay deposits of Horseshoe and Raven are proposed to be developed both as an open pit (“OP”) and underground methods (“UG”). Mining of the Horseshoe and Raven deposits is proposed to produce a total of 2.49 Mt of mill feed and 15.0 Mt of waste over a 7-year mine operating life. Approximately 2.10 Mt of mill feed is planned to be produced from UG mining of the Horseshoe deposit, with 0.39 Mt being produced from OP mining of the Raven deposit. The mill feed is planned to be trucked to Cameco’s Rabbit Lake Facility for processing. It is assumed that a toll treatment agreement could be reached with Cameco, the owner of the Rabbit Lake plant, which would allow Hidden Bay mineralization to be processed at an average rate of 1,000 tpd. It is also assumed that the Rabbit Lake facility would provide toll tailings deposition for the Hidden Bay ROM material.

Ten primary circuits are used to produce yellowcake at the Rabbit Lake mill:
1. receiving;
2. grinding;
........