Uranium-vanadium mineralisation in the Laguna Salada Project has the principal characteristics of surficial uranium deposits according to the classification of Toens et al., 1984.

Two principal styles of uranium-vanadium mineralisation have been identified at Laguna Salada as follows:

- Of principal economic interest is a tabular, gently undulating layer that contains yellow-green uranium-vanadium minerals at shallow depth within unconsolidated, sandy gravel. This style of mineralisation occurs in the Guanaco and Lago Seco areas in gravel-dominated clastic facies of different ages – Pleistocene at Guanaco and Holocene at Lago Seco. Powdery and finely crystalline uranium-vanadium minerals occur between the grains in the sandy matrix of the gravel and also as partial coatings on sand grains and clasts. Studies indicate that approximately 10% of the contained uranium occurs as rinds on clasts. Carnotite (K2(UO2)2(VO4)2.3H2O) is the dominant uranium-vanadium mineral and has a variable habit from slightly cohesive to compact masses of crystals.

- The second style of mineralisation is found in the Buried Lake area where carnotite straddles the unconformity between the gravel sequence and the underlying, organic-rich mudstones. Mineralisation within this layer occurs in interstices in the sandy matrix and on pebbles in the gravel as well as within cracks and associated with organic material in the underlying mudstone. The true potential of this ........

The topography of the Laguna Salada Project demands the use of two different mining techniques as follows:

- The flat, mesa-like topography beneath which mineralisation occurs in an extensive sheet at shallow depth, characterises approximately 80% of the Guanaco and Lago Seco deposits. Strip mining is ideal for these areas; and

- Approximately 20% of the Laguna Salada resource lies on the margins of the mesas or where small streams have eroded into the mesas creating relatively steep slopes and irregular topography that is not conducive to the use of large continuous mining equipment. Contour stripping with conventional truck and shovel (or truck and FEL), would be a more appropriate mining method for these areas of greater slope.

Continuous surface mining
The mining operation contemplates the use of two Wirtgen SM 2200 (400tph capacity) continuous surface miners. This model of surface miner has a cutting width of 2.2m and a variable cutting depth to a maximum of 30cm.

The mining operation is contemplated to follow the procedure outlined below:

- Removal of the overlying soil by grader with FELs filling truck-trailers that would transport the soil for immediate spreading by bulldozer and grader over backfill at the trailing edge of the mining strip, or for temporary stockpiling adjacent to the trailing edge;

- Barren overburden gravel cut by the surface miner would be fed up a conveyor belt system and ei ........

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