Page 15 EXPLORATION OF PCEC'S WEST RED DESERT URANIUM PROSPECT varying from trace to low-grade, in 16 holes. Some of these radioactive zones are related to lignites and lignitic clays; however, others are definitely related to apparently 'altered' sandstones and geometrically could be tails to 'roll fronts'. -? The Mobil Oil Exploration and Option Agreement covered twenty claim groups, encompassing approximately 12,800 acres, located in T. 23 N., R. 91 & 92 W. These Groups were the Red, Bad, Box, Ned, Bob, Ted, Boo, Tad, Bud, Dot, Oil, Mice, Peg, Kate, Pen, Hat, Cap, Reg, Pete and Girl Claims. Mobil's total drilling program was restricted to 20 holes - only one per section to depths of about 1,000 feet. These holes encountered good sands throughout the area and gamma ray logs disclose trace mineralization, related to sandstones, in several holes. Further, based on the presence of iron-staining as interpreted by Mobil geologists, at least nine holes show 'alteration' within thick sandstones. Grain size of the sands varies from very fine to very coarse and averages medium. Recommended Exploration Procedures Due to their favorable location, it is recommended that PCEC acquire the 5,502 unpatented, lode mining claims, encompassing some 105,480 acres, from Silvertip Exploration. Silvertip's Cow, Pic and Pal Groups are nearly surrounded by PCEC property (See Plates One & Two) and should definitely be included in the West Red Desert Prospect. The Mat and Rob Groups are located a few miles to the Page 16 EXPLORATION OF PCEC'S WEST RED DESERT URANIUM PROSPECT northeast in an area of known favorable sedimentation and are quite close to apparent mineralization as defined by competitor drilling. Silvertip's checkerboard acreage is located from five to 35 miles east-southeast of the West Red Desert Prospect and is interesting due to the results of past Getty and Mobil drilling. This 58section area has received a total of only 79 exploratory holes or a little over one hole per section. Yet, good sands were encountered throughout the area at depths of less than 1,000 feet. In addition, Getty and Mobil geologists report 'alteration' in 39 of these holes and mineralization in at least 16 holes. Further, these claim groups are located in fairly close proximity to Mineral Exploration's ore body (See Plate One) and close-spaced drilling by Rocky Mountain Energy Corporation. The major detracting feature of this area is the fact that development of a solid acreage block is not possible since the Union Pacific Railroad owns alternating sections as the result of a Federal Land Grant. The 103 exploration holes, drilled to date, on the West Red Desert Prospect, proper, amounts to less than one hole per four sections. In view of the fact that drilling depths average less than 500 feet and that many of the holes are not oriented for best assessment of the geology, becomes readily apparent that this vast prospect is virtually unexplored. Even with these shortcomings, it is encouraging to note fine- to medium-grained sandstones, of fair EXPLORATION OF PCEC'S WEST RED DESERT URANIUM PROSPECT Page 17 thickness, occur throughout much of the drilled area. The fact that these sands are arkosic strongly suggests a Granite Mountain source which is consistent with Wasatch-Battle Spring host sands, containing uranium deposits in adjacent areas of the Red Desert. These sands are obviously fluviatile in origin; hence, they must grade mountainward into the thick conglomeratic, arkosic sands to the north and east and intertongue with the fine-grained lacustrine sediments to the south. Thus, the 'plumbing' is right for oxidizing-mineralizing solutions to have migrated down-dip from the Granite Mountain provenance, through the massive, fan-like arkoses and into the distributary channel deposits. The presence of these favorable sandstones; the reported 'alteration' on outcrop and in the subsurface; the surface anomalies; and the trace to low-grade mineralization recorded on gamma logs, all point to a very interesting prospect. However, the ultimate proving or disproving of the presence of uranium ore bodies must rest with sound geology and the drill bit. In reviewing the limited data, relative to the vast size, of this prospect, two points become very apparent. First, a 'grass root' exploration program will be necessary to assess the potential of the West Red Desert Prospect and second, the costs for such a program will be prohibitive for a small company. A venture partner is a necessity. In view of the favorable results on adjacent competitor acreage, Page 18 EXPLORATION OF PCEC'S WEST RED DESERT URANIUM PROSPECT it is recommended that a radiometric airborne survey be flown over the West Red Desert Prospect in order to determine the anomalous areas. Maximum spacing of flight lines should be one mile and anomalous areas should probably be further defined with closer profiles. Anomaly maps should be prepared by the geophysical company doing the airborne work. These maps, together with back-up data from the previous drilling programs and this report, should be an adequate base for PCEC to present this prospect to potential venture partners.. Any exploration agreement should include the following minimal, first year, drilling requirements. Obviously any good anomalies, defined by the airborne survey, should be tested. Further, in an effort to begin evaluation of this large area, it is recommended that a series of profiles be drilled across the prospect (including Silvertip lands). The drill holes on these profiles are shown as X's on Plate Two. These profiles are oriented in a north-south direction in order to best show changes in sedimentation between the intertonguing fine-grained Green River sediments and the WasatchBattle Spring sands. Spacing along the profiles will be on approximately one mile centers. This should be adequate to demonstrate changes in major sand units. Several thousand feet of Tertiary sediments underlie much of the prospect; thus, drilling depths become a matter of economics. The writer recommends that these initial holes be drilled to a depth of at Page 19 EXPLORATION OF PCEC'S WEST RED DESERT URANIUM PROSPECT least 1,500 feet. It is estimated that such a 112-hole program A geologist should supervise all drilling with emphasis on evaluating the drill cuttings for sand thickness, grain size, presence of carbonaceous material, presence of pyrite, presence of ironstaining and type, and the general appearance of the sample in order to determine 'altered' from 'fresh' ground. Upon completion of the drilling program, all electric logs should be reduced and crosssections constructed along and across profiles. The geologic interpretation of these cross-sections, together with the sample descriptions, should allow certain areas to be relinguished due to lack of sand units and/or presence of entirely 'fresh' ground. Emphasis can then be placed on favorable areas where good sands, 'alteration' and/or mineralization exist. Phase II drilling will be contingent on these results. |