PUR:CNX

PUR:CA

PUR:CA :

Cebolleta Project

Cebolleta Project

SNAPSHOT

Location:

New Mexico (Grants Mineral Belt), United States

Ownership:

100%

Deposit Type:

Sandstone-hosted uranium deposits

Primary Minerals:

Uranium

Stage:

Advanced Exploration

OVERVIEW

Cebolleta is an advanced uranium exploration project located in the northeastern corner of Cibola County, approximately 40 miles west of the city of Albuquerque, NM, and approximately 10 miles north of the town of Laguna, NM. The property encompasses 6,717 acres (2,718 hectares) of privately held mineral rights (fee or deeded) and approximately 5,700 acres (2,307 hectares) of surface rights owned in fee by La Merced del Pueblo de Cebolleta (Cebolleta Land Grant). The Project is in a region that has a lengthy history of uranium exploration and mining activity dating to the 1950’s and is close to necessary infrastructure and resources.

Premier American Uranium acquired the Project through a Plan of Arrangement between the Company and American Future Fuel in June 2024.

SUMMARY OF MINERAL RESOURCES – EFFECTIVE DATE OF APRIL 30, 2024

Classification

Zone

Grade Cut-off

(% eU308)

Tonnage

(Million st)

Grade

(% eU308)

Contained Metal

(Million lb eU308)

AMPS

Basis (%)

Recovery

U308 (%)

Underground

Indicated

Area I

0.072

0.8

0.168

2.6

100

95

Area II

0.072

2.3

0.193

8.7

100

95

Area III

0.072

0.7

0.192

2.7

100

95

Area IV

0.072

0.0

-

0.0

100

95

Area V

0.072

0.4

0.208

1.6

100

95

Subtotal Indicated

 

 

4.1

0.189

15.6

100

95

Depletion JJ#1

 

 

-0.9

0.123

-2.2

 

 

Total Indicated

 

 

3.2

0.208

13.4

 

 

Inferred

Area I

0.072

0.2

0.118

0.4

100

95

Area II

0.072

0.3

0.131

0.8

100

95

Area III

0.072

0.2

0.156

0.6

100

95

Area IV

0.072

0.1

0.105

0.3

100

95

Area V

0.072

0.2

0.161

0.5

100

95

Total Inferred

 

 

1.0

0.135

2.6

100

95

Open Pit

Indicated

St. Anthony North Pit

0.024

3.3

0.081

5.4

100

95

0.024

0.1

0.084

0.2

100

95

Subtotal Indicated

 

 

3.4

0.081

5.5

100

95

Depletion

Climax M6

 

 

-0.1

0.205

-0.3

 

 

Total Indicated

 

 

3.3

0.078

5.2

 

 

Inferred

St. Anthony North Pit

0.024

1.3

0.070

1.8

100

95

0.024

0.3

0.078

0.5

100

95

Total Inferred

 

 

1.6

0.072

2.3

100

95

Notes:

  1. CIM (2014) definitions were followed for Mineral Resources.
  2. Mineral Resources are estimated at a cut-off grade of 0.072% eU3O8 for underground based on Deswik MSO stope shapes and 0.024% eU3O8 for open pit using Whittle pit optimization.
  1. Mineral Resources are estimated using a long-term uranium price of US$80/lb U3O8.
  2. Mineral Resources have been depleted based on past reported production numbers from the underground JJ#1 and Climax M6 mines.
  3. A minimum mining width of two feet was used.
  4. Tonnage Factor is 16 ft3/st (Density is 0.0625 st/ft3 or 2.00 t/m3).
  5. Numbers may not add due to rounding.

See NI 43-101 Technical Report on the Cebolleta Uranium Project Cibola County, New Mexico, USA – effective date April 30, 2024, prepared by SLR International Corporation

GEOLOGY

The deposits that comprise the Project are classified as sandstone hosted uranium deposits with eight deposits occurring as a series of tabular bodies within the Jackpile Sandstone Member of the Upper Jurassic Morrison Formation within the boundaries of property.

These deposits are part of a broad and extensive area of uranium mineralization, including the Jackpile-Paguate deposit, located adjacent to the southern boundary of the property, which was one of the largest concentrations of uranium mineralization in the United States. The L-Bar occurrence area contains five distinct deposits, including Areas I, II, III, IV, and V. The historical JJ#1 Mine is situated in the northwest corner of the Area II Deposit area. In addition to the L-Bar deposits, three distinct deposits occur in the St. Anthony area of the property.

PAST EXPLORATION AND PRODUCTION

Cebolleta has been subject to extensive exploration and development from the 1950s through the 1980s.  Past efforts revealed several significant sandstone-hosted uranium deposits ranging from 200 to 800ft (60-240m) deep in the Jurassic Jackpile Sandstone. These deposits were amenable to both surface and underground mining, which culminated from 1975-1981 when over 3.8M lbs U3O8 was produced from the JJ#1 and St. Anthony Mines[2].

The vast majority of known uranium mineralization still exists at Cebolleta – namely from the Sohio Area (mineralization in Areas I-V) and the St. Anthony Area (mineralization adjoining the St. Anthony open pits and the Willie P underground mine).

The production history of the Project is as follows:

  • Climax M6 Mine (1956 to 1960): 78,722 short tons (71,415 tonnes) that averaged 0.20% uranium oxide (U3O8) and contained 320,942 pounds of U3O8.
  • Anthony Mine Complex (1975 to 1979): 1.6 million pounds of U3O8.
  • Sohio JJ#1 Mine (1976-1981): 898,600 short tons averaging 0.123% U3O8 and yielding 2,218,800 pounds of U3O8.

 

EXPLORATION TARGET

Significant exploration potential is believed to remain on the Project. The mineralized horizons of the Jackpile sandstone are open ended and potentially trend beyond the external limits of the drill hole grid. Potential exists to extend mineralization into previously untested areas of the Project, where this mineralized zone is present but not drill tested in a comprehensive manner.

DOWNLOADS

Technical Report for Cebolleta

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