BIG FLAT URANIUM PROPERTY, GRAND COUNTY UTAH

Property

Stratamodel Inc and Future Energy LLC are pleased to offer a highly prospective uranium property with a package of historical exploration data located in Grand County, Utah. This property consists of 741 lode claims and five sections of Utah State Trust Land with a total area of approximately 29 sq miles (7510 hectares).

Big Flat location in Grand County Utah.

Big Flat location

Big Flat Property showing Utah Trust Land in yellow and lode claims in blue.

Big Flat property

Past Exploration Activity

The Mineral Canyon/Big Flat area has been explored and mined periodically since the 1930s. Numerous small mines were developed where mineralization cropped out along the walls of Mineral Canyon. During 1940s and 50s independent miners shipped high grade uranium ore by light truck to the AEC in Grand Junction Colorado. The most recent exploration activity took place in the mid 1970s to the early 1980s consisting of large drilling programs. Exploration drilling in the district started when the AEC put in shallow holes in Mineral Canyon in the 1940s. During the 1970s and 80s, private mining companies like Morrison Nuclear, Exxon Minerals, and the Tennessee Valley Authority (TVA) undertook more ambitious drilling programs on the surrounding mesas drilling hundreds of holes up to 1,200 feet deep.

Geology and Mineralization

Mineralization consists of uranium and vanadium bound to coalified wood fragments within conglomerate. The target conglomerate horizon lies within the Triassic Chinle formation. The depth to target is between 600 and 1100 ft below surface. Overlying formations consist of aeolian sandstones and siltstones of the Wingate and Kayenta formations. As is typical of this style of mineralization, ore fragments range in size from a few inches to several feet long. A severe nugget effect makes evaluation of chemical assays notoriously inaccurate. Downhole gamma logging is far more reliable but still subject to a nugget effect caused by the relatively coarse size of the mineralized wood fragments and their random distribution and irregular spacing within the host conglomerate.

Big Flat stratigraphy.

Mineral Point rocks

Mineralized woody debris spaced 2-10 inches apart (Lucky Strike Mine, not from Big Flat).

Uranium ore

Mineralized log approximately 3 ft by 1 ft in cross-bedded sandstone (Chinle, not from Big Flat).

Uranium ore

Historic Data

Future Energy has an extensive collection of historic data from the district including locations of over 650 drill holes and gamma logs for approximately half of them. Stratamodel assembled all drill holes, gamma logs, and property boundaries into a geographic information system covering the property and it's immediate vicinity.

Stratamodel estimated grade and thickness in a semi-quantitative evaluation of this historic data. Almost nothing is known about the state of calibration of the gamma tool, the date of logging, or in general, the k factors for the tools used for the gamma logging. In order to gain some insight into the historic drilling results, an analysis of the gamma logs was made based on some simple evaluation methods and assumptions. The results are approximate.

A background to background method was employed to get the thickness of each anomaly. Grade was estimated from the magnitude of each peak. An average gamma value was obtained by multiplying the corrected gamma by 0.7071 (half amplitude of a sine wave). Finally in the absence of a K factor, an approximation of gamma to grade of 1000 cps per 0.05% equivalent U3O8 was used for a semi-quantitative grade estimate.

A composite estimated grade was made on five foot intervals (minimum mining width) to arrive at a final grade/thickness estimate. A significant number of drill holes had multiple anomalous zones. Two maps were prepared, a grade thickness product map and a maximum grade map.

Grade thickness (grade thickness product, sum of all intervals above 1000 cps)

Big Flat property

Maximum grade (estimated grade from richest five foot interval)

Big Flat property

Selected Gamma Anomalies

HOLE ID

DEPTH FROM (ft)

DEPTH TO (ft)

THICKNESS (ft)

RAW PEAK GAMMA (cps)

6921-J,27

875

877

2

10,000

6921-J,27

892

894

2

18,000

6916-G.9,3.25

762

765

3

10,000

6916-G.9,3.25

928

930

2

37,000

T26S-R19E-S19-1

703

706

3

35,000

T26S-R19E-S19-1

708

713

5

60,000

6922-R,6

972

975

3

12,000

6922-D,15

918

923

5

15,000

6921-ZZ,12

850

853

3

13,000

6921-B.95,21.9

877

891

4

25,000

6921-F,26

956

961

5

110,000

6921-F,22

927

932

5

12,000

6921-F,24

897

903

6

20,000

6921-F,24

918

925

7

12,000

6921-G,22

894

900

6

17,500

6921-G,23

902

910

8

10,000

6916-G.25,1.3

882

886

4

14,000

6921-5

913

920

7

135,000

6921-F,25

923

925

7

30,000

Exploration Potential

Stratamodel and Future Energy believe the Big Flat property has significant exploration potential particularly in light of historically high uranium prices. Several clusters of ore grade mineralization at minimum mining widths of five feet are indicated by the historic data. Moreover, large portions of this property have never been drilled. The well established NW-SE trend of Chinle mineralization in other districts was partially tested as seen in the pattern of drilling. However, zones of anomalous gamma activity suggest the possibility of a NE-SW trend. Neither trend has been pursued to its full extent at Big Flat. Moreover, there is still a significant potential for new zones to be discovered.

Interested parties should contact bigflat@stratamodel.com for further information, a data package, a property tour, and terms.