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Khavtsal Property
In May 2005, Glenn Catchpole, Uranerz Energy’s president, acquired a 100% interest to the Khavtsal property on behalf of the Company. The Khavtsal property covers 16,091 hectares located 321 kilometers south-southeast of Ulaan Baatar, the capital city of Mongolia in the Dornogovi province and Airag sub province.
The Khavtsal property can be considered in a stage of advanced exploration based on historic work completed and reported on by the Russian-Mongolian Survey in 1987. A Russian exploration summary report for the Khavtsal occurrence estimates a “probable resource” (this wording translated from Russian) of 2000 tons (5.19 million pounds) of uranium based on 3046 cubic meters of surface trenching and 1808 meters of drilling (44 drill holes averaging 41 meter depths). This “resource” has an average grade of 0.038% uranium, using a 0.010% cutoff and a tonnage factor of 2t/m3, an average thickness of 1.8 meters, and has a surface projection of 1.46 square kilometers.
The same report quoted above estimates an exploration potential for the larger area of the Ulaan Nuur depression, in which the Khavtsal occurrence is located, at 4000 tons (10.39 million lbs) of uranium. This estimate is characterized in the report as “P2” category, a term conventionally used for “speculative undiscovered resources”.These results will need to be confirmed with additional trenching and drilling.At this point, Uranerz Energy takes the report as indicating favorable exploration potential.
Uranerz Energy has been granted seven exploration licenses through an agency of the Mineral Resource Authority of Mongolia.These seven license areas are located in geologically favourable areas and cover approximately 268,724 hectares of land surface.
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