Geologic report on the Sand Wash Drilling Project, Moffat and Routt Counties, Colorado

The Sand Wash Basin Drilling Project comprises twenty-seven (27) drill holes located in Moffat and Routt Counties, northwest Colorado, having an aggregate depth of 26,107.5 feet (7957.6 m). The holes penetrate the Browns Park Formation of Miocene age, which is a tuffaceous continental sandstone deposited in fluvial, eolian, and lacustrine environments. Partly based on project drilling results, uranium potential resource estimates for this formation in the $50/lb U/sub 3/O/sub 8/ forward-cost category have been increased by 34,476 tons U/sub 3/O/sub 8/ (35,036 metric tons). Three areas between Maybell and Craig, Colorado, considered favorable for uranium occurrences were verified as favorable by project drilling, and a fourth favorable area northwest of Maybell has been expanded. In addition, project drilling results indicate two new favorable areas, one north and northwest and one south of Steamboat Springs, Colorado. Anomalous radioactivity was detected in drill holes in all six study areas of the project. The most important factor in concentrating significant amounts of uranium in the target formation appears to be the availability of gaseous or liquid hydrocarbons and/or hydrogen sulfide gas as reductants. Where subjacent formations supply these reductants to the Browns Park Formation, project drilling encountered 0.05 percent to 0.01 percent uranium concentrations. Potential, though unproven, sources of these reductants are believed to underlie parts of all six project study areas