Titan owns 100% of the Sheep Mountain uranium deposit in Fremont County, Wyoming. A preliminary feasibility study has recently been completed.
The property consists of 135 lode mining claims (approximately 2780 acres/1125 ha) and two State of Wyoming mineral leases for an additional 790 acres/320 ha.
The Sheep Mountain mine hosts a NI 43-101 compliant Probable Reserve of 14.2 million pounds U3O8 (6.4 million tons at an average grade of 0.111% eU3O8). The mine is a past-producer of uranium and the preliminary feasibility study will provide the necessary documentation required to amend the present mine permit. The company plans to develop the project with both conventional underground and open pit mining, followed by heap leach extraction of the uranium with a solvent extraction recovery plant producing up to 1.5M pounds of U3O8 per year.
On October 1, 2009 the company commenced a preliminary feasibility study on the project. The results of this study were announced on April 12, 2010, and are highlighted below:
- Preliminary Feasibility Study estimates are based on estimated capital and operating costs for a 1.5 million lb./yr uranium mine using conventional open pit and underground mining methods and heap leach recovery;
- The financial model is based on the long term uranium price of $60.00/lb. as projected by The Ux Consulting Company March 2010;
- Probable Mineral Reserve of 6,393,000 tons at an average grade of 0.111% eU3O8, containing 14,186,000 lbs e U3O8;
- Initial mine life: 11 years
- Estimated capital cost: $116 million including allowances for contingency, risk and escalation;
- Estimated operating cost: $28.67 per pound recovered;
- Estimated pre-tax Net Present Value (NPV) at a 7% discount rate: $101 million;
- Estimated pre-tax Internal Rate of Return (IRR): 25%
- Estimated pre-tax payback period: 4.5 years
BRS Inc. of Riverton, Wyoming was the lead consultant for the study. BRS Inc. is a Professional Engineering Corporation, which has provided consulting services for more than twenty years in geology, civil engineering, water resources, mining, and mined land reclamation, including all aspects of environmental permitting, design and construction management. The president and principal engineer/geologist of BRS, Douglas Beahm, is a Qualified Person (QP) under TSX regulations and both a Professional Engineer and a Professional Geologist with 35 years of professional and managerial experience in the uranium industry.
Uranium was first found in the Crooks Gap district, which includes the Sheep Mountain area, in 1955. There are numerous former open pit and underground mines in the area of property. Substantial distances of drifts still exist to access the old workings, and to provide headings for new development. It should be noted, however, that only a small portion of the mineralization on the actual Sheep Mountain mines was ever mined.
Production reports for the period from 1976 to 1982 vary from 13.8 million lbs to 17.4 million lbs of uranium. Production ceased in 1982 and U.S. Energy Corp. acquired the properties from Western Nuclear in 1988. During May to October 1988, the U. S. Energy mined 23,000 tons from Sheep Mountain 1, recovering 100,000 lbs of uranium for a mill head grade of 0.216% U3O8.
Uranium Power Corp (which merged into Titan in July 2009) acquired a 50% interest in the project in 2004. U. S. Energy subsequently sold all of their uranium assets, including their 50% interest in Sheep Mountain, to Uranium One. On October 1, 2009 Titan acquired Uranium One’s interest and now holds 100% of the property.
Sheep Mountain 43-101 Mineral Reserve & Resource Report
Consent of qualified person (NI 43-101) - Beahm
Consent of qualified person (NI 43-101) - McNulty
Consent of qualified person (NI 43-101) - Scriven
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