BlueRock Resources Ltd.
|
SYMBOL: .TSX-V:BRD Website: www.bluerockresources.com Corporate Contact Information Phone: 604.687.2471 Email: info@bluerockresources.com |
|
Company News (May 29, 2008) Bluerock Anounces Phase I Drill Results Including 2.38% eU3O8 Over 1.5Ft At Sunbeam Uranium Mine ...Read More
Overview
BlueRock Resources Ltd. (TSX-V:BRD)is an aggressive uranium development and exploration Company. The Company is growing significant cash flow through the development of multiple uranium mines and a toll milling contract with Denison Mining’s White Mesa Mill. Long term growth will be driven by continued uranium resource development in the US southwest and Mongolia and a stand-alone Bluerock uranium mill in Utah.
People
Michael Collins President
CEO and Director (P.Geo.)
Michael graduated with a BSc. Honours from Dalhousie University in 1996, and was granted professional status from the Association of Professional Geologists of Ontario in May of 2003. Over the last 10 years he has developed a strong skill set in mineral exploration, deposit modelling and project development. Companies and projects of note include production and exploration at the Red Lake Mine with Goldcorp, exploration work on the South Raglan project in the Ungava Peninsula with Canadian Royalties and a Syndicated project review in China in 2004. His work has also taken him to such diverse environments such as East Africa, Central America and Southeast Asia.
Clifford (Cliff) C. Rennie
Chairman and Director (P.Eng.)
Cliff Rennie graduated from UBC in 1953 with a BSc. in Geological Engineering and registered as a BC professional Engineer in 1955. Cliff worked for Placer Dome and re-lated subsidiaries for 35 year in BC, the Yukon and Australia where he contributed to the discovery and development of several precious and base metal mines. Following his retirement from Place Dome Cliff founded Better Resource Limited, (the precursor to Bluerock Resources), which has been a significant player in the exploration industry in BC since 1981.
Paul D. Gray
Director (P.Geo.)
Paul D. Gray holds a Bachelor of Science (Honors) degree from Dalhousie University in Nova Scotia, Canada, and is a member in good standing with the Association of Profesional Engineers and Geoscientists of British Columbia. Mr. Gray has worked extensively as an exploration geologist in the Mineral Exploration Industry in Canada (predominantly in British Columbia) and Central America for the past 10 years concentrating on base and precious metal exploration. In his work as Vice President of Exploration at Doublestar Resources, Paul is responsible for exploration program design, implementation and assessment as well as being responsible for new property acquisition assessments and business partner relations.
Nancy Curry
Director
Nancy brings over 20 years of financial market, management and public company experience to BlueRock Resources. Nancy began her career working in the brokerage industry and has worked for several national investment dealers specializing in trading futures. In 1995, Nancy's public company experience began with Mountain Province Diamonds Inc., where she coordinated and implemented an extensive Corporate Communications and Investor Relations program for the company until 2000. Nancy has continued this management and communications role with several resource and technology companies and is presently VP Corporate Communications for Diamonds North Resources Ltd.
Cary Martin
Manager,Investor Relations
Property
J-Bird Uranium Mine Project, Montrose County, Colorado, USA
The J-Bird Uranium Mine project consists of 25 mineral claims encompassing the newly permitted J-Bird Uranium Mine, mine site and surrounding area. The Project is located west of the historic Uravan Uranium/Vanadium Mineral Belt, Montrose County, Colorado, which is the main focus of the Company’s aggressive uranium project acquisition and production strategy. Surface work was initiated on mine infrastructure in late December 2007, with underground development started in January 2008. A spring 2008 exploration drilling program has been designed to allow the Company to quickly advance exploration drilling in advance of development and production on the Project.
The J-Bird claim block hosts three historic uranium producers (the Maud, Prayer 9 and Yellow Bird uranium mines) and adjoins a fourth historic uranium mine (the Uranium Girl). Grade at the Yellow Bird Uranium Mine was reported by the USGS to be 0.34% U3O8 and 1.80% V2O5. Recent exploration on the J-Bird claim block has been conducted by a private company, precluding the need to develop a reportable resource. However drilling in 2006 and 2007 defined four areas of uranium mineralization within 1,200 feet (360 metres) of the current J-Bird portal site, and is the focus of the underground development currently underway.
Donna K Uranium project, Montrose County, Colorado, USA
Bluerock has signed an option agreement to purchase 100% interest in the Donna K Uranium project, Montrose County, Colorado, USA. The project is located in the Uravan Uranium Mineral Belt on the site of the historic Donna K Uranium Mine.
The Company has obtained historical drill data* with 37 significantly mineralized intercepts, 11 of which lie within 3 discrete blocks. Highlights of these drill records include 3.37 % e U3O8. over 2.5 feet (0.8m) and 0.49 % e U3O8 over 2.0 feet (0.6m).
*The historical work was conducted in the 1950's and 1970's by operators including Vanadium Corp of America. The reliability of this historical data is unknown but considered relevant by Company management. This historical data is non-N.I. 43-101 compliant and should not be relied upon. There is no more recent data available. It is the Company's intention to verify this historical data. Confirmation work may produce results that differ substantially from the historic results.
Highlights of historic* drill intersections include:
| |
|
|
|
| North | 22-az | 1.5 (0.5) | 0.42 |
| North | 27-76 | 1.0 (0.3) | 0.3 |
| North | 28-76 | 2.0 (0.6) | 0.21 |
| North | 31-76 | 1.0 (0.3) | 0.43 |
| North | 36-76 | 1.0 (0.3) | 0.83 |
| West | 56-33 | 1.5 (0.5) | 0.45 |
| West | 56-33 | 1.0 (0.3) | 0.92 |
| West | 57-1 | 2.5 (0.8) | 3.37 |
| West | 57-11 | 2.0 (0.6) | 0.61 |
| West | 57-11 | 1.5 (0.5) | 1.8 |
| West | 57-12 | 1.5 (0.5) | 0.42 |
| West | 57-3 | 3.0 (0.9) | 0.22 |
| West | 57-5 | 0.5 (0.2) | 0.22 |
| East | 56-8 | 2.0 (0.6) | 0.49 |
| East | 8-2 | 0.7 (0.2) | 0.54 |
President Michael Collins commented: "The Donna K uranium mine provides Bluerock with another advanced project for exploration and potential production within the Uravan Uranium District as we work to become a uranium producer under a toll milling scenario."
The rugged terrain of the Donna K project previously inhibited vertical drilling of favourable zones. The Company intends to utilize modern angle drilling techniques to expand on these historic results.
Tramp Mine Project, Montrose County, Colorado, USA
The Tramp Mine Project consists of eight claims encompassing the underground Tramp Uranium Mine and mine site, and an additional 51 mineral claims staked immediately adjacent to the mine site. The Project is located in the historic Uravan Uranium/Vanadium Mineral Belt, west of Uravan, Montrose County, Colorado. The Tramp Uranium Mine is currently permitted for mining operations with the State of Colorado and Plan of Operations has been filed with Federal Bureau of Land Management to bring the operation into full compliance (expected by Spring 2008). Further, Bluerock holds the right to continue exploration by drilling under a Notice of Intent with the BLM. The Tramp Uranium Mine has been operated in various phases from the 1950’s to the early 1980’s with historic production reported to grade 0.28% to 0.32% U3O8. Vanadium credits averaged 1.5% to 1.7% V2O5. Past production grades in the Uravan Mineral belt have ranged from 0.15 to 0.4% U3O8. Historically, Tramp Uranium Mine production has been conducted by small mine operators, with production and exploration focused close to development; therefore there has been no serious effort to block out an ore reserve.
Highlights from Bluerock’s exploration work to date include:
- Underground workings with grab samples (by Company Geologists) returning grades of 1.79%,
0.519% and 0.229% U3O8 respectively
- TM-06-14 with 2.5 feet (0.8m) grading 0.153% eU3O8, including 1 foot (0.3m) grading 0.296% eU3O8
- TM-07-26 with 2 feet (0.6m) grading 0.198% eU3O8
- TM-07-30 1.5 feet (0.48m) grading 0.134% eU3O8 including 0.5 feet (0.16m) grading 0.235% eU3O8
- TM-07-52 with 3.5 feet (1.07m) grading 0.126% eU3O8, including 2.5 feet (0.76m) grading 0.157% eU3O8
- TM-07-54 with 1.5 feet (0.46m) grading 0.244% eU3O8, including 1 foot (0.30m) grading 0.349%eU3O8
- TM-07-58 with 1.5 feet (0.48m) grading 0.33% eU3O8
- TM-07-70 with 2 feet (0.61m) grading 0.293% eU3O8 including 1.5 feet (0.46m) grading 0.378% eU3O8.
These result emphasize that the Tramp Uranium Mine hosts significant grades and widths of uranium mineralization which the Company intends to exploit upon the resumption of mining activities Historic work on the project has identified three high priority targets for drilling that are proximal to historic workings, have the potential to be drilled off, and if economically feasible, developed quickly. The Company is actively drill testing these areas towards the resumption of mining activity at the Tramp Uranium Mine. The excellent ground conditions and trackless portal access, afford relatively low infrastructure costs associated with the reactivation of mining. The historical data stated herein is considered relevant and reliable, however the Company intends as part of its work program to verify the same using methods and calculations recognized under NI 43-101.
The Carpenter Flats Project / The Eagle Basin Project
The Company has signed lease agreements with Mayan Resources Ltd. (Mayan) on two uranium projects in the Uravan District, Montrose County, Colorado, USA. The acquisition of these mineral claims in the historically important Uravan Mineral Belt has significantly expanded Bluerock’s mineral position in the area. The Uravan district was a major uranium production area for the United States in the 1950s – 1980s and Bluerock believes it will be again in the near future. The Carpenter Flats and the Eagle Basin Projects (together consisting of over 10,000 acres) are both located within five miles of Bluerock’s Tramp Uranium Mine Project. These new projects have seen extensive uranium mining and development work and the Company has begun to prioritize historic mineralization targets for drill programs and underground bulk sampling.
President Michael Collins commented: “The addition of these high quality uranium projects cements the Company’s presence in the Uravan Uranium district and defines the space for the Company to quickly outline and develop uranium resources as we move forward to becoming a significant, near term uranium producer under a toll milling scenario.”
The Carpenter Flats Project
A total of 243 mineral claims located to the north and west of Bluerock’s Tramp Mine Project have been acquired by the Company. The area has seen production grades of over 1% U3O8 at the Rajah Mine and hosts several past producers. Initial work on the Carpenter Flats project consists of data compilation in order to prioritize targets for a planned drill program.
The Eagle Basin Project
A total 145 mineral claims have been acquired to the immediate south of Uravan, Colorado, and two miles east of Bluerock’s Tramp Uranium Mine Project. The project covers the Sunbeam Uranium Mine, the Club Uranium Mine, and the Merry Widow Uranium mine, which were all historic Uranium/Vanadium Producers. Additional past producers are covered by these claims including the Fortyfive-Ninety and Fairy Queen Uranium deposits. The large area of the mineral claims has given Bluerock considerable coverage of not only these historic producers, but also the strike extensions of the Rex Uranium Mine’s hosting Salt Wash member of the Morrison Formation. The Company has obtained and continues to acquire historic drilling and production data from this area which is being compiled into Bluerock’s growing exploration database. Bluerock has filed with the pertinent authorities a permit for exploration drilling and underground bulk sampling of the Sunbeam Uranium Mine. This program will allow Bluerock to make a production decision on the Sunbeam in 2008. Additionally a drill permit for the Eagle Basin Uranium has also been filed.
TSX.V: BRD www.bluerockresources.com
Skull Creek Property, Colorado USA
Option to earn up to a 75% interest from Energy Metals Corp
Bluerock Resources Ltd. has signed an option agreement with Energy Metals Corporation (EMC) now Uranium 1, to form a joint venture on the Skull Creek Project in North West Colorado, USA. Bluerock can earn up to a 75% interest in the Skull Creek Project which hosts a an historical non N.I. 43-101 compliant resource estimate of 44.1 million pounds of U3O8 at a grade of 0.3% in 10.6 million tons of lignite. The Skull Creek Project is comprised of 197 claims covering approximately 3,940 acres located on public lands administered by the Bureau of Land Management and 1,280 acres of State of Colorado leases. The original position of 72 claims was acquired in the Standard Uranium Inc.- EMC merger. Bluerock's property covers uranium mineralization in steeply dipping lignite beds hosted within the Sego Sandstone along 12 miles of the east-west striking northern limb of the Red Wash Syncline. According to a 1956 geologic report by Geological Services of Moab, Utah (Geologic Reconnaissance Report on Lignite Properties in Moffat County, Colorado by Wm. Dean McDougald and R. L. Mehle), uranium mineralization is hosted within three of seven lignite and carbonaceous shale seams separated by much thicker sandstone beds. The seams are classified in numerical order from oldest to youngest as 1 through 7. McDougald and Mehle reported that the No. 2 Seam is continuous and mineralized over a 12 mile strike length while the No. 3 and No. 5 seams show less thickness and continuity. Bluerock holds 10.1 miles of the 12 mile strike length documented in the report on its mineral claims and an additional 2 miles on Colorado State Lease land. Bluerock’s 2006-2007 exploration program included diamond drilling of 16 holes for a total of over 1,500 metres and 1,116 assay samples as well as surface geophysical surveys. The targeted #2 seam did not show expected grades at depth, however the program did return encouraging near surface uranium mineralization. The best assay result yielded a 0.5 metre intercept of 0.19% U3O8 at 23 metres depth within Hole SC-06-6B. The focus of exploration in 2008 will be near surface high grade mineralization documented from historic assays from near surface adits and from Bluerock’s 2007 outcrop sampling and diamond drilling programs. Bluerock is actively working to secure a permit for a “blanket drill program” targeting the near surface (less than 30 metres depth) high grade (~0.6% to 1.2% U3O8) mineralization as reported in historical work on the Skull Creek Project and indicated by the 2007 drilling program.
Utah Uranium Projects
Pine Ridge Uranium Project
The Company has signed an exclusive review agreement on the Pine Ridge Uranium Mine, La Sal Uranium District, Utah with Uranium Minerals Services Corporation (UMS). This agreement allows Bluerock to purchase the asset, which includes an historic resource of 540,000 pounds of U3O8 and 2.7 million pounds of V2O5, for US$1.80 million, subject to an eight week due diligence review period.
The Pine Ridge uranium deposit opened in the early 1980's after extensive exploration, drilling and development by a number of operators including Atlas Minerals, General Electric Uranium Management, and Mineral Recovery Corporation. After only minor production, the mine was closed due to the decline in the uranium price at that time. Bluerock has received extensive historical data from UMS, including drill reports, resource calculations and mine development plans as well as a 1983 report entitled "Updated Pine Ridge Mine Plan" prepared by Mineral Recovery Corporation for Wisconsin Public Service and authored by Dean Stucker, Operations Manager for Mineral Recovery Corporation. This information includes a non NI43-101 compliant resource of 176,000 tons of ore containing 540,000 pounds of U3O8 and 2.7 million pounds of V2O5 at grades of 0.17% U3O8 and 0.85% V2O5, respectively. NOTE: The reliability of the historical data are unknown but considered relevant by Company management. The historical data is non NI43-101 compliant and should not be relied upon. It is the Company's intention to verify the historical data and confirmation work may produce results that differ substantially from the historic results.
Pine Ridge has an active bulk sample permit and existing infrastructure including a closed decline and ventilation shaft, although the mine was reclaimed in the mid 1980's. Upon successful completion of due diligence, the Company intends to reopen the portal and decline to access the deposit and complete the permitted 1,000 ton bulk sample, plus file for a fully compliant active mine permit on the project. Bluerock management believes that Pine Ridge Uranium Mine could be included in the Company's production schedule in Q1/09.
The Sinbad Head, On Strike, Herbie, Big Fish and Little Fish Uranium Projects
The Company has signed option agreements with Blue Bird Partners (BBP) and Randy Mecham (Mecham) to earn 100% interests in five uranium projects in the San Rafael Swell and Temple Mountain Uranium Districts, Utah, USA. The acquisition of these mineral claims in the historically important San Rafael Swell and Temple Mountain Uranium Districts gives Bluerock a solid base from which to develop uranium resources in south central Utah.
The Sinbad Head, On Strike, Herbie, Big Fish and Little Fish Projects are comprised of both Bureau of Land Management claims and state leases, encompassing a total of 5,778 acres of uranium exploration ground.The projects have seen historical development ranging from uranium mining to grass roots conceptual exploration.
The Sinbad Head and the On Strike Projects both target Chinle Formation channel hosted uranium mineralization on the strike extensions to the historic Sinbad and Lucky Strike #1 mines (as well as Chinle channel targets parallel to these past producers. These two projects cover approximately 5,179 acres of prospective Chinle Formation targets. A 1973 United States Geological Survey (USGS) report indicated the Sinbad Mine had a grade* of 0.25% U3O8. While this mine is not with the boundary of the Company's land package, Bluerock intends to explore for the strike extension of the host paleochannel system. The On Strike Project covers the strike extension of the historic Lucky Strike #1 Mine where historic grades* of 0.21% U3O8 are reported in 1954 USGS reports.
Located in the San Rafael Swell, the Herbie Project encompasses 227 acres, including the past producing "Wickiup Uranium Mines #1, #2 and #3, where uranium mineralization is hosted in the Chinle Formation. A 1973 USGS report indicates that the Wickiup #1 hosted* 45,000 in situ tons at a grade of 0.2% U3O8 (a non N.I. 43-101 compliant resource estimate). While it is uncertain what, if any, uranium mineralization is left from this non-compliant resource, it is indicative of the tenor and scale of mineralization in this area.
The Big Fish and Little Fish Projects encompass 372 acres of prospective uranium ground in the Temple Mountain Uranium District. These projects target collapse breccia pipe uranium mineralization similar to the Arizona Strip type uranium deposits which host up to 3 million lb deposits and grade in excess of 1% U3O8. Information from local sources suggests that uranium mineralization has been previously encountered in drilling on the Little Fish project at a relatively shallow depth of 300 feet (100 metres).
Planning and execution of an exploration strategy has begun and will include ground geophysics, outcrop and underground mapping and sampling followed by RC and core recovery drill programs.
PSC Project, Orange Cliffs District, Garfield County, Utah
Option to purchase 100%
The PSC Project is located in the Orange Cliffs District,Chinle Formation Uranium Camp located to the northeast of the Shootaring Canyon Uranium Mill. The PSC Project consists of 92 claims in five distinct claim blocks which encompass two past producing
uranium mines (the Silver Bell Uranium Mine and the Andrew Lloyd Uranium Mine), the strike extension of the Andrew Lloyd Mine, two historic drill outs, and the one additional uranium prospect. Production from the Silver Bell and Andrew Lloyd Uranium Mines
has been reported to grade 0.40% U3O8 and 0.17% U3O8 respectively
2007 PSC exploration consisted of 10 Rotary drill holes totaling 375.3 metres, as well as underground mapping and geophysical surveys all at the Andrew Lloyd Uranium Mine site.
Based on the 2007 result, the Company has applied for and received permits for an additional 115 additional drillholes on the PSC Project which Bluerock is currently drill testing (February, 2008).
The project has two past producers and targets defined by historic drilling which will allow Bluerock to quickly and efficiently drill test mine extensions and strong exploration targets.
Hidden Splendor Uranium Mine, Utah
The Hidden Splendor Uranium Mine has been intermittently mined since discovery in 1952. Randy Mecham, the current owner, was involved in mining the deposit in the 1970’s until market conditions caused a cessation of operations. Historical production at the Hidden Splendor Uranium Mine graded 0.20% U3O8 (4.4 lb per ton of yellowcake). Data obtained by the Company indicates an historical resource* of 180,000 lb U3O8 in 37,000 tons with an average grade of 0.25% U3O8. Uranium Mineralization is open on strike of the deposit and is the primary exploration target. Prior to the mine closure in the late 1970’s a lower lens of uranium mineralization was identified in the course of normal production activities. 10,000 tons of uranium ore was produced from this zone at a grade of 0.30 % U3O8. This lens remains untested and represents a secondary target for the Company’s uranium exploration. Under the terms of the option agreement, Bluerock Resources Ltd. will earn 100% interest by paying US$40,000 in cash payments and US$150,000 in advanced royalties, and spending US$400,000 on exploration over three years. The Project is also subject to a 5% Royalty in favour of the vendors of the Project.
Mongolian Uranium JV
The Mongolian JV Project has eight (8) separate land packages that were selected on the basis of existing mineralization and prospectivity to host an economic resource of uranium mineralization. These properties (together forming more than 264,000 hectares) are primarily located in Cretaceous Basinal settings in four (4) distinct project areas in the central and eastern parts of Mongolia. Bluerock’s Corporate Strategy recognizes the Mongolian JV properties represent an advanced and grassroots land package which can be explored and advanced quickly and efficiently as a group. The projects are more than simply single, discreet targets, but a suite of highly prospective land holdings covering known mineralization on largely un- or under-explored ground. A synergy is generated by exploring these targets together, and it offers an opportunity to increase shareholder value
economically.
Bluerock Exploration Projects in 2006 & 2007
have culminated in the following highlights:
- The discovery of 2 new “Roll Front” reductionoxidation systems with associated uranium enrichment (on the Khar Tolgoi and Khavtsal licenses, respectively).
- The expansion of the historic* Ger Ovoo uranium showing laterally, and to depth. The showing has been demonstrated to extend 5 kilometres onto Bluerock’s Khar Tolgoi license and to depths of at least 100 metres.
- Historic* uranium mineralization on the 08560X license has been confirmed in surface trenches and to depth via drilling as well as laterally expanded through infill trenching and drilling on southern and northern extensions.
- The Discovery of never before identified nearsurface coal seam deposits in excess of 10 metre composite thickness have been identified over a 1 by 3 kilometre area in the Khavtsal license and remain open for expansion.
- Airborne radiometric surveys have verified 3 “kilometre scale” radiometric anomalies, coincident with playa lake systems on the 10166X license, representing calcrete style uranium targets. 2006 – 2007 Mongolia HV exploration expenditures exceeded US$1.5 million and the Company believes it has materially completed all earn-in obligations and will move to form the Joint Venture with Uranerz in 2008.
The Khavtsal project is composed of the Khavtsal, Todgod and Khudgiin Us Licenses. The Khavtsal license Historic work (drilling and trenching) conducted in the 1980’s by the Soviets’ has reported grades of up to 0.31% U3O8 over thicknesses of up to 0.5 metres. This work focused on the central portion of the permit area where uraniferous lignite is exposed at surface. Bluerock has used this uranium mineralization as a focal point; working outwards from the surface expression to trace the uranium mineralization and structure to deeper and potentially larger sedimentary packages. Additional mineralization exists south of the Khudgiin Us License at the Ulaan Nuur showing and to the South West at the Choire deposit. Bluerock believes that the real potential lies to the south (Khavtsal) and north (Khudgiin US) of the historic Ulaan Nuur showing, where thicker basinal sequences could host larger economic uranium resources. Southwest of the Khavtsal, in South Central Mongolia, preliminary work at the Central Gobi Project, Khar Tolgoi and Chuluut Licenses, defined several uranium anomalies in basinal setting and reported grab samples with grades of up to 0.23%. Follow up work on the Chuluut License defined an extension of over 5 kilometres strike of the historic Ger Ovoo showing and drilling has projected this to depths of over 100 metres. Minimal work has been complete on the Chuluut license and it remains a relatively virgin target.
In the East Gobi/Tamtsag Project, consists of the Uvur Bel and Tasarkhai Uult licenses. The Tasarkhai Uult property contains uraniferous source rocks as well as anomalous uranium values in water sampling within the basin. On the Uvur Bell Project Bluerock has uncovered reports of anomalous uranium in oil wells, and defined 5 significant airborne radiometric anomalies, 3 of which are associated with evaporite basins (analogous to the Langer Heinrich deposit in Namibia). 2006 – 2007 Mongolia HV exploration expenditures exceeded US$1.5 million and the Company believes it has materially completed all earn-in obligations and will move to form the Joint Venture with Uranerz in 2008.
Politics
INFORMATION NOT PROVIDED.
Paper
INFORMATION NOT PROVIDED.
Click here to Request Investor Information Direct from this Company