Surface
Sampling Breccia Pipe Uranium Mineralization Resource Assessment Method, DIR Exploration, Inc.
April 8, 2010
Executive Summary
DIR
has successfully researched, developed, and tested a geochemical
technology that permits pre-drilling estimation of the magnitude of uranium resources
present in Arizona collapse breccia pipes by sampling and measuring the weak, pipe-related
mineralization in the rocks above and surrounding mineralized breccia pipes. The
orientation study test cases used to research and develop the DIR method included the Hermit,
Arizona-1,Pinenut, Kanab North, Pigeon, and Hacks 2 and 3 Mines. The DIR breccia
pipe uranium resource assessment procedure works well on both surface-penetrating
and buried hidden) pipes. Among other things, the accuracy and reliability of the
method is sufficient, DIR believes, to serve as an early, rapid, and low-impact
method of validating breccia pipe lode mining claims located on northern Arizona federal
lands administered by the BLM and USFS.
The key to understanding the DIR breccia pipe evaluation technique lies
in the vertical metal zoning present in breccia pipe ore bodies. This vertical zoning
clearly proves that mineralizing fluids in Arizona breccia pipes moved in an upward
direction, a basic fact which explains the presence and character of the weak mineralization
found at the surface above and around economically-mineralized pipes. Three other
main factors have been defined in DIR’s field and literature research as determining
the extent of uranium and metal sulfide mineralization in collapse breccia pipes
during the breccia pipe mineralization process. These factors are: (1) timed existence of
bacterial feedstock (oil); (2) upwelling, metal-rich brines; and (3) consequent
generation of two proximal geochemical reduction barriers capable of precipitating metal
sulfides and uraninite from upwelling mineralizing fluids.
DIR has defined four independent geochemical parameters that serve as
causallyrelated proxies for the breccia pipe mineralization-controlling factors just
described.Multi-variable regression of these four independent geochemical
parameters measured in surface samples against published uranium reserves-plus-production
figures from each test case resulted in a uranium production function that predicts
97.95% of the variation in uranium resource present in the sampled cases. The orientation data
set spans a reserves range of 550,000 to 8,100,000 pounds U3O8. The average
relative deviation for predicted uranium resource versus observed uranium
reserves-plus-production is ± 140,000 pounds U3O8. The statistical nature of the defined breccia pipe
uranium production function is such that its application to hitherto undrilled
breccia pipe targets in northern Arizona -- surface-penetrating or not -- is very strongly
justified.
Test sampling of an additional 23 unmined breccia pipes, and
subsequent mineral
resource prediction for each of these using the Arizona breccia pipe
uranium production
function, showed that uranium resource predictions resulting from the
application DIR’s
technique matched published historical exploration drill findings for
78% of these cases. However, DIR surface sampling results indicate that
22% (5) of the 23 test samples were
mis-classified by very early historical drilling exploration work and
that these breccia pipe
ore body discoveries yet merit continued development work
