Date: Jan 16, 2019
Spey Resources Corp. (CSE: SPEY) (“Spey” or the “Company”) is pleased to announce that it has entered into an Option Agreement (the “Agreement”) with Geoxplor Corp. (“Geoxplor”) of Arizona, USA., to acquire a 100% interest in the Uravan Vanadium-Uranium Project (the “Property”) located in the La Sal area, San Juan County, Utah, USA, approximately 40 miles southeast of the city of Moab. The Company had targeted the Property for acquisition due to the increasing global demand for vanadium.
Uravan Project
The Uravan Project is located within the La Sal Mining District where historic production of both uranium and vanadium has taken place from 1915 to date. Production of uranium and vanadium is currently being carried out by the only producer in the district, Energy Fuels Inc.*, where mineralized zones carrying lower grade uranium with much higher grades of vanadium are targeted. Although adjoining Energy Fuels’ properties, Spey’s Property remains virtually unexplored for vanadium, with only minor historical prospecting, pitting and radon surveys having been completed.
The 33 lode claims making up the Property are underlain by the Morrison Formation sandstone consisting of a complex assemblage of lenses and sedimentary channel fill. Vanadium zones of potential economic interest can be formed by selective impregnation of sandstone, absorption by shale material and replacement of fossilized plant material. Vanadium-bearing hydrous mica can be in-part disseminated rather uniformly throughout the sandstone and concentrated in sheets along bedding plains. Mineralized zones elsewhere in the Morrison Formation have historically been known to have well defined limits. Production stopes at several nearby historic mines varied greatly in lateral dimensions up to 90m wide by 180m long, with a thickness of 0.5m to over 5.0m. Previously mined zones are lens shaped and graded upwards of 1.5% V2O5 (Carter, W.D., Gualtier, J.L., USGS Paper 508, Geology and Uranium-Vanadium Deposits of the La Sal Quadrangle, 1965 and Kovschak and Nyland, 1981.).
*(see Energy Fuels Inc. News Release dated 2019-01-07)
Exploration Plans
Vanadium is typically associated with uranium in the Morrison Formation sandstone. Spey will explore for vanadium-uranium bearing zones by conducting a detailed radon survey across the Property in order to generate drill targets. Anomalies identified will be tested by recovering samples from depth by shallow drilling to delineate grade and tonnage within the Uravan project.
