Item 2. Properties
ITEM 2. PROPERTIES
Company headquarters is maintained at 5 Church
Street, Toronto, Ontario, Canada M5E 1M2.
An operations facility is rented at 31617 Hwy
90 Road, Nucla, Colorado, USA which houses the Kinetic Separation units and a shop office. In 2022, the rental of a new mining operations
office was added at 31525 Hwy 90 Road, Nucla, Colorado, USA.
The diagram below illustrates the location of
the Company’s properties:
1.
Sunday Mine Complex
2.
San Rafael
3.
Sage
4.
Dunn
5.
Van 4
6.
Hansen/Taylor Ranch
7.
Bullen Property (Weld County)
8.
Maverick Minerals Mill Site (Emery County)
9.
Mustang Mineral Mill Site
(Montrose County)
10.
Uranium Ridge
Overview
Western Uranium & Vanadium Corp is engaged
in the business of exploring, developing, mining and production from its uranium and vanadium resource properties.
On September 16, 2015, in connection with the
Black Range Transaction, the Company acquired additional mineral properties. The mining assets acquired through Black Range included
assets in the states of Colorado, Wyoming, and Alaska. None of these mining assets are operational at this time. As these properties
have not formally established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized
material can be economically extracted as originally planned and anticipated.
27
The Company’s mining properties acquired
on August 18, 2014 that the Company retains as of December 31, 2025, include:
●
San Rafael Uranium Project
located in Emery County, Utah
●
The Sunday Mine Complex
located in western San Miguel County, Colorado
●
The Van 4 Mine located
in western Montrose County, Colorado
●
The Sage Mine project located
in San Juan County, Utah and San Miguel County, Colorado
●
Dunn Project located in San Juan County, Utah.
The Company’s mining properties acquired
on September 16, 2015 that the Company retains as of December 31, 2025, include:
●
Hansen, North Hansen, High
Park, and Hansen Picnic Tree, located in Fremont and Teller Counties, Colorado
●
The Keota Uranium project
acreage located in Weld County, Colorado
●
Ferris Haggerty located
in Carbon County, Wyoming
The Company has a 100% interest in the Hansen/Taylor
Ranch Project properties that it has elected to retain.
Although we have established the existence of
mineralized materials on our uranium properties, we have not established any measured, indicated or inferred mineral resources or any
proven or probable reserves through the completion of a feasibility study for any of our uranium properties and we have no current plans
to seek to do so, as it would not serve a business purpose at the present time.
The near term plan for the Company’s resources
is to initially mine at the Sunday Complex. The Sunday Mine Complex is an advanced stage property with a significant drilling and production
history. Mining and drilling occurred contemporaneously from the 1950’s through the mid 1980’s. From the 1980’s to
the present, mining and drilling occurred only sporadically, typically when uranium or vanadium prices were high. The last previous mining
interval was from 2006 to 2009. Based on the available records, only in 2009 did any surface drilling take place since mid-1980. Past
operators have generated abundant geologic and mining data, and there are open faces underground that show mineralized zones. Near term
exploration is not needed because the underground infrastructure has been already developed.
Mining Properties
Set forth below are details regarding our mining
properties operated by us, which have been prepared in accordance with the requirements of S-K 1300.
1. Sunday Mines Complex
The Property
The Sunday Mine Complex is located
in western San Miguel County and is part of the Uravan Mineral Belt. The property is situated 25 miles north of Dove Creek, Colorado,
on the north flank of Disappointment Valley and portions of Big Gypsum Valley. Energy Fuels Resources (USA) Inc. (“EFR”)
acquired the property in June 2012 from Denison Mines Corp. The complex consists of five individual mines with mine workings located
along a two mile stretch of the southern side of Big Gypsum Valley, with underground workings extending generally south, with associated
vents and surface facilities. The mines are, from east to west: Sunday, Carnation, Saint Jude, West Sunday, and Topaz. The
mines were previously actively mined from 2007 to 2009, by a prior owner. In 2017, the mines were re-opening for a project involving
exploration, development, and mining.
The property consists of 221 unpatented
claims on public land managed by the U.S. Bureau of Land Management (“BLM”) Tres Rios Field Office, covering approximately 3,800 acres.
The area covers parts of sections 10, 13, 14, 15, 23, 24, and 26 T44N R18W, and sections 18,
19, 20, and 30 T44N R17W. Total annual BLM claim maintenance fees are approximately $36,465 due September 1st each
year. The property has access to grid power and has a natural underground source of water due to an aquifer. As a mine that has produced
in the recent past, the Sunday Mine Complex has a robust infrastructure. The roads are all-weather, electric power is grid-tied, surface
facility structures that meet Colorado State standards exist, and water is present. During 2019, Western restarted these mines and after
pausing for COVID-19, these mines have reengaged in active mining operations.
28
Claims for the Sunday Mine Complex carry a 1.0%
royalty on all ore produced, also, in addition, the GMG, Sunshine, and Patsun claims (totaling twenty claims in the northeast
portion of the property) carry a 12.5% royalty on all ore produced.
Accessibility
The property is best accessed from Colorado.
Access from Colorado is via State Highway 141 east out of Naturita, CO for about 3.7 mi (6 km) until the 141/145 Highway junction, then
about 22.4 mi (36 km) south on Hwy 141, then about 6.2 mi (10 km) northwest on County Road 20R (Gypsum Valley Road). The State Highway
141 is a paved all-weather road and the County Road 20R is a gravel road passable in all but the worst weather.
History
The Sunday Mine Complex consists of five different
mines. These are the Topaz, West Sunday, Sunday, St. Jude, and Carnation. The mines have had a number of owners and operators. Maps and
documents made available to the author show that the following companies have been involved in the all or parts of the property prior
to WUC acquisition of the Sunday Mine Complex Uranium (“SMC”) in April 2014: Matterhorn Mining (1950’s-1960’s,
Climax Uranium 1960’s, Union Carbide Corporation (UCC) 1970’s-1980’s, Atlas Minerals (1980’s), Energy Fuels Nuclear
(early 1990’s), International Uranium Corp. (1990’s-2000’s), Denison Mines (USA) (2000’s), and Energy Fuels (2010’s).
The documents are incomplete as so this list may be as well. Since UCC days, the ownership has been clear. In 1983 Union Carbide transferred
its mineral interests to UMETCO, a wholly-owned subsidiary. For the sake of consistency, the name Union Carbide will be used even if
technically the ownership was UMETCO at the time.
Records made available by the Company and a search
of public documents on-line indicates exploration drilling starting on the property in the early 1950’s. Two Defense Minerals Exploration
Administration (DMEA) reports, one on the Sunday area and the other on the Topaz area, indicated some drilling and minor surface extraction
had occurred by the mid 1950’s (DMEA, 1953 & 1956). Additionally, historic maps of the area show the Sunday mines in operation
in the 1950’s (Denison Mines, 2008).
The records & anecdotal evidence indicate
that from the mid-1960’s until the early 1980’s, the SMC produced material from relatively steady ongoing mining operations.
These ceased in 1984 when Union Carbide closed their Uravan mill. Since then, the property has been idle, with the exception of brief
periods in the late 1980’s when UCC mined for a short time during a spike in vanadium prices, in the mid-1990’s with International
Uranium Corporation and another one in 2006-2009 when Denison Mines extracted ore from the mine. During all three periods, the ore was
processed at the White Mesa Mill located just south of Blanding, UT.
Exploration and development drilling on the property
was contemporaneous with the mining. The available database records show that at least 1,419 holes have been drilled on the property.
This is an incomplete list, as an examination of the available maps and cross-sections show a number of holes that are not in the database.
A best estimate for total distance drilled is about 850,100 ft (259,175 m). Anecdotal evidence and some maps also give evidence that
underground long holes (test holes drilled from the mine workings anywhere from 50 ft (15 m) to 300 ft (91 m) long) were used extensively
throughout the mined areas.
The 2-D digitized mine workings, done by Denison
Mines show extensive stopping and drifting within parts of the SMC. Generational mine maps indicate that more mine workings exist than
are shown in the digital database. A very conservative rough estimate of the linear mine workings based on the digital database is in
excess of 50,000 ft (15,244 m) with many stopes. Figure 6.2.1 shows the known drill hole and mine working locations.
Based on the records and on field inspection,
it is evident that the Property has a significant history of drill exploration and mine development.
Anthony R. Adkins, P. Geol., LLC was commissioned
by the Company to prepare a technical report compliant with NI 43-101 on the Sunday Mine Complex Uranium (SMC) Project (the “Sunday
Mine Report”). The Sunday Mine Report was finalized on July 7, 2015 and filed on sedar.com on July 16, 2015.
The Sunday Mine Report is an historic estimate
of measured and indicated resources (not reserves) under NI 43-101. However, the Company is not treating the historical estimate as current
mineral resources, and S-K 1300 does not permit such historic estimates to be disclosed in Form 10-K annual reports.
There is no more recent data available on the
Sunday Mine Complex project resource than that of the Sunday Mine Report. In order to disclose a resource estimate as current, the Company
would need to engage a qualified person (as defined under 43-101 and S-K 1300) to, among other things, take account of any exploration
or other work on the Sunday Mine Complex since the date of the historical estimate and produce a technical report compliant with NI 43-101
and a feasibility study compliant with S-K 1300. The Company currently does not intend to commission such a technical report or feasibility
study.
29
Project Geology
Geologically, the main hosts for uranium-vanadium
mineralization in the Sunday Mine Complex are fluvial sandstone beds assigned to the upper part of the Salt Wash Member of the Jurassic
Morrison Formation, with minor production coming from conglomeratic sandstones assigned to the lower portion of the Brushy Basin Member
of the Morrison Formation. Mineralization from both members is present at the property, with the mine production coming from the Salt
Wash Member. Beds generally strike NW-SE and dip SW, with some exceptions within fault bounded blocks adjacent to Big Gypsum Valley.
Restoration and Reclamation
Each of the mines are permitted separately
with the DRMS. The mines and their permitted acres and financial warranties are, from east to west, the Sunday (60 acres, $523,126),
Carnation (9.8 acres, $54,849), Saint Jude (9.8 acres, $108,830), West Sunday (12.1 acres, $126,940), and Topaz (30 acres,
$173,529).
Permitting Status
The air permits for the site are currently being
renewed with APCD. A Stormwater permit is in place with the WQCD and a Stormwater Management Plan is in effect. However,
a mine water treatment plant may need to be permitted for treating mine water, as there is currently 55 million gallons of water in the
lower portion of the mine where most of the remaining resource is located. This will require a discharge permit with the WQCD and revisions
to the Plan of Operations, EPP, and one of the DRMS mine permits. Special Use Permits are also in place with San Miguel County, which
mainly address road maintenance and transportation issues with some limitations in effect on when and how many trucks may be used for
ore haulage to the mill.
The Company has been working toward the completion
of an updated Topaz Mine Plan of Operations (“Topaz Mine Plan”), which is a separate federal requirement of the U.S. Bureau
of Land Management (“BLM”) for the conduct of mining activities on the federal land at the Topaz Mine. This is a prerequisite
to re-permit the Topaz Mine with Colorado’s DRMS. In connection with the Topaz Mine Plan, an environmental assessment was prepared
by an outside consultant and submitted to the BLM on June 24, 2024. The BLM issued a letter to the Company on August 2, 2024 advising
that the application for the Topaz Mine Plan had run past the allowed evaluation period and was cancelled. Pursuant to the Fiscal Responsibility
Act of 2023, the Company has a one year time limit for BLM reviews. Under the transitional rules, the Topaz project was not eligible
for an extension due to its duration. However, the project can be resubmitted and be picked up where it was left off. The re-scoping
process will need to be repeated to start the one year time clock. Consultants are conducting new work toward gathering additional inputs
for the BLM resubmission, but have not yet restarted the BLM clock by making an amended submission.
Major permits currently in place at the Sunday Complex include:
●
Sunday 112d Mine Permit
M-1977-285 (DRMS)
●
St. Jude 110d Mine Permit
M-1978-039-HR (DRMS)
●
West Sunday 112d
Mine Permit M-1981-021 (DRMS)
●
Carnation 110d Mine Permit
M-1977-416 (DRMS)
●
Topaz 112d Mine Permit
M-1980-055-HR (DRMS)
●
West Sunday Plan
of Operations COC 52049 (BLM)
●
Sunday, St. Jude and Carnation
Plan of Operations COC-53227 (BLM)
●
Resolution #1997-18
Mine Permit (San Miguel County)
●
Resolution 2007-34 Topaz
and Sunday Expansion (San Miguel County)
●
Resolution 2008-41 Increased
Ore Haulage (San Miguel County)
●
Road & Bridge Special
Construction Permit (SCP) 06-14 (San Miguel County)
30
2. San Rafael
The Property
The San Rafael Uranium Project land position
is comprised of a contiguous claim block covered by 136 BM unpatented federal lode mining claims and 10 Hollie unpatented federal lode
mining claims.
The San Rafael Project is located in the historic
Tidwell District about 10 miles west of Green River, Utah. Most of the property is north of Interstate Highway 70 at the Hanksville exit.
Energy Fuels became operator of the San Rafael
Project when it acquired Magnum Minerals in June 2009. It consisted of two core uranium deposits, the Deep Gold and the Down Yonder.
In January 2011, EFR acquired the 10 Hollie claims from Titan Uranium. These claims covered the eastern portion of the Deep Gold deposit,
greatly increasing resources. WUC acquired the property from Energy Fuels and currently holds the 146 claims in the project area.
The San Rafael Uranium Project is currently being
held as a property that is exploratory in nature with no identified reserves. Exploration and mining plans have not been prepared for
the project. The Company has not yet undertaken any development work at the property. Power and water sources have not yet been formally
assessed.
Magnum’s acquisition of the claims and
some of the data Magnum purchased encumbers the claims. This includes a 2% Net Smelter Return royalty to Uranium One, successor to Energy
Metals for claims acquired by Magnum as earn-in to a JV, and a 2% net sales price royalty to Kelly Dearth on the BM claims. There is
no royalty on the Hollie claims.
The unpatented claims are located on approximately
2,900 acres of land administered by the U.S. Bureau of Land Management in sections 13, 14, 23, 24, 25, 26, and 35, T21S, R14E, SLPM,
Emery County, Utah. Holding cost $43,800 due to BLM for claim maintenance fees prior to September 1 each year.
During 2024, the Company conducted work to make
the San Rafael Uranium Project its second mining production center. Western has acquired an exploration permit which will allow the installation
of monitor wells as a next step.
31
Accessibility
The property is located on the eastern side of
the San Rafael Swell in east-central Utah, approximately 140 air miles southeast of Salt Lake City. The little desert community of Green
River, Utah is located about ten miles to the east. In a general sense the San Rafael Uranium Project property position lies within a
wedge shaped area, roughly bound along its northeast edge by US Highway 6-50 and along its southeast edge by Interstate 70.
Concerning additional local access features,
U.S. Highway 6-50 crosses just north of the greater San Rafael Uranium Project area in a northwesterly direction and is roughly paralleled
by the regional railroad line. Access to the property is generally good year around, except for periods of heavy snowstorms during December
through February and increased monsoon rains and summer cloudburst storms during August through October. Access for drilling and other
exploration activity is excellent, except during occasional heavy rainy periods which can create heavy flash flooding and roads mudding-up
and becoming impassable.
History
The Deep Gold deposit was originally discovered
by Continental Oil Company (Conoco) and Pioneer Uravan geologists in the late 1960s and 1970s to early 1980s, respectively. Exploration
drilling was conducted just east of the core of the Tidwell Mineral Belt and north-northeast of the Acerson Mineral Belt. The area containing
the deposits was considered to contain highly prospective paleo trunk stream channel trends. Some of the larger historic producing mines
in the area were Atlas Minerals’ Snow, Probe, and Lucky Mines. The deposit in the San Rafael Project is an open concordant, channel-controlled,
sandstone-hosted, trend type, with mineralization hosted in the upper sandstone sequence of the Salt Wash Member of the Upper Jurassic
Morrison Formation.
In addition to Conoco, Pioneer Uravan, and Atlas
Minerals, the US Atomic Energy Commission (AEC) and other companies (Union Carbide, Energy Fuels Nuclear, and others) conducted exploration
drilling and mining in the area. Some of these companies performed historic resource estimates on the Deep Gold deposits, but they are
not considered compliant with NI 43-101 standards.
Depth to mineralization at the Deep Gold deposit
in Section 23 averages 800 feet, with hole depths averaging approximately 1,000 feet. Magnum purchased and otherwise acquired most of
the available historic exploration data produced by the previous operators. A 100 hole, 100,000 foot drilling program is warranted to
discover and define additional uranium resources. Total cost for this work would be $US 1.3 million to $US 1.5 million, based on an all-inclusive
cost of $US 15/foot.
The Tidwell Mineral Belt and the San Rafael Uranium
District have been the sites of considerable historic exploration drilling and production, with over 4 million pounds of uranium and
5.4 million pounds of vanadium produced. Production from the Snow, immediately up dip of the Deep Gold deposit, which produced for nine
years, starting in March 1973 and ending in January, 1982 consisted of 650,292 pounds of U3O8 contained in 173,330 tons of material at
an average grade of 0.188% U3O8 (Wilbanks, 1982).
O. Jay Gatten, P. Geol., LLC was commissioned
by the Company to prepare an independent technical report compliant with NI 43-101 on the San Rafael Uranium Project (including the:
Deep Gold Uranium Deposit and the Down Yonder Uranium Deposit) (the “San Rafael Report”). The San Rafael Report was finalized
on November 19, 2014 and filed on sedar.com on November 20, 2015.
The San Rafael Report is an historic estimate
of indicated and inferred uranium resources (not measured resources or reserves) under NI 43-101. However, the Company is not treating
the historical estimate as current mineral resources, and S-K 1300 does not permit such historic estimates to be disclosed in Form 10-K
annual reports.
There is no more recent data available on the
San Rafael Uranium Project property than that of the San Rafael Report. In order to disclose a resource estimate as current, the Company
would need to engage a qualified person (as defined under 43-101 and S-K 1300) to produce a technical report compliant with NI 43-101
and a feasibility study compliant with S-K 1300. The Company currently does not intend to commission such a technical report or feasibility
study.
Project Geology
Geologically, the main hosts for uranium-vanadium
mineralization in the San Rafael Project are the fluvial sandstone beds assigned to the upper part of the Salt Wash Member of the Jurassic
Morrison Formation.
Restoration and Reclamation
A financial warranty is posted with the State
of Utah Division of Oil, Gas and Mining for the amount of $61,403 (2 acres).
Permitting Status
All exploration permits have been terminated
and related bonding released. An EA was completed by BLM in 2008 for drilling up to 150 holes. A large area has been surveyed for cultural
and paleontological resources which would expedite future exploration permits. No mine permitting activities have yet occurred.
32
Although the mine is permitted (E/015/0293) and
bonded ($61,403) for exploration, it is not permitted for mining.
Existing permits include:
Exploration permit.
3. Sage
The Property
On July 1, 2014 PRM concluded a deal with EFR
to acquire 44 contiguous unpatented mining claims on the Utah side of the Colorado-Utah state line at the head of Summit Canyon at the
south end of the Uravan Mineral Belt.
The 94 unpatented claims are located
on approximately 1,942 acres land administered by the U.S. Bureau of Land Management in sections 34 and 35, T32S, R26E, SLPM, San Juan
County, Utah and sections 25 and 26, T43N, R20W, NMPM, and sections 19, 29, 30, 31, and 32, T43N, R19W, NMPM San Miguel County, Colorado. Holding
cost is $18,800 due to BLM for claim maintenance fees prior to September 1 each year. The property has access to grid power,
however, no source of industrial water has yet been identified. The Sage Mine Project is currently being held as a property that is exploratory
in nature with no identified reserves. Exploration and mining plans have not been prepared for the project. Western Uranium & Vanadium
Corp. is currently evaluating conducting rehabilitation at the mine and is pursuing the next steps required. Western Uranium & Vanadium
Corp has not yet undertaken any development work at the property.
33
Accessibility
The Sage Plain Project property can be accessed
from the north, south, and east on paved, all-weather county roads. The nearest towns with stores, restaurants, lodging, and small industrial
supply retailers are Monticello, Utah, 26 road miles to the west, and Dove Creek, Colorado, 20 road miles to the southeast. Larger population
centers with more supplies and services are available farther away at Moab, Utah (61 road miles to the north) and Cortez, Colorado (54
road miles to the southeast).
U.S. Highway 491 connects Monticello, Utah to
Dove Creek and Cortez, Colorado. There are two routes north from this highway to the project. At one mile west of the Colorado/Utah state
line (16 miles east of Monticello or 10 miles west of Dove Creek), San Juan County Road 370 goes north for 10 miles to the Calliham Mine
portal site drive way. The mine portal is one-half mile east of Road 370, on a private road. An alternate route is to turn north on Colorado
Highway 141(2 miles west of Dove Creek) for 9.5 miles to Egnar, Colorado, then turn west on San Miguel County. Road H1 for 1.2 miles
before intersecting San Juan County Road 370. Road 370 would be taken north for 4 miles to the Calliham Mine portal site driveway. Road
H1 from Egnar would also be used if one was traveling to the project on Highway 141 from farther north in Colorado, such as Naturita,
Colorado (a total of 62 miles away).
History
The property includes the historic producing
Sage Mine and boarders the famous Deremo Mine and the Calliham Mine (combined historic production of over 8 million lbs of
U3O8 and 70 million lbs of V 2 O 5 ). The uranium-vanadium deposits occur in the upper and middle sandstones
of the Salt Wash Member of the Morrison Formation.
WUC is in possession of historic mine and drill
maps. About 200 historic holes were drilled on the claims at the Sage Mine. A considerable, but unknown amount of drilling occurred historically
on the eastern (Colorado) part of the claims along the benches of Summit and Bishop Canyons. Historic production from several small mines
occurred on the Colorado claims (Red Ant, Black Spider, etc.).
The Sage Mine was developed, operated, and permitted
by Atlas Minerals in the 1970s. It closed in 1982 and was ultimately sold and the permit transferred to Butt Mining Company under a Small
Mine NOI. Jim Butt operated the mine for a short time in the early 1990s when vanadium prices were high; however, the mine has been idle
since that time.
In the fall of 2011, Colorado Plateau Partners
drilled seven holes totaling 4,873 feet at the Sage Mine property to confirm historic map data and explore for a possible east-west channel
connecting the mine to a mineralized body to the west. The drilling was successful in meeting the objectives of confirming the accuracy
of the historic data and verifying a historically defined mineralized body. One hole exploring a possible mineralized trend connecting
the mine to the western mineralized body intercepted 2.0 feet of 0.407% eU 3 O 8 . Another hole intercepted mineralization
greater than 1.0 foot of 0.16% eU 3 O 8 .
Prior to the Company’s acquisition of the
Sage Mine property, Energy Fuels, Colorado Plateau Partners (a Joint Venture between Energy Fuels and Lynx-Royal) completed a NI 43-101
technical report on the Sage Plain Project (Technical Report on Colorado Plateau Partners LLC (Energy Fuel Resources Corporation/Lynx-Royal
JV) Sage Plain Project, San Juan County, Utah and San Miguel County, Colorado by Douglas C. Peters, Certified Professional Geologist,
Peters Geosciences Golden, Colorado December 16, 2011) (the “Sage Mine Energy Fuels Report”).
The Sage Mine Energy Fuels Report resource is
an historic estimate of mineral resources (not reserves) under NI 43-101. The Company is not treating the historical estimate as current
mineral resources, and S-K 1300 does not permit such historic estimates to be disclosed in Form 10-K annual reports.
Energy Fuels submitted an Exploration NOI to
the BLM in March 2013 for the site thereby establishing a nominal permit for the facility. Permitting for mine expansion was started
in 2012, but was discontinued due to other priorities. This work included installing 3 monitoring wells around a proposed portable water
treatment plant (exploration permit E/037/0188; bond $16,020) and conducting baseline studies (archeology, biology, groundwater). Eight
baseline groundwater sampling events have been completed, which will allow for submittal of a complete groundwater discharge permit application
to DWQ.
Other than offsetting some of the historic drill
holes and use of gamma logs where available, no verification of the historical data has been conducted. No core is available at the present
time from the earlier exploration or production work.
There is no more recent data available on the
Sage Mine project resource than that of the Sage Mine Energy Fuels Report. In order to disclose a resource estimate as current, the Company
would need to engage a qualified person (as defined under 43-101 and S-K 1300) to produce a technical report compliant with NI 43-101
and a feasibility study compliant with S-K 1300. The Company currently does not intend to commission such a technical report or feasibility
study.
34
Project Geology
The Sage Plain and nearby Slick Rock and Dry
Valley/East Canyon districts uranium vanadium deposits are a similar type to those elsewhere in the Uravan Mineral Belt. The location
and shape of mineralized deposits are largely controlled by the permeability of the host sandstone. Most mineralization is in trends
where Top Rim sandstones are thick, usually 40 feet or greater.
The Sage Plain District appears to be a large
channel of Top Rim sandstone which trends northeast, as one of the major trunk channels that is fanning into distributaries in the southern
portion of the Uravan Mineral Belt. The Calliham/Crain/Skidmore (Calliham Mine) and Sage Mine deposits, as well as nearby Deremo and
Wilson/Silverbell mines appear to be controlled by meandering within this main channel.
The Morrison sediments accumulated as oxidized
detritus in the fluvial environment. During early burial and diagenesis, the through-flowing ground water within the large, saturated
pile of Salt Wash and Brushy Basin material remained oxidized, thereby transporting uranium in solution. When the uranium-rich waters
encountered the zones of trapped reduced waters, the uranium precipitated. Vanadium may have been leached from the detrital iron-titanium
mineral grains and subsequently deposited along with or prior to the uranium.
The thickness, the gray color, and pyrite and
carbon contents of sandstones, along with gray or green mudstone, were recognized by early workers as significant and still serve as
exploration guides. Much of the Top Rim sandstone in the Sage Plain Project area exhibits these favorable features; therefore, portions
of the property with only widely spaced drill holes hold potential. However, without the historic drill data, it cannot be determined
where sedimentary facies are located (e.g., channel sandstones thin and pinch-out, or sandstone grades and interfingers into pink and
red oxidized sandstone and overbank mudstones). Furthermore, locations of interface zones of the oxidized and reduced environments are
hard to predict. Until more historic data are obtained and/or more drilling occurs on the property away from the historic mines, these
outlying areas remain exploration targets.
Restoration and Reclamation
A financial warranty is posted with the Colorado
Mined Land Reclamation Board for the amount of $63,819.
Permitting Status
Although the mine is permitted (S/037/0058) and
bonded ($63,819) for reclamation it is not permitted for mining. Because of its location on BLM managed land, an Environmental Impact
Assessment will need to be prepared for the site by a third-party contractor once a Plan of Operations is submitted for the mine operation.
An amendment to the Small Mine Reclamation NOI will also be needed with Utah Division of Oil Gas and Mining to allow for mine expansion.
Existing permits include:
Small Mine Reclamation permit with the Utah Division
of Oil Gas and Mining.
Basis of Disclosure
The scientific and technical information provided
in this Form 10-K on the Sage Mine, as well all data and exploration information reported in this Form 10-K on the Sage Mine, is based
on the information reported in the Sage Mine Energy Fuels Report.
4. Dunn
The Property
The 11 unpatented claims are located on approximately
220 acres of land administered by the BLM in sections 14 and 15, T32S, R25E, SLPM, San Juan County, Utah. Holding costs of the 11 claims
will be $2,200 due to BLM before September 1 each year.
The Dunn Project is currently being held as a
property that is exploratory in nature with no identified reserves. Exploration and mining plans have not been prepared for the project.
Western Uranium & Vanadium Corp. has not yet undertaken any development work at the property. Power and water sources have not yet
been formally assessed.
35
Accessibility
The property lies in Bear Trap Canyon, a tributary
at the head of East Canyon. This is midway between the EFR Rim Mine and the Calliham/Sage mine area. Access to the Dunn project
is from West Summit Road (San Juan County Road 313), 10.8 miles north of the junction with U.S. Highway 491. West Summit Road is a two-lane
paved road that is well maintained year round. At 10.8 miles, a graveled Class D County Road (unnamed), spurs off of West Summit Road,
passes through the leased lands and terminates at the Dunn Portal at approximately 2.1 miles from the spur. The nearest town to the Dunn
project is Monticello, Utah which is approximately 65 miles away. The closest commercial airport facilities are located in Cortez, Colorado,
approximately 65 miles to the southeast, and Moab, Utah approximately 65 miles to the northwest; both airports have daily commercial
flights to-and-from Denver International Airport.
History
The first discovery of uranium-vanadium mineralization
within close proximity to the Dunn project was by Homestake Mining Company in the late 1960s at what would eventually become the Wilson
Mine 4 miles to the east. Mineralization associated with the Dunn mine was discovered by Gulf Oil Corporation in the late 1960s, which
was subsequently acquired by Homestake, followed by Atlas Minerals in the 1970’s. Between 1975 and 1983 Atlas completed 243 drill
holes at the Dunn project with an average total depth of 724 feet. By 1981, Atlas had delineated a resource that could justify the construction
of a 3,825 foot decline. The decline successfully reached the perimeter of delineated mineralization, but before any production-mining,
Atlas ceased operations in 1983 when faced with financial setbacks that required them to divert funds.
In July 2013, Energy Fuels Resources acquired
the Dunn Mine property from American Strategic Minerals Corporation and Kyle Kimmerle.
Project Geology
The Dunn project occurs on structurally unaffected
terrain between the gently folded Boulder Knoll anticline to the southwest and the more prominent salt-cored Lisbon Valley anticline
to the northeast. The strata beneath the project are relatively flat, and no major faults or folds are expected to disrupt bedding or
unit contacts.
Uranium-vanadium mineralization at the Dunn is
hosted in the Salt Wash Member of the Jurassic Morrison formation which occurs at approximately 500 to 750 feet below the surface. The
average depth to the mineralized sandstones within the Salt Wash Member is 650 feet from the surface.
The primary uranium mineral is uraninite with
minor amounts of coffinite. The primary vanadium mineral is Montroseite.
Restoration and Reclamation.
No liabilities currently exist.
Permitting Status
No permits currently exist.
Basis of Disclosure
The scientific and technical information provided
in this Form 10-K on the Dunn Project American Strategic Mineral Corporation is based on information provided in a NI 43-101 technical
report prepared by American Strategic Minerals Corporation (the previous owner of the Dunn Project) entitled Technical Report on American
Strategic Minerals Corporation’s Dunn Project, San Juan County, Utah by Dr. David A. Gonzales, PhD, PG, Durango, Colorado March
23, 2012. Mr. Gonzales is a qualified person for purposes of NI 43-101. However, none of the data, other exploration information or other
results reported in that report are being incorporated into this Form 10-K.
36
5. Van #4
The Property
The Van#4 is located in the Uravan Mineral Belt
on Monogram Mesa in Montrose County, Colorado. The property had been held by Denison and its predecessors for many years. The property
consists of 47 unpatented mining claims covering the mine site and long-known deposit to the east, plus two large claim groups to the
north, east, and south with exploration potential.
The 80 unpatented claims are located
on approximately 1,900 acres land administered by the U.S. Bureau of Land Management in sections 27, 28, 29, 33, and 34, T48N,
R17W, NMPM, and some in section 3, T47N, R17W, Montrose County, Colorado. The Holding costs of the 80 claims will be $9,400 due
to BLM before September 1 each year. There are no royalties encumbering these claims.
The property includes the Van #4 shaft and associated
surface facilities, which need renovation. The mine is connected to the Ura decline on claims in Bull Canyon to the southwest,
not owned by WUC. It has been on standby for many years. Denison completed reclamation of two of the ventilation holes in 2008 and
2010. The property has access to grid power; however, no source of industrial water has been identified yet. The Van 4 mine is currently
being held as a property that is exploratory in nature. Exploration and mining plans have not been prepared for the project. Western
Uranium & Vanadium Corp. has not yet undertaken any development work at the property. Power and water sources have not yet been assessed.
A prior owner of the Company’s Van 4 Mine
had been granted a first Temporary Cessation from reclamation of the mine by the Colorado Mined Land Reclamation Board (“MLRB”)
which was set to expire June 23, 2017. Prior to its expiration, PRM formally requested an extension through a second Temporary Cessation.
PRM subsequently participated in a public process which culminated in a hearing on July 26, 2017. Prior to the hearing, three non-profit
organizations who pursue environmental and conservation objectives filed a brief objecting to the extension. The MLRB board members voted
to grant a second five-year Temporary Cessation for the Van 4 Mine. Thereafter, the three objecting parties filed a lawsuit on September
18, 2017. The MLRB was named as the defendant and PRM was named as a party to the case due to the Colorado law requirement that any lawsuit
filed after a hearing must include all of the parties in the proceeding. The plaintiff organizations are seeking for the court to set
aside the board order granting a second five-year Temporary Cessation period to PRM for the Van 4 Mine. The Colorado state Attorney General
was defending this action in the Denver Colorado District Court. On May 8, 2018, the Denver Colorado District Court ruled in favor, whereby
the additional five-year temporary cessation period was granted. The Plaintiffs appealed this ruling to the Colorado Court of Appeals
and on July 25, 2019 the ruling was reversed, whereby the additional five-year temporary cessation period should not have been granted.
Thereafter, the MLRB and the Colorado Attorney General advised Western that it will not make an additional appeal of the ruling. Further,
the time period for an appeal has passed. The Judge has subsequently issued an instruction for the MLRB to issue an order revoking the
permit and putting the Van 4 Mine into reclamation. On January 22, 2020, the MLRB held a hearing and afterward on March 2, 2020, the
MLRB issued an order vacating the Van 4 Temporary Cessation, terminating mining operations and ordering commencement of final reclamation.
The Company has five years to complete the reclamation of the Van 4 Mine. The reclamation commenced in the spring of 2020 and is fully
covered by the reclamation bonds posted upon acquisition of the property. Western’s Operations team has completed the last of the
reclamation work prior to the reclamation deadline. The Company submitted its Surety Reduction Request application to the CDRMS on January
7, 2026 for a reduction of the financial warranty based on current site conditions and consideration of reclamation activities completed
thus far. On March 19, 2026, the CDRMS concluded its review and approved the Company’s request and reduced the financial warranty
from $75,057 to $49,350.
Accessibility
The Van #4 mine is accessible via Montrose County
Roads year-round.
History
The Van#4 was initially permitted in the late
1970s and early 1980s by Union Carbide as part of a number of small mines named the Thunderbolt Group. Energy Fuels Nuclear, Inc. (EFN)
acquired the mine in 1984 and then transferred the mine and permits to International Uranium Corporation (IUC) in 1997. IUC re-permitted
the mine with DRMS (then known as the Division of Minerals and Geology) in 1999 because the previous permit had included other mines
in the area that were not acquired by IUC. Mine Permit M-1997-032 with DRMS is currently in good standing and bonded for $75,057.
Amendment AM-1, which incorporated the approved EPP, was issued on May 30, 2012. The permit has been transferred over the years from
IUC to Denison Mines (USA) Corp. to Energy Fuels Resources (USA) Inc. and now to WUC by way of PRM.
37
Project Geology
The uranium-vanadium deposits occur in the upper
and middle sandstones of the Salt Wash Member of the Morrison Formation. Deposits in this part of the Uravan Mineral Belt have a moderate
V 2 O 5 : U3O8 ratio. The Company is in possession of much historic mine and drill data (former Union Carbide/Umetco property), as
well as up-to-date mine maps. Denison drilled most recently (summer 2008) 21 wide-spaced exploration holes in sections 27 and 34.
All have been reclaimed and the permit terminated.
Restoration and Reclamation.
There is a reclamation bond held by the Colorado
DRMS for $75,057.
Permitting Status
Permit compliance is currently limited to an
annual stormwater inspection; stormwater improvement work was completed in 2010 and 2012. The air permit with APCD
was recently allowed to lapse, as the company does not have any immediate development or operation plans for the mine. The mine does
not have EPA approval for radon emissions; however, this approval may not be needed to restart mining, as the life-of-mine production
will likely be less than 100,000 tons. The DRMS mining permit was put into Temporary Cessation in February, 2014. Existing major permits
at the mine include:
●
BLM Plan of Operations
COC-62522 (same as DRMS Permit M-97-032)
●
DRMS 110d (Small Mine,
DMO) Mine Permit M-97-032
38
6. Hansen/Taylor Ranch
The Property
Within the Project area, Black Range has mining
agreements, owns fee minerals, holds options to purchase fee mineral rights, holds federal unpatented mining claims and mineral leases
with the State of Colorado, and has in place surface access agreements, including:
-
1 x private Mineral Lease
-
1 x State Mineral Lease
(UR3324)
-
1 x option to purchase
100% of the Hansen and Picnic Tree Deposits
-
108 Federal unpatented
mining claims
The Hansen/Taylor Ranch Project is currently
being held as a property that is exploratory in nature with no identified reserves. Neither exploration plans nor a mining plan exist
for the project. Black Range Minerals has not undertaken development work at the property since groundwater well installation in 2013.
Power and water sources have not yet been formally assessed.
The Company owned 49% of the resource property
and had an option to purchase the remaining 51% of the resource property that the Company did not already own. In 2019 Western did not
exercise the option and the option expired unexercised. Currently, Western still retains 49% of the resource land package.
Accessibility
The Project is located in Fremont County, in
South Central Colorado approximately 30 miles northwest of the city of Canon City. Canon City is the closest population center and had
a population of 16,400 in 2010. The largest metropolitan area in close proximity to the Project is Colorado Springs which is located
approximately 46 miles northeast of Canon City and has a population of approximately 416,000. Figure 1 shows the locations of these population
centers with respect to the Project.
For ground travel, Canon City is best accessed
from Denver/Colorado Springs via I-25 south to State Highway 115 which intersects Highway 50 just east of Canon City. For air travel,
alternatives include the Colorado Springs Municipal Airport (COS), which is a 16-gate facility served by 14 airlines and Denver’s
International Airport (DEN), which is 149 miles from Canon City. There is a small airport, Fremont County Airport (CNE), located in Canon
City, which is open to private flights. The property has access to grid power; however, no source of industrial water has been identified
yet.
History
Uranium mineralization was discovered in the
Tallahassee Creek District in 1954 by two groups of prospectors. Between 1954 and 1972, 16 small open pit and underground mines were
operated in the district. Discoveries, and most producing mines and production were in the Tallahassee Creek Conglomerate, with one mine,
the Smaller Mine, producing from the Echo Park Formation. Exploration efforts were minimal until Rampart Exploration Company (Rampart),
under contract to Cyprus, explored the Taylor Ranch area beginning in 1974 and discovered the Hansen Uranium Deposit along with other
uranium deposits in the district. Cyprus took the Hansen and Picnic Tree deposits through a positive final feasibility analysis in 1980
for an open-pit mining and conventional uranium milling operation and secured all necessary operating permits in 1981. The collapse of
the uranium market led to Cyprus abandoning the project which lay dormant until Black Range Minerals began activities in late 2006.
Black Range Mineral’s Taylor Ranch Project,
CO, consists of a combination of private, BLM and State Section minerals, and private, BLM and State Section surface rights. Ownership
of the private minerals and surface has mainly been by local ranchers. Western Nuclear held a portion of the property briefly in 1968.
Cyprus gained control of mineral and surface rights during the period 1975-1978.
39
In 1993, Cyprus sold their Tallahassee Creek
holdings to Noah (Buddy) and Diane Taylor who had managed ranching activities on the property. The Taylors were not able to make the
final payment to Cyprus and sold the southern portion of their holdings which included the Hansen and Picnic Tree deposits to New Mexico
and Arizona Land (now NZ Minerals) in 1996 who, in 1998, sold the property to South T-Bar Ranch, a subsidiary of Colorado developer Land
Properties, while reserving a 49% interest in the minerals.
This part of Cyprus’ prior holdings was
subdivided, mainly into 35-acre parcels. Beginning in December 2006, through various purchases, leases and option agreements, Black Range
Minerals has obtained mineral rights to most of the original Cyprus holdings.
Prior to the Hansen/Taylor Project being acquired
by WUC, a mineral resource for the Hansen/Taylor Ranch Project for Black Range Minerals Limited. Black Range Reported a JORC compliant
indicated uranium resources. This historic resource estimate was originally reported to Black Range Minerals Limited by Tetra Tech in
four resource memos (collectively, the “Tetra Tech Reports”): 1) High Park Kriging Resources – Taylor Ranch Uranium
Project, April 25, 2008; 2) North Hansen, Boyer Kriging Resources – Taylor Ranch Uranium Project, April 29, 2009; 3) Technical
Memorandum – Boyer, Hansen and Picnic Tree Area Kriging Resources – Taylor Ranch Uranium Project, August 24, 2009; and 4)
Technical Memorandum – Boyer, Hansen and Picnic Tree Area Kriging Resources – Taylor Ranch Uranium Project (Updated 2010),
August 12, 2010. These memos were originally prepared by Rex Bryan of Tetra Tech, a qualified person under NI 43-101. The results reported
in the Tetra Tech Reports are historical estimates under NI 43-101. However, the Company is not treating the historical estimate as current
mineral resources, and S-K 1300 does not permit such historic estimates to be disclosed in Form 10-K annual reports.
The historic Black Range Minerals resource reported
in the Tetra Tech Reports uses JORC indicated and inferred resource categories and does not contain reserves. There is no more recent
data available on the Hansen/Taylor Project resource than that of the Tetra Tech Reports. In order to disclose a resource estimate as
current, the Company would need to engage a qualified person (as defined under 43-101 and S-K 1300) to produce a technical report compliant
with NI 43-101 and a feasibility study compliant with S-K 1300. The Company currently does not intend to commission such a technical
report or feasibility study.
Project Geology
The deposits that make up the Project are tabular
sandstone deposits associated with redox interfaces. The mineralization is hosted in Tertiary sandstones and/or clay bearing conglomerates
within an extinct braided stream, fluvial system or palaeochannel. Mineralization occurred post sediment deposition when oxygenated uraniferous
groundwater moving through the host rocks came into contact with redox interfaces, the resultant chemical change caused the precipitation
of uranium oxides. The most common cause of redox interfaces is the presence of carbonaceous material that was deposited simultaneously
with the host sediments. In parts of the Project the palaeochannel has been covered by Tertiary volcanic rocks and throughout the Project
basement consists of Pre-Cambrian plutonics and metamorphic rocks. The volcanic and Pre-Cambrian rocks are believed to be the source
of the uranium.
Restoration and Reclamation
During the fourth quarter of 2021, the Company
received notice from the State of Colorado that its surety release request on the Hansen Picnic Tree property had been approved, and
as such, this property is no longer subject to reclamation treatment. As the property wasn’t a current development priority, Western
completed reclamation on the property. The Company recorded a discontinuation of the Hansen Picnic Tree property’s present value
of $44,793 during the fourth quarter of 2021. On December 29, 2021, the Company moved the $154,936 restricted cash deposit into its cash
after receiving payment from the state of Colorado.
Permitting Status
The project’s exploration permit lapsed
with the completion of reclamation.
40
Basis of Disclosure
The scientific and technical information provided
in this Form 10-K on the Hansen/Taylor Ranch Project, as well all data and exploration information reported in this Form 10-K on the
Hansen/Taylor Ranch Project, is based on the information reported in the Tetra Tech Reports.
7. Bullen Property (Weld County)
The Property
The Bullen Property is a private land parcel
located in Weld County Colorado and is inclusive of 139 surface acres and 160 mineral acres. The property location is Township 9 North,
Range 60 West, 6 th P.M., Section 34:NW/4.
Accessibility
The Bullen Property is accessible via Weld County
roads year-round.
History
The Bullen Property is an oil and gas property
located in Weld County Colorado. The Company acquired this non-core property in 2015 in the Black Range Minerals Limited acquisition.
Black Range purchased the property in 2008 for its Keota Uranium Project. This project ran from 2008 to 2013, and at its peak there were
five strategic interests which comprised approximately 3,300 acres in the Keota Uranium District. After the project ceased, the Bullen
Property was the only acreage retained in Weld County by virtue of its outright ownership.
In 2017, the Company signed a three year oil
and gas lease which in 2020 was extended for an additional three year term or the end of continuous operations. The consideration was
in the form of upfront bonus payments and backend production royalty payments. Additional right-of-way easement agreements were signed
which allowed for the development of a pipeline. The lease agreement allows the Company to retain property rights to vanadium, uranium,
and other mineral resources.
41
In early 2020 Bison Oil & Gas (“Bison”)
traded this lease to Mallard Exploration (“Mallard”), Mallard subsequently filed an application with the Colorado Oil &
Gas Conservation Commission (COGCC) to update the permitting to create a new pooled unit.
In late 2020 Mallard began development of the
pooled unit. These DJ-Basin wells target the Niobrara formation. During 2021, the operator completed all well development stages and
eight (8) wells commenced oil and gas production by August 2021. The first royalty payment was made in January 2022. During 2022, the
operator completed all well development stages on a second set of eight (8) wells which commenced oil and gas production by August 2022.
The first monthly royalty payment including production from the new wells was made in January 2023. Monthly royalty payments are ongoing.
In January 2023, Mallard was acquired by Bison.
Project Geology
The Bullen Property is located within the Denver-Julesburg
Basin (“D-J Basin”) which is inclusive of multiple oil and gas formations.
Permitting Status
Mallard’s application with the Colorado
Oil & Gas Conservation Commission (COGCC) created a new order to establish a drilling and spacing unit and set the maximum number
of horizontal wells that may be drilled. The field rules were approved on August 24, 2020 (COGCC Order No. 535-1325). This order pooled
five adjoining parcels into a 3,200 acre pooled unit (“Unit”) and set the maximum number of wells at 24. A total of 16 wells
have been permitted in the Unit. In 2021, the first set of 8 permitted wells were put into production. In 2022, the second set of 8 permitted
wells were put into production. Thus all permitted wells in the pooled unit have been put into production and are paying monthly royalties.
8. Maverick Minerals Mill Site (Emery County, Utah)
The Property
The Maverick Minerals Mill Site land package
was assembled through the purchase of three parcels on which to permit and construct mineral processing facilities. Engineering and design
work, as well as site testing, was performed during 2024. In October 2024, Western acquired a second site (please see discussion of Mustang
site below), which was larger, located closer to the Company’s Sunday Mine Complex and was a more advanced site for the permitting
and construction of the Company’s initial mineral processing mill. The Maverick Minerals Mill Site is in close proximity to Western’s
San Rafael project.
42
Accessibility
The Maverick Minerals Mill Site is accessible
by Utah public roads year round.
Ownership
The Maverick Minerals Mill Site is owned by Western.
Permitting Status
Western has collected certain environmental testing
data to be utilized in connection with a future permit application. Baseline data collection was paused prior to commencing monitor well
installation. Western is currently evaluating next steps and timing for this site.
History
The Maverick Minerals Mill Site acquisition was
completed in 2023.
Planned Operations and Maintenance
Subsequent to the acquisition of the Mustang
Mineral Mill Site, Western is evaluating the next steps for this site.
Environmental Matters
The Maverick Minerals Mill Site consists principally
of an undeveloped parcel of land. There are no known environmental matters to report.
Total Cost of Project
Western is currently evaluating the expected
use for this site and the related costs that will be incurred.
The Company’s Planned Work
There are no near term plans for operations at
this site.
9. Mustang Mineral Mill Site (Montrose County, Colorado)
The Property
The Mustang Mineral Mill Site is an 880 acre
parcel of land located in Montrose County, Colorado, situated approximately 50 road miles from Western’s Sunday Mine Complex. This
is the second site acquired by Western for the permitting, development and construction of a mineral processing facility. The Mustang
Mineral Mill site was purchased in October 2024, where a uranium processing mill was previously licensed, but never constructed. Western
expects to benefit from the prior site owner’s completion of all phases of licensing and permitting of its mill project. Western’s
mill is expected to have a cost of approximately $75 million and is planned to start up in 2029. When purchased, the Mustang Mineral
Mill Site included certain infrastructure already in place, including nine monitoring wells and three production wells, meteorological
data towers, electric power access and initial power infrastructure, paved roads and gravel roads. The 880 acre site provides abundant
space for tailings disposal to support 40 years of continuous mill operations.
Accessibility
The site is accessible by public roads year around.
Ownership
The site is owned by Western.
43
Permitting Status
Western has started permitting for the Mustang
Mineral Mill Plant and the site was previously permitted for a uranium mill that was never constructed.
Official baseline data collection at Mustang
began in December 2024 for water monitoring and January 2025 for air monitoring. The required water monitoring data collections
have been completed. As air monitoring equipment required repair, we will need to continue to collect air sample data beyond 1Q
2026, and into 2Q 2026. Results to date for both water and air quality have been consistent with prior data collected by the former
owners. During 2025, Western sourced digital versions of the prior Pinon Ridge Mill license application and supporting data which will
result in substantial savings in the compilation of the radioactive materials license application. The team will begin preparing the
radioactive materials license application in 2Q 2026 with the goal of submitting the application during 4Q 2026.
History
The mill is under development by the Western
team. However, under a prior owner it was fully licensed and thus provides leverage from past expenditures unique to this specific site
supporting the permitting process. The Colorado Department of Public Health and Environment (CDPHE) has issued a license for this facility
twice, underscoring the site’s compliance with stringent regulatory requirements.
Environmental Matters
None. The land was previously used for grazing
land. A Cultural Study was conducted previously and it was determined that the facility will not affect properties of religious or cultural
significance to any Indian tribe. There are no residual environmental issues.
Total Cost of Project
Western is expecting the mill to be constructed
at a cost of approximately $75 million. Preliminary engineering designs from the Maverick Mill are applicable as well as engineering
and licensing application work completed on this same site for the Pinon Ridge Mill.
The Company’s Planned Work
The Company’s plans are to develop and
license a uranium and vanadium processing facility to process production from its resources in Colorado in addition to those in Utah.
10. Uranium Ridge Project
The Property
The Uranium Ridge is located on Bureau of Land Management (BLM) land
in Montrose County, Colorado, situated approximately 10 road miles from Western’s Mustang Mineral Processing Plant. The property
combines the historically drilled Baboon Basin and Sawtooth claims with newly acquired adjacent lode claims and serves as a key satellite
deposit supplying feedstock for Western’s milling facilities. The property contains high-grade uranium and vanadium in the Salt
Wash Member of the Morrison Formation and will present significant ore transportation cost savings. In addition to the acquired mining
claims, Western staked an additional surrounding 38 mining claims, based upon the trend of the mineralization at the site.
Accessibility
The site is accessible by public roads year round,
however, a portion of these roads will require repair.
History
The property was acquired in 1996 by two private
partners (each owning 50% of the Property separately and not jointly) as an investment that leveraged their combined expertise as a geologist
and a surveyor. The latter partner was notably from a prominent local uranium family. Over the course of ownership, the partners periodically
made the Property available for sale during periods of strong uranium prices. Following the passing of one of the original partners in
2013, Western’s CEO George Glasier acquired that partner’s interest from his estate. As a result, the property has since
been held by the remaining original partner and Mr. Glasier, each owning the separate but contiguous mining claim packages.
Due to personal circumstances, the remaining
original partner recently offered his interest to Mr. Glasier. However, due to high potential for added value to the Company, Mr. Glasier
first presented this opportunity to Western. The Company determined that acquiring the drilled-out Claims represented a compelling opportunity
when combined with the leveragability of the larger land package surrounding the property. To consolidate ownership, Mr. Glasier indicated
his willingness to make his personal interest available to the Company on appropriate terms if the Company deemed it to be desirable.
On October 14, 2025, Western acquired the package
of unpatented mineral lode claims and secured a 50% ownership in the Uranium Ridge.
In connection with Western’s purchase of its 50% interest in
the Baboon Basin and Sawtooth claims, Western staked its 100% interest in an additional surrounding 38 mining claims.
44
The original owners of the Property, Nuclear Dynamics
Inc., engaged Thamm, Mickel & Co. to prepare an independent ore reserve calculation; the report was issued August 14, 1980 (the “Thamm
Report” or “Report”). The Report was compiled utilizing data from 175 drill holes drilled between 1977 and 1980, but
did not utilize a superior calculation method, such as the Kriging calculation or the polygonal method. The Thamm Report was prepared
approximately 20 years before National Instrument 43-101 Standards of Disclosure for Mineral Projects was adopted by the Canadian Securities
Administrators. Therefore, the Thamm Report is not current or public. Accordingly, the Company is not presenting the findings of the Report.
The property encompasses the previously drilled-out
Baboon Basin/Sawtooth claims, as well as additional claims surrounding Baboon Basin/Sawtooth.
Project Geology
The property contains high-grade uranium and
vanadium in the Salt Wash Member of the Morrison Formation.
Permitting Status
No permits currently exist.
Restoration and Reclamation
No liabilities currently exist.
INFRASTRUCTURE
The Company’s carrying value of mineral
assets, equipment and kinetic separation intellectual property is as follows:
The Company holds a license to use Kinetic Separation,
a proven technology that we anticipate will improve the efficiency of extracting uranium and vanadium mineralization from the sandstone
base material. No chemicals are added in the process, yet very high mineral recoveries can be achieved with considerable mass reduction;
facilitating the separation of a high-value, high-grade ore product from a coarse-grained barren “clean sand” product. The
Company holds a license to use this Kinetic mining process, although there are some uncertainties about whether the anticipated benefits
will be realized. See Item 1, “Business – Corporate History” and “Business – Our Strategy – Uranium/Vanadium
Production”. The Kinetic Separation Process.” Kinetic Separation is a low cost, purely physical method of uranium and vanadium
ore extraction. Kinetic Separation has been initially tested in order to understand the hydro and mechanical separation processes. The
Company used a pilot Kinetic Separation system to test several different samples of uranium ore from the Sunday Mine Complex and the
Hansen/Taylor Ranch properties. In all cases, uranium ore that was entered into the Kinetic Separation pilot system appeared to concentrate
most of the uranium into the post kinetically separated material consisting of a fraction of the original mass, leaving most of the post
kinetically separated materials which did not contain any uranium. The results of these tests have not yet been validated by a qualified
person.
On December 1, 2016 a determination was made
by the CDPHE considering the NRC Advisory Opinion, the Colorado public meeting process, and the CDPHE regulatory and evaluation framework.
This determination stated that the proposed Kinetic Separation operations at the Sunday Mine by Black Range Minerals must be regulated
by the CDPHE through a milling license. Previously, the Company was unable to deploy Kinetic Separation as it was without a regulatory
framework, but as a result of this determination the Company is now able to deploy Kinetic Separation under a milling license. The Colorado
milling license that Western is currently seeking will likely incorporate Kinetic Separation via an amendment to the initial license
– as Western’s current plan is to submit a licensing application that is substantially identical to the application used
previously for the Pinon Ridge Mill (which did not include the Company’s Kinetic Separation technology).
The Company holds mineral properties as outlined
below.
45
Pinon Ridge Properties
On August 18, 2014, the Company purchased mining
assets from Energy Fuels Holding Corp. in an arm’s length transaction. The mining assets include both owned and leased land in
the states of Utah and Colorado. All of the mining assets represent properties which have previously been mined to different degrees
for uranium. As some of the properties have not formally established proven or probable reserves, there may be greater inherent uncertainty
as to whether or not any mineralized material can be economically extracted as originally planned and anticipated. Western has a 1% royalty
obligation on the market value of the recovered uranium and vanadium owed to the previous property owner.
The Company’s mining properties acquired
on August 18, 2014 which the Company still retains as of December 31, 2025, include the San Rafael Uranium Project located in Emery County,
Utah; the Sunday Mine Complex located in western San Miguel County, Colorado; the Van 4 Mine located in western Montrose County, Colorado;
the Sage Mine project located in San Juan County, Utah; and the Dunn project located in San Juan and San Miguel counties, Colorado.
Black Range Properties
On September 16, 2015, in connection with the
Black Range Transaction, the Company acquired additional mineral properties. The mining assets acquired through Black Range include leased
land in the states of Colorado, Wyoming and Alaska. None of these mining assets were operational at the date of acquisition. As these
properties have not formally established proven or probable reserves, there may be greater inherent uncertainty as to whether or not
any mineralized material can be economically extracted as originally planned and anticipated.
The Company’s mining properties acquired
on September 16, 2015 which the Company still retains as of December 31, 2025, include Hansen, North Hansen, High Park, Hansen Picnic
Tree, Taylor Ranch, located in Fremont County, Colorado. The Company also acquired Keota located in Weld County, Wyoming.
As the properties are not in production, they
are not covered by various types of insurance including property and casualty, liability and umbrella coverage. We have not experienced
any material uninsured or under insured losses related to our properties in the past and believe our approach sufficient given the inactivity.