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Mineral Validity Examination
Excerpt from "Mineral Report" for Lode Mining Claims, Kaibab National Forest, Canyon 74-75 Mining Claims
Summary, Conclusions and Recommendations
This report documents the results of a validity examination of two unpatented lode mining claims known as the Canyon 74 and 75 claims, located within the Tusayan Ranger District, Kaibab National Forest. The area containing the claim block is within the Northern Arizona Mineral Withdrawal that was segregated from the Mining Law for two years by Secretary of Interior, Salazar, on July 21, 2009, for approximately 1 million acres surrounding the Grand Canyon National Park region, including BLM and FS lands. By Secretarial order on January 9, 2012, the entire 1 million acre area that was under consideration for withdrawal was withdrawn for a period of 20 years by the Secretary of Interior.
It is Forest Service policy (FSM 2803.5) to only allow operations on mining claims within a withdrawal that have valid existing rights (VER). Certified mineral examiners: Michael Linden and Mike Doran conducted the validity exam, which was prompted by a request to resume development and mining operations at Denison’s Canyon Mine, within the Canyon mining claim block.
Over the course of several months this past fall and winter (2011), field visits were made by the examiners to the Canyon claims, the core shed at the Canyon Mine, Denison’s offices in Fredonia, Arizona, Denison’s Arizona One uranium mine on the BLM Arizona strip, and Denison’s White Mesa Mill in Blanding, Utah.
The Canyon 74 and 75 claims overlie a breccia pipe uranium deposit, which has been called the Canyon Pipe. Drilling by various uranium companies over the years has confirmed the presence of a breccia pipe that contains approximately 84,207 tons of uranium ore grading at 0.97% U3O8. This equates to roughly 1,633,345 pounds of uranium oxide.
We conclude that a discovery of a valuable mineral deposit existed at the time of the segregated withdrawal on July 21, 2009 within the limits of lode claims; Canyon 74 and Canyon 75, as required under the 1872 Mining law (30 USC 21-54). Furthermore, under present economic conditions, the uranium deposit on the claims could be mined, removed, transported, milled and marketed at a profit. We conclude that the test for discovery of a valuable mineral, as set out under Castle v. Womble, 19 LD 455 (1894) has been met, . “ ..where minerals have been found and the evidence is of such a character that a person of ordinary prudence would be justified in the further expenditure of his labor and means, with a reasonable prospect of success, in developing a valuable mine, the requirements of the statute have been met”. The Canyon 74 and Canyon 75 claims have valid existing rights that were established prior to the mineral withdrawal.