Title: The Northern Arizona Uranium Project, LLC
1The Northern Arizona Uranium Project, LLC
Uranium Breccia Pipe Mining
2 Breccia Pipe Anatomy? Breccia pipes are
vertical or near vertical, circular to elliptical
bodies of broken rock. The roots of a breccia
pipe lie within caverns created in the
Mississippian Redwall Limestone and extend up to
3000 ft vertically. Dissolving of the Redwall
Limestone 330 million years ago formed numerous
caves in the thick Redwall Limestone. When the
cave roof collapsed, overlying formations
subsided into or were deposited in the resulting
sinkhole. After later formations were deposited,
later periods of cave formation and limestone
dissolution renewed the collapse features. This
gravitational collapse produced steep-sided,
pipe-like bodies that are filled with brecciated
rock. While the structural depression over a
beccia pipe may range in diameter up to 0.5 mi.
or more, the breccia pipe diameters range up to
about 600 ft. the normal range being 200 to 300
ft.
3Mineralized Breccia Pipes
Not all breccia pipes are highly
mineralized. Ore forming fluids rich in metals
flowed into the forming breccia pipes along
different rock strata. There were several
mineralization events that took place over
geologic time. After the ore forming fluids
entered the breccia pipes, hydrological
variations in water pressure moved the ore
forming fluids up and down the pipe. The primary
direction for the ore forming fluids was upward
however. The metal rich fluids encountered
environments within the pipe that caused the
metals to precipitate out of solution and form
various minerals. Mineralized breccia pipes are
enriched in a large suite of elements.
Mineralized breccia pipes have been mined for
Uranium, Copper, Lead, Zinc, and Silver. Some
pipes have also been enriched in Cobalt,
Molybdenum, Nickel, and Vanadium. The ore body
of a mineralized breccia pipe is generally
located between 900 and 2000 ft below the current
ground surface. Trace amounts of the metallic
elements found in the pipe were carried further
up the pipe to what is now the surface. The soils
above a mineralized pipe are generally enriched
with many of the metals present deeper in the
pipe. The metallic halo of a mineralized breccia
pipe can be found by comparing the concentration
of the metallic elements in the soils above a
target pipe to the concentrations of soils away
from the pipe.
4Geochemical Survey to Find Evidence of a
Mineralized Breccia Pipe
A geochemical survey of a breccia pipe
target compares the concentrations of elements
inside the target area to concentrations outside
the target area. The samples assayed are from
the soil, 4 to 8 inches below the surface. To
start the comparison the mean concentration
value for all the samples - both target and
background- is determined for each element of
interest. An enrichment correlation value is
found by the following formula as put forth by
the USGS CV ( of Target Val gt Mean) - (
of Bckgrnd Val gt Mean)? of Target
Values of Backgrnd Values The USGS
determined that a correlation value greater than
or equal to 0.2 meant that an element was
enriched. Less than or equal -0.2 meant that
the element was depleted. In between these two
values and the correlation was indeterminate.
The Makapuu breccia pipe target circled in red.
The green pins are the background sample
locations.
5Geochemical Survey for the Makapuu Breccia Pipe
Target
Results 2
Some of the background samples near the Makapuu
breccia pipe target may be on the metallic halos
of other nearby breccia pipes. Samples were taken
east of the road as shown, in an area free of
breccia pipe morphology. These samples may be
considered to be a truer background. The
correlation values increase dramatically. Eight
of nine primary indicator elements are enriched
and two of the secondary elements are enriched.
6Mapping a Breccia Pipe Using Geomagnetic Methods
Controlled Source Audio-Magnetotelluric
Controlled Source Audio-Magnetotelluric or CSAMT
is a geo-magnetic method to determine the
conductivity of the earth (rock)? at a single
point at various depths - from the surface to
greater than 3000 ft. Multiple sounding can be
made and the results modeled as 2-D slices of the
earth. The different conductivities are shown as
different colors. Multiple 2-D slices can be put
together and a 3-D model of the earth's
conductivity in the study area can be shown. The
more stations at which data was acquired, the
more accurately the models can be rendered. The
data stations for the Makapuu breccia pipe target
are shown on the left.
7Geochemical Survey for the Makapuu Breccia Pipe
Target
Results 1
There are nine primary elements and four
secondary elements that are the best indicators
for evidence of a mineralized breccia pipe. The
primary elements are Uranium, Molybdenum, Lead,
Zinc, Copper,Silver, Nickel, Cobalt, and Arsenic.
The secondary elements are Vanadium, Chromium,
Iron, and Lithium. The Makapuu target is
enriched in 7 of the 9 primary elements.
8Makapuu Breccia Pipe Target CSAMT 2-D Results
9Makapuu Breccia Pipe Target CSAMT 2-D Results
10Makapuu Breccia Pipe Target CSAMT 3-D Results
These are the 2-D Models of the data stations
spliced together. From this model, a 3-D
cube model can me made. The 3-D model uses the
interactions of the various 2D slices and the
Geophysicist uses their knowledge to create a
model that best represents the acquired data.
The more data points, the better the
model. The following 3 slides show the 3-D cube
model cut- aways for the Makapuu breccia pipe
target.
11Makapuu Breccia Pipe Target CSAMT 3-D Results
12Makapuu Breccia Pipe Target CSAMT 3-D Results
13Makapuu Breccia Pipe Target CSAMT 3-D Results
14The AIEA Breccia Pipe Target
15Drilling is the Only Way to Know if Valuable
Minerals Exist
Four to five drill holes, up to 2000 feet deep
need to be drilled on a Breccia pipe target to
determine if Uranium or other valuable metals
are present in economically recoverable
amounts. Drilling is the most expensive
exploratory expense - costing up to 500,000 per
pipe.
16Radiological Logging of the Drill Holes
To determine whether there is Uranium in the
breccia pipe, a down hole radiological logging
probe is lowered into the drill hole and
continuous radiation level data is taken while
the probe is lowered then raised the depth of the
drill hole. The probe is calibrated to equate
the radiation level detected to the percentage of
U3O8 present. In this way, it can be determines
if there are large enough ore bodies at a good
enough concentration of Uranium to have a
economically viable mine. The results from the
first exploratory drill holes are used as a first
cut to see if there are good values of uranium or
other minerals to make a viable mine. 60 or more
surface drill holes will be drilled and logged
and possibly as many or more holes drilled from
underground locations to prove and quantify ()
the resources of the mine.
17The Denison Canyon Mine
The Denison Mines Canyon Mine shown as a 3D
model. The pipe was surface drilled with 45 holes
with an average depth of 1364 ft. Four holes were
drilled about 2000 ft. Radiometric logging of the
drill holes every 0.5 feet created 37,422 U3O8
equivalent values used to estimate the total
tonnage of ore, where it is located, and what
value this ore may be worth.
18The Denison Canyon Mine
The Canyon mine is a relatively small breccia
pipe. The diameter of the pipe in the major
Uranium bearing area is about 80 feet. The ore
extends into the ring fracture zone at this
depth however and so the ore body is about 150 ft
in diameter. This ore body accounts for about 70
of the Uranium so far delineated. Canyon Mine
gt 70,500 tonnes of Ore eU3O8 averages
1.08 1,523,000 lbs of eU3O8 The
Net Profit on The Canyon Mine should be in the
range of 49 million to 100 million Dollars before
taxes.
19Past Uranium Breccia Pipe Mines Production and
Value
20The Makapuu and Aiea Claims
21The Northern Arizona Uranium Project, LLC
The NAU project has two properties The Makapuu
Claims and the Aiea Claim The Makapuu Claims
have a confirm Breccia Pipe with a supporting
Geochemical Survey that indicates that the pipe
is likely to be mineralized. The Aiea claim has
a promising CSMAT survey that indicates the
possibility of a Breccia Pipe. Both properties
need additional CSAMT work performed. The Makapuu
Breccia pipe needs to be better defined and
another possible pipe at the end of line 3 needs
to be investigated. The Aiea target needs
additional CSAMT work to determine if a breccia
pipe exists. If a pipe is found, a follow-up
geochemical survey will need to be done to
confirm the likely-hood that a mineralized pipe
exists. The required funding for the additional
CSAMT work is 10,000. The required funding for
the Geochemical survey is 2,500.
22The Northern Arizona Uranium Project, LLC
Drilling Proposal Submitted
At this time The NAU project, LLC has submitted a
proposal to the US Forest Service to conduct
drilling operations on the Makapuu and Aiea
breccia pipe targets. There is a lengthy review
process and it is highly likely that several
studies may have to be funded (Archaeological and
others) to facilitate the approval process. The
drilling operation is to determine if there is
sufficient evidence of Uranium mineralization to
pursue the development of a mine or mines. A
500,000 budget is required for the drilling
operation.
23The Northern Arizona Uranium Project, LLC
New Member Participation
The NAU Project, LLC is interested in having
experienced investors with an interest in mineral
exploration as new members. A New Member's
investment purchases a percentage interest in
the LLC. The percent interest is calculated per
section 2.2 of the Operating Agreement. A
Highest Risk Multiplier of 30X is applied to
all investments of cash and services for all
activities prior to those that directly support
the Drilling Operation. These are activities that
have the highest risk because very little is
known about the targets. A Medium Risk
Multiplier of 10X is applied to all activities
that support Drilling Operations. At this point,
all drill targets will be confirmed Breccia Pipes
with supporting Geochemical Surveys for a
mineralized pipe. The total capitalization to
open a mine is set at 20 million. A new members
percentage interest is calculated by
Multiplying their investment with the Risk
Multiplier and dividing by 20 million. For
example A person investing 500,000 to fund the
drilling operation would receive 500,000 X 10
0.25 x 100 25 Membership Interest
20,000,000 The minimum investment accepted is
1000. Mineral Exploration Investing is A HIGH
RISK ENDEVOR.
24The Northern Arizona Uranium Project, LLC
Investment Returns
Investors can make money on their Membership
Interest in two basic ways. 1. Upon the
development and operation of a producing mine,
there will be distribution of profits per the
Operating Agreement. 2. The Members can sell
their Membership Interest in The NAU Project, LLC
in accordance with the Operating
Agreement. Note Membership in the LLC is NOT a
registered security. There exist no ready market
for selling a Member's Interest. It is likely
that upon proving that a viable resource is
established, that a Major Mining Company will be
solicited to purchase a majority of Membership
Interest in order to put a mine into production.
It would be at this time that Members of the LLC
would have their first opportunity to cash out
their investment.