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Mongolian Project Location Map
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Collar Enger 2006-2007
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Enger Geology & Drill Hole Location
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Cross Section A
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Cross Section C
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Cross Section D
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Enger Project
The 1,648-hectare Enger prospect (Tenement 9688) is located 150 kilometres southeast of Ulaanbaatar, Mongolia. Soviet-era work led to the discovery of mineralization in 1985. Uranium mineralization is hosted in Cretaceous basin-fill sandstones and siltstones. The prospect is located along a major structural break forming the boundary between rhyolites and sedimentary units of the Naran Group, which fill the Nyalga Depression. Two types of uranium mineralization have been noted. One occurs as steeply dipping tectonically complex zones in rhyolite and the other occurs as stratiform bodies in the lower Cretaceous sedimentary rocks.
The steeply dipping mineralization is present in a number of localities within the prospect area. At Zone 1, it is 60 to 90 metres wide, up to 350 metres long, and has a true thickness (determined by drilling) of 1.7 to 6.0 metres. Grades vary between 0.056% and 0.19% uranium over the intervals, with a maximum of 0.549% uranium over 0.65 metres. Uranium is depleted at surface. At Zone 2, located 70 to 120 metres below surface, uranium mineralization has a true thickness of up to 200 metres and grades of between 0.061% and 0.067% uranium. A 20 metre thick steeply dipping zone lies between and connects Zones 1 and 2. This zone averages 0.055% uranium.
Stratiform mineralization occurs within sedimentary rocks adjacent to the steeply dipping uraniferous rhyolite zones, and occurs over a strike length of at least several hundred metres. A higher-grade zone of 220 metres length, 30-to-40 metres width, and 0.55 to 4.05 metres thickness is reported to grade from 0.059% to 0.167% uranium. The maximum grade over a single intercept of 0.35 metres was reported at 0.486% uranium. Mineralization was recognized as coeffinite, uraniferous leucoxene, uranophane and otenite. Soviet calculations from more than 10 kilometres of drilling defined an extrapolative, non-NI43-101 compliant resource of approximately 400,000 lbs of contained uranium metal at an average grade of 0.065% (V. I. Pogukai, 1985 -- 1989, Report of Prospecting - Estimation work for Uranium Mineralization in Shivee Ovoo Volcano Tectonic Zone). EAS has not verified the classification of this historic resource and is not treating it as a NI 43-101 defined resource verified by a QP. Although this historical resource is relevant to recognizing the potential of the Enger Property, it should not be relied upon.
During the 2006 exploration program 10 drill holes totaling 2,004.8 metres were completed (Figure U2 and 3). The first pass drill program at Enger was designed to confirm the existence of uranium mineralization recorded from historical Soviet work. Results from the initial EAS drill holes significantly improve on grades and widths of the mineralization reported by the Soviets (Figure U1). Significant intercepts include 2.5 metres of 0.410% U3O8 from 128.5 metres to 131.0 metres in ENDD003, 2.5 metres from 182.5 to 185.0m of 0.232 U3O8 in hole ENDD002, 1.0 metre from 69.5 to 70.5m of 0.086 U3O8 in hole ENDD004 and 13.5 metres from 54.0 to 67.5m of 0.108 U3O8 in hole ENDD005. The mineralization clearly remains open to the east, west and at depth. Drilling supports the concept that mineralization at Enger forms in a strikingly similar geological environment to that at the Gurvanbulag deposit (22,679,160 lbs at 0.25% U3O8).
EAS has rights to acquire 100% of the Enger prospect by paying USD 250,000 over three years. In addition, USD 7,500 was paid on signing, and annual payments of USD 25,000 and USD 50,000 are due in the next two years. EAS can elect to exercise the purchase price sooner, which eliminates any remaining annual payments from the date of exercise. The property is subject to a 1.5% NSR.
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