Coyote Basin
The Coyote Basin Project is underlain by prospective units of the Sego/Iles Formation of the Mancos Shale and the Fort Union and Wasatch Formations. At least four favorable horizons have been discovered in Fort Union rocks that are known to contain uranium mineralization and are priority targets for the Phase II drilling program.
In their September 30, 2006 SEC quarterly financial report filings, Energy Metals Corporation reported historical uranium-vanadium resources on the property of:
8,850,000 tons at 0.20% U3O8 and 0.10% V2O5 =
35.4 M lbs of U3O8 and 17.7 M lbs of V2O5*
Energy Metals attributed this historical resource from work completed by Western Mining Resources*, a previous operator of the property from detailing a 1978-79 exploration program that consisted of surface sampling, coring, drill hole chip sampling and gamma logging of 24 widely spaced holes as documented in a private internal report titled, Western Mining, Executive Summary, Coyote Basin Uranium District, Rio Blanco and Moffat Counties, State of Colorado, January, 1980.
Homeland’s near-term exploration focus will be on defining and growing the known resources at Coyote Basin to current NI 43-101 standards.
On the Ground
*The Company is not treating the Coyote Basin historical resource estimate as current mineral resources and the reader is cautioned not to rely on either of these estimates. A Qualified Person (as defined under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")) has not done sufficient work to classify the historical resources from the project as current mineral resources or mineral reserves nor can the Company or the Qualified Person comment on the quality or verify the data obtained from the assay sampling programs from the project that were used to determine these historical resource estimates, as such information was not included in the historical reports acquired by Homeland. The Company is not treating the historical resource estimate as current mineral resources or mineral reserves and the Company and the Qualified Person is unable to compare the historical resource estimate to the CIM's current resource classification system at this time. The Coyote Basin Project any future NI 43-101 mineral resource estimate will require considerable further evaluation which will include completion of the Phase I drilling program and may require addition drilling to follow-up Phase 1 results.