Workman Creek

Background of Workman Creek Deposit

In 1955 the United States Atomic Energy Commission conducted an airborne radiometric survey over Gila County and discovered 20 radiometric anomalies, nine of which were considered significant. This prompted a massive staking rush which resulted in the discovery of 46 known uranium deposits in the area. With the subsequent decline in the price of uranium, activity in the area was completely shut down until the late 1970’s. At that time, Wyoming Mineral Corporation, a wholly owned subsidiary of Westinghouse, blanket staked the area and embarked on an intensive exploration and development program. This program identified the Workman Creek deposit as their primary focus. Their work included drilling 432 holes, geological mapping, geochemistry, metallurgical testing, designing a mining plan, and commissioning Dravos Engineers and Contractors (“Dravos”) to complete a feasibility report, at a total estimated cost of US$10 Million.

The Dravos geo-statistical estimate of reserves encompassing both open pit and underground mining was 4.4 million tons containing 9.8 million pounds of U308 with an average grade of 0.11% and a cutoff of 0.05%. This estimate was made prior to implementation of NI 43-101.

Gary Giroux, a Member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia and a qualified person as defined by NI 43-101, has recalculated the resource estimate on the Company’s Workman Creek project, by refining the geological model used in the calculation.  This has resulted in an increase of the inferred resource at a 0.05% cut off, from 2.35 million tons to 3.22 million tons and the resultant increase in U3O8 from 4,047,160 lbs. to 5,542,000 lbs. at the same average grade of 0.86%.  It should be noted that the increase in poundage is also NI 43‑101 compliant.

The Company has contracted Coast Mountain Group Consultants to manage the next phase of the work program at Workman Creek.  Coast Mountain have recommended a drill program of 25 reverse circulation holes in order to:  confirm existing resource blocks; infill between existing holes in areas of mineralization; and step out from known mineralized areas to attempt to expand the resource.  Based on positive results, Mr. Giroux states that “additional infill drill holes should bring a significant portion of the resource into the measured plus indicated status.”  The Company has applied  for drill permits with drilling anticipated to start in October.

Technical Background

Joe Montgomery PhD., the Qualified Person under NI 43-101 has authored a report conforming to NI 43-101 and in it he describes the Workman Creek deposit as stratiform and lying within the Dripping Spring Quartzite, a unit of the Upper Precambrian Apache Group.  Mineralization is present mainly in the upper siltstone member of the Dripping Spring Quartzite.  This uranium bearing unit is in excess of ten miles in length. Controls of mineralization aside from the stratigraphic control, are north-trending faults and monoclinal folding and contact with a complex system of dykes and sills. A technical report completed in 1979 stated that authigenic uraninite and coffinite (primary uranium minerals) were subject to thermal metamorphism caused by intrusions of diabase.  This caused recrystallization, oxidation, and remobilization of the uranium minerals near the intrusive contact.  Dr. Montgomery also noted that the resource is open on two sides and believes that it could be expanded considerably with further exploration.  Rodinia has staked additional ground around the known deposit. 

Metallurgical studies conducted by Westinghouse indicated that leaching recovery was in the neighborhood of 94% and in their feasibility report Dravos noted that by implementing conventional mining methods including underground and open pit, and by building a $12 million mill site, the internal rate of return (IRR) was calculated at 86% with U308 at US$22/pound.  With In Situ leaching (ISL), the cut-off grade would drop and the IRR would increase as long as recovery rates remained constant. Early indications are that the deposit will be amenable to In Situ Leaching.

Most of the work conducted by Westinghouse was concentrated on or around the Workman Creek deposit and by the time they abandoned the property in 1981 because of the collapse of uranium prices, very little work had been performed on other targets—in particular, on the eight other significant radiometric anomalies that were identified.  All of these anomalies are within a 10 mile radius of the Workman Creek deposit and have recently been staked by Rodinia.  Rodinia has also staked the most significant of the 46 known deposits discovered during the 1950’s staking rush.

•  43-101 Technical Report on Workman Creek Uranium Project (9 MB)

Morman Lake

Rodinia Minerals Inc. (the Company) has negotiated the terms of an option and joint venture with Patriot Power Corp on a total of 230 unpatented lode mining claims in Gila County, Arizona. Patriot Power Corp. must pay US $ 1,300,000, issue 2,500,000 shares and 1,000,000 share purchase warrants and expend not less than US $ 3,500,000 on exploration over 4 years. Upon the exercise by Patriot, the Company will then hold a 40% joint interest in all 230 claims.

The Mormon Lake Property is located in central Arizona approximately 130 kilometers northeast of Phoenix. Historical data on the property is fragmentary but reports indicate that the first discovery of mineralization was made in 1956. Southern Union Production Company drilled 57 holes in the 1960s and Pan American Mines Ltd. drilled another 22 holes in the 1970s, which outlined a zone of mineralization with some impressive intersections, including:

• 1.04% U3O8 over 30 feet;
• 1.35% U3O8 over 28.5 feet
• 2.02% U3O8 over 30 feet and
• 3.24% U3O8 over 11.5 feet.

The uranium mineralization of the Mormon Lake Property is located within a flat dipping (<10 degrees) limestone pebble conglomerate that contains a high percentage of carbonaceous material that acts as a reducing agent.  Mineralization outlined by previous operators occurs within 200 feet of surface and uraninite is the only uranium bearing mineral noted to date.

In April 2006, the Companies successfully completed a 13 hole reverse circulation drill program that was designed to confirm the location of the historical showings and to test an undrilled radiometric anomaly.

Holes MLDH1-3 were drilled into a previously untested anomaly and returned:

ML-DH-1:        13 feet (0 to 13’) of     0.12% U
ML-DL-3:        6 feet (5 to 11’) of       0.09% U
ML-DL-3:        9 feet (14 to 23’) of     0.11% U

Sample intervals with both high radiometric and geochemical results were included in the weighted averages with the exception of one sample from ML-DH-3 that was determined not to be a contaminated value due to its location in the hole. The top 14 feet of ML-DH-2 contained anomalous spectrometer readings unfortunately only the lower part of the hole was sampled and the anomalous values obtained in this hole were interpreted as down hole contamination from the upper unit or surface. This hole will be redrilled in the coming program with all anomalous spectrometer intervals being assayed. Analytical work was conducted by International Plasma Labs Ltd. (“IPL”) of Richmond, BC, Canada. IPL is an ISO 9001:2000 certified company.

Management is encouraged with these results as they are consistent with the type of deposit being targeted at Mormon Lake. Phase 2 will focus on further delineating this newly discovered uranium enriched zone. Applications for a 25 hole reverse circular drill program have been completed and the company anticipates drilling to start in early October.

Red Bluff Mine

The Red Bluff property is part of the Dripping Springs Quartzite uranium bearing unit in Gila County, Arizona and is located approximately nine miles due south of the Workman Creek deposit where Rodinia has, as previously reported, a NI 43‑101 compliant inferred resource of 5,542,000 lbs.

The Red Bluff mine was discovered in 1950 and was acquired by Westinghouse in 1976 through its wholly-owned subsidiary, Wyoming Minerals Corp. Approximately 70 holes were drilled and a historic resource was reported by David Kuck, Professional Geologist, in June 1988, but as such report is not NI 43‑101 compliant, details of the historic estimate are not included in this news release. The Agreement also gives the Company access to an extensive historical data base, the option to purchase, at commercially prevailing rates, water associated with water rights owned by Red Bluff. Red Bluff will receive a 3% Yellowcake royalty in respect of uranium mined from the Claims, and a 3% net smelter return royalty in respect of all other ores mined from the Claims.

Coast Mountain Geological Ltd. have been contracted to a geophysical and geochemical survey that will allow the delineation of drill targets. Water lines are currently being repaired as part of the program moving forward.