Why are the Uranium Companies
Exploring the Northeast Flank of the Fault?

While the west side of the fault has been the most productive uranium mining ground, Rio Algom discovered a mineralized zone in 1972 on the "nose" of the northeast side of the fault. For the next sixteen years, the company's Lisbon Mine produced about 24 million pounds of uranium from more than 5.6 million tons of ore at an average grade of 0.22 percent. True, the grades were higher on the western side of the fault – an average grade of 0.35 percent U3O8.

Rio Algom's discovery and outstanding uranium production confirmed a little publicized notation in an obscure chapter, of a geological textbook, entitled, "Geology and Exploitation of Uranium Deposits in the Lisbon Valley Area, Utah." Hiram B. Wood of the American Institute of Mining, and on behalf of the U.S. Atomic Energy Commission, wrote in 1968, "An Extension of the Big Indian Ore Belt, similar in size and grade to the known ore belt, probably occurs in the downthrown block north east of the Lisbon Valley Fault at depths of 2400-2700 feet beneath the Dakota-capped surface…leaving this area as the most favorable unexplored area remaining on the Lisbon Valley Anticline."

It should be noted that none of the major uranium ore bodies had outcrops. All of the discoveries were made by exploration drilling. Because of the stratigraphy, the mineable deposits were found at depths of more than 2000 feet. "All of the anticlines in the Paradox Basin, of which Lisbon valley is one, are salt structures," said Richard Dorman, vice president of exploration for Universal Uranium, which is now drilling on the northeast side of the anticline. Dorman explained an anticline for the layman, "It's where the earth gets bent up into a rounded dome."

It may be quite possible there is more uranium, according to the two uranium exploration geologists we interviewed for this feature. Both Universal Uranium and Mesa Uranium are drilling to identify and evaluate the Moss Bach sandstones in the Chinle formation. It was Charlie Steen's uranium discovery overlying the Moss Bach member which started the massive prospecting rush into the district in the 1950s. The majority of the uranium production occurred along the northwest flank of the anticline. For forty years, more than 80 million pounds of uranium were mined from the 16 mile long by one-half mile wide trend of the western flank.

Exploration drilling is underway on the northeastern side of the anticline near the formerly producing Lisbon Mine. There are geological advantages in the exploration programs of both companies, Universal Uranium and Mesa Uranium. Universal's smaller property position is six miles long and two miles wide, but closer to the fault. Mesa's larger position is closer to the former Lisbon Mine, but is an arc shaped land position further from the fault. Global Uranium, which has not announced a drill program, is reportedly sandwiched in the area between the two.

James Finch contributes to StockInterview.com and other publications. Visit http://www.stockinterview.com to download your free copy of "Investing in the Great Uranium Bull Market: A Practical Investor's Guide to Uranium Stocks." You can always write to James Finch at jfinch@stockinterview.com

Tags: uranium mining