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8976 Technical Report

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8976 Technical Report LISBON VALLEY URANIUM PROJECT Lisbon Valley, San Juan County, Utah, USA TECHNICAL REPORT FORM 43-101F1 FOR BZU Minerals Ltd. and Fintry Enterprises Inc. October 12, 2005 Prepared by: Bill R. Fleshman (C.P. Geol. AusIMM) 107342 16025 Edmands Dr. Reno, NV 89511 775-219-5791 1.0 EXECUTIVE SUMMARY .......................................................................................1 2.0 INTRODUCTION AND TERMS OF REFERENCE............................................2 2.1 PURPOSE OF THE REPORT ...........................................................................2 2.2 GENERAL .............................................................................................................2 2.3 UNITS AND CURRENCY...................................................................................3 2.4 TERMS AND DEFINITIONS...............................................................................3 2.5 SOURCES OF INFORMATION .........................................................................3 3.0 DISCLAIMER........................................................................................................3 4.0 PROPERTY DESCRIPTION AND LOCATION..............................................4 4.1 LOCATION............................................................................................................4 4.2 DESCRIPTION .....................................................................................................5 4.3 CLAIMS..................................................................................................................7 4.4 STATE LEASES.................................................................................................11 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY.................................................................................................12 5.1 ACCESS..............................................................................................................12 5.2 CLIMATE AND PHYSIOGRAPHY...................................................................12 5.3 LOCAL RESOURCES AND INFRASTRUCTURE........................................13 6.0 HISTORY.............................................................................................................14 7.0 GEOLOGIC SETTING.......................................................................................17 7.1 REGIONAL GEOLOGY.....................................................................................17 7.2 PROJECT GEOLOGY.......................................................................................17 8.0 DEPOSIT TYPES...............................................................................................23 9.0 MINERALIZATION .............................................................................................28 10.0 EXPLORATION..................................................................................................29 11.0 TARGET AREAS................................................................................................29 12.0 DRILLING............................................................................................................32 13.0 SAMPLE METHOD AND APPROACH...........................................................32 14.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ..........................33 15.0 DATA VERIFICATION.......................................................................................33 16.0 ADJACENT PROPERTIES...............................................................................33 17.0 MINERAL PROCESSING AND METALLURGICAL TESTING...................33 18.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES.............33 19.0 OTHER RELEVENT DATA AND INFORMATION………………………....31 20.0 INTERPRETATION AND CONCLUSIONS…………………………………31 21.0 RECOMMENDATIONS……………………………………………………….34 REFERENCES………………………………………………………………...35 CERTIFICATE OF QUALIFIED PERSON………..………………………...36 Lisbon Valley Uranium Project Page ii Technical Report List of Figures Figure 1 Location of the Lisbon Valley Uranium Project…………………………....4 Figure 2 Location map showing claims and leases…………………………….……6 Figure 3 Location map northeast area claims………………………………….…….8 Figure 4 Location map northwest area claims……………………………….………9 Figure 5 Location map southwest area claims….………………………….………10 Figure 6 Location map for mineral leases………………………………….………11 Figure 7 Lisbon Valley looking north, gray-green Chinle caps red Cutler………13 Figure 8 Lisbon Valley industrial activity……………………………………………14 Figure 9 Known drill holes in the principal target area…………………………….15 Figure 10 Historic mines within or adjacent to Property Boundary………………16 Figure 11 Geologic map of the Lisbon Valley (created from UGS Map 205 Helmut Doelling 2004)………………………………………………………………………….18 Figure 12 Stratigraphic Section (Wood, 1968)………………….………..…..…….19 Figure 13 Geologic cross-section across the Lisbon Valley Anticline (modified from Weir, 1981)……………………...…………………………………….………….20 Figure 14 Bouger gravity map of the Lisbon Valley (USGS Professional Paper 316, Plate 7)……………………………………………………………………………22 Figure 15 Looking east in Steen’s Canyon, near the Mi Vida Mine. Cliffs of tan Wingate sandstone caps gray-green Chinle Formation…….……….…………….24 Figure 16 Lisbon Valley Historical Uranium Production 1948 - 1988....………....25 Figure 17 Early Uranium Production………………….……………………………..26 Figure 18 Uraninite ore from the Mi Vida Mine..……………………………………29 Figure 19 Northern headframe of the Lisbon Mine 1970……………….…………30 Figure 20 Underground operations at the Lisbon Mine 1970………………..……30 Lisbon Valley Uranium Project Page iii Technical Report Figure 21 Lisbon Valley Mineral Belt and conceptual target.………………..……31 Figure 22 Generalized cross-section showing known uranium associated with the Lisbon anticline and conceptual targets on down dropped block…………....32 List of Tables Table 1 Unit Conversions………………………………………………………………3 Table 2 List of claims and quantities……………………………….…………………7 Table 3 List of State leases……………………………………………………..……11 Table 4 Known Historical Uranium Production within Property...................…….15 Table 5 Lisbon Valley Production Data 1948-1970……………………….……….24 Table 6 Exploration Budget Estimate…………..………………………...…………34 APPENDICES Appendix A: Mining Claim Filing Dates and Recordation Data…………….……37 Lisbon Valley Uranium Project Page iv Technical Report 1.0 EXECUTIVE SUMMARY The Lisbon Valley project is located in the Lisbon Valley Mining District, also known as the Big Indian Mining District, approximately 35 miles (56 kilometers) south of the town of Moab in San Juan County, Utah near the Colorado state line. A paved two lane highway runs essentially north to south through the length of the valley and provides access the newly developed Lisbon Valley Copper Mine owned by Constellation Copper, adjacent to the southern portions of the project. Access on the property is good, on numerous unimproved dirt roads and trails that are used for servicing oil and gas wells in the area. Local infrastructure is good, the towns of Moab and Monticello, 35 miles (56 kilometers) north and 20 miles (32 kilometers) southwest, respectively, provide services. The Lisbon Valley Project is composed of 16,640 acres (6,735 hectares) and was acquired by BZU Holdings, Inc., a Nevada Corporation. BZU Holdings, Inc. is a wholly-owned subsidiary of BZU Minerals Ltd., a British Columbia company. BZU Minerals Ltd. and its shareholders have entered into an agreement with Fintry Enterprises Inc. (“Fintry”), a British Columbia company listed on the TSX Venture Exchange pursuant to which Fintry has agreed to acquire the mineral claims and leases comprising the Lisbon Valley Uranium Project which are the subject of this Technical Report. Bill Fleshman was retained by BZU Holdings, Inc. as a consulting geologist to complete a technical report on behalf of BZU Minerals Ltd. and Fintry on the Lisbon Valley Uranium Project in Lisbon Valley, San Juan County, Utah, USA. Mr. Fleshman, a qualified person as defined by National Instrument 43-101, conducted a site visit over a three-day period from July 6 to July 8, 2005. This technical report will be used as a disclosure document by BZU Minerals Ltd. and Fintry during the reverse takeover of Fintry by BZU Minerals Ltd. The dominant geologic feature of the Lisbon Valley is the Lisbon Valley anticline, a salt anticline typical of the Paradox Basin. Subsequent to doming the anticline was faulted by the Lisbon Valley fault, a northwest trending normal fault along the longitudinal axis of the anticline, with maximum displacement of over 3,000 feet (914 meters) at the crest and approximately 2,500 feet (762 meters) at the northwestern and southeastern ends. Horst and graben blocks are common along the fault and are most prevalent at each end of the anticline. The total stratigraphic section within the Lisbon Valley anticline measures over 11,000 feet (3,353 meters) in thickness. Sedimentary rocks deposited during Pennsylvanian, Permian, Triassic, Jurassic, Cretaceous and Quaternary time are exposed in the Lisbon Valley anticline area. Uranium deposits are known to occur in three formations located in the Lisbon Valley (Figure 12). (1) The Moss Back member of the Chinle Formation is the most significant in terms of past production and future targets on the east side of the Lisbon Valley Fault. (2) Morrison Formation (Salt Wash member), and (3) the Cutler Formation. Lekas and Dahl (1956) and earlier Steen (1953) noted that the deposits occur in a limited range of
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