Marysvale Project

Project Summary

The Marysvale Project is the first uranium development asset acquired by Trigon.  The project is located in the historic Marysvale Uranium Mining District in south central Utah, approximately 300 kilometers south of Salt Lake City and 30 kilometers southwest of Richfield.  Utah has been a prolific uranium producer and is poised to regain its status during the current uranium cycle.  Politically and economically, Utah is a mining friendly state with low mining cost structures which enhance mine viability and profitability.

Between 1952 and 1966 some 275,000 tons of ore were mined in the Marysvale District producing 1,100,000 lbs U3O8 at an average grade of 0.22% (4.4 lbs/ton).  Most of the recorded production was from mines in the district’s Central Mining Area such as the Monarch, Bullion, and Prospector.  Trigon’s Marysvale Project covers a large land package roughly 30 times the size of the Central Mining Area immediately east of these historic producers.

Prior to 1982, exploration on the Marysvale Project by Minex Uranium Company and Phillips Uranium Company discovered an estimated 1.8 Million lbs U3O8.  This historic work was concentrated on the central 1/3 of the current property.  Trigon has recovered the majority of significant exploration data collected by these operators and is currently carrying out an aggressive two phase exploration program intended to triple the reported historical resource. 

As part of this program Trigon drilled 6,490 feet in 16 reverse circulation drill holes on Marysvale in the spring of 2007 and gamma-logged the holes for equivalent uranium concentration.  Gamma logging involves sending a gamma ray sensitive probe along a drill hole to detect gamma radiation whose intensity is normally correlated with the presence of uranium.  (The logging provides an indication of uranium concentration which is called equivalent uranium, or eU3O8.  Equivalent uranium measurement is the standard tool for logging uranium in drill holes; however it must be confirmed with core drilling and chemical analysis.) 

The program successfully expanded the mineralized zone, confirmed the reliability of the historic data, and validated Trigon’s exploration model at Marysvale.  Analysis of the results confirmed the presence of thick continuous zones of uranium at Marysvale and supports the company’s opinion that the property may host a bulk mineable uranium deposit. The average uranium content in the mineralized intersections was 0.063%  eU3O8, or 1.26 pounds of eU3O8 per ton using a cut-off grade of 0.02% eU3O8.  Intersections included 20 feet of 0.155% eU3O8 (3.1 pounds eU3O8) in hole MV07-5, which shows grades as high as 0.609% eU3O8 (12.2 pounds eU3O8 per ton) and 24 feet of 0.097% eU3O8 (1.94 pounds per ton eU3O8) in hole MV07-11.  Trigon geologists believe they have identified the mechanism of mineralization and ore forming controls, resulting in new drill targets for follow up work.

Financial Acquisition Terms

In May of 2006 Trigon entered into a lease and option agreement with Garfield Resources I LLC, a Utah company, with respect to the Marysvale property.  In order to maintain its option rights under the agreement with Garfield, Trigon must carry out a work program requiring cumulative spending of at least US$600,000 by May 15, 2009, and cumulative spending of at least US$1.5 million by May 15, 2011.  Trigon will retain its right to acquire the Property by making cash payments of US$100,000 on July 5 of each of the years from 2007 to 2011, and issuing 300,000 shares on each July 5 of those years.  The Vendors will retain a 1.5% sales royalty from minerals mined and produced from the property. 

 43-101 Technical Report

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