Over the past four years, Quaterra has conducted an aggressive exploration program that has included geologic mapping, aerial photo reconnaissance, surface and airborne geophysical surveys and 98,000 feet of exploration drilling. Since the completion of an airborne VTEM geophysical survey in early 2008, the drilling results have had a 70% success ratio with positive results from five out of seven geophysical anomalies tested. The program proved the validity of the geophysical targets and added significantly to the prospective value of the many untested anomalies on the Company´s properties.
This survey, together with a land position totaling 87 square miles selectively staked to cover more than 200 similar targets, has given Quaterra a significant advantage over its competitors and the capacity to become a major player in the future development of the district.
The focus of Quaterra´s exploration program changed abruptly on July 20, 2009 when the U.S. Department of the Interior (DOI) announced a decision to segregate one million acres of federal lands in the Arizona Strip for two years. The action, taken on behalf of anti-mining interests, is pending a decision to withdraw the lands from new mining claims for a period of 20 years. As a result the Company will not commit significant additional expenditures on federal lands in the district until the legal status of exploration and mining operations is clarified. The restrictions on uranium exploration as a result of the segregation do not, however, affect exploration on Arizona State lands where 16 high and moderate priority geophysical anomalies have been identified by the Company´s airborne VTEM survey. In contrast to the segregated area, exploration on state mineral properties is encouraged and permitting is relatively painless.
Quaterra´s Arizona Strip uranium project includes some of the most prospective uranium properties in the northern district. Now totaling approximately 38 square miles with more than 200 VTEM geophysical anomalies, the Company´s land position controls much of the future production potential of the northern district. Quaterra´s assets include three mineralized breccia popes, one (A-20) which could be among the larger identified in the district; four drill-defined pipe structures that remain untested in the favorable horizon for uranium mineralization and, five possible structures that have been defined by shallow drilling or have collapse structures clearly visible at the surface.
Future drilling programs to explore these targets will necessarily be subject to the status of public lands in the district. Quaterra´s activities have strong local and state support and the Company is optimistic that the efforts to withdraw federal lands will not be successful. The uranium of this prolific district represents an enormous domestic supply of clean energy and many jobs at a time when both are critical to the United States.
