NYSE American: UEC
- Following a successful delineation drilling program since the
last resource update on August 12,
2022, a new S-K 1300 technical report summary (the
"TRS") increases the Burke Hollow Project's Measured and Indicated
("M&I") resources from 2,324,000 lbs U3O8
to 6,155,000 lbs and Inferred resources of 4,883,000 lbs
U3O8..
- The Burke Hollow in-situ recovery ("ISR") Project continues to
expand with three Production Areas defined to date, and ongoing
exploration and delineation drilling along mineralized trends for
additional resource growth.
- Total Texas Hub and Spoke platform's disclosed M&I
resources are now 12,958,000 lbs, with 7,241,000 tons grading
approximately 0.085% U3O8, and Inferred
resources are now 9,948,100 lbs, with 4,356,000 tons grading
approximately 0.120% U3O8.
- This latest S-K 1300 TRS reconfirms UEC's position as
America's leading ISR uranium company with its South Texas and Wyoming Hub & Spoke
platforms having 79,156,000 lbs U3O8 of
M&I resources and 25,002,000 lbs of Inferred resources.
CORPUS
CHRISTI, Texas, June 13,
2024 /CNW/ - Uranium Energy Corp (NYSE
American: UEC) "UEC" or the "Company") is pleased to announce that
it has filed a TRS on EDGAR disclosing updated mineral resources
for the Company's Texas Hub and Spoke ISR platform (the "Platform")
with an increase in resources at the Burke Hollow Project (the
"Project").
Background:
- As a U.S. domestic and domiciled company, UEC is now reporting
all mineral resources in accordance with Item 1302 of Regulation
S-K ("S-K 1300");
- S-K 1300 was adopted by the Securities and Exchange Commission
("SEC") to modernize mineral property disclosure requirements for
mining registrants and to align U.S. disclosure requirements more
closely for mineral properties with current industry and global
regulatory standards;
- The mineral resource estimates set forth in this TRS are an
update to previously reported Project resources under the S-K 1300
format; and
- The Project geology is considered amenable to low-cost,
environmentally friendly ISR mining methods.
The TRS was prepared under S-K 1300 and was filed on
June 12, 2024 with the SEC through
EDGAR on Form 8-K and is also available on SEDAR as a "Material
Document" filed on June 12, 2024.
The TRS was prepared on behalf of the Company by Western Water
Consultants, Inc. d/b/a WWC Engineering, of Sheridan, Wyoming.
Andy Kurrus, UEC V.P. of Resource
Development, Texas, stated: "Since
the initial discovery at Burke Hollow, we've continued to increase
resources with every drilling campaign and update. We have
identified several mineralized trends and horizons for potential
resource growth and nearly half of the ~20,000 acre Burke Hollow
property remains under-explored. Burke Hollow is the
largest ISR uranium discovery in the
United States in the past decade and will be an exciting
satellite project as part of our hub-and-spoke strategy."
About the Texas Hub & Spoke
Platform
The Platform consists of five project areas ("Figure 1-1"): the
Hobson Central Processing Plant ("CPP"); and the Burke Hollow,
Goliad, Palangana and Salvo
projects; which are located in Karnes, Bee,
Goliad and Duval Counties, Texas. The Hobson CPP will serve as the
'hub' of the Platform, with the other project areas serving as
satellite facilities, or the 'spokes'. The Hobson CPP will process
all the uranium recovered in each of the other project areas. The
Texas Platform is in the South Texas Uranium Province ("STUP"),
which is part of the coastal plain portion of the Gulf of Mexico Basin ("GMB").
Mineral rights in our Texas
projects are all private (fee) mineral leases. Fee mineral leases
are obtained through negotiation with individual owners.
The Company's projects reside in the GMB and extend over much of
South Texas. It includes the
Texas coastal plain and STUP where
UEC's ISR projects are located. The coastal plain is bounded by the
Rocky Mountain uplift to the west with a drainage trend into the
Gulf of Mexico. The coastal plain
is comprised of marine, non-marine and continental sediments
ranging in age from Paleozoic through Cenozoic.
Uranium mineralization in UEC's Hub and Spoke Platform projects
is typical of Texas roll-front
sandstone deposits. The formation of roll-front deposits is largely
a groundwater process that occurs when uranium-rich, oxygenated
groundwater interacts with a reducing environment in the subsurface
and precipitates uranium. The most favorable host rocks for
roll-fronts are permeable sandstones with large aquifer
systems. Interbedded mudstone, claystone and siltstone are
often present and aid in the formation process by focusing
groundwater flux.
To date, UEC holds data from 9,135 drill holes that have been
completed by UEC and previous uranium exploration companies on and
nearby the five project areas held by UEC. Data from the drilling,
including survey coordinates, collar elevations, depths and grade
of uranium intercepts, have been incorporated into UEC's
database.
Developmental Status
Summary
The below outlines a broad work summary that has been
accomplished to develop and operate the Platform projects.
Summary capital and operating cost estimates are not included
with this TRS, since UEC is updating the results of an Initial
Assessment ("IA") without economic analysis. Past normal
maintenance operations on new construction/development has been
required at the Hobson CPP, and a new Radioactive Material License
was approved in 2022 that expanded the licensed
U3O8 extraction capacity to 4 million lbs
annually. The Salvo project has remained in a continuation status
since its 2010-2012 drilling campaign. UEC had initiated drilling
campaigns at its Palangana, Goliad
and Burke Hollow projects in 2010-2015 and 2023, 2019 and
2021-2024, respectively. The Company also activated
several wellfields at Palangana to extract uranium from 2010
to 2016.
Palangana
From 2010 to 2015, UEC drilled 891 holes at Palangana. Most of
the drilling occurred in 2010 (391 holes), 2011 (281 holes) and
2012 (186 holes), and the remaining holes were drilled from
2013-2015. The majority of these holes were drilled for delineation
purposes and the remainder were drilled and completed as monitor
and production wells. In 2010, UEC activated wellfields in
Production Area ("PA") PA-1, PA-2
and PA-3 at Palangana. In 2014, PA-4 was authorized for extraction
and, in 2023, an additional delineation campaign was conducted in
PA-4. The Mine Area Permit was renewed in March 2024 and the Radioactive Material License
is in timely renewal. From 2010 to 2016, 563,600 lbs of uranium
were extracted by ISR methods.
Goliad
In 2014, UEC conducted a drilling program at its Goliad project for exploration and water
wells. 35 holes were drilled and logged for exploration and water
supply purposes with a majority of the holes being drilled in PA- 1
and PA-2. The Radioactive Material License was renewed in
March 2024 and the Mine Area Permit
is in timely renewal.
Burke Hollow
From 2021 to present, UEC completed installation and the permit
submittal of PA-1. Upon completion of PA-1, UEC drilled to
upgrade the resources from inferred to measured and indicated to
better define the mineralization in PA-1, PA-2, and the newly
discovered PA-3. As of April 11,
2024, 714 delineation and exploration holes were drilled,
with 44 of these holes completed as monitor wells. This program is
ongoing for the purpose of completing additional holes for
exploration and delineation of the newly discovered PA-3 and the
Southern Graben Exploration Target outlined in previous
technical summary report filings.
In 2023, mineralization was discovered to the south of the PA-1
area in a shallower horizon known as the Eastern Lower A Sand
Trend, or "PA-3", contained within the Eastern block of Burke
Hollow. This recently discovered trend accounts for much of the
resource expansion since the initial 2022 Hub and Spoke technical
summary report, adding significant pounds in all resource
categories. Current drilling focuses on delineation of this trend
and exploration of the Southern Graben Area.
No historical data was used in the Burke Hollow mineral
estimate, only data from drilling conducted by UEC from 2012 to the
present. In total, 887 new holes were drilled and logged between
2019 and April 11, 2024 to complete
this estimate.
Mineral Resources
This IA TRS has been prepared in accordance with the regulations
set forth in S-K 1300 with the objective of disclosing the mineral
resources at the Project and Platform.
Based on the density of drilling, continuity of geology and
mineralization, testing and data verification, the mineral resource
estimates meet the criteria for indicated or inferred mineral
resources as summarized herein.
The in-place resources were estimated separately for each
project area. The Platform contains a measured resource of
3,631,900 lbs and an indicated resource of 9,326,100 lbs of
U3O8 in-place. The Platform contains
9,948,100 lbs of inferred mineral resources in-place. Tables 1 and
2 below list the Platform resources by the project area. Mineral
resources are not mineral reserves and do not have demonstrated
economic viability. However, considerations of reasonable prospects
for eventual economic extraction were applied to the mineral
resource calculations herein.
Table 1: Texas Hub and Spoke Project Measured and Indicated
Resource Summary
Mineral
Resource
|
GT
Cutoff
|
Average Grade (%
eU3O8)
|
Ore Tons
(000s)
|
eU3O8 (lbs)
|
Burke
Hollow
|
Measured
|
0.30
|
0.086
|
581
|
964,000
|
Indicated
|
0.30
|
0.083
|
3,329
|
5,191,000
|
Total Measured and
Indicated
|
0.30
|
0.083
|
3,910
|
6,155,000
|
Goliad
|
Measured
|
0.20
|
0.053
|
1,595
|
2,667,900
|
Indicated
|
0.20
|
0.102
|
1,504
|
3,492,000
|
Total Measured and
Indicated
|
0.20
|
0.085
|
3,099
|
6,159,900
|
Palangana
|
Measured
|
-
|
-
|
-
|
-
|
Indicated
|
None
|
0.134
|
232
|
643,100
|
Total Measured and
Indicated
|
None
|
0.134
|
232
|
643,100
|
Salvo
|
All mineral resources
at Salvo are classified as Inferred.
|
Project
Totals
|
Measured
|
3,631,900
|
Indicated
|
9,326,100
|
Total Measured and
Indicated
|
12,958,000
|
Notes:
|
1.
|
Pounds reported with
disequilibrium factor ("DEF") applied (except at Burke
Hollow).
|
2.
|
Measured and indicated
mineral resources as defined in 17 CFR § 229.1300.
|
3.
|
All reported resources
occur below the static water table.
|
4.
|
The point of reference
for mineral resources is in-situ at the Project.
|
5.
|
Mineral resources are
not mineral reserves and do not have demonstrated economic
viability.
|
6.
|
Delineation drilling
conducted at Palangana after 2010 was not incorporated into the
resource estimate as in the experience of the QP, this type of
drilling does not generally substantially change the resource
estimates.
|
7.
|
An 80% metallurgical
recovery factor was considered for the purposes of determining the
reasonable prospect of economic extraction.
|
Table 2: Texas Hub and Spoke Project Inferred Resource
Summary
Mineral
Resource
|
GT
Cutoff
|
Average Grade (%
eU3O8)
|
Ore Tons
(000s)
|
eU3O8 (lbs)
|
Burke
Hollow
|
Inferred
|
0.30
|
0.104
|
2,596
|
4,883,000
|
Goliad
|
Inferred
|
0.20
|
0.195
|
333
|
1,224,800
|
Palangana
|
PA-1 and PA-2
Inferred
|
None
|
0.100
|
96
|
192,500
|
Dome, NE Garcia, SW
Garcia, CC Brine, Jemison
Fence, Jemison
East Inferred
|
0.10
|
0.110 -
0.300
|
206
|
808,800
|
Salvo
|
Inferred
|
0.30
|
0.091
|
1,125
|
2,839,000
|
Project
Totals
|
Total
Inferred
|
4,356
|
9,948,100
|
Notes:
|
1.
|
Pounds reported with
DEF applied.
|
2.
|
A range of grades is
presented for the Palangana inferred mineral because the resource
estimation methods differed between PA-1/PA-2 and the rest of the
trends. There was no cutoff for PA-1 and PA-2 block models. See
Section 11.1 of the TRS for a more detailed explanation.
|
3.
|
Inferred mineral
resources as defined in 17 CFR § 229.1300.
|
4.
|
All reported resources
occur below the static water table.
|
5.
|
The point of reference
for mineral resources is in-situ at the Project.
|
6.
|
Mineral resources are
not mineral reserves and do not have demonstrated economic
viability.
|
7.
|
Delineation drilling
conducted at Palangana after 2010 was not incorporated into this
resource estimate, as in the experience of the QP this type of
drilling does not generally substantially change the resource
estimates.
|
The technical information in this news release has been reviewed
and approved by Western Water Consultants, Inc., d/b/a/ WWC
Engineering, an independent, third party consulting firm to the
Company, and by Andrew W. Kurrus
III, P.G., V.P. of Resource Development, Texas, for the Company, who fulfill the
requirements as a "qualified person" for the purposes of S-K
1300.
About Uranium Energy
Corp
Uranium Energy Corp is the fastest growing supplier of the fuel
for the green energy transition to a low carbon future. UEC is
the largest, diversified North American focused uranium company,
advancing the next generation of low-cost, environmentally friendly
in-situ recovery ("ISR") uranium projects in the United States and high-grade conventional
projects in Canada. The Company
has two production-ready ISR hub and spoke platforms located
in South Texas and Wyoming. These two production platforms are
anchored by fully operational central processing plants and served
by seven U.S. ISR uranium projects with all their major
permits in place. Additionally, the Company has diversified uranium
holdings including: (1) one of the largest physical uranium
portfolios of North American warehoused U3O8
; (2) a major equity stake in Uranium Royalty Corp., the only
royalty company in the sector; and (3) a Western Hemisphere
pipeline of resource stage uranium projects. The Company's
operations are managed by professionals with decades of hands-on
experience in the key facets of uranium exploration, development
and mining.
Stock Exchange Information:
NYSE American: UEC
WKN: AØJDRR
ISN: US916896103
Safe Harbor Statement
Except for the statements of historical fact contained herein,
the information presented in this news release constitutes
"forward-looking statements" as such term is used in applicable
United States and Canadian
securities laws. These statements relate to analyses and other
information that are based on forecasts of future results,
estimates of amounts not yet determinable and assumptions of
management. Any other statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects" or "does not expect", "is expected", "anticipates" or
"does not anticipate", "plans, "estimates" or "intends", or stating
that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved) are not
statements of historical fact and should be viewed as
"forward-looking statements". Such forward looking statements
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such risks and other factors include,
among others, the actual results of exploration activities,
variations in the underlying assumptions associated with the
estimation or realization of mineral resources, the availability of
capital to fund programs and the resulting dilution caused by the
raising of capital through the sale of shares, accidents, labor
disputes and other risks of the mining industry including, without
limitation, those associated with the environment, delays in
obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, title
disputes or claims limitations on insurance coverage. Although the
Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Many of these factors are
beyond the Company's ability to control or predict. There can be no
assurance that such statements will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements contained in
this news release and in any document referred to in this news
release. Important factors that may cause actual results to differ
materially and that could impact the Company and the statements
contained in this news release can be found in the Company's
filings with the Securities and Exchange Commission. For
forward-looking statements in this news release, the Company claims
the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
The Company assumes no obligation to update or supplement any
forward-looking statements whether as a result of new information,
future events or otherwise. This news release shall not constitute
an offer to sell or the solicitation of an offer to buy
securities.
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