Uranium Energy Corp Reports Strong Drilling Results at the Company's
Palangana ISR Project in South Texas
With Four Drill Rigs Active, Initial 87 Holes of Planned 215-Hole Drilling Program Now Completed and Logged
NYSE Amex Equities Exchange Symbol - UEC
CORPUS CHRISTI, TX, March 15 /CNW/ - Uranium Energy Corp (NYSE-AMEX: UEC, the "Company") is pleased to announce excellent drilling results at the Company's 100%-owned Palangana project located in South Texas. In early February, the Company initiated a 215-hole drilling program on six exploration zones at Palangana with the objective to further define and to expand its previously reported Inferred Resources in these zones. This release reports on the 87 holes that have been completed and logged thus far.
The Palangana project is fully permitted for production. It is a prior-producing in-situ recovery (ISR) project located in the South Texas uranium belt approximately 100 miles south of the Company's fully licensed Hobson processing plant. Concurrent with the drilling campaign, the Company is advancing the engineering and economic studies to bring Palangana to near-term production. The plan is to produce and ship uranium-bearing resins from Palangana to Hobson for further processing into dried U3O8, a final product also known as yellowcake.
The Company recently had an independent CSA NI 43-101 compliant Technical Report prepared that provides for a Measured and Indicated Resource at Palangana of 1,057,000 pounds at an average grade of 0.135% eU3O8 located in two zones, and an additional Inferred Resource of 1,154,000 pounds of eU3O8 at an average grade of 0.176% located in six new exploration zones. Please see the Company's press release dated February 23, 2010. The current drilling program is addressing each of these six exploration zones.
Thus far, of the 87 holes analyzed, 43 holes were in the CC Brine Trend where the results have been very positive including 18.5 feet grading 0.636% and 10.5 feet grading 0.848% cU3O8. The Jemison Fence Trend has had 18 new holes drilled in it including 24.5 feet grading 0.341% cU3O8. The results are expected to add to the resources in both trends. Resource estimates will be updated at the conclusion of the drill program.
Amir Adnani, President and CEO, stated, "The early drilling results from Palangana are exciting and indicate that the uranium resource may increase substantially. In addition, as noted below, initial drilling in the well fields earlier produced by Union Carbide show that a significant amount of uranium remains there as well. We are aggressively pursuing resource expansion on both fronts."
The following table lists the results from 19 drill holes where Prompt Fission Neutron logging ("PFN") shows intercepts with a grade-thickness greater than 1, representing a quarter of the total number of delineation holes drilled to date. Grade-thickness ("GT") is the length of the intercept measured in feet multiplied by the average percentage of U3O8 present. Company engineers estimate that zones with GT greater than 0.3 will be shown to be producible. More than half of the initial 87 exploration holes have intercepts with GT greater than 0.3. A properly calibrated PFN probe provides a radiometric reading that directly approximates the uranium content.
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DRILL HOLE DESCRIPTION PFN LOG
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GT -
Total Depth in Thickness Grade Grade
Hole Associated Depth Feet to in in % times
Number Trend of Hole Intercept Feet cU3O8 Thickness
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2707 CC Brine 420 373 18.5 0.636 11.766
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2703 CC Brine 420 369 10.5 0.848 8.904
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2685 Jemison Fence 400 343 24.5 0.341 8.3545
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2709 CC Brine 400 368 6 0.472 2.832
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2673 CC Brine 420 369.5 5.5 0.454 2.497
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2704 CC Brine 420 377 5 0.488 2.44
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2687 Jemison Fence 380 345 10 0.208 2.08
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2700 CC Brine 420 376.5 11.5 0.176 2.024
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2686 Jemison Fence 400 339.5 6.5 0.271 1.7615
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2702 CC Brine 340 304.5 6 0.29 1.74
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2665 CC Brine 360 340 4 0.433 1.732
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2672 CC Brine 420 375 6 0.277 1.662
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2734 NE Garcia 320 271.5 12.5 0.117 1.4625
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2671 CC Brine 360 355.5 3 0.472 1.416
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2713 CC Brine 420 289.5 7.5 0.172 1.29
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2754 CC Brine 440 365.5 7.5 0.168 1.26
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2716 CC Brine 420 371.5 4.5 0.253 1.1385
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2680 Jemison Fence 380 355.5 5 0.206 1.03
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Prior-Producing Well Fields
In conjunction with the ongoing exploration-zone drilling, the Company is also evaluating the former Union Carbide Corp. ("UCC") well fields at Palangana for potentially remaining resources. As part of the initial investigation, a total of 9 exploratory holes have been drilled to date in the historic UCC well fields. The hole locations were designed to test historic well field recovery factors and to evaluate remaining mineralization. As can be seen in the following table, 5 of the 9 holes contain a disequilibrium factor ("DEF") greater than 1. These values should theoretically represent the mineralization that UCC did not recover. The remaining 4 holes have the highest gamma GT values but DEF's less than 1. As can be seen by the PFN GT values of these 4 holes, it is apparent that a significant amount of uranium could still remain in the well fields. This encouraging data is currently under review and further updates will be provided.
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GAMMA LOG PFN LOG
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Total Thick- Thick-
Depth ness Grade ness Grade
Hole of in in % in in %
Number Hole Feet eU3O8 GT Feet cU3O8 GT *DEF
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2695 300 3.5 0.032 0.11 12.5 0.038 0.48 4.24
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2741 340 11.5 0.046 0.53 33.0 0.034 1.12 2.12
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2751 340 22.5 0.050 1.13 41.5 0.049 2.03 1.81
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2742 310 32.5 0.113 3.67 35.5 0.132 4.69 1.28
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2740 340 15.5 0.103 1.60 31.0 0.065 2.02 1.26
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2749 340 29.0 0.302 8.76 27.5 0.168 4.62 0.53
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2750 340 36.0 0.138 4.97 35.0 0.044 1.54 0.31
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2743 320 25.5 0.173 4.41 33.5 0.040 1.34 0.30
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2694 360 8.5 0.687 5.84 22.0 0.070 1.54 0.26
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* The DEF calculations in this table are based on grade summaries and
do not represent grade broken into individual subrolls.
The Company will continue to announce drill results as they become available, both in the exploration trend areas and the historic Union Carbide production area.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and reviewed by Andrew W. Kurrus, PG, Manager of Texas Exploration for the Company, a qualified person under policy NI 43-101.
Notice to U.S. Investors
The mineral resources referred to herein have been estimated in accordance with the definition standards on mineral resources of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101 and are not compliant with U.S. Securities and Exchange Commission (the "SEC") Industry Guide 7 guidelines. In addition, measured mineral resources, indicated mineral resources and inferred mineral resources, while recognized and required by Canadian regulations, are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Accordingly, we have not reported them in the United States.
Investors are cautioned not to assume that any part of the reported measured mineral resources, indicated mineral resources or inferred mineral resources referred to in this news release and in the Technical Report are economically or legally mineable.
About Uranium Energy Corp
Uranium Energy Corp (NYSE-AMEX: UEC) is a U.S.-based exploration and development company with the objective of near-term uranium production in the U.S. The Company's fully licensed and permitted Hobson processing facility is central to all of its projects in South Texas, including Palangana, and the Goliad in-situ recovery uranium project which is in the final stages of mine permitting for production. The Company's operations are managed by professionals with a recognized profile for excellence in their industry, a profile based on many decades of hands-on experience in the key facets of uranium exploration, development and mining. The Company is well financed to execute on its key programs.
Stock Exchange Information:
NYSE-AMEX: UEC
Frankfurt Stock Exchange Symbol: U6Z
WKN: AOJDRR
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 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, labour 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. 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.
For further information: Contact North America: Investor Relations, Uranium Energy Corp.: Toll Free: (866) 748-1030, Fax: (512) 535-0832, E-mail: [email protected]
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