Uranium Energy (UEC) Announces a Technical Report on Palangana Project
Uranium Energy Corp (AMEX: UEC) is pleased to announce the results of a Technical Report on Resources, including Measured, Indicated, and Inferred Mineral Resource Estimates, prepared in accordance with the provisions of National Instrument 43-101 ("NI 43-101") of the Canadian Securities Administrators on the Company's Palangana Project located in Duval County, Texas.
The Technical Report provides for a Measured and Indicated Resource Estimate for the Company's Palangana Project of 1,057,000 pounds at an average grade of 0.135% eU3O8. This resource is located in two zones referred to as Production Area #1 ("PA-1") and Production Area #2 ("PA-2"). An additional 1,154,000 pounds of eU3O8 at an average grade of 0.176% is classified as an Inferred Resource Estimate, and is located in six new exploration zones. The Resource Estimates completed by SRK are based on the results from 2,694 drill holes at the Palangana Project completed by previous operators including Uranium One, Chevron Corporation and Union Carbide Corp ("UCC"). The Resource Estimates are primarily located east of the Palangana Dome.
Amir Adnani, President and CEO, stated: "Management is very pleased with the early progress at Palangana. The Company completed acquisition of the project eight weeks ago, and announced on January 20 that the project is fully permitted. As concluded in the Technical Report, there is very substantial potential at Palangana and the Company is implementing two programs here. With the first program, we are advancing the engineering of mineralized zones PA-1 and PA-2 with the objective of near-term production and processing at the Company's fully licensed Hobson plant. The second program is to implement a 215-hole drilling campaign with the objective to further define and expand the Inferred Resources present in the six exploration zones."
Conclusions by SRK in the Technical Report
The Resource Estimates are contained in the sandstone, roll-front deposits on the east side of the Palangana Dome. The Resource Estimates have been developed in mineralized trends away from the areas of historically reported resources by previous operators. Two zones, known as the PA-1 and PA-2, have been adequately delineated for the calculation of Measured and Indicated Resources. An additional portion of the six exploration trends have been drilled adequately to establish Inferred Resources.
In SRK's opinion, the Resource Estimates represent a significant uranium deposit which warrants the implementation of the following two phase programs: Phase I being advanced engineering and economic study of PA-1 and PA-2 leading toward near term production and processing at the Company's Hobson Plant, and Phase II being the implementation of a delineation drilling program to further define and expand the Inferred Resources present in the six exploration areas.
Palangana Overview
The Palangana Project is a prior-producing, in-situ recovery ("ISR") project located in the South Texas uranium belt. The 2,500-hectare (6,200-acre) property is located approximately 100 miles south of the Hobson processing facility. Over 4,000 historic holes were drilled at the Palangana Project by previous operators including UCC, Chevron and Uranium One. UCC produced uranium at the Palangana Project in the mid to late 1970's using ISR methods.
The geology at Palangana is characterized by the occurrence of a Gulf Coast piercement salt dome. This dome is approximately 2 miles in diameter and is overlain by Pliocene sediments of the Goliad Formation. Previous operators of the Palangana Project focused their historic exploration and resource development on mineralization overlying and surrounding the faulted dome margins. The current Resource Estimates are primarily located east of the faulted dome margins, in paleochannels within the Goliad Formation. Exploration of these newly developed mineralized trends is ongoing.
Palangana Resource Determination
Data used for the Resource Estimates include electric logs and core assay data from all of the previous operators, including UCC, Chevron Corporation, and Uranium One. In addition, Princeton Gamma Tech logging was conducted by Chevron on approximately 163 selected borings in order to establish the degree of disequilibrium within the high-grade bodies. Uranium One utilized the Prompt Fission Neutron("PFN") downhole logging on all of their drill holes with some minor exceptions. A properly calibrated PFN probe provides a radiometric reading that approximates directly uranium content.
SRK developed its resource estimates within distinct sand and roll-front zones utilizing detailed computer block modeling of grade distribution. The results of the resource estimation are presented in the table above. This work included a review of the reduction-oxidation (redox) characteristics of the roll-fronts based on PFN logging. Where positive disequilibrium factors or DEF's exist outside the initially identified interface, a re-evaluation of the boundary was made by SRK. Specifically the thickness, grade, gamma signature and lithologic descriptions were examined to discern if the designation of oxidation was supportable. The usage of the PFN probe to identify the DEF factor has enabled a spatially specific adjustment to chemical uranium.
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