Uranium Energy Corp. is an industry leader in the production, development and exploration of uranium ore. The company is focused on developing uranium sites, and currently has a prominent project underway in Texas. Located in north-central Goliad County, Texas, the Goliad Project consists of 13 ISR uranium mining leases that cover 1,421 net acres of contiguous properties.
The project is located in the Interior Coastal Plains portion of the Gulf Coastal Plains physiographic province. Experts characterize the geology by tertiary age sedimentary units that dip and thicken toward the Gulf of Mexico. Uranium mineralization is commonly seen in tertiary age formations and is often found within sand/sandstone types of deposits. According to UEC’s website, the permeable sands have also shown strong reductants, which have created widespread or localized areas of reducing conditions in the groundwater. These have caused dissolved uranium migrating in oxidizing groundwater to precipitate and concentrate.
Between 2006 and 2007, UEC drilled over 599 confirmation and delineation holes to a 43-101 compliant resource of 6.9 million pounds U3O8. Of that number, 5.4 million pounds is measured and indicated and 1.5 million pounds is inferred. Across the properties, UEC has measured mineralization to be in four sand horizons from depths of 90 feet to 450 feet. The average thickness across these sand horizons is 14.5 feet, and they have an average grade of 0.075%. An independent party reviewed the Project’s metallurgical testing, and found recoveries of 86% to 89%.
Previously, Coastal Uranium held the leases to these properties as the original holder. From 1979-1980, the company conducted a reconnaissance exploration project over a very large area that included the current Uranium Energy Corp. leases. Moore Energy Corp. acquired the leases from Coastal Uranium and drilled 479 holes during 1983 and 1984. After completing exploration drilling in 1984, Moore Energy estimated uranium reserves of approximately 3,366,000 tons at an average grade of about 0.05% eU3O8 and an average disequilibrium factor of 1.494. This equates to approximately 5.2 million pounds of eU3O8 – an estimate historical in nature.
The latest Technical Report, filed on March 4th 2008, provides for a measured and indicated resource estimate for the company’s Goliad Project of 5,475,200 pounds at an average grade of 0.05% eU3O8, up from the previously reported and historical resource of 5.2 million pounds eU3O8 which was set forth in the Company’s previously filed Goliad Project NI 43-101 technical report. An additional 1,547,500 pounds of eU3O8 at an average grade of 0.05% is classified as an inferred mineral resource in the Technical Report. The estimate is based on the results from 1,086 drill holes at the Goliad Project, 599 by Uranium Energy Corp, 487 by other parties.
According to data provided by UEC, Commissioners of the Texas Commission on Environmental Quality (TCEQ) have approved the Mine Permit, the Production Area Authorization for Production Area One (PA-1), and have granted the request for designation of an Exempt Aquifer. The Goliad Project has only one pending Texas authorization remaining, which is a Radioactive Material License. It is currently at an advanced technical review stage with TCEQ.
Uranium Energy Corp. expects that the Goliad Project will become its second uranium-producing asset in Texas. When the company receives the Radioactive Material License for the project, UEC will commence construction at the project site. UEC anticipates that the remaining license will be approved this month.
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