Uranium Energy News Releases
Uranium Energy Corp Acquires Past Producing F-33 Project in Grants Mineral Belt, New Mexico
November 26, 2007
Former Mine Hosts Both Uranium and Vanadium Potential at Shallow Depths
AUSTIN, TX – November 26, 2007 – Uranium Energy Corp announces that it has acquired the former uranium producing F-33 Project, located in Cibola County, New Mexico. The property consists of 172 unpatented mining claims, equal to 3,300 acres, plus one mining lease of patented lands, equal to 88 acres. The Anaconda Company (now BP plc) held a part of the property, and mined 48,720 tons averaging 0.31% U3O8, for total production of 305,040 pounds of U3O8. It also mined 31,306 tons averaging 0.12% of V2O5 from 1954 to 1959. Homestake Mining Company (now Barrick Gold Corp) subsequently leased the mine from Anaconda, and mined 109,231 tons averaging 0.191% U3O8, for total production of 417,412 pounds, from 1971 through 1974.
Uranium Energy Corp also acquired Anaconda’s and Homestake’s database for the property, consisting of mine maps of the subsurface workings, 177 drill logs, drilling maps, production records, and resource estimates. In August 1974, at the end of mining activities, Homestake reported a historic resource estimate of 58,700 tons at a grade of 0.21% U3O8 for a contained total of 246,400 pounds U3O8. It was noted, based on wide-spaced drilling performed by Homestake, that this resource was open–ended. Company geologists are actively reviewing the Anaconda/Homestake data to establish an infill drilling program in the open-ended areas.
The foregoing historical resource estimate for the F-33 Project was completed prior to the implementation of Canadian National Instrument 43-101. However, given the quality of the historic work, the Company believes the resource estimate to be relevant. A qualified person has not completed sufficient work to classify the historic mineral resources as current mineral resources, and the estimate should not be relied upon. The company is not treating this historical estimate as a current estimate.
The Jurassic age Todilto Limestone host-rock for the uranium deposits of the F-33 Project was the source of approximately 2% of the total uranium produced from the Grants Mineral Belt historically. The primary source of uranium is the overlying Jurassic age Morrison Formation. The Todilto consists of two main units, a lower limestone unit that mostly ranges from 5 to 10 feet thick, but reaches a thickness of 40 feet at the F-33 property, and an upper gypsum unit that ranges in thickness to 95 feet. The gypsum unit is absent in outcrop at Grants, however occurs in the subsurface north of Grants, and outcrops east of the Grants area.
The advantages of Todilto uranium mineralization over Morrison uranium mineralization in the Grants Mineral Belt are as follows:
i) the uranium mineralization occurs at the outcrop and can be readily accessed by underground mining techniques and/or shallow open pits;
ii) it is above the water table and therefore dry;
iii) it occurs at an overall higher grade percentage than Morrison deposits;
iv) it contains the valuable bi-product commodity of vanadium.
The Company plans to initiate permitting on this project in the near future so that both confirmation and extension drilling can commence in 2008. Clint Milne, the newly Senior Geologist for Uranium Energy Corp is scheduled to open a Grants, New Mexico office in early 2008, and to supervise the exploration of this property.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and has been reviewed by Clyde L. Yancey, P.G., Vice President of Exploration for Uranium Energy Corp. Mr. Yancey is a qualified person under NI 43-101.
About Uranium Energy Corp
Uranium Energy Corp (AMEX: UEC) is a US-based junior resource company with the objective of becoming a near-term ISR uranium producer in the United States. The Company controls one of the largest historical uranium exploration and development databases in the US. Through the use of these databases, the Company has acquired advanced uranium properties throughout the southwestern US. The operational management is comprised of pre-eminent uranium mining and exploration professionals, whose collective experience in the uranium mining industry gives the Company ongoing uranium mine-finding and uranium mine development expertise. For more information, please visit www.uraniumenergy.com.
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Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended. Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein. Such risks and uncertainties may include, but are not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company’s periodic reports filed from time-to-time with the United States Securities and Exchange Commission. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.