Uranium Energy News Releases
Uranium Energy Corp Reports Exploration Progress at Grants Ridge Uranium Project in New Mexico
August 25, 2009
Uran Limited, Earning in to the Project, Targets Initial Drilling for Later This Year
Austin, TX – Uranium Energy Corp. (NYSE-AMEX: UEC, the “Company”) is pleased to announce that Uran Limited (“Uran”), the optionee on the Company’s Grants Ridge Uranium Project (the “Project”) located in New Mexico, has submitted applications for exploration permits to initiate drilling at two prospective areas of the Project.
Uran Limited, as part of its option and joint venture agreement with the Company, is paying all costs of exploration and development through completion of a feasibility study. Uran is targeting initial drilling on the Armijo and F33 zones to commence in November or December of this year. The Armijo and F33 zones include nine prior-producing uranium mines from the previous production cycle (the previous Section 30 mines, Dalco, Barbara J No. 1, Flat Top, Section 9 Mines, Section 4 Mines, F33, Tom 13 and the Lone Pine Mines – according to “Geology and mineral technology of the Grants uranium region 1979,” New Mexico Bureau of Mines & Mineral Resources, Memoir 38, 1980, the “Source”).
The Grants Ridge Project originally consisted of 4,260 acres in the central part of the Grants Mineral Belt, and has grown to approximately 5,620 acres during the first five months of the agreement. The parties have added the north half of Section 9, covering approximately 320 acres that include the prior-producing Section 9 Mines, plus the Ricks claims covering an additional 1,040 acres that are on trend to the northwest.
The exploration program is targeting the Todilto Limestone, which hosts numerous prior underground and open-pit mines with grades ranging from 0.18% – 0.38% U3O8, with an average mined grade of 0.20% U3O8 (the Source referenced above). Known mineralization is in fairly flat-lying stratigraphic units, at depths ranging from surface at Armijo to approximately 500 feet at the prior F33 mine (the Source referenced above). The Todilto Limestone underlies the more heavily explored Morrison Formation.
At the Armijo site, Uran plans to conduct 10,800 feet of core drilling based on approximate 400 x 400-foot spacing. Drilling depth is a maximum 50 feet, a potentially significant advantage of this prospective area. If the results of this drilling are successful, Uran Limited plans to conduct an additional 9,800 feet of drilling in 2010 which, if successful, may then allow the Project to establish defined mineralization for this area later next year.
At the F33 site, Uran plans to conduct approximately 6,500 feet of reverse-circulation drilling, with a further 7,200 feet planned for 2010 which, if successful, may then also allow the Project to establish defined mineralization for this area in 2010.
Uran can earn a 65% interest in the Grants Ridge Project from the Company over a five-year option period by completing a feasibility study and making certain payments of cash and shares as detailed in the joint-venture announcement release dated March 17, 2009.
Since initiation of the option, and in addition to expanding the size and scope of the Project, Uran has completed radiometric traverses on previously mined areas of Armijo and F33 to establish existing radiometric background levels for providing a baseline for future permitting and reclamation. Detailed surveys and mapping of the dumps on both areas have been completed this year. Metallurgical studies regarding the amenability of heap leaching have been initiated and will be ongoing through 2010.
The Grants Ridge Uranium Project is in the Grants Mineral Belt, in the southeastern part of the Ambrosia Lake uranium region approximately 70 miles west of Albuquerque. According to the Source referenced in the second paragraph above, the Grants Belt produced over 340 million pounds of U3O8 prior to 1986 and was the largest producing uranium field in the U.S. during the previous production cycle in the 1960s and 1970s.
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 reviewed by Clyde L. Yancey, P.G., Vice President-Exploration for Uranium Energy Corp, a qualified person under NI 43-101.
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 Goliad ISR Uranium Project in South Texas is in the final stages of mine permitting for production, and was recently issued a Final Draft Mine Permit and a Final Draft Production Authorization for Production Area 1. 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.
Contact North America: Investor Relations, Uranium Energy Corp.:
Toll Free: (866) 748-1030
Fax: (512) 535-0832
E-mail: [email protected]
Stock Exchange Information:
NYSE AMEX: UEC
Frankfurt Stock Exchange Symbol: U6Z
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 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. In particular, statements concerning planned drilling and other exploration activities on the Grants Ridge Uranium Project, and the planned metallurgical studies on the existing dumps, are forward-looking statements. 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.
Forward looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the “SEC”) (available at www.sec.gov) and with Canadian securities administrators (available at www.sedar.com). Such risks and uncertainties may include, but are not limited to, the risks and uncertainties set forth in the Company’s filing with the SEC, such as the ability to obtain additional financing, 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 SEC. 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.
Investors are cautioned that historical production is not necessarily indicative of future production potential.