Quantcast

Uranium Energy Corp Announces Positive Results From First-Phase Drilling at the Nichols Project in South Texas

October 28, 2008

AUSTIN, Oct. 28 /PRNewswire-FirstCall/ — Uranium Energy Corp is pleased to announce positive results from the initial phase of drilling at its 100%-owned Nichols Project in Karnes County, Texas. The Nichols property consists of approximately 900 acres of contiguous leases located about six miles south of the town of Falls City, Texas. The Nichols Project is only about 50 miles from the Company’s Goliad ISR Uranium Project, for which the Company has obtained a Draft Mine Permit and submitted additional permitting applications. Management anticipates that any mineral resources identified and extracted at Nichols will be processed at the Company’s planned Goliad plant.

The Nichols Project was originally developed by Texaco Uranium (now ChevronTexaco), and reportedly contains an historic resource of 1.2 million pounds of e-U3O8. This first phase of exploration drilling was designed to confirm historic resources. Limited historic exploration data from Texaco on the property was available for review, but onsite lithologic data collected during the current drill program, coupled with the geologic literature review, confirm that the target host sands are those of the Eocene-aged Jackson Group, the zone of significant past production in Karnes County.

The foregoing historical resource estimate for Nichols was completed prior to the implementation of CSA National Instrument 43-101 (“NI 43-101″); however, given the results of current drilling, the Company believes the resource estimate to be relevant. A qualified person, as defined under NI 43-101, has not completed sufficient work to classify the historic mineral resources as current mineral resources, and the historical resource estimate should not be relied upon.

   Important results from the program include:    -  Multi-sand targets identified containing elevated uranium      mineralization;    -  Confirmation of mineralization along a minimum 5,000-foot trend;    -  Initial PFN logging suggests a disequilibrium factor (DEF) ratio      near 1.0;    -  Core was collected to evaluate leachability of the sand and to      estimate the DEF.   

Multi-sand targets – As drilling progressed, four sands within the Jackson Group section were identified as potential mineralized target sands. From top to bottom these sands have been designated as the N1, N2, N3, and N4 sands. The sands are each 15 to 30 feet thick, and each is saturated, that is, below the water table. Their depositional environment appears to be near-shore marine, with sands N1, N3, and N4 being offshore bars and sand N2 representing finer grained lagoonal sediments. During this program, elevated gamma values were identified only in the N1 and N2 sands, with N2 containing the majority of the highest grades. However, the N3 and N4 sands are considered potential target sands.

Confirmation of Mineralization – 34 generally wide-spaced exploration boreholes totaling 18,154 drilled feet, and one core hole, were completed during this program. 20 of the boreholes were completed on centers approximately 800 feet apart along lines approximately 1,000 feet apart. The exploration boreholes confirm widespread uranium mineralization in two sands along a 5,000 foot trend with high grade mineralization along at least 1,200 feet of that trend.

Grade Thickness, or GT, is defined as the product of the mineral grade (at the .02% cutoff) multiplied by the thickness of the mineralization at or above the cutoff value. Typically, GT values of 0.1, 0.2, and 0.3 are used in resource calculations. GT values above 0.3 are considered ‘high grade’ intercepts. GT values between 0.2 and 0.3 are considered ‘strong’ intercepts, and values between 0.1 and 0.2 are considered ‘mineralized’ intercepts. During this 34 hole program, three holes intercepted high grade mineralization, two holes had strong mineralization, and five holes encountered mineralized intercepts. The highest GT encountered during this program was 1.05 in borehole # 23. Some selected intercepts are presented in the table below.

   Nichols Project - Selected Mineral Intercepts   -----------------------------------------------------------------   Borehole #     Sand     Grade     Thickness    Grade Thickness                                                       (GT)   -----------------------------------------------------------------   11               N1       0.05        2.5           .125                    N2      0.032        1.5           .049   -----------------------------------------------------------------   15               N2      0.045        4.0           .179                    N2      0.046        2.0           .091   -----------------------------------------------------------------   23               N2      0.235        4.5           1.05   -----------------------------------------------------------------   27               N2      0.036        3.0           .108                    N2      0.097        3.5           .341   -----------------------------------------------------------------   28               N2      0.064        3.0           .192   -----------------------------------------------------------------   

Coring – Borehole # 23 had the highest GT encountered during this program. As a result, this hole was selected for offset coring (core hole 35C), located approximately 10 feet west of exploration borehole # 23. About 18.5 feet of core was retrieved from the core hole, including the correlative section with the highest gamma readings. Samples from the core will be used for density determinations, uranium content, and leachability, among other tests. Closed-can uranium analyses will be used to assess disequilibrium in the mineral body.

Work has been initiated on a NI 43-101 technical report to make compliant the historic resource estimate previously reported for the Nichols Project. Additionally, planning for the phase two drilling program is underway to evaluate the uranium mineralization along the established 5,000 foot trend. The NI 43-101 technical report is scheduled to be delivered by an independent qualified person (“QP”) in December of this year.

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 Clyde L. Yancey, P.G., Vice President-Exploration for the Company, a QP under NI 43-101.

About Uranium Energy Corp

Uranium Energy Corp is a US-based resource company with the objective of becoming a near-term ISR uranium producer in the United States. Utilizing its extensive information library of historic uranium exploration and development work, the Company has acquired and is advancing uranium properties throughout the southwestern US. A Draft Mine Permit was recently issued for the Company’s lead project, the Goliad ISR Uranium Project in south Texas. Operational management is comprised of pre-eminent uranium mining and exploration professionals whose collective experience in this industry gives the Company ongoing uranium mine-finding and mine development expertise.

   Stock Exchange Information:    American Stock Exchange Symbol: UEC   Frankfurt Stock Exchange Symbol: U6Z   WKN: AOJDRR   ISN: US916896103    Forward-Looking Statement Disclaimer   

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 historical mineral resource estimates should be viewed as forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance 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. 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 statements filed with the United States Securities and Exchange Commission (the “SEC”) (available at http://www.sec.gov/) and with Canadian securities administrators (available at http://www.sedar.com/). 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.

Any historical mineral resources referred to by the Company in this news release and in any referenced technical report have not been estimated in accordance with the definition standards on mineral resources of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in National Instrument 43-101, commonly referred to as “NI 43-101″. As a reporting issuer in Canada, we are required by Canadian law to provide disclosure in accordance with NI 43-101. U.S. reporting requirements for disclosure of mineral properties are governed by the SEC Industry Guide 7. NI 43-101 and Guide 7 standards are substantially different, however Guide 7 does allow the disclosure of mineral resources where required to be disclosed by foreign law.

Uranium Energy Corp

CONTACT: Contact North America: Investor Relations, Uranium EnergyCorp.: Toll Free: (866) 748-1030, Fax: (512) 535-0832, E-mail:info@uraniumenergy.com




comments powered by Disqus