Uranium Energy Corp has announced strong phase-one exploration drilling results at the Company's Salvo project located in Bee County, approximately 50 miles from the Company's Hobson processing facility in South Texas.
- Intercepts include 9.5 feet grading 0.67% U3O8
- Initial qualified resource anticipated Q1 2011
- Company leases additional 2,541 acres along trend
The objective of this drilling program, initiated November 8, 2010, is to verify and expand the NI 43-101 historic resource of 1.5 million pounds of U3O8 as reported on July 19, 2010. This release reports results from the first 43 holes of the phase-one campaign, with the remainder to be drilled in January.
Upon completion of the phase-one program, the Company plans to follow immediately with a phase-two drilling campaign consisting of an additional approximate 140 holes, plus metallurgical and other tests to confirm that the mineralization here could be produced using in-situ recovery methods.
Clyde Yancey, VP of Exploration, stated, "We are excited by the initial drilling results at Salvo. We do indeed see potential for expanding the resource at this project, and are now looking forward to the upcoming phase-two program where we will be aggressively drilling prospective new zones."
Of the 43 holes drilled to date the following statistics have been compiled from Prompt Fission Neutron (PFN) data.
A properly calibrated PFN tool provides a reading that directly approximates uranium content:
- 12 holes show significant uranium mineralization, with grade x thickness (GT) values greater than 0.30. The Company's engineers estimate that zones with a GT greater than 0.30 will be shown to be producible.
- 22 holes showing uranium mineralization with GT values between 0.012 and 0.30.
The measured DEF value is a material factor in this instance because historic DEF values, which averaged 1.6, were not applied to the historic resource, and indicate a potential expansion by one-half or more. The Company is verifying historic DEF calculations and extending understanding of the project area potential.
In addition to keeping the phase-one drilling program on schedule, the Company has been successful in acquiring additional leases along the projected mineralized trend to the west and northwest. These new leases total 2,541 acres, lie within the permitted area, have anomalous gamma levels from oil and gas logs and will likely be incorporated into the phase-two drilling program. The Salvo project area is now 4,054 acres.
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 Andrew Kurrus, P.G., Chief Geologist of Texas for the Company, a QP under NI 43-101 standards.
Source: Uranium Energy Corp.