For UEC, Patience is Power
On behalf of management and the board of directors, I am pleased to report our 2017 outlook for the Company.
Before all else, I want you to know how much I appreciate your support as a shareholder and your confidence in management. Thank you!
A corner is turning in the uranium market. You can see this in the improving price for spot uranium which is up over 40% in just two months. Several factors are contributing to major change:
As market forces unfold, UEC is strategically positioned to help fill the growing demand for uranium with licensed, low-cost operations in stable jurisdictions and a strong balance sheet.
The Company has the infrastructure advantage with our fully licensed, state-of-the-art Hobson Processing Plant and a focus on a low-cost, environmentally friendly method of uranium extraction (ISR or In-Situ Recovery). To learn more about the ISR mining method, please visit this video on our website: http://www.uraniumenergy.com/projects/isr-mining. Utilizing the ISR method, we are positioned to be among the lowest cost producers in the industry.
UEC is unique in being a 100% unhedged producer, as we have purposefully avoided restrictive contracting and price ceilings with utilities during the bottom of the price cycle. This will give our investors maximum leverage and reward as uranium prices move higher.
To fulfill this strategy and due to the weakness in uranium prices over the last few years, we undertook a strategic decision to place uranium extraction on stand-by to preserve our resources, while capitalizing on this period to grow our asset base and advance our key projects through permitting. As the market improves, we are ready to re-start our operations quickly when pricing is favorable.
Lastly, we have a solid balance sheet as required to be a leading player in the coming uranium bull market. Last month, we completed an over-subscribed $26 million financing with strong interest from existing and new shareholders.
South Texas Hub-and-Spoke Operations
UEC is executing a 'hub-and-spoke strategy' in South Texas where the Company controls five wholly-owned, ISR projects surrounding our Hobson processing plant with its two-million-pound-per-year capacity. Of the five projects, Palangana is permitted, built and production-ready. Goliad is fully permitted for extraction within its first production area. Burke Hollow is expanding in scale while progressing towards final permitting for initial production.
Of note, Burke Hollow is a new discovery made by our exploration team in 2012 and, since that time, we have drilled over 500 holes to define the current resource*. We have near-term plans to initiate a new drilling program at Burke Hollow of up to 100 delineation and resource* expansion holes. This drilling program will use our proprietary PFN drilling probes -- an innovative low-cost technology for drilling in the South Texas uranium belt. A study by the US Geological Survey ranks the South Texas Uranium Belt amongst the least explored and most prospective regions in the world for additional uranium discoveries.See our Projects in Texas
See our Projects in Texas
The Company controls an additional 6 projects in the southwestern US with assets such as the large Anderson Project in central Arizona and our Slick Rock Project in southwestern Colorado. In Paraguay, we maintain a district-scale potential with one of the largest in-situ recoverable property positions in the world with over 750,000 acres in exploitation and exploration licenses at our Yuty and Oviedo Projects. Total historic exploration expenditures are over $50 million and include ~100,000 meters of drilling.
Additionally, UEC announced in March 2016, that the Company had entered into an agreement to acquire new non-uranium properties in Paraguay from CIC Resources. We are currently assessing several possible options to maximize shareholder value from this accretive acquisition, which is expected to be finalized in the coming months.
These and other pipeline projects demonstrate that UEC is prepared, well positioned and highly leveraged to a higher price of uranium.
For details of UEC's Project Portfolio including 43-101 Resource Reports * **, see the following section of our website: http://www.uraniumenergy.com/projectsSee Details of UEC's Project Portfolio
UEC Leadership in Our Industry
Senior management is active and plays a leading role in shaping uranium policy in the US and other key international markets. Various members of our team act as advisors, speakers and board members for domestic and global uranium industry organizations, including the International Atomic Energy Agency, World Nuclear Fuel Market, Nuclear Energy Institute, and the Uranium Producers of America.
Thank you again for your confidence in management's strategy. We encourage and appreciate your ongoing support. Call me directly, or our Investor Relations department, with any questions or comments that you might have as the year ensues. Please call 1-866-748-1030 any time or email [email protected]. Visit our website at www.uraniumenergy.com to keep current on all our activities and be sure that you register your email there to receive the latest news.
President & CEO
Corpus Christi, TX, July 25, 2017 – Uranium Energy Corp (NYSE MKT: UEC, the “Company” or “UEC”) is pleased to announce that the Company is extending the drilling campaign on its Burke Hollow in-situ recovery (“ISR”) uranium project into early September with an additional estimated 30 holes to be drilled. Drilling commenced on April 3 this year with initial plans to drill up to 100 delineation and exploration holes through the year. As of July 21, a total of 94 holes have been successfully completed for a total of 40,420 feet of drilling with each hole having an average depth of 430 feet.
Andy Kurrus, the Company’s VP of Resource Development stated, “The Burke Hollow project continues to develop and expand as a classic South Texas Goliad Formation model. We are very excited about the drilling results to date, and anticipate continuing resource growth throughout the multiple roll fronts present on the property. The 2017 drilling campaign has been the most successful to date in terms of efficiency, budget and results.”
The two main objectives of this campaign are to complete the exploration and delineation drilling phase of two closely-related Goliad Formation uranium trends which will constitute Burke Hollow Production Area 1, and to further extend and expand these open-ended trends within Burke Hollow. These trends had earlier been proven to extend over a distance of 1.7 miles, northwest to southeast, during four previous UEC drilling campaigns beginning in 2012. Based on the recent drilling results to date, the mineralized trends have now been explored and delineated over a distance of four miles, still showing additional extension potential and strong mineralization. Infill delineation drilling continues as required in order to develop the Production Area 1 monitoring plan.
The following table provides a detailed summary of the drilling results for 34 of the 94 test holes that exceeded 0.3 grade-thickness (GT) uranium cutoff and averaged 0.067% U3O8:
|Burke Hollow 2017 Drill Holes ≥ 0.3 GT|
|Well ID||Depth(ft)||Thickness (ft)**||Average
|*All grade values are based on Prompt Fission Neutron ("PFN") logging and denoted by pU3O8|
|**Rounded to nearest tenth of a foot|
Along with the drilling results listed in the referenced table, the remaining 60 drill holes include 10 holes that had GT values ranging from 0.2 – 0.3 GT based on PFN data. These intercepts had an average thickness of 6.3 feet with an average grade of 0.034 %pU3O8, for an average GT value of 0.237. The data also includes 8 holes that logged GT values ranging from 0.1-0.2 GT based on PFN data. These intercepts displayed an average thickness of 5.3’ with an average grade of 0.033 % pU3O8 with an average GT of 0.148 in the mineralized Sand. The remaining 42 holes from this campaign range from barren to an average GT of 0.1. The anomalous zones average 9.5 feet in thickness.
Based on the positive results to date, the Company’s geological team is extending the drilling program into early September. An additional estimated 30 holes will be drilled, including at least two core holes to support further ISR leaching analysis. The Burke Hollow project continues to develop as the Company’s flagship uranium project in South Texas. The Goliad mineralization trends follow the outline of an anticlinal structure which has produced abundant natural gas and oil from multiple underlying formations. Several miles of potential mineralized trend length remain only lightly explored to date.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and was reviewed by Clyde L. Yancey, P.G., Vice President-Exploration for the Company, a Qualified Person under NI 43-101.
About Uranium Energy Corp.
Uranium Energy Corp. is a U.S.-based uranium mining and exploration company. The Company’s fully-licensed Hobson Processing Facility is central to all of its projects in South Texas, including the Palangana ISR mine, the permitted Goliad ISR project and the development-stage Burke Hollow ISR project. Additionally, the Company controls a pipeline of advanced-stage projects in Arizona, Colorado and Paraguay. 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.
Contact Uranium Energy Corp. Investor Relations at:
Toll Free: (866) 748-1030
Fax: (361) 888-5041
E-mail: [email protected]
Stock Exchange Information:
NYSE MKT: UEC
Frankfurt Stock Exchange Symbol: U6Z
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. 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, labor 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.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company’s filings with the Securities and Exchange Commission. For forward-looking statements in this news release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities.