Uranium Energy Corp has acquired approximately 12,000 acres in the Uravan Mineral Belt of the Colorado Plateau, in the states of Colorado and Utah.
The Uravan Mineral Belt is the oldest uranium mining area in the United States. This geological trend arcs across the west central Colorado counties of Mesa, Montrose and San Miguel, into northeastern Utah. Both uranium ores averaging 0.25% and vanadium ores averaging 1.7% have been produced in the region from sandstone deposits, primarily in the Salt Wash Member of the Morrison Formation.
This property was the subject of significant uranium exploration, and includes the sites of several past-producing uranium and vanadium mines. Some of the formerly-producing uranium mines within the Uranium Energy Corp property boundary include the Sandy, Babe Ruth, Bald Eagle, Fawn Springs #5, and Teapot Dome mines. The Company’s property holdings in the Colorado Plateau include the sites of a total of 15 past producing uranium/vanadium mines. The aggregate production from these mines was approximately 5 million pounds of uranium, and 16 million pounds of vanadium. Grades of production in all cases were similar to the averages of 0.25% uranium and 1.7% vanadium that were observed for the rest of the mineral belt.
One area of the property is contiguous to Cotter Corporation’s large open pit and decline located on the US Department of Energy Uranium Reserve.
A positive preliminary geological field assessment of all the properties was conducted in April 2007 by Company geologists, and was positive. The potential for development of uranium and vanadium resources has been indicated. Based on that assessment, certain areas have been given exploration priority. The Company is also pursuing the acquisition of additional historical uranium production and exploration data covering the property, with data for certain target areas being prioritized.
As of May 2007, the Company’s work on the Colorado Plateau Project has allowed Company geologists to prioritize certain areas for further exploration. The Company established a Colorado Plateau field office in March 2008.
Exploration activities will include detailed field mapping of the mineralization, and the acquisition of both drilling and mining permits. The initial objectives of the drilling program will be delineation of resources and expansion of the known mineralized area.
The Company’s property acquisition programs are ongoing throughout this district. |
