Cebolleta

To download the complete NI 43-101 Technical Report on the Cebolleta Project, please click the link below.

Cebolleta Project NI 43-101

In this section:

• Project Overview
• Recent Developments

PROJECT OVERVIEW

The Cebolleta uranium project of Cibola Resources, LLC (“Cibola” or “Company”), a limited liability company whose members are Neutron Energy Inc (“NEI”) (51% interest) and Uranium Energy Corp (49% interest), is situated in the Laguna mining district, about 45 miles west of the city of Albuquerque, New Mexico.  The project is situated on the south-eastern portion of the Cebolleta Land Grant, a former Spanish land grant.  Cibola Resources holds a mineral lease covering about 6,700 acres of privately owned surface and mineral rights.

The project area is the site of the formerly active St. Anthony and L-Bar uranium mines.  The St. Anthony group of mines, which included two open pits and one shallow underground mine, was operated by several different companies since the discovery of significant uranium mineralization on that portion of the property in the 1950’s.  Substantial uranium mineralization was identified in the L-Bar area by the Anaconda Company in the 1950’s, and was later developed by a joint venture between Reserve Oil and Minerals and Sohio Western Mining Company.

The St. Anthony group of mines is reported to have produced more than 2.5 million pounds of U3O8, and the L-Bar underground mine produced in excess of 1.75 million pounds of U3O8 prior to shut-down of mining and processing operations in mid 1981.

At Cebolleta, six separate uranium deposits have been outlined by the former project operators, Sohio Western Mining and United Nuclear/UNC Resources.  The project is estimated to host the following mineral resources (which are historical in nature and not compliant with Canadian National Instrument 43-101):

At Cebolleta, six separate uranium deposits have been outlined by the former project operators, Sohio Western Mining and United Nuclear/UNC Resources.  The project is estimated to host the following mineral resources (which are historical in nature and not compliant with Canadian National Instrument 43-101):

The uranium deposits are hosted in fluvial sandstones of the Jackpile sandstone unit of the Brushy Basin Member of the Morrison Formation, which is the same host as the famous Jackpile-Paguate uranium mine.  The mineralization occurs as a series of tabular bodies in the lower portion of the sandstones, near the contact with the underlying Brushy Basin shale.  Individual deposits range in size from several hundred thousand tons to more than two million tons, and have grades ranging from 0.09% to nearly 0.20% U3O8.  Individual mineralized bodies can contain between many hundreds of thousands of pounds to more than 5 million pounds of U3O8, based upon historical data that is not compliant with National Instrument 43-101. The deposits range in depth from as shallow as 200 to nearly 700 feet.

The Cebolleta project of Cibola Resources is a project with considerable technical merit that has significant historical resources.  The project may also benefit from the fact that it is situated on privately held property, rather than on government-managed lands.

All resource estimates quoted herein are based on data and reports obtained and prepared by previous operators.  This historic resource estimate is considered to be relevant, and is believed to be reliable based on the amount and quality of historic work completed.  The Company has not completed the work necessary to independently verify the classification of the mineral resource estimates.  Neither Cibola, NEI, nor the author of the independent technical report, Broad Oak Associates, are treating the mineral resource estimates as National Instrument 43-101 defined resources verified by a qualified person.  The historical estimates should not be relied upon.

RECENT DEVELOPMENTS

Nov 5, 2007
Uranium Energy Corp Announces Progress at Its Cebolleta Uranium Project

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