- Inferred Resources increased by recent drilling from 3,029,000 tons grading ,048% U3O8 containing 2.89 million pounds to 2,896,961 tons grading .089% U3O8 containing 5.12 million pounds;
- Discovery and delineation of higher grade zones has doubled uranium grade;
- Former Exploration Target developed into newly defined Inferred Resource;
- Potential for additional resource expansion with two new prospective mineralized areas discovered by recent drilling and a previously identified Exploration Target still to be drilled;
- Only 45% of the expanded Project has been explored to date;
- Environmental permitting advances with both Mine Permit and Radioactive Materials License applications submitted to TCEQ earlier this year.
The Burke Hollow project is a 19,335-acre property located in eastern Bee County, Texas. The previously explored project is situated on the Goliad trend within the prolific South Texas Uranium Belt, and is located approximately 50 miles to the southeast of the Company’s Hobson uranium processing facility.
Total Minerals, a division of the Total Group, the France-based global energy company (“Total”), conducted exploration work and drilling on this Project in 1993 as part of its South Texas Goliad exploration program. Following geophysical and geochemical results, Total drilled 12 holes along a northwest to southeast-oriented line. Eleven of the twelve holes intersected mineralization with drill-hole placement that exceeded several thousand feet in length.
UEC initiated exploration drilling at Burke Hollow on May 22, 2012 with four drilling rigs. Two additional rigs were added in mid-June in order to expedite drilling progress of target sands located from approximately 50 feet to 900 feet in depth. Exploration and delineation drilling continued through the end of 2012, and a total of 268 holes have been drilled, logged, and plugged to date, for a total footage drilled of 128,075 feet. The results of historic and contemporary borehole gamma-ray and resistance logs, as well as PFN logs indicate that uranium mineralization occurs in the upper Goliad Formation sand/sandstone units below the water table at depths from approximately 180 to 400 feet below ground surface. Evaluation of existing average grade of uranium mineralization and the depth of mineralized zones indicate in-situ recovery would likely be the most suitable mining method for this project.
The Company has explored approximately 30% of the Project and drilling to date has outlined an Inferred Mineral Resource (at 0.020% U3O8 cut-off) of a combined upper and lower zones of 3,030,000 tons at 0.047% U3O8 which contains an estimated 2.9 million pounds of U3O8. The Project also hosts an Exploration Target of total contained 1.8 to 7.2 million pounds U3O8. The Burke Hollow Project is the Company's third satellite project in South Texas and, with its proximity to the centralized Hobson processing plant, is the next in line to go into production after Goliad. It is also the Company's largest project in South Texas in terms of acreage.
The Company announced in November 2014 that it has completed an updated National Instrument 43-101 ("NI 43-101") resource1 for the Company's Burke Hollow, Texas, property (the "Project") that estimates an inferred mineral resource of 5.12 million pounds of uranium ("U3O8") at a weighted average grade of 0.09% U3O8. This resource update includes information from 526 drill holes and represents an increase of 2.23 million pounds of U3O8 over the previous Project inferred mineral estimate, a 77% increase. This mineral resource estimate was completed using accepted methods mandated by NI 43-101 and Canadian Institute of Mining, Metallurgy and Petroleum standards utilizing a grade cutoff of 0.02% U3O8, and a grade times thickness product cut-off (GT) of 0.30. Details of the resource are set out in the table below.
Concurrently, the Company is advancing production permitting for the Project and submitted a Radioactive Material License and Mine Permit application to the Texas Commission on Environmental Quality earlier in 2014. The Company has initiated permitting activities on the Project so it can move immediately into the extraction pipeline, consistent with the Company's hub-and-spoke model for its South Texas assets. Additional exploration and development drilling is planned for Burke Hollow.
|Burke Hollow Estimate Of Inferred Mineral Resources (PFN)*|
|Trend||Area (ft2)||Average Thickness (Ft)||Average Grade pU3O8 (%)||Average GT
|Contained U3O8 (Mlbs)||Tons|
|Lower A2 (Graben)||271,257.9||8.8||0.073||0.514||163,129.09||111,732.26|
|Upper B (Graben)||627,764.6||7.7||0.063||0.489||359,162.96||285,049.97|
|Lower B1 (Graben)||470,064.2||9.5||0.091||0.885||486,728.00||267,432.97|
|Lower B1 (East Side)||1,026,492.6||9.2||0.093||0.863||1,036,459.81||557,236.46|
|Lower B2 (East Side)||1,082,236.5||9.4||0.085||0.823||1,042,096.37||612,997.86|
|East Side Totals||2,078,556.18||1,170,234.32|
|Graben and East Side (Project) Totals||**Average Grade
|Graben and East Side Total||5,121,853.25||2,896,961.14|
* All grade values are based on Prompt Fission Neutron (“PFN”) logging
** Weighted average across the project area.