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Burke Hollow

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Burke Hollow

Burke Hollow

NI 43-101 Technical Report Dec 18, 2017

NI 43-101 Technical Report Dec 29, 2014

NI 43-101 Technical Report Feb 27, 2013

Project Snapshot

  • Inferred resource increases by recent drilling by 38 %, from 5.12 million pounds U3O8 to 7.09 million pounds U3O8*. The updated report estimates an Inferred mineral resource of 7.09 million pounds of uranium (“U3O8”) at a weighted average grade of 0.088% U3O8 contained within 4.06 million tons.*
  • 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 were submitted to TCEQ earlier this year.
  • The Environmental Protection Agency has recently approved the 5,384-acre aquifer exemption request. This will further enhance on of the Company’s largest ISR project.

Project Overview

UEC's Burke Hollow project is a 19,335-acre property located in eastern Bee County, Texas. This uranium project is situated on the Goliad trend within the South Texas Uranium Belt, and is located approximately 50 miles southeast of the Company's Hobson uranium processing facility. 

Five previous exploration drilling campaigns have been conducted by UEC at Burke Hollow since 2012.  UEC’s most recent 2015 and 2017 exploration and delineation drilling campaigns consisted of 182 exploration drill holes totaling 83,280 feet of drilling.  The average drill depth of the holes was 458’.  The 2015 and 2017 drill campaigns, coupled with the initial 2012 and later 2013 and 2014 drill campaigns, resulted in 707 holes being drilled, totalling 329,540 feet of drilling to date.
 

Two exploration target areas were initially identified in UEC’s 2012 NI 43-101 Technical Report for the Burke Hollow Project (Carothers et al., 2013).  These are known as the Southern Target Area, and the Eastern Target Area.  Little exploration activity has occurred to date along the southern half of the Burke Hollow Project where the Southern Exploration Target area lies. The Eastern Exploration Target was substantiated by drilling during the 2014 campaign, resulting in the discovery and delineation of the Eastern Lower B1 and B2 trends over a distance of 1.7 miles. The 2015 and 2017 drill campaigns further expanded and delineated the open-ended Eastern Lower B1 and B2 trends into two lightly drilled areas of the lease, for a current total of 4.5 miles of mineralized trend length discovered to date.

The results of historic and contemporary borehole gamma-ray, spontaneous potential, and resistance logs, as well as prompt fission neutron (PFN) logs indicate that uranium mineralization occurs in the upper to lower Goliad Formation sand/sandstone units below the water table at depths from approximately 180 to 1100 feet below ground surface (bgs).  Evaluation of existing average grade of uranium mineralization and the depth of mineralized zones indicate in situ recovery (ISR) would likely be the most suitable mining method for this project.

Based on the cumulative results of the five UEC focused exploration drilling and wider spaced exploration drilling campaigns at the Burke Hollow Project between 2012-2017, an Inferred Mineral Resource of 4,064,575 tons grading 0.088% pU3O8 (Prompt Fission Neutron determination) containing approximately 7.09 million pounds U3O8 in the combined Graben and Eastern Lower B trends has been estimated at the UEC project.

The company continues to advance production permitting at the project and has received three of the four major permits needed for production.  Two disposal well permits were issued in July 2015, and the 11,000 acre plus Mine Area permit was issued in December 2016 by the Texas Commission on Environmental Quality (TCEQ).  In March 2017, the Environmental Protection Agency also approved the 5,384 acre aquifer exemption.  The last major approval is the Radioactive Material License which remains under technical review by the TCEQ.

The mineral resource estimates shown below were calculated using the GT (Grade x Thickness) contour method.  The GT values of the subject sand intervals for each hole were plotted on a drill hole location map and contour lines were drawn.  The areas within the GT contour boundaries were used for calculating resource estimates utilizing the following criteria:

The minimum grade cutoff was selected to be 0.02% pU3O8.  The mineral resources are reported based on a grade thickness (GT) cutoff of 0.30 and a density factor of 17 cubic feet per ton.  The 0.30 GT cutoff was selected for reporting purposes and is presented in Table 1.1, as is summarized across the various trends. 

Summary Of Burke Hollow Inferred Mineral Resources (PFN)*
Trend
Area
(ft2)
Average
Thickness
(Ft)**
Average Grade
pU
3O8
(%)
Average
GT (0.02
Cutoff)
Contained
pU3O8 (lbs)
Tons
Lower A1
(Graben)
1,287,077.0
11.0
0.097
1.079
1,624,844.62
837,548.77
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 B2
(Graben)
413,643.3
9.5
0.091
0.846
409,432.40
224,962.86
Graben   
Totals  
       
3,043,297.07
1,726,726.82
Lower B1
(East Side)
1,877,345.2
9.3
0.090
0.836
1,836,268.89
1,020,149.38
Lower B2
(East Side)
2,097,650.0
11.5
0.084
0.902
2,213,733.95
1,317,698.78
East Side   
Totals  
       
4,050,002.84
2,337,848.16
Graben and East Side   
(Project) Totals  
 
0.088***
 
7,093,299.91
4,064,574.98

*All grade values are based on Prompt Fission Neutron ("PFN") logging and denoted by pU3O8
**Rounded to nearest tenth of a foot
***Weighted average grade for project