Crain

In this section:

• Project Overview

PROJECT OVERVIEW

Uranium Energy Corp’s (UEC) Crain Project covers all of Section 27, T 32S, R26E in San Juan County, Utah, and consists of one private mineral lease.  The lease is at the south-west extension of the Uravan Mineral Belt, in the Sage Plains District, approximately thirty miles east-northeast of Monticello, Utah.  The Salt Wash Member of the Morrison Formation is approximately 300 feet thick in the area, and consists of an upper, middle and lower sandstone rims or benches.  The sandstone in outcrop has been described as fine to medium grained, moderately to well rounded, containing occasional conglomerate lenses.  Mineralized trends in the area are found in the upper and middle sandstone units.  Where the upper and middle sand lenses coexist to form the thicker sandstone units, larger and higher grade tonnage is more likely to be found.  Examples are the Wilson-Silver Bell and Calliham Mines located along a NE-SW trend located just north and west of the Crain Lease and along a somewhat parallel trend to the south where the Deremo Mine and several uranium pods are located.  The trends are sub-parallel to sedimentary trends along the paleochannels of the meandering stream systems.  The uranium mineralized trend found on the Crain Project is reported from the middle sand unit.  Information acquired from Atlas Minerals inter-office correspondence, May 1969, shows several companies have been active in the Sage Plains District in the past, Pioneer Uravan, Truchas Limited, Atlas Minerals, American Smelting and Refining, Homestake, Climax and Union Carbide.

Drilling on the Crain Lease by Pioneer Uravan consisted of 87 drill holes to depths of 700 to 750 ft.  Gamma Ray logs were run and mineralization was reported in forty-five drill holes.

• 35 reported trace to .04% eU3O8
• 6 reported .05%-.099% eU3O8
• 3 reported .10%-.199% eU3O8
• 1 reported .20% plus eU3O8

Truchas Limited had drilled 178 holes most located along the west side of NW ¼ of Section 27.  UEC has only eleven of these Gamma Ray logs.

• 4 reported trace - .049% eU3O8
• 2 reported .05%-.099% eU3O8
• 5 reported .20% plus eU3O8

All logs showed mineralization in-between 600-700 feet and all above the water table.  Truchas reported a Historic Resource estimate of 550,000 pounds of uranium at 0.21% and 1,300,000 pounds of vanadium at 1.97%.   The foregoing historical resource estimate for the Crain Project was completed prior to the implementation of Canadian National Instrument 43-101.  However, given the quality of the historic work, the Company believes the resource estimate to be relevant.  A qualified person has not completed sufficient work to classify the historic mineral resources as current mineral resources, and the estimate should not be relied upon. The company is not treating this historical estimate as a current estimate.

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