Uranium Energy News Releases
Uranium Energy Corp Enters Into Joint Venture on the Advanced Cebolleta Uranium Project in New Mexico
May 1, 2007
Acquisition Brings Into the Company 49% of a Past-Producing Uranium Mine With 20 Million Pounds of Historically Drill-Indicated Uranium Resources In Situ
AUSTIN, TX – May 1, 2007 – Uranium Energy Corp is pleased to announce that it has acquired a 49% interest in Cibola Resources LLC, the owner of a mining lease covering approximately 6,700 acres in the Cebolleta Land Grant located in Cibola County, New Mexico. Neutron Energy Inc., a private company located in Phoenix, Arizona, owns the other 51% of Cibola Resources LLC and is the operator of the project.
The Cebolleta Land Grant is a private entity managed by a board of trustees whereby the trustees have the authority to approve the use of assets and natural resources within the grant boundary. Historically, the Cebolleta Land Grant has allowed uranium mining and continues to support the development of uranium resources. Under the Treaty of Guadalupe Hidalgo which ended the Mexican-American War, the United States agreed to honor private property within land grants in the territory ceded by Mexico to the U.S.
The Cebolleta Land Grant lease is located at the eastern end of the Grants Uranium District, and includes within its boundary, the past-producing JJ Number 1/L-Bar uranium mine, formerly operated by the Standard Oil Company of Ohio (SOHIO). SOHIO’s L-Bar uranium milling facilities were also located on the lease, but were decommissioned and reclaimed.
Historic resource estimates published by the New Mexico Bureau of Geology and Mineral Resources, and supported by SOHIO and other previous operator data, indicate that the Cebolleta Land Grant has 20.65 million pounds of uranium remaining in-situ. Mining on this property took place from 1975 until 1981, and produced 1.2 million pounds of uranium at grades of 0.12% before declining uranium prices led to the closure of mining operations.
Paul Pierce, Uranium Energy Corp’s Manager of Mine Development, was employed by SOHIO, as mining engineer, during the time of production at JJ Number 1/L-Bar. Mr. Pierce has excellent knowledge of this property. He and Mr. Curtis Sealy both have underground mining experience. These gentlemen were recently added to the Company’s Technical Team in the expectation of this acquisition, and will be instrumental in the effort to redevelop this mine.
The joint venture partners will prioritize the development of a National Instrument 43-101 report, in which they aim to verify the historical resource estimates, and which will be followed by an engineering feasibility study on this conventional underground mine.
About Uranium Energy Corp
Uranium Energy Corp (URME: OTCBB) is a US-based junior resource company with the objective of becoming a near-term ISR uranium producer in the United States. The Company is developing its advanced-stage Goliad Project in South Texas, with ISR uranium production projected to begin in 2009. Uranium Energy Corp controls one of the largest historical uranium exploration and development databases in the US. Through the use of these databases, the Company has acquired advanced uranium properties throughout the southwestern US. The operational management is comprised of pre-eminent uranium mining and exploration professionals, whose collective experience in the uranium mining industry gives the Company ongoing uranium mine-finding and uranium mine development expertise. Uranium Energy Corp is well positioned to capitalize on the current alternative energy boom. For more information, please visit www.uraniumenergy.com.
About Neutron Energy Inc.
Neutron Energy, Inc. is an advanced uranium exploration and development company with five development properties comprised of 39,500 acres in New Mexico, Wyoming and South Dakota. In addition, Neutron has in excess of 240,000 acres of exploration properties in Arizona, Wyoming, Utah and South Dakota. Neutron is recognized as having assembled one of the strongest management and technical teams of its peers in the western United States uranium sector. Neutron's staff has been involved in the discovery, permitting and development of several uranium, gold and coal mines in the western United States and overseas which have a collective gross mineral value of more than $5 billion.
Stock Exchange Information:
OTCBB Symbol: URME
Frankfurt Stock Exchange Symbol: U6Z
Berlin Stock Exchange Symbol: U6Z
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended. Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein. Such risks and uncertainties may include, but are not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company’s periodic reports filed from time-to-time with the United States Securities and Exchange Commission. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.