VANCOUVER — Uranium Energy (UEC-N) has added another robust resource estimate to its collection of uranium projects in the United States. The company, which plans to become a producer soon, released a NI 43-101 compliant resource estimate for its Palangana project in south Texas after acquiring the property only two months ago.
The 25-sq.-km Palangana project is a past-producing uranium mine based around in-situ recovery (ISR). The project, located in Duval County, falls within the south Texas uranium belt.
The estimate puts Palangana’s measured and indicated uranium resource at 356,523 tonnes grading 0.135%, for 1.06 million lbs. U3O8, contained in two zones known as Production Area 1 and Production Area 2. Inferred resources, which sit within six separate deposits, add 298,000 tonnes at 0.176% for an additional 1.15 million lbs. U3O8.
The resource is concentrated in sandstone-hosted, roll-front deposits that sit within paleochannels on the east side of the Palangana Dome.
The Gulf Coast piercement salt dome, roughly 3.2 km in diameter, dominates the local geology and earlier exploration efforts primarily probed the edges of the dome. The new resources sit farther east.
Uranium Energy secured ownership of its Palangana project when it took over the South Texas Mining Venture (STMV) in late 2009 from Uranium One (UUU-T) and Everest Exploration. Uranium Energy issued 2.5 million shares to Uranium One for its 99% stake in STMV, and also issued 200,000 restricted shares and paid US$1 million for Everest’s assets, including its 1% interest in STMV.
Uranium Energy also gained ownership of its fully licenced and permitted Hobson ISR processing plant in the deal, as well as a portfolio of exploration-stage properties in south Texas.
Uranium Energy plans to make its Hobson plant into a central processor for its various uranium projects in south Texas, including Palangana, which is 160 km south of the plant.
The Hobson plant was first constructed in 1978 and fully refurbished and expanded in 2008 to the present drying and packaging capacity of 1 million lbs. of U3O8 per year. Installation of a second and larger vacuum dryer would double capacity at the facility.
Uranium Energy has secured all necessary permits to begin developing the Palangana project. The company received the final necessary permit in January when the Texas Commission on Environmental Quality issued a radioactive materials licence to the company, the first such licence issued in Texas since 2002.
No comments were received about the project during the public comment period.
The company has other uranium projects throughout the southwestern U.S., in various stages of development.
Uranium Energy’s share price was up US8¢ on the day of the Palangana resource news, closing at US$3.71.
The company’s 52-week low-high range is US31¢-US$4.16. The company has 57 million shares outstanding.
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