Uranium Energy Corp. was pleased to announce this morning that the company has received an independent National Instrument 43-101 technical report for the Salvo Project located in Bee County, Texas. According to the report, the Salvo Project has an historical mineral resource of 1,505,000 pounds of U3O8. The Salvo Project has earlier been referred to as the Seager-Salvo Project.
The historical resource estimate was performed using industry-accepted standards for its time, however, additional verification and validation is needed to bring the property to a current Canadian Institute of Mining (CIM) resource classification. According to the press release, Uranium Energy is not treating the historical estimates as current mineral resources.
Consisting of 1,513 acres of contiguous leases located about ten miles southwest of the town of Beeville, Texas, the Salvo property is approximately 50 miles from Uranium Energy’s Hobson processing facility. The company’s management team plans to process any mineral resources identified and extracted at the Hobson plant.
Clyde Yancey, VP of Exploration, said, “We are excited to drill this property, to confirm the resource and to bring it up to independently qualified reporting standards. Initial indications are that the resource here may expand substantially.”
The complete Salvo Project NI 43-101 Technical Report is available on the SEDAR website, at www.sedar.com, and on the Company’s website at www.uraniumenergy.com. The Technical Report is authored by Thomas A. Carothers, P.Geo., a qualified person as defined in NI 43-101, who has over 30 years of uranium experience, substantially in the South Texas uranium trend. Among other credentials, he worked directly for two operating ISR mining companies in South Texas, US Steel and Tenneco Uranium, during the 1970s and 1980s.
According to Mr. Carothers, the property has good potential for expansion of mineralization with new drilling. He stated that the review of the project historic data files and working maps indicate that the data density and reliability are adequate and that the map posting and historical resource estimated by URI was prepared in a knowledgeable and accurate manner to the standards applicable at that time.
In-situ recovery (ISR) is potentially the most suitable mining method for this project based on evaluation of grade and depth of the mineralized zones. A preliminary URI core leach test indicated that the mineralization is amenable to leaching with an oxygenated agent. The mineralized horizons are confined by impermeable clay layers above and below the mineralization and are considered to be ideal for the use of ISR methodology. The deposits are generally not oxidized, and should have good groundwater flow characteristics.
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