Uranium Energy Corp Addresses Canadian Technical Information
Disclosure with the British
Columbia Securities Commission
The Company files NI 43-101 technical reports for
its Goliad and Cebolleta Uranium Projects
AUSTIN, TX – October 19, 2007 – Uranium Energy Corp
(AMEX: UEC) (Frankfurt: U6Z) (Berlin: U6Z)
is a US
public company that reports to the US Securities and Exchange Commission (the
“SEC”). The Company’s shares trade on the American
Stock Exchange under the ticker symbol “UEC”. The Company
is current with all SEC continuous disclosure requirements.
The shares of the Company do not trade on any Canadian exchanges and
the Company’s properties are all located in the US; however, the
Company became a reporting issuer in the Province of British Columbia,
Canada, on March 5, 2007, in order to accommodate its Canadian institutional
investors. As a consequence of becoming a reporting issuer in British
Columbia, among other requirements, the Company is required to file with the
British Columbia Securities Commission (the "BCSC") the continuous
disclosure documents that it files with the SEC.
In June of this year the BCSC conducted a review of the
Company’s technical information disclosure practices under Canadian
mineral resource disclosure requirements. Based upon this review, the
BCSC issued a cease trade order in respect of the Company’s shares (the
“CTO”), which is limited to the Province of British Columbia, for
not having then filed technical reports under Canadian National Instrument 43‑101
Standards for Disclosure of Mineral Projects (“NI 43‑101”)
respecting the Company’s material mineral property interests and for not
then disclosing historical mineral resources in its annual report filed with
the BCSC which were otherwise publicly disclosed by the Company.
As a consequence of the BCSC’s review the Company has now filed
NI 43-101 technical reports for each of its Goliad Project, located in Texas,
and for its Cebolleta Project, located in New Mexico.
Amir Adnani, President and CEO of the Company, states, “We are
prepared to make a long term commitment to establishing a strong presence for
our Company in the Canadian capital markets which are integral to the growth
of many successful mineral exploration and mining companies. We are in
close communication with the BCSC and are working with Canadian-based
consultants to ensure that we meet and satisfy the Canadian disclosure
requirements on mineral properties as outlined by NI 43-101 in order that our
Company can begin to benefit from having a presence in Canada.”
Disclosure clarification respecting material mineral
projects
The Company has now filed NI 43-101 technical reports for each of its
Goliad and Ceboletta Projects on SEDAR. As a result of the technical
information disclosure review by the BCSC, and as a consequence of the filing
of the subject NI 43-101 technical reports, the Company is now issuing this
news release in order to retract, restate and clarify certain of its previous
and current technical information disclosure in accordance with NI 43-101.
Historical Mineral Resource Estimates
In certain of its news releases, investor materials and on its website
the Company disclosed historical mineral resources for its Goliad Project,
located in Texas, and its Cebolleta Project, located in New Mexico. Under
NI 43‑101 an issuer may disclose an estimate of the quantity and
grade of a historical mineral resource made before the instrument came into
force if the estimate is an estimate of mineral resources prepared by or on
behalf of a person or company other than the issuer and the disclosure
identifies the source and date of the historical estimate, confirms that the historical
estimate is relevant, comments on its reliability, and explains any
differences between the categories used in the historical resource and those
permitted by NI 43-101. The disclosure made by the Company did not
contain this information and, accordingly, does not comply with the technical
information disclosure requirements of NI 43-101. The Company has now filed a
NI 43-101 technical report on its Goliad Project. Notwithstanding, the
Company retracts the disclosure it previously made about the historical
resources on the Goliad Project, and restates this disclosure as follows.
The Goliad Project uranium property is located in north-central Goliad
County, Texas, and currently consists of 13 in situ uranium mining leases
that cover approximately 1,421 net acres of contiguous properties. Moore
Energy Corporation (“Moore Energy”) acquired the leases to the
current Company property from Coastal Uranium and drilled 479 holes during
1983 and 1984. After completion of exploration drilling in 1984, Moore
Energy estimated uranium resources, based on the area under a 0.3 GT contour,
of approximately 3,366,000 tons at an average grade of about 0.05% eU308
and an average disequilibrium factor (“DEF”) of 1.494. This
equates to approximately 5.2 million pounds of eU308.
The DEF is a ratio of chemical over radiometric uranium. The resources stated above are historical in
nature and were compiled before the implementation of NI 43-101 reporting
standards, and the Company has not independently verified the
resource so is not treating them as current resources. The historical resources were prepared to
industry standards in place at the time and are considered relevant
today. This estimate, although prepared by experienced
personnel and considered relevant should not be relied on. The Company
obtained mine leases by assignment from a private entity for the current
Goliad Project in 2006, and has drilled 360 holes at the property from May
2006 through June 2007. These holes include closer-spaced delineation
work on the properties drilled by Moore Energy in order to assist in the
future generation of a current NI 43-101 resource.
In its recently completed and filed NI 43-101 technical report
respecting its Goliad Project the Company has established a historical mineral
resource and the results from the Company’s 2006-2007 confirmation
drilling work supports the presence of the Moore Energy historical estimate
of approximately 3,366,00 tons at an average grade of 0.05% eU308
that equates to approximately 5.2 million pounds eU308
with an average DEF of 1.494. The Goliad Project has considerable
technical merit and is worthy of additional work, as it is the author’s
opinion therein that there remains excellent potential for the discovery of
additional uranium mineralization in the Goliad Project area. The
review of geological and historical resource data from Moore Energy, and the
recent confirmation drilling results conducted by the Company at the
property, demonstrates the estimates were made using methods and procedures
that were standard in the United States uranium industry at the time they
were prepared. This historic resource estimate is considered to be
relevant, and is believed to be reliable based on the amount and quality of
historic and current work completed, however, it should not be relied
upon. The Company plans to complete further work to bring the property
to a current Canadian Institute of Mining resource classification, and the
Company is not treating the historical estimate as current mineral resources.
The complete Goliad Project NI 43-101 technical report is available
for review on the SEDAR website, at www.sedar.com,
and on the Company’s website at www.uraniumenergy.com.
The technical report was authored by Thomas A. Carothers, P.Geo., a qualified
person as defined in NI 43-101, who has over 30 years of uranium and ISR
production experience with such firms as US Steel Uranium Operations and
Tenneco Uranium, and consulted for uranium firms in Texas and New Mexico.
The Company retracts the disclosure it made about the historical
resources on the Cebolleta Project, and restates this disclosure as follows.
The Cebolleta uranium project of Cibola Resources LLC, a limited
liability company whose members are Neutron Energy, Inc. (51% interest) and
the Company (49% interest), is situated in the Laguna mining district, about
45 miles west-northwest of the city of Albuquerque, New Mexico. The
project is situated on the southeastern portion of the privately-owned
Cebolleta Land Grant, a Spanish land grant. Cibola Resources LLC holds
a mineral lease covering about 6,700 acres of privately owned surface and
mineral rights.
The project area is the site of the formerly active St. Anthony and
L-Bar uranium mines. The St. Anthony group of mines, which included two
open pits and one shallow underground mine, was operated by several different
companies since the discovery of significant uranium mineralization on that portion
of the property in the 1950’s. Substantial uranium mineralization was identified
in the L-Bar area by the Anaconda Company in the 1950’s, and was later
developed by a joint venture between Reserve Oil and Minerals and Sohio
Western Mining Company. The St. Anthony group of mines is reported to
have produced more than 2.5 million pounds of U308, and
the L-Bar underground mine produced in excess of 1.75 million pounds of U308
prior to shut-down of mining and processing operations in mid 1981.
At Cebolleta six
separate uranium deposits have been outlined by the former project operators,
Sohio Western Mining and United Nuclear/UNC Resources. The project is
estimated to host the following mineral resources (which are historical in
nature and not compliant with NI 43-101):
|
Area
|
Short Tons
|
Grade (%U308)
|
Pounds U308*
|
|
|
|
|
|
|
L-Bar:
|
4,075,000
|
0.154
|
12,653,000
|
|
St. Anthony:
|
4,320,000
|
0.095
|
8,208,000
|
|
|
|
|
|
|
Total:
|
8,395,000
|
0.124
|
20,861,000
|
|
|
|
|
|
* - No provisions have been made for
relative recovery rates.
|
|
|
|
|
|
|
Area
|
Total Pounds U308
|
NEI (51%) PoundsU308
|
UEC(49%)Pounds U308
|
|
|
|
|
|
|
L-Bar
|
12,653,000
|
6,453,030
|
6,199,970
|
|
St. Anthony
|
8,208,000
|
4,186,080
|
4,021,920
|
|
|
|
|
|
|
Total:
|
20,861,000
|
10,639,110
|
10,221,890
|
All resource estimates
quoted herein are based on data and reports obtained and prepared by previous
operators. This historic resource estimate is considered to be
relevant, and is believed to be reliable based on the amount and quality of
historic work completed. The Company has not completed the work
necessary to independently verify the classification of the mineral resource
estimates.
An NI 43-101 technical
report on the Cebolleta Project is now available for review on the SEDAR
website, at www.sedar.com, and on the
Company’s website at www.uraniumenergy.com.
This technical report was prepared under the direction of Geoffrey S. Carter,
P. Eng., a principal of Broad Oak Associates and a qualified person as
defined by NI 43-101.
Estimates of
potential exploration targets
The Company also made
disclosure in its news releases and investor relations materials and on its
website about the size of potential exploration targets on the Goliad
Project, and on all of its mineral properties in aggregate. Under NI 43‑101
an issuer may disclose in writing the potential quantity and grade, expressed
as ranges, of a potential mineral deposit that is to be the target of
further exploration, provided that the disclosure includes (i) a proximate
statement that the potential quantity and grade is conceptual in nature, that
there has been insufficient exploration to define a mineral resource and that
it is uncertain if further exploration will result in discovery of a mineral
resource, and (ii) the basis on which the disclosed potential quantity and
grade has been determined.
The disclosure made by
the Company relating to potential exploration targets on the Company’s
mineral properties did not contain this information and, accordingly, does
not comply with the technical information disclosure requirements of
NI 43‑101. In addition, the Company should not have referred
to potential exploration targets as potential additional resources.
The Company retracts the
disclosure it made about the potential exploration targets on the
Company’s properties and restates this disclosure as follows
Based on the recently
filed NI 43-101 technical report on the Goliad Project, it is the
author’s opinion therein that there remains excellent potential for the
discovery of additional uranium mineralization in the Goliad Project
area. There is a considerable amount of property on leases north, east,
and south of the identified gamma ray anomaly zones that contain the
estimated resource which have either been sparsely drilled or not drilled at
all. The best immediate potential is to drill offset borings in areas
outside of the recognized mineralized areas where high grade mineralization
has already been identified, but not delineated. Uranium mineralization
as currently defined by historic drilling remains open laterally in all
directions, providing excellent potential targets for additional drilling.
The above discussed
potential targets and potential quantity is conceptual in nature and there
has been insufficient exploration to define this mineral resource and it is
uncertain if further exploration will result in this target being delineated
as a mineral resource.
Disclosure of Economic Analysis of
the Goliad Project
In the Company’s investor materials and on its website, the Company
disclosed an economic analysis on its Goliad property. Disclosure of an
economic analysis was premature because the Company did not have current
mineral resources on the Goliad property, and was not permitted under NI
43-101. The Company retracts its disclosure of the economic analysis at
its Goliad property and restates its disclosure as follows based on its recently
published NI 43-101 report:
As stated by the author
of the recently published NI 43-101 report on the Goliad Project, the
exploration and drilling results indicate that uranium mineralization occurs
in the Goliad Formation below the water table at depths from approximately 90
to 450 feet. Evaluation of existing average grade of uranium
mineralization data and the depth of mineralized zones indicate ISR is
potentially the most suitable mining method for this project.
The Company is currently
proceeding forward with Phase I, additional confirmation-verification studies
at the Goliad Project.. Based on the author’s review of the
available data and geologic information for the Goliad Project, the mineral
resources base for the site, the results of the leach amenability tests, and
the experience of other ISR operations mining from the Goliad formation, it
is recommended that the Company proceed with the preliminary permit
applications in advance of successful completion of the recommended Phase I
confirmation-verification studies.
Statements
regarding production timeframes
In the Company’s
investor relations materials and on its website and in certain of its news
releases the Company made certain forward-looking statements relating to
production at its Goliad Project. Under 43-101 a company must complete
a feasibility study demonstrating the economic viability of a project in
order to support a production decision, and the Company’s disclosure
did not comply with such technical information disclosure requirements.
In addition, this disclosure did not contain the cautionary language required
for disclosure of targets and assessments under NI 43‑101.
The Company retracts its disclosure of timeframes for production at its
Goliad Project and restates its disclosure as follows based on its recently
published NI 43-101 technical report.
The Company has now
completed and filed a NI 43-101 technical report on its Goliad Project and
has established an historical resource base and plans to enhance the quality
of the resource by further project review and conventional analysis for the
purposes of ultimately establishing a current resource and initiating a
feasibility study consequent thereon. The Company is planning to
develop a feasibility study on the Goliad Project concurrent with its
permitting initiatives. Once the necessary permits and licenses for the
Goliad Project are received the Company will make the decision to advance the
Goliad Project to production pending a positive and satisfactory feasibility
study.
The scientific
and technical information in this news release has been prepared and reviewed
by Clyde Yancey, P. Geo., VP of Exploration of the Company, a qualified
person as defined by NI 43-101.
About Uranium
Energy Corp
Uranium Energy Corp
(AMEX: UEC) is a US-based junior resource company with the objective of
becoming a near-term ISR uranium producer in the United States. The
Company 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.
Contact North America:
Investor Relations, Uranium Energy Corp
Toll Free: (866) 748-1030
Phone: (604) 682-9775
Fax: (604) 682-3591
E-mail: info@uraniumenergy.com
Website: www.uraniumenergy.com
Stock Exchange Information:
American Stock Exchange Symbol: UEC
Frankfurt Stock Exchange Symbol: U6Z
Berlin Stock Exchange Symbol: U6Z
WKN: A�JDRR
ISN: US9168961038
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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.
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