Uranium Energy Announces Inferred Resource of 4.6M Pounds U3O8 at Slick Rock Project
Uranium Energy Corp (NYSE: UEC, the 'Company') is pleased to announce that the Company has received an independent CSA National Instrument 43-101 Standards of Disclosure for Mineral Projects ('NI 43-101') inferred resource estimate for its Slick Rock Project located in San Miguel County, Colorado (the 'Slick Rock Project'). The inferred resource estimate was produced by Bruce Davis, of BD Resource Consulting, Inc., and Robert Sim, of Sim Geological, Inc., both Qualified Persons within the meaning of NI 43-101. The inferred mineral resource at various cutoff grades is shown below:
SUMMARY OF INFERRED MINERAL RESOURCE
Cut-off Grade U3O8% k tonnes U3O8 (%) Contained U3O8 (Mlbs) 0.1 4,192 0.187 15.7 0.15 2,545 0.228 11.6 0.2 1,646 0.255 8.4 0.25 775 0.296 4.6 0.3 274 0.34 1.9 0.35 71 0.415 0.6 0.4 69 0.417 0.6
This resource estimate is based on a total of 207,900 feet of drilling in 284 holes. It was generated from drill hole sample radiometric assays and the interpretation of a geologic model which relates to the spatial distribution of uranium in the deposit. Grade estimates are made using ordinary kriging with nominal blocks measuring 50 feet by 50 feet. The inferred resources have been classified relative to their proximity to sample locations and are reported in accordance to the CIM Definition Standards for Mineral Resources and Mineral Reserves.
An NI 43-101 compliant technical report detailing this inferred mineral resource estimate will be filed on SEDAR (www.sedar.com) and the Company's website (www.uraniumenergy.com) within 45 days from this news release.
The Slick Rock Project also hosts a vanadium Exploration Target of 9 to 62 million pounds, as noted in the following table:
EXPLORATION TARGET SUMMARY
Tonnes Pounds Grade % V2O5 Lower Limit 274,000 9,000,000 1.49 Upper Limit 4,192,000 62,000,000 0.67
The exploration target tonnage is based on tonnage estimates for uranium at 0.1% U3O8 and 0.3% U3O8 cutoff grades. The estimated grade range is the result of reviewing vanadium grades in holes in and around the area of interest and from grades mined historically from the Slick Rock deposit. There are a very limited number of drill holes in which analyses were conducted for vanadium content and, in some of these drill holes, the measured vanadium intervals do not exactly correspond with the uranium intervals in the same hole. Note the values for tonnage, grade, and contained metal in the table are separate ranges of potential. For example, the grade may range over the values from 0.67% V2O5 to 1.49% V2O5 and the highest grade is not directly associated with the lowest tonnage.
All tonnages, grades, and contained pounds of vanadium should not be construed to reflect a calculated mineral resource (inferred, indicated, or measured). The potential quantities and grades, as stated, are conceptual in nature, and there has been insufficient work to date to define a NI 43-101 compliant resource. Furthermore, it is uncertain if additional exploration will result in the discovery of an economic vanadium mineral resource on the Slick Rock Project.
Vanadium is a rare specialty metal that is used to strengthen steel and to make it more resistant to corrosion and abrasion. World production is only approximately 60,000 tonnes annually. A recent price for vanadium pentoxide was $5.75 per pound or $12,650 per tonne.
The Slick Rock Project is located in San Miguel County, southwest Colorado, approximately 23.9 miles north of the town of Dove Creek. The general area is east of the Dolores River in the Slick Rock District of the Uravan mineral belt. All claims are contiguous. The entire claim block (293 mineral lode claims) encompasses an area of approximately 4,858.5 acres or 7.6 square miles.
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