Uranium Energy Corp Reports an Inferred Resource of 4.6 Million Pounds U3O8 Grading 0.296% at the Company’s Slick Rock Project in Colorado
January 8, 2013 (Source: CNW) — Uranium Energy Corp (NYSE MKT: 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|
|k tonnes||U3O8 (%)||Contained
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|
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.
Notice to U.S. Investors
The mineral resources referred to herein have been estimated in accordance with the definition standards on mineral resources of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101 and are not compliant with U.S. Securities and Exchange Commission (the “SEC”) Industry Guide 7 guidelines. In addition, measured mineral resources, indicated mineral resources and inferred mineral resources, while recognized and required by Canadian regulations, are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Accordingly, we have not reported them in the United States. Investors are cautioned not to assume that any part or all of the mineral resources in these categories will ever be converted into mineral reserves. These terms have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. In particular, it should be noted that mineral resources which are not mineral reserves do not have demonstrated economic viability. It cannot be assumed that all or any part of measured mineral resources, indicated mineral resources or inferred mineral resources will ever be upgraded to a higher category. In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies. Investors are cautioned not to assume that any part of the reported measured mineral resources, indicated mineral resources or inferred mineral resources referred to herein are economically or legally mineable.
Safe Harbor Statement
Except for the statements of historical fact contained herein, the information presented in this news release constitutes “forward-looking statements” as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and should be viewed as “forward-looking statements”. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of mineral resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labor disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company’s filings with the Securities and Exchange Commission. For forward-looking statements in this news release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities.
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