Today, Uranium Energy Corp. announced that it has acquired the rights to explore for uranium on the Burke Hollow Project. Located in eastern Bee County, Texas, the 17,510-acre property is approximately 50 miles to the southeast of the company's Hobson uranium processing facility, situated on the Goliad trend within the prolific South Texas Uranium Belt.
Amir Adnani, President and CEO, stated, "The Burke Hollow Project makes a significant addition to our expanding hub-and-spoke production strategy in South Texas. The exploration conducted by Total Minerals on this project in the 1990s demonstrated strong intercepts, and we are planning an aggressive drilling program to commence within the next sixty days."
"The Burke Hollow Project is now our largest project in South Texas in terms of acreage and, with its proximity to our centralized Hobson processing plant, holds the potential of becoming our fifth satellite project," he continued. "The South Texas Uranium Belt covers a large area, approaching the size of the state of Pennsylvania, and in-situ recovery methods (NYSEMKT:ISR), the low-cost and environmentally friendly way to recover uranium, have been used to mine most of the uranium in this region. The Company is building a leadership presence in the South Texas Uranium Belt, both in terms of emerging production and acreage for future resource growth."
Ken Barrow, President of Thomson-Barrow Corporation, the mineral owner of the Project, commented, "As a fifth-generation Texan, and as a degreed and trained geologist who's toured UEC's Palangana and Hobson operations, we're very pleased that UEC will be exploring the family's Burke Hollow project. UEC clearly means business, and has the technical personnel and funding to make the absolute most of this project, one that we believe holds great potential."
Total Minerals, a division of the Total Group, the France-based global energy company, conducted exploration work and drilling on this Project in 1993 as part of its South Texas Goliad exploration program. Following geophysical and geochemical results, Total drilled 12 holes along a northwest to southeast-oriented line. Eleven of the twelve holes intersected mineralization with drill-hole placement that exceeded several thousand feet in length.
The company owns Total's South Texas exploration program database, and its historic drill information, which indicates the occurrence of strong eU3O8 intercepts. These intercepts occur in multiple horizons within both the Goliad Formation sands and the Lissie Formation sands at depths ranging from 180 to 400 feet. This is historical information and has not been independently drill verified by company geologists or a qualified person under Canadian NI 43-101 standards. However, knowing the quality of the historic data, the company believes the data could be relevant.
In addition to the exploration information compiled from the prior work completed by Total, the company's analysis of the Project is additionally guided by a large volume of oil and gas drilling information where gamma ray recordings were made. To date, selected gamma ray well logs from forty oil and gas wells located on the Burke Hollow Project indicate that uranium mineralization may also occur in deeper intervals located below 400 feet in areas undrilled in the past by Total Minerals. The company is still aggregating and studying available oil and gas well log information to enhance its understanding of the mineralization potential of the Project.
Uranium Energy's geologists are currently developing an aggressive exploration program to include a drilling campaign that will commence once exploration permits from the Railroad Commission of Texas are received. It is anticipated that the drill program will commence in the next 60 days and will consist of a statistical grid covering the entire property. Subsequent offset holes will be drilled based on results, including extending and delineating mineralized zones discovered by Total Minerals.
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