Uranium Energy Corp., which has a nice selection of properties strategically located in the rich Texas uranium belt around their fully licensed and permitted in-situ recovery (ISR) Hobson Processing Plant, reported solid news today out of their rapidly developing Burke Hollow Project (initial Inferred Resource Estimate is 2.89M lbs of eU3O8 grading, on average, 0.047%), a 17.51k-acre property that actually runs in the same trend as their Goliad Project (fully permitted and under construction) further northeast:
• Drilling Campaign started late last year (Nov 4) is going smoothly with three rigs on-site
• Phase 1 production permit drilling completed successfully (six monitoring wells in)
• Emphasis has turned to exploration/delineation, especially of two new mineralized zones
• 42 out of 80 holes budgeted have already been drilled, development drilling now key
VP of Resource Development for UEC, Andy Kurrus, couldn’t hold back the enthusiasm of the company’s geological team over the exceptional, rapid progress being made at Burke Hollow, citing in particular the discovery of the two new mineralized zones via rigorous analysis of all extant drilling data. The rest of the drilling campaign is going to target these new zones with a passion, one of which is an extension of the Goliad 370-foot sand horizon and, in total, there are potentially over four miles of geological trend here to be explored via tapping of the Burke site in undrilled areas. Interested investors should look again at the company’s Goliad Project specs, where four sand horizons have been identified in the 90 to 450-foot range, in order to get a good analog and some secondary insights as to how Burke will evolve.
In addition to the Goliad 370-foot sand and other target sands to be explored, deeper targets in the 280 to 560-foot range which have been identified will also be explored aggressively, as well as the potentially productive horizons even lower down in the 650 to 1.1k-foot range, something for which test drilling plans have already been developed. We should see a good deal of exciting activity coming out of Burke here in the next few months and investors should keep an ear to the ground as UEC starts hammering out the finer points.
The six monitoring wells are feeding the company a really consistent water quality metric and their completion brought the total of such wells handling regional baseline observation up to 30, with the first of the new wells drilled and cased right in the heart of the initially targeted production area. Data from the production area wells will be vital for completing the groundwater characterization sampling program that needs to be done prior to start of operations and we should get a closer look at the results when UEC files their mining permit application with the Texas Commission on Environmental Quality.
President and CEO of UEC, Amir Adnani, has previously emphasized that with the physical processing capacity of the Hobson plant being 2M lbs of U3O8 per year, a continued rollout of their demonstrably successful, easily scalable hub-and-spoke strategy will be essential for maximizing extraction and inputs to the plant, while still maintaining a low-cost profile. The company has seriously got a handle on low-cost ISR implementation, they have the mineralized acreage surrounding Hobson they need to deliver, and they are clearly getting all their ducks in a row here before the uranium price inevitably climbs back up. UEC is priming the pump to capture that momentum and their injected-solution ISR mining strategy really seems to be the future of such recovery work.
The NI 43-101 qualified person for technical data released in today’s report was UEC’s VP of Exploration, Clyde L. Yancey, P.G.
More on Uranium Energy Corp. is available at www.UraniumEnergy.com