The Seager-Salvo project is one of the more prospective exploration lease holdings acquired by the company with its purchase of the South Texas Mining Venture in December 2009, which included the fully licensed Hobson plant and the Palangana in-situ recovery uranium project.
The lease covers approximately 1,500 acres, and was initially established in the early 1980s by Nufuels Corporation, Mobil Oil’s uranium division, and subsequently acquired and further developed by Uranium Resources (URI).
An historic uranium resource of approximately 1.5 million pounds of U3O8 was developed by URI. The historic resource is based on 433 holes drilled and logged by Nufuels and URI, and complimented by Princeton Gamma Tech (PGT) direct uranium assay logging.
The historical resource estimate was completed prior to the implementation of NI 43-101 reporting standards. However, given the quality of the historic work, the company believes the resource estimate could be relevant.
Amir Adnani, president and CEO of Uranium Energy, said: “Seager-Salvo fits well with the company’s existing near-term production portfolio in South Texas. This property will enhance our regional operating strategy whereby multiple satellite projects can be advanced to production with final processing at the company’s Hobson central processing plant.
“Our objective is to continue to expand this pipeline of prospective satellite projects through additional acquisitions and development of our current properties.”
The historic resource is located in multiple roll fronts occurring in ‘stacked’ sands in the Goliad Formation. The company’s U3O8 resources at both Goliad and Palangana are also in the Goliad Formation.
The Seager-Salvo project is located approximately 70 miles from the company’s Hobson processing facility and could become an efficient satellite project, along with the company’s Palangana, Goliad and Nichols in-situ recovery projects.
The database that was purchased consists of 433 gamma ray/resistivity and lithology logs, PGT logs and drill plan maps. Company geologists are currently evaluating the data. Management’s near-term plan for the Seager-Salvo project is to perform a confirmation drill program and to get an NI 43-101 technical report prepared.
