Uranium Energy has reported strong drilling results at its fully-owned Palangana project located in South Texas. According to the Amir Adnani, president and CEO of the company, the early drilling results from Palangana indicate that the uranium resource may increase substantially.
In early February, the company initiated a 215-hole drilling program on six exploration zones at Palangana with the objective to further define and to expand its previously reported Inferred Resources in these zones.
Out of the 87 holes analyzed, 43 holes were in the CC Brine Trend where the results have been very positive including 18.5 feet grading 0.636% and 10.5 feet grading 0.848% cU3O8. The Jemison Fence Trend has had 18 new holes drilled in it including 24.5 feet grading 0.341% cU3O8. The results are expected to add to the resources in both trends. Resource estimates will be updated at the conclusion of the drill program.
The Palangana project is fully permitted for production. It is a prior-producing in-situ recovery (ISR) project located in the South Texas uranium belt approximately 100 miles south of the company’s fully licensed Hobson processing plant. Concurrent with the drilling campaign, the company is advancing the engineering and economic studies to bring Palangana to near-term production.
The plan is to produce and ship uranium-bearing resins from Palangana to Hobson for further processing into dried U3O8, a final product also known as yellowcake.
The company recently had an independent CSA NI 43-101 compliant technical report prepared that provides for a Measured and Indicated Resource at Palangana of 1,057,000 pounds at an average grade of 0.135% eU3O8 located in two zones, and an additional Inferred Resource of 1,154,000 pounds of eU3O8 at an average grade of 0.176% located in six new exploration zones. The current drilling program is addressing each of these six exploration zones.
Mr Adnani added, “Initial drilling in the well fields earlier produced by Union Carbide show that a significant amount of uranium remains there as well. We are aggressively pursuing resource expansion on both fronts.”
In conjunction with the ongoing exploration-zone drilling, the company is also evaluating the former Union Carbide (UCC) well fields at Palangana for potentially remaining resources. As part of the initial investigation, a total of nine exploratory holes have been drilled to date in the UCC well fields.