Uranium Energy has reported the strong phase-one exploration drilling results at its Salvo project located in Bee County, approximately 50 miles from the company's Hobson processing facility in South Texas.
The objective of this drilling program, initiated 8 November 2010, is to verify and expand the NI 43-101 historic resource of 1.5 million pounds of U3O8 as reported on 19 July 2010.
Upon completion of the phase-one program, the company plans to follow immediately with a phase-two drilling campaign consisting of an additional approximate 140 holes, plus metallurgical and other tests to confirm that the mineralization here could be produced using in-situ recovery methods.
Of the 43 holes drilled to date, the results from Prompt Fission Neutron (PFN) suggests that 12 holes show significant uranium mineralization, with grade x thickness (GT) values greater than 0.30, which the company’s engineers estimate that zones with a GT greater than 0.30 will be shown to be producible.
In addition to keeping the phase-one drilling program on schedule, the company has been successful in acquiring additional leases along the projected mineralized trend to the west and northwest.
These new leases total 2,541 acres, lie within the permitted area, have anomalous gamma levels from oil and gas logs and will likely be incorporated into the phase-two drilling program.