Phase I of three separate development phases of the wellfield at Production Area 1 (PAA-1) is complete, with more than 45 injection wells and production wells drilled, cased and tested.

The company said it is pleased with the water volume that each well has yielded during the testing phase.

Now, gaseous oxygen and carbon dioxide are being added to the circulating ground water, which has activated the mining process of dissolving the uranium from surrounding sandstones.

Phase 1 of the PAA-1 wellfield is in operation with 30 injection wells and 15 production wells on-line, with each being brought gradually up to maximum flow rates of approximately 50 gallons per minute.

Phases II and III of the PAA-1 wellfield each will contain 45 production and injection wells.

All Phase II wells have been completed and are targeted to commence mining in the first quarter of 2011.

Installation of Phase III wells is underway with three rigs actively casing and then completing each well, Uranium Energy said.

The company is scheduling these wells to come on-line and to start production during the second quarter of 2011, and the average depth of wells throughout the PAA-1 wellfield is 450ft.