The new inferred resource estimate for South Texas-based Burke Hollow follows the completion of a recent 132-hole drill program.
A new resource estimate for Uranium Energy’s (NYSEAMERICAN:UEC) Burke Hollow uranium property in South Texas has increased the project’s inferred resource by 38 percent.
The updated report follows the completion of a recent 132-hole drill program and includes data from 707 drill holes in total, the company said on Monday (November 27).
The 38-percent increase in Burke Hollow’s inferred resource represents a rise of 2 million pounds of U3O8 over the previous inferred resource. The project’s inferred resource is now estimated at 7.09 million pounds of uranium at a weighted average grade of 0.088 percent U3O8 contained within 4.06 million tons.
UEC has secured its final mine permit and aquifer exemption for Burke Hollow, and believes its radioactive materials license will be approved soon. Company Vice President of Environmental, Health and Safety Craig Wall said he expects all major permitting activities for the project to be completed in 2018. The company completed its latest drill campaign at Burke Hollow in September.
Andrew Kurrus, UEC’s vice president of resource development, said, “we are confident that we will continue to expand the resource by exploring and delineating the multiple mineralized roll fronts on the property. We anticipate [the project] will, over time, become a significant ISR resource directly in the US.”
In addition to Burke Hollow, the firm holds the fully licensed Hobson processing facility in South Texas; Hobson is central to UEC’s projects in the area, which include the Palangana ISR mine and the permitted Goliad ISR project. In Wyoming, UEC controls the permitted Reno Creek ISR project. Additionally, the company controls a pipeline of advanced-stage uranium projects in Arizona, Colorado, New Mexico and Paraguay, as well as a large, high-grade titanium project in Paraguay.
As of November 20, the U3O8 price was up $2.50 at $25.50 per pound, according to data from Ux Consulting. The rise in prices follows major producer Cameco’s (TSX:CCO,NYSE:CCJ) announcement that it plans to suspend production at its McArthur River mine and Key Lake milling operations by the end of January 2018. Market watchers believe the cut in production will reduce the market oversupply and boost prices.
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Securities Disclosure: I, Melissa Shaw, hold no direct investment interest in any company mentioned in this article.