Uranium Energy Advances Yuty ISR Project in Paraguay From Exploration Phase to Exploitation Phase

Uranium Energy Corp. (NYSEMKT:UEC) announced that its Yuty ISR project in Paraguay has received a signed resolution from the Ministry of Public Works and Communication to advance the project from the exploration phase to the exploitation phase.

As quoted in the press release:

The Company is informed that the Yuty Project is only the third mining project to achieve the Exploitation Phase since the current Paraguayan mining law was promulgated in 2007.

In Paraguay, UEC controls one of the largest in-situ recoverable property positions in the world with approximately 750,000 acres of prospective area.  The Company’s Yuty Project has a National Instrument 43-101 (“NI 43-101”) Measured and Indicated Resource¹ of 8.914 million pounds grading 0.052% U₃O₈ with an Inferred Resource of 2.226 million pounds grading 0.047% U₃O_8. The Company’s Oviedo Project has an Exploration Target² of 23 to 56 million pounds grading 0.040% to 0.052% U₃O₈. Historic exploration by the Anschutz/Taiwan Power/Korea Electric Power joint venture, Cameco/Cue Resources, and recent exploration by UEC totals approximately US$50M in advancing these projects.

When the MOPC grants a mineral concession to an operator, the project initially enters the Exploration Phase for a maximum of six years, during which period a company must advance and demonstrate a viable project.  The Exploration Phase is followed by the Exploitation Phase for a maximum of 20 years plus one ten-year extension, during which period the environmental licensing process may begin, a key milestone required before starting production, as well as allowing for reductions in land and various investment costs.  The Exploitation Phase is followed by the Production Phase which lasts for an indefinite period.

Amir Adnani, president and CEO of Uranium Energy, commented:

The development of Paraguayan uranium resources in close proximity to both Argentina and Brazil is a significant step in the advancement of nuclear energy in South America. These two countries combined have five operating reactors, two under construction and seven more in the proposal stage.  In addition, a meaningful new uranium source from a peaceful and stable jurisdiction like Paraguay is beginning to draw the attention of global utility companies. Advancing Yuty to the next level underscores our ISR leadership position in South America and exemplifies the considerable depth of UEC’s project portfolio that includes U.S. production and a diverse resource base.

Clyde Yancey, vice president of exploration at Uranium Energy, commented:

We are pleased to reach this milestone in the development of the Yuty ISR Project. UEC’s commitment to our two Paraguayan projects, Yuty and Oviedo, continues to strengthen. The Company’s technical staff in Asuncion is initiating the development of a comprehensive Preliminary Economic Assessment report on Yuty in coordination with our Corpus Christi-based operating team and independent ISR engineers. Given the geologic similarities of our Paraguayan ISR projects and our South Texas ISR projects, we anticipate a strong investment case for Yuty highlighted by a low capital and operating expenditure profile.

Click here to read the full Uranium Energy Corp. (NYSEMKT:UEC) press release.