Company Targets Initial 10,000-Meter Drilling Campaign To Commence Q3 This Calendar Year.
NYSE Amex Equities Exchange Symbol - UEC
CORPUS CHRISTI, TX, May 24, 2011 /PRNewswire/ - Uranium Energy Corp (NYSE-AMEX: UEC, the "Company") is pleased to announce that it has now completed the acquisition of a Paraguayan company which holds a 100% legal and beneficial interest in two unencumbered prospecting permits covering an aggregate of 247,000 acres located in the area of Coronel Oviedo, Paraguay (the "Property"). Please see the Company's news release dated May 12, 2011 which provides the details of the purchase and the history and geology of the Coronel Oviedo Property.
The Company has issued 225,000 restricted common shares in the capital of the Company to complete the purchase. In the event of uranium production from the Property, the Company will pay a small royalty to the prior owner as detailed in the earlier news release.President and CEO Amir Adnani stated, "We like this new district-scale opportunity in stable and business-friendly Paraguay. The Coronel Oviedo project makes an excellent fit for our technical team. The geology is very similar to the South Texas uranium belt and is anticipated to be ISR-amenable. We plan to drill the project in Q3, and we look forward to reporting further on its potential. Our objective here is to achieve an initial NI 43-101-qualified resource as quickly as possible." About the Coronel Oviedo Project The Property covers over 247,000 acres in central Paraguay. Most of the uranium occurrences in this environment are "roll-front" type deposits similar to those currently producing uranium by low-cost in-situ recovery (ISR) methods in Texas, the western United States, Central Asia and Australia. Currently, the Company is preparing a geological model based on historical data, and is pacing its exploration program at Coronel Oviedo to be able to initiate an approximate 10,000-meter drilling program in the 3 rd Quarter of this calendar year. Historical data is based on extensive uranium exploration on the Property between 1976 and 1983 by Anschutz Corporation and by Crescent Resources between 2006 and 2008. A total of 31 drill holes, out of the 52 holes drilling by both Anschutz and Crescent, show significant uranium values.