Uranium Energy and Uran Limited start exploration drilling at the Grants Ridge Project in New Mexico
Uranium Energy Corp. is pleased to announce that drilling commences this week at the Company's Grants Ridge Uranium Project located in New Mexico. Exploration permits have now been granted for both the Armijo and the F33 project areas at Grants Ridge. Uran Limited, based in Perth, Australia, is the Company's joint-venture partner and the operator of the project.
The partners commence core drilling at Armijo this week with plans to drill 215 holes ranging from 15 to 50 feet in depth on a nominal 400-foot by 400-foot grid to test the uranium mineralization over a large portion of the host Todilto Limestone.
The partners plan to start reverse-circulation drilling in December or January as ground conditions permit, with 23 holes ranging from 50 to 550 feet in depth. The drilling is designed to test for potential extensions to the south of the historic F33 Mine, where drilling by previous mine owners Homestake and Anaconda identified numerous intercepts of greater than 0.1% U(3)O8. The steeper ground at F33 will require dry or hard frozen ground to allow access.
Samples will be sent for assay to ALS Laboratory in Reno, Nevada, and Vancouver, Canada.
Metallurgical studies on the drill material will be carried out by METS metallurgical services in Perth, Australia, and the metallurgical laboratories of Hazen Research Inc. in Golden, Colorado.
The Company and joint-venture partner Uran are pleased with the processing of the exploration permits by the Mining and Minerals Division of the New Mexico Department of Energy Minerals and Natural Resources. No cultural or flora-and-fauna impediments to the grant of the permits were identified and the applications received considerable support from the local community. The Company is encouraged by these factors as regards future work on the project.
Uran, as part of its option and joint venture agreement with the Company, is paying all costs of exploration and development through completion of a feasibility study. Uran can earn a 65% interest in the Grants Ridge Project from the Company over a five-year option period by completing a feasibility study and making certain payments of cash and shares as detailed in the joint-venture announcement release dated March 17, 2009.
The Grants Ridge Project consists of 5,620 acres in the Grants Mineral Belt approximately 70 miles west of Albuquerque. It's the site of nine prior-producing uranium mines as reported in the Company's news release dated August 25, 2009.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Clyde L. Yancey, P.G., Vice President of Exploration, for Uranium Energy Corporation, a qualified person under NI 43-101.
