Highlights:
- Total Inferred resource has been estimated at 4.94 billion
tonnes grading 7.41% titanium oxide ("TiO2") and 23.6% iron oxide
("Fe2O3") at a 6% TiO2 cut-off, making Alto Parana one of the
highest-grade and largest-known Ferro-Titanium deposits
- Mineralization occurs at the surface, with an average thickness
of 6.61 meters
- Large land package of 70,498 hectares
- Excellent infrastructure with proximity to major hydroelectric
power source
- Production process has been successfully pilot-tested
- Approximately $25 million
invested in the project prior to UEC's acquisition
NYSE American Symbol – UEC
CORPUS CHRISTI, TX,
Sept. 12, 2017 /CNW/ - Uranium Energy
Corp (NYSE American: UEC, the "Company" or "UEC") is pleased to
announce that Minerals Advisory Group ("MAG") of Tucson, Arizona has completed a National
Instrument 43-101 ("NI 43-101") mineral resource estimate for the
Alto Paraná Titanium Project (the "Project") located in eastern
Paraguay, approximately 100 km
north of Ciudad del Este. The Company exercised its option to
acquire 100% of the Project from CIC Resources Inc. ("CIC") on
July 10, 2017, as previously
reported.
Amir Adnani, President and CEO,
stated, "This resource estimate positions Alto Paraná as one of the
largest defined titanium resources, while reinforcing the rationale
for our timely and strategic acquisition of CIC Resources. We
commend the CIC team and its founder, CEO David Lowell, who made the original discovery
and completed significant work to advance the Project. Our
team at UEC has now completed a strategic review of the property
package that comprises the Project, which includes a pilot plant
for future testing and development. This project constitutes a
significant asset within UEC which we will presently seek to
monetize to the benefit of shareholders while maintaining our focus
and priority on our core uranium business."
Summary of Mineral Resources*
CIC Resources originally released a resource estimate for the
Project in the technical report entitled "Technical Report and
Resource Estimate on Alto Paraná Project, Alto Paraná Paraguay" dated May 4,
2015, covering an area of 36,177 hectares. Following
UEC's acquisition of the Project, the area was re-evaluated by UEC
and its team in conjunction with adjacent and contiguous claims
that UEC had previously acquired through its acquisition of JDL
Resources Inc. in June 2016. The total Project area now
consists of 70,498 hectares, generally considered to contain the
highest grade/thickness of the deposit.
The following table presents the current Inferred Resources for
the Project:
Cut-Off %
|
%
TiO2
|
%
Fe2O3
|
% Ilmenite
calculated
|
Tonnes
|
Thickness
(m)
|
<5.0
|
7.31
|
23.35
|
13.68
|
5.21
billion
|
6.50
|
6.0
|
7.41
|
23.58
|
13.95
|
4.94
billion
|
6.61
|
7.0
|
7.83
|
24.35
|
14.96
|
3.35
billion
|
6.40
|
Notes:
|
|
1.
|
CIM definitions were
followed for Mineral Resources.
|
2.
|
The Qualified Person
for this Mineral Resource estimate is David Brown, P.
Geo.
|
3.
|
Maximum Mineral
Resources are estimated at a cut-off grade of 5.0%
TiO2.
|
4.
|
A minimum mining
thickness of 1 meter was used.
|
5.
|
The Mineral Resource
is based on a property area of 70,498 hectares.
|
6.
|
Effective date
December 2016.
|
7.
|
By definition,
Inferred Resources do not have demonstrated economic value and it
is not known if they can be developed.
|
Resource Methodology*
The Inferred Resource was estimated for this new area using the
polygon method where polygons (328) were constructed using
perpendicular bisectors around each central pit. Polygon grade and
thickness were determined by assigning an average grade and
thickness of the pit in the center of each polygon. A
specific gravity of 1.64 was used for all tonnage calculations
using the average dry density from the pilot plant samples.
A NI-43-101 Technical Report and Resource Estimate will be
completed and filed on SEDAR within 45 days of this news
release.
Titanium Market Overview
TiO2 pigment inventories remain depressed, which is supporting
continued price increases. In addition to positive growth
forecasts, supply has been disrupted by significant downtime events
affecting numerous pigment plants since January 2017. The
rally in TiO2 pigment markets has had a significant impact on
feedstocks, resulting in increasing demand, declining inventories
and increasing prices, led by spot prices in China. From the
commercial perspective, ilmenite is the most important ore of
titanium as it is the main source of titanium dioxide.
According to Bloomberg, ilmenite bulk concentrate is now priced at
approximately US$170/t, compared to
US$60/t towards the end of 2015/early
2016. Global supply of TiO2 feedstocks remains constrained,
with ilmenite pricing benefitting from export restrictions in
India and Vietnam and as well as some production
curtailment, most notably in China.
Ninety-five percent (95%) of all the mined titanium minerals are
used to manufacture pure titanium dioxides – a pigment that
enhances brightness and opacity in paints, inks, paper, plastics,
food products and cosmetics. The remaining 5% of supply is used in
the production of titanium metal. Titanium is also combined with
iron, aluminum, vanadium and molybdenum to produce strong,
lightweight alloys for aerospace applications.
Project Overview
In concept, the Project consists of a proposed mining operation,
beneficiation of the material to produce an
ilmenite/titanomagnetite concentrate and smelting in a DC electric
arc furnace to produce a high-quality titanium slag and
high-quality pig iron products. The titanium slag would be
sold as a feedstock for the production of titanium dioxide
pigment. The pig iron would be sold to the iron and steel
industry as a source of high-quality iron units for the production
of steel or to the foundry industry for the production of high
quality ductile iron castings.
The Alto Paraná resource* is atypically high in titanium values
when compared to most beach sand deposits. Iron laterite
hosts heavy minerals containing high iron and titanium values, such
as ilmenite, titanomagnetite, and magnetite. Prior to UEC acquiring
rights to the Project, CIC (under the leadership of Casey
Explorers' League Hall of Famer David
Lowell) identified mineralized laterite high in
TiO2 extending over an area of 321,980 hectares.
UEC has received Paraguayan Governmental approval to reduce the
original CIC land holdings to an area of 70,498 hectares, now
controlling the generally higher-grade core of the Project.
History of the Project
Exploration work on the property was initiated by CIC in 2009
with a program of widespread hand-dug pits consisting of channel
samples at approximately one-meter vertical intervals within the
laterite. The initial phase of pitting and sampling was
followed up by more closely spaced deep pitting and shallow (1 m)
auger drilling in 2010 and 2011. In total, 4,432 samples from
deep pits and 2,992 1-meter auger samples have been collected and
analyzed. The purpose of the exploration work was to evaluate the
original CIC hectares to determine the area of best grade and
thickness. Based on these extensive sampling efforts, the
Company now controls this generally higher-grade/thickness area as
previously noted.
CIC also conducted extensive process development work with the
objective of a viable process flow sheet for beneficiation of the
heavy minerals from the laterite. This work carried out by
MAG included design, construction and operation of a 1.5 t/hour
pilot plant in Paraguay. During operations, the plant
underwent continual process improvements and eventually produced
108 tonnes of concentrate over a three-month period. In
January 2012, the concentrate was
shipped to MINTEK in South Africa
for smelting in a MINTEK pilot plant. The work was completed
during the last week of March 2012
and was highly successful, as demonstrated by the following key
MINTEK conclusions presented in their report to CIC:
- Slag fluidity was excellent and much better than comparable
ilmenite feeds.
- Slag quality was excellent, with slag assays consistently
better than 85% and often exceeding 90%.
- Pig iron quality was excellent, with the Fe content exceeding
97%.
- Energy requirements for both coal and electricity were well
within the calculated requirement.
- Furnace arc stability and heat transfer were excellent and much
better than prior experience with other ilmenite feed stocks.
The technical information in this news release has been prepared
in accordance with the Canadian regulatory requirements set out in
NI 43-101 and was reviewed by David M.
Brown, P.G., and Martin C. Kuhn, P.E. Consultants for the
Company and both Qualified Persons under NI 43-101.
About Uranium Energy Corp
Uranium Energy Corp is a U.S.-based uranium mining and
exploration company. The Company's fully-licensed Hobson
Processing Facility is central to all of its projects in
South Texas, including the
Palangana ISR mine, the permitted Goliad ISR project and the
development-stage Burke Hollow ISR project. In Wyoming, UEC
controls the permitted Reno Creek ISR project. Additionally, the
Company controls a pipeline of advanced-stage projects in
Arizona, Colorado, New
Mexico and Paraguay.
The Company's operations are managed by professionals with a
recognized profile for excellence in their industry, a profile
based on many decades of hands-on experience in the key facets of
uranium exploration, development and mining.
Stock Exchange Information:
NYSE American: UEC
Frankfurt Stock Exchange Symbol:
U6Z
WKN: AØJDRR
ISN: US916896103
*Notice to U.S. Investors
The mineral resources referred to herein have been estimated in
accordance with the definition standards on mineral resources of
the Canadian Institute of Mining, Metallurgy and Petroleum referred
to in NI 43-101 and are not compliant with U.S. Securities and
Exchange Commission (the "SEC") Industry Guide 7 guidelines. In
addition, measured mineral resources, indicated mineral resources
and inferred mineral resources, while recognized and required by
Canadian regulations, are not defined terms under SEC Industry
Guide 7 and are normally not permitted to be used in reports and
registration statements filed with the SEC. Accordingly, we have
not reported them in the United
States. Investors are cautioned not to assume that any part
or all of the mineral resources in these categories will ever be
converted into mineral reserves. These terms have a great amount of
uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. In particular, it should be
noted that mineral resources which are not mineral reserves do not
have demonstrated economic viability. It cannot be assumed that all
or any part of measured mineral resources, indicated mineral
resources or inferred mineral resources will ever be upgraded to a
higher category. In accordance with Canadian rules, estimates of
inferred mineral resources cannot form the basis of feasibility or
other economic studies. Investors are cautioned not to assume that
any part of the reported measured mineral resources, indicated
mineral resources or inferred mineral resources referred to herein
are economically or legally mineable.
Safe Harbor Statement
Except for the statements of historical fact contained herein,
the information presented in this news release constitutes
"forward-looking statements" as such term is used in applicable
United States and Canadian laws.
These statements relate to analyses and other information that are
based on forecasts of future results, estimates of amounts not yet
determinable and assumptions of management. Any other statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as "expects" or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans, "estimates" or
"intends", or stating that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved) are not statements of historical fact and should be
viewed as "forward-looking statements". Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such risks and other factors
include, among others, the actual results of exploration
activities, variations in the underlying assumptions associated
with the estimation or realization of mineral resources, the
availability of capital to fund programs and the resulting dilution
caused by the raising of capital through the sale of shares,
accidents, labor disputes and other risks of the mining industry
including, without limitation, those associated with the
environment, delays in obtaining governmental approvals, permits or
financing or in the completion of development or construction
activities, title disputes or claims limitations on insurance
coverage. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements contained in
this news release and in any document referred to in this news
release.
Certain matters discussed in this news release and oral
statements made from time to time by representatives of the Company
may constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and the Federal
securities laws. Although the Company believes that the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, it can give no assurance that its
expectations will be achieved. Forward-looking information is
subject to certain risks, trends and uncertainties that could cause
actual results to differ materially from those projected. Many of
these factors are beyond the Company's ability to control or
predict. Important factors that may cause actual results to differ
materially and that could impact the Company and the statements
contained in this news release can be found in the Company's
filings with the Securities and Exchange Commission. For
forward-looking statements in this news release, the Company claims
the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
The Company assumes no obligation to update or supplement any
forward-looking statements whether as a result of new information,
future events or otherwise. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy
securities.
SOURCE Uranium Energy Corp