NYSE MKT Equities Exchange Symbol - UEC
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To maintain a strong balance sheet in a post-Fukushima uranium market in
which the spot uranium price is off by 50% and currently stands at a
7-year low, management is taking measures to optimize operations.
Long-term uranium market fundamentals remain bullish, and the Company
is adjusting the priorities among its South Texas ISR projects to adapt
to current low prices while advancing the assets toward greater
production when the sector recovers;
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The fully permitted Goliad ISR Project continues to advance with
previously ordered processing equipment scheduled to arrive in late
November 2013. The project is on budget, and production is set to be
available to come online in the current fiscal year;
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Further capital expenditures for Palangana production wellfields are
being deferred. Production Areas 1, 2 and 3 will operate at a slower
pace to maintain readiness and to cover operating costs including core
personnel and contractors;
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Permitting advances continue at Palangana Production Areas 4 and 5 and
the newly developed PA-6. PA-4 is targeted to be fully permitted and
production to be available to come online in the current fiscal year;
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The Company's South Texas pipeline of projects will continue to
progress. In particular, its Burke Hollow ISR Project which is a
high-priority development asset with near-term resource delineation and
extension drilling planned and production permit submissions targeted
for early next year;
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The Company is well positioned to act upon opportunities emerging from
the challenging market conditions. Portfolio optimization could include
possible acquisitions and monetization of non-core assets.
CORPUS CHRISTI, TX, Sept. 5, 2013 /CNW/ - Uranium Energy Corp (NYSE MKT:
UEC, the "Company" or "UEC") announces that as a consequence of the
current uranium market the Company will be prioritizing capital
expenditures to advance the Company's two larger near-term production
projects in South Texas, the Goliad and Burke Hollow ISR Projects, and
is slowing the pace of capital expenditures and mining operations at
its smaller Palangana ISR uranium mine while maintaining core personnel
and contractors.
Amir Adnani, President and CEO, stated, "UEC has made a significant
investment in our South Texas hub-and-spoke production infrastructure,
and our focus now is to improve the overall cost structures at
Palangana and to ramp-up the project's Production Areas 4, 5 and 6 once
the uranium price recovers. In the meanwhile, we are completing key
advances toward increasing low-cost ISR production at Goliad and Burke
Hollow. These projects, with the largest resource base within our
hub-and-spoke project pipeline, merit the highest priority."
Mr. Adnani continued, "As part of the optimization and cost-cutting
process, we are assessing the planned exploration expenditures on the
Company's entire pipeline of uranium projects - in Texas, Paraguay,
Arizona, Colorado, New Mexico and Wyoming. As a result of these
measures we will be in a stronger financial position to look for
opportunities in the current market downturn to enhance our production
profile. With the unprecedented level of construction of nuclear
plants that's occurring globally, we are preparing for major long-term,
low-cost growth, while maintaining near-term financial flexibility
through the commodity cycle."
Palangana Mine Update
As a consequence of the current uranium market, the Company is slowing
the pace of mining operations at its Palangana ISR uranium mine so that
the majority of operating costs of the project are covered, core
personnel and contractors are maintained and the mine remains in a
state of operational readiness to ramp-up output when prices recover.
Permitting of Production Areas 4, 5 and newly developed PA-6 is
continuing on schedule, with PA-4 targeted to be fully permitted and
available to come online this fiscal year.
Since initiating production at the Palangana Mine in November 2010
through to April 30, 2013, the Company has produced 477,000 pounds U3O8 from three production areas (PA-1, PA-2 and PA-3). The
current Palangana resource estimate was presented in an NI 43-101
Technical Report (the "Report") prepared by SRK Consulting. The
Report, with an effective date of January 15, 2010, reported a total
Measured and Indicated Resource in PA-1 and PA-2 of 1,057,000 pounds at
0.135% U3O8. The Report also estimated an Inferred Resource totaling
1,154,000 pounds at 0.176% U3O8 across six exploration trends.
The Company has drilled a total of 794 holes at the project, 412 were
cased and used as production or monitor wells and 382 were exploration
and delineation holes. Based upon this drilling, and as part of the
current Palangana optimization process, the Company intends to update
the resource statement following technical evaluation.
Goliad and Burke Hollow ISR Projects Update
Subsequent to the July 2013 closing of the $20 million credit facility,
the Company is well-funded to continue to advance its Goliad ISR
project while having greater financial flexibility to make progress at
its Burke Hollow ISR project despite challenging market conditions.
The Goliad site has been cleared and all necessary permits are in hand
and the major ion exchange vessels have been ordered for delivery in
late November 2013. The disposal drilling site has been installed and
the electrical sub-station is in place for distribution to the entire
project. The Company has also begun work design on Production Area 2 at
Goliad. The project is on budget and production is set to be available
to come online in the current fiscal year.
Burke Hollow is the Company's highest priority pre-construction project
in South Texas. The team is compiling the information to submit the
mine permit and radioactive material license applications to the Texas
Commission on Environmental Quality by early 2014.
Only 30% of the Burke Hollow land package has been explored to date and
the Company is planning an 80-hole delineation and extension drill
program. Coring, bottle roll tests and metallurgical analysis will
follow with an updated NI 43-101 report for Burke Hollow.
About Uranium Energy Corp
Uranium Energy Corp is a U.S.-based uranium production, development and
exploration company. The Company's fully licensed and permitted Hobson
processing facility is central to all of its projects in South Texas,
including the Palangana in-situ recovery project and the Goliad in-situ
recovery project which is now fully permitted and under construction.
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.
Safe Harbor Statement
Certain information contained in this news release constitutes
"forward-looking statements" as such term is used in applicable United
States and Canadian laws. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as
"expects" or "does not expect", "is expected", "anticipates" or "does
not anticipate", "plans", "estimates", "intends" or "believes", or that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur", or "be achieved".
Forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made, and are subject to
known and unknown risks, uncertainties and other factors that may cause
the actual results, performance or achievements of UEC to be materially
different from those expressed or implied by such forward-looking
statements. Many of these factors are beyond UEC's ability to control
or predict. Important factors that may cause actual results to differ
materially and that could impact UEC and the statements contained in
this news release can be found in UEC's filings with the SEC. Such
risks and other factors include, among others, variations in the
underlying assumptions associated with the estimation or realization of
mineralization, the availability of financing on acceptable terms,
accidents, labor disputes, acts of God and other risks of the mining
industry including, without limitation, risk of liability under
environmental protection legislation, delays in obtaining governmental
approvals or permits, title disputes or claims limitations on insurance
coverage. UEC believes that the expectations reflected in the
forward-looking statements included in this news release are
reasonable; however, no assurance can be given that these expectations
will prove to be correct, and such forward-looking statements should
not be unduly relied upon.
For forward-looking statements in this news release, UEC claims the
protection of the safe harbor for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995. UEC assumes
no obligation to update or supplement any forward-looking statements
whether as a result of new information, future events or otherwise.
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 in this news release are
economically or legally mineable.
SOURCE: Uranium Energy Corp