A new Technical Report on Uranium Resources, Inc.’s (NASDAQ: URRE)
Roca Honda Project in west-central New Mexico discusses the presence of
uranium-bearing “inferred” non-reserve mineralized material, as outlined
by comprehensive historical exploration and development drilling on one
of the properties that comprises the project area, and describes other
areas of the project that have good potential for additional mineralized
material, based upon the results of other historical exploration
drilling results.
The Roca Honda Technical Report highlights the technical attributes and
geological characteristics of the uranium-bearing non-reserve
mineralized material hosted in the Westwater Canyon Member of the
Morrison Formation in the project area, which is situated within the
Grants Mineral Belt. The independently produced Technical Report adheres
to the format of Canadian National Instrument 43-101 and is available on
the Company’s website: www.uraniumresources.com,
under Projects/New Mexico/Roca Honda.
The Company’s Roca Honda Project encompasses approximately 3,688 acres
of mineral rights covering parts of nine sections, 25 miles northeast of
the town of Grants, New Mexico. The project area is separate from the
lands that were exchanged for mid-term potential in-situ recovery
projects in South Texas with Rio Grande Resources last month, as
announced in the Company’s November 7, 2014 news release. The Company
completed this NI 43-101 Technical Report for the remainder of Roca
Honda it continues to own.
Historical exploration drilling data at Roca Honda from Kerr-McGee,
Homestake Mining and Conoco, completed primarily from the 1970s through
1981, identified zones of mineralization that display numerous geologic
characteristics similar to other uranium deposits in the nearby Ambrosia
Lake and adjoining Mt. Taylor/San Mateo mining districts.
Detailed historical exploration and development drilling was completed
by Kerr-McGee in Section 17, Township 13 North, Range 8 West, where the
Company reports the presence of non-reserve “inferred” mineralized
material of approximately 0.8 million short tons at an average uranium
grade of 0.27%. Kerr-McGee commenced with the development of an
underground uranium mine in Section 17 in 1982, and completed a 14-foot
diameter shaft extending to a depth of approximately 1,400 feet from the
surface into the mineralized horizon. Additional mine development at the
site was suspended and no uranium was ever produced from the property.
URRE’s Roca Honda Project adjoins the north, west and east sides of the
Roca Honda joint venture project owned by Energy Fuels and Sumitomo, and
is northwest of the idled Mt. Taylor uranium mine.
Technical Report Recommendations
The Technical Report recommends follow up exploration in three phases:
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Phase 1: Review and reinterpretation of historical drill data to
develop a drill plan to confirm historical mineralization and test
extensions of the mineralization;
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Phase 2: Acquire drilling permits and prepare environmental baseline
studies for the Section 11 and 17 areas; and
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Phase 3: Conduct confirmation and step-out drilling of up to 48,000
feet and update the geologic and resource models.
Any exploration work the Company contemplates will be subject to
prioritization after its recently acquired lands in Texas.
The Roca Honda Technical Report was prepared by Geoffrey S. Carter, P.
Eng. of Broad Oak Associates, Toronto, as the Independent Qualified
Person.
About Uranium Resources
Uranium Resources, Inc. was incorporated in 1977 to explore, develop and
recover uranium. Uranium Resources has two licensed and currently idled
processing facilities and approximately 17,000 acres of prospective in
situ recovery (ISR) projects in Texas. In New Mexico, the Company holds
a federal Nuclear Regulatory Commission license to recover up to three
million pounds of uranium per year using the ISR process at certain
properties and controls minerals rights encompassing approximately
195,000 acres in the prolific Grants Mineral Belt in New Mexico, which
holds one of the largest known concentrations of sandstone-hosted
uranium deposits in the world. The Company acquired these properties
along with an extensive uranium information database of historic drill
hole logs, assay certificates, maps and technical reports for the
Western United States.
Cautionary Statement
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are subject to risks, uncertainties and assumptions and are
identified by words such as "expects," "estimates," "projects,"
"anticipates," "believes," "could," and other similar words. All
statements addressing operating performance, events or developments that
the Company expects or anticipates will occur in the future, including
but not limited to statements relating to (i) the resources included in
the Roca Honda Technical Report, which consist solely of
historically-defined inferred resources, (ii) the timing and start of
exploration, including drilling, at the Company’s properties, (iii)
extensions of uranium mineralization, (iv) the timing or occurrence of
production at the Company's properties and (v) timing and receipt of
permitting are forward-looking statements. Because they are
forward-looking, they should be evaluated in light of important risk
factors and uncertainties. These risk factors and uncertainties include,
but are not limited to, (a) the fact that the Roca Honda Technical
Report describes “resources” which are not recognized by the SEC; (b)
inferred resources are the lowest standard of resource allowed under NI
43-101 standards and may not qualify as “mineralized material”: under
SEC staff positions; (c) “reserves” are defined differently by the SEC
and under NI 43-101 standards; (d) the Company's ability to raise
additional capital in the future; (e) spot price and long-term contract
price of uranium; (f) the Company's ability to reach agreements with
current royalty holders; (g) operating conditions at the Company's
projects; (h) government and tribal regulation of the uranium industry
and the nuclear power industry; (i) world-wide uranium supply and
demand; (j) maintaining sufficient financial assurance in the form of
sufficiently collateralized surety instruments; (k) unanticipated
geological, processing, regulatory and legal or other problems the
Company may encounter; and other factors which are more fully described
in the Company's Annual Report on Form 10-K, Quarterly Reports on Form
10-Q, and other filings with the Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize, or
should any of the Company's underlying assumptions prove incorrect,
actual results may vary materially from those currently anticipated. In
addition, undue reliance should not be placed on the Company's
forward-looking statements. Except as required by law, the Company
disclaims any obligation to update or publicly announce any revisions to
any of the forward-looking statements contained in this news release.
Qualified Person
Dean T. “Ted” Wilton, CPG-7659, Chief Geologist and Vice President of
Uranium Resources, is a Qualified Person under Canada National
Instrument 43-101. Mr. Wilton supervised the preparation of the
scientific and technical information regarding this project for this
news release.
Cautionary Note Regarding References to Resources and Reserves
Investors are cautioned that the requirements and terminology of NI
43-101 and the CIM Standards differ significantly from the requirements
and terminology of the SEC set forth in the SEC’s Industry Guide 7 (“SEC
Industry Guide 7”). Accordingly, the Company’s disclosures regarding
mineralization may not be comparable to similar information disclosed by
the Company in the reports it files with the SEC. Without limiting the
foregoing, while the terms “mineral resources,” “inferred resources,”
“indicated resources” and “measured mineral resources” are recognized
and required by NI 43-101 and the CIM Standards, they are not recognized
by the SEC and are not permitted to be used in documents filed with the
SEC by companies subject to SEC Industry Guide 7. Mineral resources
which are not mineral reserves do not have demonstrated economic
viability, and investors are cautioned not to assume that all or any
part of a mineral resource will ever be converted into reserves.
Further, inferred resources have a great amount of uncertainty as to
their existence and as to whether they can be mined legally or
economically. It cannot be assumed that all or any part of the inferred
resources will ever be upgraded to a higher resource category. Under
Canadian rules, estimates of inferred mineral resources may not form the
basis of a feasibility study or prefeasibility study, except in rare
cases. The SEC normally only permits issuers to report mineralization
that does not constitute SEC Industry Guide 7 compliant “reserves” as
in-place tonnage and grade without reference to unit amounts. In
addition, the NI 43-101 and CIM Standards definition of a “reserve”
differs from the definition in SEC Industry Guide 7. In SEC Industry
Guide 7, a mineral reserve is defined as a part of a mineral deposit
which could be economically and legally extracted or produced at the
time the mineral reserve determination is made, and a “final” or
“bankable” feasibility study is required to report reserves, the
three-year historical price (or in certain circumstances, a contract
price) is used in any reserve or cash flow analysis of designated
reserves and the primary environmental analysis or report must be filed
with the appropriate governmental authority. The Company discloses
non-reserve mineralized material that is considered too speculative
geologically to be categorized as reserves under SEC Industry Guide 7.
Estimates of non-reserve mineralized material are subject to further
exploration and development, are subject to many risks and highly
speculative, and may not be converted to future reserves of the Company.
Investors are cautioned not to assume that all or any part of such
non-reserve mineralized material exists, or is economically or legally
extractible. Mineralized material that is not reserves does not have any
demonstrated economic viability.
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