Uranium Energy Corp Announces Positive Results from First-Phase Drilling at the Nichols Project in South Texas



    NI 43-101 Technical Report Now In Progress

    
    American Stock Exchange Symbol - UEC
    Frankfurt Stock Exchange Symbol - U6Z
    

    AUSTIN, Oct. 28 /CNW/ - Uranium Energy Corp (AMEX:   UEC) is pleased to
announce positive results from the initial phase of drilling at its 100%-owned
Nichols Project in Karnes County, Texas. The Nichols property consists of
approximately 900 acres of contiguous leases located about six miles south of
the town of Falls City, Texas. The Nichols Project is only about 50 miles from
the Company's Goliad ISR Uranium Project, for which the Company has obtained a
Draft Mine Permit and submitted additional permitting applications. Management
anticipates that any mineral resources identified and extracted at Nichols
will be processed at the Company's planned Goliad plant.
    The Nichols Project was originally developed by Texaco Uranium (now
ChevronTexaco), and reportedly contains an historic resource of 1.2 million
pounds of e-U3O8. This first phase of exploration drilling was designed to
confirm historic resources. Limited historic exploration data from Texaco on
the property was available for review, but onsite lithologic data collected
during the current drill program, coupled with the geologic literature review,
confirm that the target host sands are those of the Eocene-aged Jackson Group,
the zone of significant past production in Karnes County.
    The foregoing historical resource estimate for Nichols was completed
prior to the implementation of CSA National Instrument 43-101 ("NI 43-101");
however, given the results of current drilling, the Company believes the
resource estimate to be relevant. A qualified person, as defined under NI
43-101, has not completed sufficient work to classify the historic mineral
resources as current mineral resources, and the historical resource estimate
should not be relied upon.

    
    Important results from the program include:

    -  Multi-sand targets identified containing elevated uranium
       mineralization;

    -  Confirmation of mineralization along a minimum 5,000-foot trend;

    -  Initial PFN logging suggests a disequilibrium factor (DEF) ratio
       near 1.0;

    -  Core was collected to evaluate leachability of the sand and to
       estimate the DEF.
    

    Multi-sand targets - As drilling progressed, four sands within the
Jackson Group section were identified as potential mineralized target sands.
From top to bottom these sands have been designated as the N1, N2, N3, and N4
sands. The sands are each 15 to 30 feet thick, and each is saturated, that is,
below the water table. Their depositional environment appears to be near-shore
marine, with sands N1, N3, and N4 being offshore bars and sand N2 representing
finer grained lagoonal sediments. During this program, elevated gamma values
were identified only in the N1 and N2 sands, with N2 containing the majority
of the highest grades. However, the N3 and N4 sands are considered potential
target sands.

    Confirmation of Mineralization - 34 generally wide-spaced exploration
boreholes totaling 18,154 drilled feet, and one core hole, were completed
during this program. 20 of the boreholes were completed on centers
approximately 800 feet apart along lines approximately 1,000 feet apart. The
exploration boreholes confirm widespread uranium mineralization in two sands
along a 5,000 foot trend with high grade mineralization along at least 1,200
feet of that trend.

    Grade Thickness, or GT, is defined as the product of the mineral grade
(at the .02% cutoff) multiplied by the thickness of the mineralization at or
above the cutoff value. Typically, GT values of 0.1, 0.2, and 0.3 are used in
resource calculations. GT values above 0.3 are considered 'high grade'
intercepts. GT values between 0.2 and 0.3 are considered 'strong' intercepts,
and values between 0.1 and 0.2 are considered 'mineralized' intercepts. During
this 34 hole program, three holes intercepted high grade mineralization, two
holes had strong mineralization, and five holes encountered mineralized
intercepts. The highest GT encountered during this program was 1.05 in
borehole No. 23. Some selected intercepts are presented in the table below.

    
    Nichols Project - Selected Mineral Intercepts
    -----------------------------------------------------------------
    Borehole No.     Sand     Grade     Thickness    Grade Thickness
                                                        (GT)
    -----------------------------------------------------------------
    11               N1       0.05        2.5           .125
                     N2      0.032        1.5           .049
    -----------------------------------------------------------------
    15               N2      0.045        4.0           .179
                     N2      0.046        2.0           .091
    -----------------------------------------------------------------
    23               N2      0.235        4.5           1.05
    -----------------------------------------------------------------
    27               N2      0.036        3.0           .108
                     N2      0.097        3.5           .341
    -----------------------------------------------------------------
    28               N2      0.064        3.0           .192
    -----------------------------------------------------------------
    

    Coring - Borehole No. 23 had the highest GT encountered during this
program. As a result, this hole was selected for offset coring (core hole
35C), located approximately 10 feet west of exploration borehole No. 23. About
18.5 feet of core was retrieved from the core hole, including the correlative
section with the highest gamma readings. Samples from the core will be used
for density determinations, uranium content, and leachability, among other
tests. Closed-can uranium analyses will be used to assess disequilibrium in
the mineral body.

    Work has been initiated on a NI 43-101 technical report to make compliant
the historic resource estimate previously reported for the Nichols Project.
Additionally, planning for the phase two drilling program is underway to
evaluate the uranium mineralization along the established 5,000 foot trend.
The NI 43-101 technical report is scheduled to be delivered by an independent
qualified person ("QP") in December of this year.
    The technical information in this news release has been prepared in
accordance with the Canadian regulatory requirements set out in NI 43-101 and
reviewed by Clyde L. Yancey, P.G., Vice President-Exploration for the Company,
a QP under NI 43-101.

    About Uranium Energy Corp

    Uranium Energy Corp (AMEX:   UEC) is a US-based resource company with the
objective of becoming a near-term ISR uranium producer in the United States.
Utilizing its extensive information library of historic uranium exploration
and development work, the Company has acquired and is advancing uranium
properties throughout the southwestern US. A Draft Mine Permit was recently
issued for the Company's lead project, the Goliad ISR Uranium Project in south
Texas. Operational management is comprised of pre-eminent uranium mining and
exploration professionals whose collective experience in this industry gives
the Company ongoing uranium mine-finding and mine development expertise.

    
    Stock Exchange Information:

    American Stock Exchange Symbol: UEC
    Frankfurt Stock Exchange Symbol: U6Z
    WKN: AOJDRR
    ISN: US916896103
    

    Forward-Looking Statement Disclaimer

    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. In particular, statements concerning historical
mineral resource estimates should be viewed as forward-looking statements to
the extent that they involve estimates of the mineralization that will be
encountered if the property is developed. Any statements that express or
involve discussions with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or performance 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, labour 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. Forward looking statements are made based
on management's beliefs, estimates and opinions on the date the statements are
made and the Company undertakes no obligation to update forward-looking
statements if these beliefs, estimates and opinions or other circumstances
should change, except as required by applicable law. Such forward-looking
statements reflect our current views with respect to future events and are
subject to certain risks, uncertainties and assumptions, including, the risks
and uncertainties outlined in our most recent financial statements and reports
and registration statements filed with the United States Securities and
Exchange Commission (the "SEC") (available at www.sec.gov) and with Canadian
securities administrators (available at www.sedar.com). Although the Company
believes that the beliefs, plans, expectations and intentions contained in
this news release are reasonable, there can be no assurance those beliefs,
plans, expectations or intentions will prove to be accurate. Investors should
consider all of the information set forth herein and should also refer to the
risk factors disclosed in the Company's periodic reports filed from
time-to-time with the SEC. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of
these securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such jurisdiction.

    Any historical mineral resources referred to by the Company in this news
release and in any referenced technical report have not been estimated in
accordance with the definition standards on mineral resources of the Canadian
Institute of Mining, Metallurgy and Petroleum referred to in National
Instrument 43-101, commonly referred to as "NI 43-101". As a reporting issuer
in Canada, we are required by Canadian law to provide disclosure in accordance
with NI 43-101. U.S. reporting requirements for disclosure of mineral
properties are governed by the SEC Industry Guide 7. NI 43-101 and Guide 7
standards are substantially different, however Guide 7 does allow the
disclosure of mineral resources where required to be disclosed by foreign law.





For further information:

For further information: Contact North America: Investor Relations,
Uranium Energy Corp.: Toll Free: (866) 748-1030, Fax: (512) 535-0832, E-mail:
info@uraniumenergy.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890