Item 7.01 Regulation FD Disclosure
On January 23, 2023, Uranium Energy Corp. (the "Company" or "UEC") issued a news
release announcing new uranium mineralization in drill hole CB-178-1 that grades
5.42% eU3O8 over 15.6 metres, including a subinterval that grades 23.2% eU3O8
over 3.4 metres (Table 1), from the new Sakura Zone at its Christie Lake Project
(the "Project"). This result expands the footprint of high-grade uranium
mineralization at the Christie Lake Project that was initially announced last
year (see press release from October 4, 2022).
? Expanding High-Grade Footprint: UEC intersects additional high-grade uranium
mineralization with CB-178-1, its first drill hole in the 2023 Sakura Zone
drill program at the Christie Lake Project ("the Project"). This intersection
expands the footprint of the high-grade mineralization at the new zone, first
reported in October last year, CB-178-1 is approximately 10 m from CB-176A
that graded 68.7% eU3O8 over 2.1 m.
? Premier Location: Christie Lake is nine km northeast of McArthur River, the
world's largest high-grade uranium mine, and along the same geological trend
(see Figures 1 & 2). The Sakura Zone, discovered in August 2022, is along the
Yalowega mineralized corridor (see Figures 3 & 4).
? Infrastructure Advantage: The Project straddles the Eastern Athabasca High
Grade Uranium Corridor, representing a 19,576 acre land package situated
between the two world class uranium operations at McArthur River and Cigar
Lake.
? Synergies with Roughrider Project: Christie Lake is one of the key projects in
UEC's Eastern Athabasca Hub strategy and the company is considering the
synergies between this project and the Roughrider and Horseshoe-Raven
Projects.
? Ongoing Exploration: These intercepts represent the first results of the
3-month winter campaign. more holes are anticipated to be reported over the
winter, leading to an update of the Christie Lake resource in 2023.
Vertical depth to the unconformity-hosted mineralization at Christie Lake is
between 400 and 420 metres ("m") from surface. This is shallower by about 100 m
than McArthur River and at approximately the same depth as Cigar Lake. The
McArthur River and Cigar Lake Deposits are the archetypical high-grade Athabasca
super-deposits with combined reserves and past production of 985.7 million lb.
uranium.
Amir Adnani, CEO and President stated: "Following our acquisition of UEX in 2022
we commenced a drilling program at the Christie Lake Project and reported one of
the best intercepts of the year in Canada's high-grade Athabasca Basin with our
discovery at the Sakura zone, with 68.7% eU3O8 over 2.1 meters. We hit the
ground running in 2023 to follow-up and test the continuity at this new zone and
are excited to see the first drill hole of our new program expand the footprint
of the high-grade mineralization. The results announced today also demonstrate
the capability of our Canadian technical team to unlock value from UEC's
Canadian conventional project pipeline. Moving forward, we have two objectives
with our Eastern Athabasca Basin projects, 1) continue with aggressive
exploration drilling for resource growth and 2) evaluate potential synergies for
future development given the proximity of Christie Lake and Horseshoe Raven
projects to our recently acquired Roughrider project."
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Chris Hamel, Vice President Exploration, Canada stated: "The confirmed
continuity of the high-grade uranium mineralization at the Sakura zone suggests
a previously unrecognized trend of uranium mineralization at Christie Lake. With
constrained expenditures during the years of the uranium bear market the
exciting potential of Christie Lake was left under-explored. We're excited to be
aggressively drilling and growing the world-class potential of this project.
UEC's ability to apply financial strength into the project builds upon the
technical work and compilation efforts done by UEX since 2016 to set the stage
for this success."
Mineralization at the Sakura Zone remains open for expansion in all directions
and is the focus of the 2023 drilling on the Christie Lake Project.
Table 1: Christie Lake Radiometric Equivalent Grades from CB-178-1
From To Width Grade Cut-off
Hole (m) (m) (m) (% eU3O8) Grade
(% eU3O8)
CB-178-1 419.1 434.7 15.6 5.42 0.05
incl. 426.6 430.0 3.4 23.22 5.0
Notes:
1. True widths of the mineralization reported in Table 1 is anticipated to be
90-95% of core length but cannot be verified at this time.
2. eU3O8 refers to radiometric equivalent grade U3O8, and it determined using
calibrated down-hole radiometric probes, a process further discussed in the
section "About Radiometric Grades".
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Figure 1 - UEC's Athabasca Basin Projects
[[Image Removed: uec02.jpg]]
About Canada's Athabasca Basin
The Athabasca Basin is a world-class uranium district in the northern portion of
the provinces of Saskatchewan and Alberta in Canada, occupying an area of about
100,000 square kilometers. The unique geology of the Athabasca Basin deposits
can result in deposit grades that exceed the world average of uranium deposits
of 0.2% U3O8 by up to 100 times.
All of Canada's current uranium production occurs from the mines located in the
Athabasca Basin. According to the World Nuclear Association, the Athabasca Basin
was responsible for producing 9.7% of the world's uranium production in 2021.
Uranium mineralization in the Athabasca Basin occurs in fault structures that
penetrate the interface between the sandstone and underlying basement rocks,
known as the unconformity. Uranium can be found at the interface, known as the
unconformity, or up to several hundreds of meters below the unconformity surface
in the underlying fault structures in the basement.
The uranium concentrations from holes presented above from the radiometric
equivalent uranium grade ("REG"), denoted as eU3O8, which is determined in-situ
within the drill hole. For more information on REGs please see the "About
Radiometric Equivalent Grades" section below.
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The core recovery from parts of the mineralized zone in hole CB-178-1 is
estimated at approximately 50%. The portions of the core recovered from the
interval confirm the presence of very high-grade uranium mineralization. Thus,
the Company believes that assay results collected from the mineralized interval
may not be representative of the true concentration of uranium present and that
the REG presented above will be a more accurate estimate of grade.
About Radiometric Equivalent Grades
The eU3O8 grades were estimated in-situ within the drill holes using calibrated
down-hole radiometric gamma probes which are lowered down the hole, a method
commonly used by uranium explorers and miners in the Athabasca Basin. The probe
records the amount of radioactivity present in the rock adjacent to the probe as
it moves up and down the hole.
The probes were calibrated prior to the commencement of the current drill
program at the Saskatchewan Research Council's ("SRC") test pit facility in
Saskatoon. Using down-hole probes to calculate radiometric equivalent grades is
a common practice by uranium mining companies in the Athabasca Basin. Down-hole
probes can accurately measure uranium concentration by measuring the light
flashes that occur every time the probe's scintillator is struck by a gamma
radiation particle emitted from uranium crystals. The number of light flashes
are 'counted' by a photomultiplier tube. Sometimes within high-grade intervals,
due to a process called 'saturation' occurs when light emitted by the probe's
scintillator overwhelms the photomultiplier tube's ability to 'count' individual
light flashes it can be difficult to accurate determine radiometric equivalent
grades.
Samples from all holes have been collected for assay analysis to confirm these
equivalent grades. The samples will be analyzed at the SRC's Geoanalytical
Laboratory in Saskatoon, Saskatchewan, with results expected in the coming
weeks.
About the Christie Lake Project
UEC holds an 82.775% combined direct and indirect interest in the Christie Lake
Project which is a joint venture with JCU (Canada) Exploration Company, Limited,
a company that is 50% owned by UEC's wholly owned subsidiary UEX Corporation.
UEC's direct ownership in Christie Lake is 65.5492% and indirect ownership
through its 50% ownership in JCU is 17.2254%
The Christie Lake Project is located in the eastern Athabasca Basin (see Figures
1 & 2) approximately 9 km northeast and along strike of Cameco's McArthur River
Mine, the world's largest and highest-grade uranium mine. The controlling
structure of the McArthur River Mine deposits, the P2 fault, continues to the
northeast beyond the mine and trends onto the Christie Lake Project. Our
technical team believes that, through a series of en-echelon steps, the
northeast strike extension of the P2 Fault not only crosses the Christie Lake
Project but also controls the three known uranium deposits on Christie Lake: the
?rora, Paul Bay and Ken Pen Deposits as well as the newly discovered Sakura
Zone.
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Figure 2 - Christie Lake Project Location
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Figure 3 - Sakura Zone Mineralization - preliminary zone boundaries
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Qualified Persons and Data Acquisition
The technical information in this news release has been reviewed and approved by
Chris Hamel, P.Geo., UECs Vice President Exploration, Canada, who is considered
to be a Qualified Person as defined by S-K 1300.
Figure 4 - Preliminary Cross Section with CB-178-1
[[Image Removed: uec05.jpg]]
A copy of the news release is attached as Exhibit 99.1 hereto.
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Item 9.01 Financial Statements and Exhibits
(a) Financial Statements of Business Acquired
Not applicable.
(b) Pro forma Financial Information
Not applicable.
(c) Shell Company Transaction
Not applicable.
(d) Exhibits
Exhibit Description
99.1 News Release dated January 23, 2023.
104 Cover Page Interactive Data File (the cover page XBRL tags are embedded
within the inline XBRL document).
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