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By: Peter Zihlmann

-- Posted Tuesday, March 4 2014 | Digg This ArticleDigg It! |


Your independent SWISS asset manager      







Home page of UEC

Chart years 5




Purchase Date

No. of Shares

Purchase Price

Cost (CAD)

Price Today

Value Today

February 26, 2014


















Profit (in %)











89,611,281 / 103,440,291

USD 160.56M



USD 1.40 to 2.65

656,645 (200-day)






America’s Emerging Uranium Producer


Business Summary


Uranium Energy Corp is a U.S.-based uranium mining and exploration company.


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.


The Company controls one of the largest databases of historic uranium exploration and development in the country. Using this knowledge base, the Company has acquired and is advancing exploration properties of merit throughout the southwestern U.S.


US Projects Asset Location




South Texas Regional Strategy
Uranium Energy Corp’s regional strategy in South Texas is focused on consolidating assets along the re-emerging South Texas Uranium Belt.

UEC controls a portfolio of uranium projects along this belt, including the Palangana in-situ recovery mine, which is ramping up production, and the Goliad in-situ recovery project which is currently under construction. The Company also owns the fully licensed and permitted ISR Hobson Processing Plant, which is central to all of its operations in South Texas.

By utilizing the Hobson Processing Plant as a central processing site, the Company’s eliminates the need to construct a new processing plant on site at each project.

The Texas Uranium Belt

The Texas uranium belt extends along an approximately 300-mile belt that extends from east-central Texas to South Texas.  This area holds significant known uranium that are amenable to low-cost in-situ recovery.

With the use of historical exploration databases that document decades of South Texas-focused uranium exploration and mining,  UEC has been able  to target projects that have already been the subject of significant exploration and development by senior energy companies in the past. The Company will continue to aggressively pursue this formula on an ongoing basis, thus providing a diversified pipeline of advanced development and exploration-stage projects for expanding production.

Texas is America’s energy capital, and has a unique streamlined permitting framework for uranium mining. 

In-Situ Recovery (ISR)

Today, in-situ recovery of uranium accounts for about 37% of global uranium production in districts where uranium deposits meet very specific geological requirements, including a permeable sandstone host.

UEC’s focus on developing ISR amenable uranium projects is strategic.  ISR mining generally requires lower capital and operating costs with shorter construction and permitting time lines compared to conventional mining methods.

The ISR process is the most environmental friendly method of uranium mining and essentially reverses the natural occurrences that deposited the uranium in the sandstone. Specifically, on-site ground water is fortified with gaseous oxygen and is introduced to the uranium ore body through a pattern of injection wells. The solution dissolves the uranium out of the sandstone host rock. The uranium-bearing solution is recovered from production wells and then pumped to recovery ion-exchange columns. This pattern of injection and production wells, plus surrounding monitor wells that serve as a safeguard, is called a wellfield.

The subsequent ion-exchange process involves removing the uranium from the pregnant well field solution and loading the uranium onto millions of synthetic resin beads. When the resin in an ion-exchange column is loaded to capacity, it is transported to a processing plant for stripping, filtering, drying, and packaging into yellowcake.

This process of uranium extraction was initiated at the Company’s Palangana ISR Mine in South Texas on November 17, 2010 making UEC the newest emerging uranium producer in North America.

Hobson Processing Plant


The fully operational Hobson Processing Plant is an in-situ recovery (ISR) uranium processing plant, located about 100 miles northwest of Corpus Christi in Karnes County, Texas.  Hobson was originally licensed and constructed in 1978, and was subsequently completely refurbished in 2008. The plant is designed to process uranium-loaded resins from satellite mines to a final product, U3O8.


The Hobson Processing Plant is central to all of UEC’s operations in South Texas, including the Palangana in-situ recovery mine, which is ramping up production, the Goliad in-situ recovery project which is which is currently under construction, as well as four other South Texas projects in the pipeline.


Palangana Mine


·         Production at the Palangana Mine began with Production Area-1 commencing operations in November 2010, Production Area-2 in March 2012, and Production Area-3 in December 2012;

·         Development and permitting activities continue on future Production Areas 4, 5 and the newly developed PA- 6; and

·         Measured and Indicated Resource Estimate for the Company's Palangana Mine of 1,057,000 pounds at an average grade of 0.135% eU3O8 and an Inferred Resource of 1,154,000 pounds of eU3O8 at an average grade of 0.176%




·         The Goliad ISR Project is now fully permitted for production as it has been granted concurrence on its Aquifer Exemption from EPA Region 6. Construction at the Goliad ISR project is now accelerating;

·         Measured and Indicated Resource Estimate for the Company's Goliad Project of 5,475,200 pounds eU3O8 at an average grade of 0.05% and an Inferred Resource of 1,501,400 pounds eU3O8 at an average grade of 0.05%;

·         Uranium mineralization as currently defined by historic drilling remains open laterally in all directions, providing excellent potential targets for additional drilling and increasing the size of the resource; and

·         Mineralization is in four sand horizons from depths of 90 to 450 feet and metallurgical testing has been independently reviewed with recoveries of 86% to 89%.


Burke Hollow


·         The Burke Hollow ISR Project has an initial Inferred Resource Estimate of 2.89M lbs eU3O8 at an average grade of 0.047%;

·         The Project also hosts an Exploration Target of total contained 1.8 - 7.2M lbs eU3O8 at an average grade range of 0.03% to 0.06%;

·         The 17,510-acre property is located along the Goliad trend within the prolific South Texas uranium belt, is located approximately 50 miles southeast of the Company's Hobson uranium processing facility, and on-trend geologically with several historic and 2 active in-situ recovery mines; and

·         80 hole exploration and delineation drilling campaign initiated in November 2013.


Recent News: Uranium Energy Corp Advances Burke Hollow Project in South Texas


·         Baseline monitoring wells completed as part of accelerated production permitting;

·         Mineralized fronts of known resource trends continue to extend; and

·         Two new mineralized horizons have been identified and are being delineated.

Uranium Energy Corp provides an update on permitting, exploration and development activities at its Burke Hollow Project. The current drilling campaign was initiated on November 4, 2013, and is continuing with three drill rigs on site.  The first phase of the program consisted of drilling to accelerate production permitting, which has been completed, and the program is now focused on exploration, resource delineation and development drilling.  Since the inception of the program, forty-two holes have been drilled and a total of 80 holes is budgeted.

Andy Kurrus, Vice President of Resource Development, stated: “The geological team at the Company is excited by the rapid progress we’re making at Burke Hollow.  In particular, the two new mineralized zones hold potential for adding significant resources at the project.”

As part of the Company’s accelerated permitting program for the Burke Hollow Project, six monitoring wells were successfully completed and are to be used in the establishment of baseline water quality for the project. This brings the number of regional baseline monitoring wells at the project to 30. The recently installed wells were drilled and cased within the first projected production area and will be used in the pre-operational groundwater characterization sampling program, results of which will be included in the mining permit application to be submitted to the Texas Commission on Environmental Quality.

Through careful study of the results from previous drilling campaigns, two new horizons have been identified and will be explored during the remainder of the current drilling campaign.  An extension of the Goliad 370-foot sand and additional target sands will be explored over a prospective four mile geological trend in undrilled areas of the Burke Hollow Project.  Additionally, Goliad target sands ranging in depth from 280 to 560 feet have been identified and will also be explored during this campaign.  Plans to test the potentially productive lower Goliad sands lying between 650 and 1,100 feet in depth have been developed and will be carried out over the coming months.

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 Clyde L. Yancey, P.G., Vice President-Exploration for the Company, a QP under NI 43-101. 



·         The Salvo Project consists of 5,340 acres of contiguous leases located about ten miles southwest of the town of Beeville, Texas and is approximately 45 miles from the Company´s Hobson Processing Plant;

·         Independent National Instrument 43-101 ("NI 43-101") Technical Report reports an Inferred mineral resource of 1.2 million tons grading 0.08 percent U3O8 or 2.839 million pounds U3O8; and

·         Targeted to become UEC's fourth in-situ recovery satellite project in South Texas to produce and provide U3O8 resins for processing at the Company´s nearby Hobson Processing Plant.




·         10,704-acre property is the sixth addition to the Company's South Texas hub-and-spoke production strategy;

·         Property lies on-trend with the Company's recently acquired Burke Hollow Project in Bee County, and on-trend with several historic and two active in-situ recovery mines; and

·         Company geologists commenced drilling operations at Channen in July 2012 with two rigs targeting both the upper and lower trends located from surface to 920 feet in depth. Ongoing plans for the Project include the drilling of a statistical grid based on 6,400-foot centers which encompasses the entire project.




·         Consists of 1041 acres, and is located within the heart of the historic Karnes County uranium mining district;

·         Inferred Resource of 1,307,000 pounds eU3O8 at an average grade of 0.07%; and

·         The property was originally developed by Texaco Uranium (now ChevronTexaco).


Paraguay: Yuty ISR Project





·         Independent National Instrument 43-101 ("NI 43-101") Technical Report reports a Measured Resource 2.054M tonnes @ 0.062 % eU3O8 containing 2.801M lbs eU3O8 an Indicated Resource 5.783M tonnes @ 0.048 % eU3O8 containing 6.113M lbs eU3O8 and an Inferred Resource 2.139M tonnes @ 0.047 % eU3O8 containing 2.226M lbs eU3O8;

·         The Yuty in-situ recovery (ISR) Project covers 500,000 acres and is located approximately 200 kilometers east and southeast of Asunción, the capital of Paraguay;

·         It is located within the Paraná Basin, which is host to a number of known uranium deposits, including Figueira and Amorinópolis in Brazil;

·         Preliminary studies indicate amenability to extraction by ISR methods;

·         Over $16 million spent developing Yuty by previous owner Cue Resources Ltd. (Cue) since 2006; and

  • Subject to extensive uranium exploration by Cue who completed 256 drill holes totaling 31,000 meters of core and rotary drilling. 



  • Nuclear energy is the most environmentally friendly alternative for electricity generating as the only large-scale viable alternative to fossil fuels (oil, gas, coal)
  • Nuclear energy does not produce greenhouse gas. One gram of uranium produces the same amount of electricity as 3 million tonnes of coal; burning 3 tonnes of coal leads to 7 tonnes of CO2 emission.
  • Responding to the growing public concern over global warming, the Kyoto Protocol (1997) paved the way for nuclear renaissance by striving to reduce greenhouse gas emission of CO2 by 20%. Evidently, nuclear energy cannot be phased out if the requirements of the Kyoto Protocol are to be met.
  • Nuclear energy provides 16% of the world’s total electricity and 28% of European needs, compared to fossil fuels 56%, water power 10%, wind 3% and biomass 3%.
  • Japan wants to restore the number of operating nuclear reactors to 16 by 2014, providing with 18% of its electricity generating requirements. 



The investment Policy of the Timeless Uranium Fund


The Fund Company will attempt to achieve maintenance of value and capital growth through the adoption of the following investment policy:


  • the Fund may invest up to 10% of its assets in companies that directly invest, deal and/or hold physical uranium;
  • the Fund may invest up to 60% of its assets in uranium producing and new generation producing companies;
  •  the Fund may invest up to 30% of its assets in junior exploration companies. 

Furthermore, if circumstances and market conditions so dictate, the Fund reserves the right to hold up to 50% of its assets in cash, provided, however, that no more than 10% of the assets of the Fund shall be kept on deposit with any one body. This limit may be increased to 30% in respect of money deposited with a credit institution licensed in Malta or in any other EEA State, or with any other credit institution which has been approved by the MFSA.


The Fund shall not invest more than 10% of its assets in securities which are not traded in or dealt on a market which:

  • the Custodian and Investment Manager have agreed between themselves as being appropriate for the Fund;
  • is listed in the Prospectus;
  • is regulated, operates regularly, is recognized and is open to the public;
  •  has adequate liquidity and adequate arrangements in respect of the transmission of income and capital; and
  •  is not the subject of an MFSA restriction.

The Fund shall not invest more than 10% of its assets in securities issued by the same body.

The Fund shall not hold more than 10% of any class of security issued by any single issuer.

The Fund may, subject to approval from the MFSA, invest up to 100% of its assets in securities issued or guaranteed by any State, its constituent States, its local authorities, or public international bodies of which one or more States are members.




The Timeless Uranium Fund’s Prespectus can be requested at info@timeless-funds.com.


Fundamental Considerations




New Uranium Projects … Deferred Due to Low Prices:


·         Russia | Stopping new uranium development, Honeymoon, Willow Creek, Mkuju River, Priargunsky, Khiada, Elkon

·          Kazakhstan | Halting future uranium development

·          Areva | Delays at Imouraren; Cominak & Somair (Niger) halted

·          Cameco | Kintyre; Delayed start-up of Cigar Lake

·          BHP Billiton | Olympic Dam deferred

·          Rio Tinto | Ranger & Rossing shut down indefinitely

·          Paladin | Langer Heinrich expansion deferred

·          Uranium Energy Corp. | Palangana deferred


Other Constraints:


·         HEU Agreement Has Expired | Major source of secondary supply

·         Japan | 14 reactors have applied for a restart

·         Worldwide | 71 new nuclear reactors now under construction

·         Africa | Terrorist activity affecting major uranium production centers




Past Recommendations





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Uranium Participation Corporation: (TOR)





The Timeless Uranium Fund 2014






Technical Considerations





The Timeless Funds (The Timeless Precious Metal Fund, The Sierra Madre Gold & Silver Venture Capital Fund, The Timeless Uranium Fund, The Timeless US Growth Fund (waiting for imminent approval)) are managed by


Timeless Asset Management Ltd, Malta (www.timeless-funds.com)




Peter Zihlmann





phone:  +41 44 268 51 10, mobile +41 79 379 51 57



How to invest:



To receive Recommendations free of charge every now and then, register at register@pzim.ch



Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so. The author is a shareholder in the company and will benefit from any increase in the company’s share price.


Disclaimer: The author’s objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information, nor the opinions expressed should be construed as a solicitation to buy or sell this stock. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock.



-- Posted Tuesday, March 4 2014 | Digg This ArticleDigg It! |

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