TORONTO (miningweekly.com) – The Yuty in situ recovery (ISR) project, one of two projects owned by US uranium producer and project developer Uranium Energy Corp (UEC) in Paraguay, is the third project to enter the exploitation phase since the country's current mining law was promulgated in 2007.

The NYSE MKT-listed company reported on Friday that the project had received a signed resolution from the Ministry of Public Works and Communication (MOPC), the national agency that regulated mining in the country.

During Yuty’s exploitation phase, comprising a maximum of 20 years and a ten-year extension, the environmental licensing process could start. This was a key milestone required before starting production and would allow for reductions in land and various investment costs. The exploitation phase would be followed by the production phase, which would last for an indefinite period.

“UEC's commitment to our two Paraguayan projects, Yuty and Oviedo, continues to strengthen,” UEC VP for exploration Clyde Yancey commented.

He said the company's technical staff in Asuncion were starting work on a comprehensive preliminary economic assessment report on Yuty in coordination with the Corpus Christi-based operating team and independent ISR engineers.

“Given the geological similarities of our Paraguayan ISR projects and our South Texas ISR projects, we anticipate a strong investment case for Yuty highlighted by a low-capital and operating-expenditure profile,” Yancey advised.

President and CEO Amir Adnani added that the company’s development of Paraguayan uranium resources, close to both Argentina and Brazil, was a significant step in advancing nuclear energy in South America.

“These two countries combined have five operating reactors, two under construction and seven more in the proposal stage. In addition, a meaningful new uranium source from a peaceful and stable jurisdiction like Paraguay is beginning to draw the attention of global utility companies,” he noted.

In Paraguay, UEC controlled one of the largest ISR property positions in the world with about 303.5 ha of prospective area. The Yuty project had a National Instrument 43-101-compliant measured and indicated resource of 8.91-million pounds, grading 0.052% uranium oxide (U₃O₈), and an inferred resource of 2.23-million pounds, grading 0.047% U₃O₈.

The company's Oviedo project had an exploration target of 23-million pounds to 56-million pounds, grading 0.040% to 0.052% U₃O₈. Historic exploration by the Anschutz/Taiwan Power/Korea Electric Power joint venture, Cameco/Cue Resources and recent exploration by UEC to advance these projects totalled $50-million.