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Uranium Energy Corp's Burke Hollow not so hollow any more, says broker

Last updated: 17:14 02 Aug 2017 BST, First published: 12:14 02 Aug 2017 BST

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The current Burke resource stands at 5.1 million pounds of uranium

Uranium Energy Corp's (NYSE:UEC) Burke Hollow in-situ recovery (ISR) project in South Texas has quickly risen to become the group's flagship project and the resource there is likely to grow.

That's the view of broker Eight Capital, which rates the company a 'buy' and targets US$2.30  a share.

The drill program there has been progressing quite efficiently and under-budget and two main objectives have already been met, says analyst David Talbot, who expects the current resource of 5.1 million pounds of uranium to be expanded later this year.

"With 94 holes (40,420 feet) of 100 scheduled already complete, another 30 targets have been added, stretching the current campaign through September."

In addition, its recent $18.8mln all scrip acquisition of the fully permitted Reno Creek in May has allowed  the firm to add another quality ISR project on the cheap.

"Between its acquisitions and successful organic growth, critical mass is growing, helping prepare Uranium Energy's low-cost project pipeline for an expected turn in uranium prices over the next few years," says Talbot.

UEC shares are currently changing hands at $1.54 - down 3.14%.

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