Note 6 - Mineral Rights and Properties

12 Months Ended

Jul. 31, 2022

Notes to Financial Statements

Mineral Industries Disclosures [Text Block]

NOTE 6: MINERAL RIGHTS AND PROPERTIES

Mineral Rights

As at July 31, 2022, we had mineral rights in the States of Arizona, New Mexico, Texas and Wyoming, in Canada and in the Republic of Paraguay. These mineral rights were acquired through staking and purchase, lease or option agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium. As at July 31, 2022, annual maintenance payments of approximately $4.2 million were required to maintain these mineral rights.

As at July 31, 2022, the carrying value of these mineral rights and properties was as follows:

	July 31, 2022			July 31, 2021
Mineral Rights and Properties
Palangana Mine	$	6,028		$	6,028
Goliad Project		8,689			8,689
Burke Hollow Project		1,496			1,496
Anderson Project		3,470			3,470
Workman Creek Project		1,000			900
Reno Creek Project		31,528			31,528
Christensen Ranch Mine		39,062			-
Ludeman Project		32,306			-
Antelope Project		29,855			-
Moore Ranch Project		4,972			-
Irigaray Project		1,362			-
Barge Project		3,136			-
Gas Hills Project		980			-
Nine Mile Project		954			-
Charlie Project		905			-
Diabase Project		982			547
Yuty Project		11,947			11,947
Oviedo Project		1,133			1,133
Alto Paraná Titanium Project		1,933			1,433
Other Properties		4,139			540
		185,877			67,711
Accumulated Depletion		(3,930	)		(3,930	)
		181,947			63,781
Databases and Land Use Agreements		2,459			2,459
Accumulated Amortization		(2,458	)		(2,456	)
		1			3
	$	181,948		$	63,784

We have not established proven or probable reserves, as defined by the SEC under the S-K 1300, for any of our mineral projects. We have established the existence of mineralized materials for certain uranium projects, including our ISR Mines. Since we commenced uranium extraction at our ISR Mines without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated.

Mineral property expenditures incurred on our projects were as follows:

	Year Ended July 31,
	2022		2021		2020
Mineral Property Expenditures
Palangana Mine	$	1,060	$	890	$	1,343
Burke Hollow Project		3,647		1,446		1,130
Goliad Project		240		237		190
Anderson Project		108		79		71
Workman Creek Project		33		33		33
Reno Creek Project		821		672		597
Christensen Ranch Mine		1,257		-		-
Ludeman Project		219		-		-
Antelope Project		70		-		-
Moore Ranch Project		143		-		-
Barge Project		37		-		-
Yuty Project		86		31		66
Oviedo Project		619		372		350
Alto Paraná Titanium Project		574		199		230
Other Mineral Property Expenditures		1,240		520		572
	$	10,154	$	4,479	$	4,582

United States Projects

● Palangana Mine, Texas

We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Palangana Mine. These agreements are subject to certain royalty and overriding royalty interests indexed to the sale price of uranium and generally have an initial five-year term with extension provisions.

During Fiscal 2022 and Fiscal 2021, we continued with reduced operations at the Palangana Mine to capture residual uranium only.  As a result, no depletion for the Palangana Mine was recorded on our consolidated financial statements.

● Goliad Project, Texas

We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Goliad Project. These agreements are subject to certain fixed royalty interests based on net proceeds from sales or indexed to the sales price of uranium and have an initial five-year term with extension provisions.

● Burke Hollow Project, Texas

We hold various mining lease and surface use agreements granting us the exclusive right to explore, develop and mine for uranium at the Burke Hollow Project. These agreements are subject to fixed royalty interests based on net proceeds from sales and have an initial five-year term with extension provisions.

● Anderson Project, Arizona

We hold an undivided 100% interest in contiguous mineral lode claims and state leases at the Anderson Project located in Yavapai County, Arizona.

● Workman Creek Project, Arizona

We hold an undivided 100% interest in contiguous mineral lode claims in the Workman Creek Project located in Gila County, Arizona. The Workman Creek Project is subject to a 3.0% net smelter royalty requiring an annual advance royalty payment of $50 for 2016 and 2017, and $100 thereafter. We have an exclusive right and option to acquire 1.5% of the net smelter royalty for $1,000 at any time until January 21, 2024. Additionally, certain individuals hold an option to acquire a 0.5% net smelter royalty exercisable by paying the Company the sum of $333 at any time until January 21, 2024. We have made all required payments.

● Reno Creek Project, Wyoming

The Reno Creek Project consists of U.S. federal mineral lode claims, state mineral leases, various private mineral leases and certain surface use agreements which grant us the exclusive right to explore, develop and mine for uranium.

During Fiscal 2022, we acquired the following projects through the U1A Acquisition. The fair value of these projects was determined using a discounted cash flow model, being the net present value of expected future cash flows. Refer to Note 3: Acquisition of Uranium One Americas, Inc.

● Christensen Ranch Mine, Wyoming

The Christensen Ranch Mine consists of U.S. federal mineral lode claims, state mineral leases and private mining and surface use agreements, which grant us the exclusive right to explore, develop and mine for uranium. These state mineral leases and the mining and surface use agreements are subject to certain royalty interests based on gross proceeds from sales of uranium, and have terms ranging from 10 years to the life of the mine (through end of mining and final reclamation) if held by production.

● Irigaray Project, Wyoming

The Irigaray Project consists of U.S. federal mineral lode claims, state mineral leases and private mining and surface use agreements which grant us the exclusive right to explore, develop and mine for uranium. These state mineral leases and the mining and surface use agreements are subject to certain royalty interests based on gross proceeds from sales of uranium, and have terms ranging from 10 years to the life of the mine, through end of mining and final reclamation, if held by production.

● Ludeman Project, Wyoming

The Ludeman Project consists of various U.S. federal mineral lode claims, state mineral leases and private mining and surface use agreements which grant us the exclusive right to explore, develop and mine for uranium. These state mineral leases and the mining and surface use agreements are subject to certain royalty interests based on gross proceeds from sales or indexed to the sales price of uranium, and have terms ranging from 10 years to the life of the mine, if held by production.

● Moore Ranch Project, Wyoming

The Moore Ranch Project consists of U.S. federal mineral lode claims, state mineral leases and private mining and surface use agreements which grant us the exclusive right to explore, develop and mine for uranium. The state mineral leases and the mining and surface use agreements are subject to certain royalty interests based on gross proceeds from sales or indexed to the sales price of uranium, and have terms ranging from 10 years to the life of the mine, if held by production.

● Barge Project, Wyoming

The Barge Project consists of U.S. federal mineral lode claims which grant us the exclusive right to explore, develop and mine for uranium. We currently do not have a surface use agreement, therefore there are no royalty requirements at this time.

● Antelope Project, Wyoming

The Antelope Project consists of U.S. federal mineral lode claims along with several state mineral leases. Only the state leases are subject to royalty interests based on gross proceeds from sales, not the mineral lode claims. The state leases have a term of 10 years and the federal mineral claims are held by payment on an annual basis.

During Fiscal 2022, we acquired the following projects through the Swap Agreement with Anfield. The allocated fair value of these projects was determined based on the identified or historic resources. Refer to Note 4: Anfield Debt Settlement and Property Swap.

● Gas Hills Project, Wyoming

The Gas Hill Project consists of U.S. federal mineral lode claims and several state mineral leases. Only the state leases are subject to royalty interests based on gross proceeds from sales of uranium, not the mineral lode claims. The state leases have a term of 10 years and the federal mineral claims are held by payment on an annual basis.

● Nine Mile Project, Wyoming

The Nine Mile Lake Project consists of U.S. federal mineral lode claims, state mineral leases private mineral leases and surface use agreements. The state mineral leases and the private mining and surface use agreements are subject to certain royalty interests based on gross proceeds from sales of uranium, and have terms ranging from 10 years to the life of the mine, through end of mining and final reclamation, if held by production.

● Charlie Project, Wyoming

The Charlie Project consists of a single State of Wyoming mining lease. The state mineral lease is subject to a royalty interest based on gross proceeds from sales of uranium, with a lease term of 10 years, extendable for the life of exploration and mining. The mineral leases and surface use agreements are subject to certain royalty interests based on gross proceeds from sales of uranium, with terms ranging from five to 20 years, some of which have extension provisions.

Canadian Project

● Diabase Project, Canada

During Fiscal 2022, we entered into property purchase agreements whereby we acquired 10 mineral claims as additions to our existing Diabase Project (the “Diabase Additions”) located on the southern rim of the Athabasca Basin uranium district in Saskatchewan, Canada. In connection with the Diabase Additions, we paid total consideration of $435, which consisted of 111,864 shares with a fair value of $426 and transaction costs of $9. As a result of these claims being added to our existing Diabase Project, the carrying value of our Diabase Project increased to $982 ( July 31, 2021: $547).

Paraguay Projects

During Fiscal 2018 and Fiscal 2019, we had communications and filings with the Ministry of Public Works and Communications (“MOPC”), the mining regulator in Paraguay, whereby the former MOPC took the position that certain concessions forming part of the Company’s Yuty and Alto Paraná Projects were not eligible for extension as to exploration or continuation to exploitation in their current stages.  While we remain fully committed to our development path forward in Paraguay, we have filed certain applications and appeals in Paraguay to reverse the MOPC’s position in order to protect our continuing rights in those concessions. 

● Yuty Project, Paraguay

The Yuty Project is a property under one exploitation concession and is subject to an overriding royalty of $0.21 per pound of uranium produced from the Yuty Project.

● Oviedo Project, Paraguay

The Oviedo Project is a property under one exploration permit and is subject to a 1.5% gross overriding royalty over which we have an exclusive right and option at any time to acquire 0.5% for $167 and a right of first refusal to acquire all or any portion of the remaining 1.0%.

● Alto Paraná Titanium Project, Paraguay

The Alto Paraná Titanium Project is a property under certain titanium mineral concessions located in the departments of Alto Paraná and Canindeyú in Paraguay.  The Alto Paraná Titanium Project is subject to a 1.5% net smelter returns royalty. We have the right, exercisable to July 2023, to acquire 0.5% of the net smelter royalty at a purchase price of $500.

During Fiscal 2022, the Company exercised its option to acquire one-half percent of the net smelter returns royalty payable on its Alto Paraná Project for total consideration of $500 pursuant to the terms of a Net Smelter Returns Royalty Agreement under a Share Purchase and Option Agreement as entered between UEC and CIC Resources Inc. in March 2016.   The consideration of $500 paid for this option exercise was capitalized to mineral rights and properties and added to the carrying value of the Alto Paraná Titanium Project.