Note 5 - Mineral Rights and Properties

6 Months Ended

Jan. 31, 2022

Notes to Financial Statements

Mineral Industries Disclosures [Text Block]

NOTE 5: MINERAL RIGHTS AND PROPERTIES

Mineral Rights

During the three months ended January 31, 2022, in connection with the U1A Acquisition, we acquired the UEC Wyoming Portfolio, which primarily consists of 12 projects located in Wyoming, six of which are located in the Powder River Basin with four fully permitted, and six of which are located in the Great Divide Basin.  The UEC Wyoming Portfolio also consists of dozens of under-explored, mineralized brownfield projects, backed by detailed databases of historic uranium exploration and development programs.  Refer to Note 3: Acquisition of Uranium One Americas, Inc.

As of January 31, 2022, the preliminary fair value allocated to the UEC Wyoming Portfolio was $110,413,823 in aggregation, but we had not yet completed the analysis to assign fair values to each individual project that comprises UEC Wyoming Portfolio.

As at January 31, 2022, we had mineral rights in the States of Arizona, Colorado, New Mexico, Wyoming and Texas, in Canada and in the Republic of Paraguay. These mineral rights were acquired through staking, purchase or lease agreements and are subject to varying royalty interests, some of which are indexed to the sale price of uranium and titanium. As of January 31, 2022, annual maintenance payments of approximately $5.0 million will be required to maintain these mineral rights.

As at January 31, 2022, the carrying value of our mineral rights and properties, including the recently acquired UEC Wyoming Portfolio, were as follows:

	January 31, 2022			July 31, 2021
Mineral Rights and Properties
Palangana Mine	$	6,027,784		$	6,027,784
Goliad Project		8,689,127			8,689,127
Burke Hollow Project		1,495,750			1,495,750
Longhorn Project		116,870			116,870
Salvo Project		14,905			14,905
Anderson Project		3,470,373			3,470,373
Workman Creek Project		949,854			899,854
Los Cuatros Project		257,250			257,250
Slick Rock Project		90,000			60,000
Reno Creek Project		31,527,870			31,527,870
UEC Wyoming Portfolio		110,413,823			-
Diabase Project		982,358			546,938
Yuty Project		11,947,144			11,947,144
Oviedo Project		1,133,412			1,133,412
Alto Paraná Titanium Project		1,433,030			1,433,030
Other Property Acquisitions		91,080			91,080
		178,640,630			67,711,387
Accumulated Depletion		(3,929,884	)		(3,929,884	)
		174,710,746			63,781,503
Databases and Land Use Agreements		2,458,808			2,458,808
Accumulated Amortization		(2,457,058	)		(2,456,308	)
		1,750			2,500
	$	174,712,496		$	63,784,003

We have not established proven or probable reserves, as defined by the SEC, for any of our mineral projects.  We have established the existence of mineralized materials for certain mineral projects.  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.

During the six months ended January 31, 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 $435,420, which consisted of 111,864 shares with a fair value of $425,519 and transaction costs of $9,901. As a result of these claims being added to our existing Diabase Project, the carrying value of our Diabase Project increased to $982,358 ( July 31, 2021: $546,938).

During the three and six months ended January 31, 2022 and 2021, we continued with reduced operations at our ISR Mines to capture residual uranium only. As a result, no depletion for the ISR Mines was recorded on our condensed consolidated financial statements for the three and six months ended January 31, 2022 and 2021. 

Mineral property expenditures incurred on our projects, including $438,784 incurred for the UEC Wyoming Portfolio since the date of U1A Acquisition, were as follows:

	Three Months Ended January 31,				Six Months Ended January 31,
	2022		2021		2022		2021
Mineral Property Expenditures
Palangana Mine	$	266,396	$	232,866	$	511,716	$	431,668
Goliad Project		31,986		71,267		129,440		117,056
Burke Hollow Project		702,155		185,838		1,417,696		315,616
Longhorn Project		4,529		2,289		7,450		4,577
Salvo Project		4,453		7,673		10,149		15,865
Anderson Project		16,114		19,425		32,609		38,891
Workman Creek Project		8,168		8,167		16,755		16,365
Slick Rock Project		12,994		12,993		26,484		26,129
Reno Creek Project		224,333		169,576		424,152		270,066
Allemand Ross Project		48,889		-		48,889		-
Christensen Ranch Mine		263,227		-		263,227		-
Ludeman Project		46,277		-		46,277		-
Moore Ranch Project		18,547		-		18,547		-
Yuty Project		12,567		8,334		20,612		14,328
Oviedo Project		139,847		98,804		322,594		146,415
Alto Paraná Titanium Project		143,794		29,463		204,652		45,914
Other Mineral Property Expenditures		164,897		114,562		264,440		220,128
	$	2,109,173	$	961,257	$	3,765,689	$	1,663,018