Trading Symbol: UEX-TSX
VANCOUVER,
Aug. 6, 2013 /CNW/ - UEX Corporation
("UEX") is pleased to announce the results from the first five
drill holes of the 2013 summer exploration program at the Shea
Creek Project ("Shea Creek"). Shea Creek hosts the Kianna, Anne,
Colette and 58B deposits (see Figure 1) and is one of eight
49%-owned Western Athabasca Uranium Projects joint-ventured with
AREVA Resources Canada Inc. ("AREVA"), the project operator.
The 2013 summer drilling results to date include
two holes drilled in the Kianna East Zone ("Kianna East") area as
part of a $2.0 million supplemental
exploration budget and three holes drilled to test the prospective
Saskatoon Lake Conductor ("SLC") which continues to the south of
the Anne Deposit (see Figure 1) as part of a $3.1 million exploration budget (of which UEX is
responsible for funding $1.52
million).
Drilling Results - Kianna East
The results reported are from a new pilot hole,
SHE-142, and one directional drill hole, SHE-142-1, which were
drilled to test the up dip projection and the northern extension
respectively of the previous drilling in Kianna East (see Figure
2). Kianna East is a mineralized body discovered in 2012 that
dips shallowly to the southwest and lies to the east of, and below
the main zone of Kianna basement mineralization. Results from these
drill holes include:
SHE-142: (B) 0.85% eU3O8
over 22.3 metres, including:
Upper Kianna East
Zone (B) 5.93% eU3O8
over 1.4 metres, and
Kianna
East Zone
(B) 1.30% eU3O8
over 6.9 metres.
Complete results from drilling in Kianna East
that have been intersected to date are reported in Table 1.
The mineralization in drill hole SHE-142 expands
Kianna East mineralization approximately 15 metres to the east of
drill hole SHE-118-24, which intersected 1.55%
eU3O8 over 19.9 metres, and maintains a
substantial width. The position of the drill hole suggests that the
zone continues to the east of the previously reported drilling
beyond the 2013 Shea Creek resource estimate. Mineralization
is open east and southeast of this drill hole and there is
potential for the still open, thick, higher-grade areas seen in
previous drilling to extend into this area.
Drill hole SHE-142-1 intersected a section of
lower-grade mineralization grading 0.23%
eU3O8 over 1.6 metres approximately 35 metres
north of mineralization in drill hole SHE-118-24. In
addition, the hole intersected a fault zone with strongly
tectonized and brecciated graphitic pelitic gneiss from 934.1
metres to 969.7 metres which shows strong clay alteration and
dravite infilling between breccia fragments. This fault zone
is present in all of the Kianna East drill holes and represents the
controlling, shallow dipping structure to the mineralization which
may project up eastward to the Athabasca unconformity where it represents an
exploration target for additional areas of unconformity
mineralization.
The drilling in the Kianna East area is part of
a $2.0-million budget for exploration
on the Shea Creek Project funded by UEX under the agreement signed
on April 4, 2013 (see UEX's news
release dated June 4, 2013). The 2013
additional drilling program of approximately 4,000 metres is
designed to test open portions of the Kianna East mineralized zone
as well as open portions of the northern part of the Kianna Deposit
("Kianna North").
Drilling Results - Anne South
The 2013 exploration program south of the Anne
Deposit has a budget of $3.1 million,
for which UEX will be responsible for its 49% share, or
$1.52 million. This exploration
program consists of a $0.5 million
geophysical Tensor Magnetotelluric ("MT") survey in the northern
Colette and southern Anne areas which has been completed and a
$2.6 million drilling program of
5,000 metres south of the Anne Deposit ("Anne") that commenced in
mid-June.
There are only four previous drill holes in this
area south of Anne (see Figure 1), including drill hole SHE-24
which intersected mineralization grading 0.074%
U3O8 over 2.3 metres in the basement rocks
approximately 20 metres below the unconformity.
Two directional holes were completed using
SHE-24 as a pilot hole. Holes SHE-24-1 and SHE-24-2 targeted the
up-dip (northeast) and down-dip (southwest) extensions of
mineralization in SHE-24 respectively. The holes both encountered
favorable graphitic structural zones in the basement. Hole SHE-24-1
intersected minor mineralization of 0.05%
eU3O8 over 1.9 metres within weakly hematized
conglomeratic sandstone, including 0.17%
eU3O8 over a narrow 0.2 metre interval just
above the unconformity from 703.3 to 703.5 m.
A new pilot hole, SHE-143, tested the SLC on
line 62+00N (see Figure 1). The drill hole intersected a strongly
graphitic structural zone from 800.0 to 804.2 metres containing
abundant angular rubble with small sections of fault gouge.
No significant results above a 0.1% eU3O8
cut-off were returned from probing.
Merger of the Shea Creek and Douglas River
Projects
AREVA and UEX have agreed to combine the Shea
Creek Project and the contiguous Douglas River Project as the known
mineralization at the northern boundary of Shea Creek extends into
the Douglas River property. The combined projects are now
referred to as the Shea Creek Project.
Hidden Bay Update
On the Hidden Bay Project, UEX, together with
its consultants, have completed various component studies and
examined alternatives for the potential mining and processing of
its mineral resources. UEX is conducting other field tests on
waste rock materials which require a longer time frame to
complete. We believe that, as a result of the undertaking of
these various studies, we have improved our knowledge of the
deposits, potential mining scenarios, and the alternatives
available for future development. These studies provide the
basis for future project evaluation and potential
development. The mining industry has generally experienced
increases in capital and operating costs on almost all
projects. We recognize that the Hidden Bay Project is subject
to the same financial and economic challenges. We plan to
defer further evaluation and development of the Project until there
is a sustained recovery of spot and long-term uranium commodity
prices to appropriate levels.
Further information regarding UEX's projects,
including maps, is available on UEX's website at
www.uex-corporation.com.
To view Figure 1 (Northern Shea Creek Area -
2013 Drilling Programs) and Figure 2 (2013 Shea Creek (Kianna East)
Drill Results: SHE-142 and SHE-142-1), please access this news
release on UEX's website at www.uex-corporation.com.
Qualified Persons and Data
Acquisition
Technical information in this news release has
been reviewed and approved by R. Sierd
Eriks, P.Geo., UEX's Vice-President of Exploration,
David Rhys, P.Geo., UEX Advisory
Board member and Erwin Koning,
P.Geo., AREVA's Technical Advisor, Exploration, who are each
Qualified Persons as defined by National Instrument 43-101.
Equivalent uranium grade
(eU3O8) reported here were obtained using a
DHT27-STD gamma probe which collects continuous readings along the
length of the drill hole. Probe results are calibrated using
an algorithm calculated from the comparison of probe results
against geochemical analyses in previous drill holes in the Shea
Creek area. True widths of mineralized intervals have not yet
been determined. All intervals are also analyzed
geochemically at the SRC Geoanalytical Laboratories in Saskatoon, SK to support the probe data.
About UEX
UEX is a Canadian uranium exploration and
development company actively involved in 16 uranium projects,
including six that are 100% owned and operated by UEX, one joint
venture with AREVA that is operated by UEX, as well as eight
joint-ventured with AREVA and one joint venture with AREVA and JCU
(Canada) Exploration Company,
Limited, which are operated by AREVA. The 16 projects,
totaling 264,363 hectares (653,255 acres), are located in the
eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium
belt, which accounts for approximately 15% of the global primary
uranium production. UEX is currently advancing several
uranium deposits in the Athabasca
Basin which include the Kianna, Anne, Colette and 58B deposits at
its 49%-owned Shea Creek Project, and the Horseshoe, Raven and West
Bear deposits located at its 100%-owned Hidden Bay Project.
UEX currently has a cash position of approximately $11.2 million.
UEX's two major projects have mineral resource
estimates as follows:
UEX
Corporation - Indicated Mineral Resources (1) (2)
(3)
Project |
Tonnes |
Grade
U3O8
(%) |
Total
U3O8
(lbs) |
UEX's
share
U3O8 (lbs) |
Shea Creek
(4) |
2,067,900 |
1.484 |
67,663,000 |
33,154,870 |
Hidden Bay
(5) |
10,372,500 |
0.160 |
36,623,000 |
36,623,000 |
TOTAL INDICATED |
12,440,400 |
0.380 |
104,286,000 |
69,777,870 |
UEX
Corporation - Inferred Mineral Resources (1) (2)
(3)
Project |
Tonnes |
Grade
U3O8
(%) |
Total
U3O8
(lbs) |
UEX's
share
U3O8 (lbs) |
Shea Creek
(4) |
1,272,200 |
1.005 |
28,192,000 |
13,814,080 |
Hidden Bay
(5) |
1,109,200 |
0.111 |
2,715,000 |
2,715,000 |
TOTAL INFERRED |
2,381,400 |
0.589 |
30,907,000 |
16,529,080 |
Notes:
(1) |
The mineral resource estimates follow the requirements of
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects and classifications follow CIM definition
standards. |
(2) |
The Shea Creek mineral resources were estimated at a cut-off of
0.30% U3O8. |
(3) |
The Hidden Bay mineral resources were estimated at a cut-off of
0.05% U3O8. |
(4) |
The Shea Creek mineral resource estimates are included in the
Shea Creek Technical Report with an effective date of May 31, 2013
which
was filed on SEDAR at www.sedar.com on May 31, 2013. |
(5) |
The Hidden Bay mineral resource estimates are included in the
Hidden Bay Technical Report with an effective date of February 15,
2011
which was filed on SEDAR at www.sedar.com on February 23,
2011. |
|
|
Forward-Looking Information
This news release may contain statements that
constitute "forward-looking information" for the purposes of
Canadian securities laws. Such statements are based on UEX's
current expectations, estimates, forecasts and projections. Such
forward-looking information includes statements regarding UEX's
mineral resource and mineral reserve estimates, outlook for our
future operations, plans and timing for exploration activities, and
other expectations, intentions and plans that are not historical
fact. The words "estimates", "projects", "expects", "intends",
"believes", "plans", "will", "may", or their negatives or other
comparable words and phrases are intended to identify
forward-looking information. Such forward-looking information is
based on certain factors and assumptions and is subject to risks,
uncertainties and other factors that could cause actual results to
differ materially from future results expressed or implied by such
forward-looking information. Important factors that could cause
actual results to differ materially from UEX's expectations include
uncertainties relating to interpretation of drill results and
geology, additional drilling results, continuity and grade of
deposits, participation in joint ventures, reliance on other
companies as operators, public acceptance of uranium as an energy
source, fluctuations in uranium prices and currency exchange rates,
changes in environmental and other laws affecting uranium
exploration and mining, and other risks and uncertainties disclosed
in UEX's Annual Information Form and other filings with the
applicable Canadian securities commissions on SEDAR. Many of these
factors are beyond the control of UEX. Consequently, all
forward-looking information contained in this news release is
qualified by this cautionary statement and there can be no
assurance that actual results or developments anticipated by UEX
will be realized. For the reasons set forth above, investors should
not place undue reliance on such forward-looking information.
Except as required by applicable law, UEX disclaims any intention
or obligation to update or revise forward-looking information,
whether as a result of new information, future events or
otherwise.
Cautionary Note to United States
Investors
This press release has been prepared in
accordance with the requirements of the securities laws in effect
in Canada, which differ from the
requirements of U.S. securities laws. Unless otherwise indicated,
all resource estimates included in this press release have been
prepared in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy, and Petroleum Definition Standards
on Mineral Resources and Mineral Reserves. NI 43-101 is a rule
developed by the Canadian Securities Administrators which
establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects.
Canadian standards, including NI 43-101, differ significantly from
the requirements of the United
States Securities and Exchange Commission ("SEC"), and
resource information contained herein may not be comparable to
similar information disclosed by U.S. companies. In particular, and
without limiting the generality of the foregoing, the term
"resource" does not equate to the term "reserves". Under U.S.
standards, mineralization may not be classified as a "reserve"
unless the determination has been made that the mineralization
could be economically and legally produced or extracted at the time
the reserve determination is made. The SEC's disclosure standards
normally do not permit the inclusion of information concerning
"measured mineral resources", "indicated mineral resources" or
"inferred mineral resources" or other descriptions of the amount of
mineralization in mineral deposits that do not constitute
"reserves" by U.S. standards in documents filed with the SEC.
Investors are cautioned not to assume that any part or all of
mineral deposits in these categories will ever be converted into
reserves. U.S. investors should also understand that
"inferred mineral resources" have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
"inferred mineral resource" will ever be upgraded to a higher
category. Under Canadian rules, estimated "inferred mineral
resources" may not form the basis of feasibility or pre-feasibility
studies except in rare cases. Investors are cautioned not to assume
that all or any part of an "inferred mineral resource" exists or is
economically or legally mineable. Disclosure of "contained ounces"
in a resource is permitted disclosure under Canadian regulations;
however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves" by SEC standards
as in-place tonnage and grade without reference to unit measures.
Accordingly, information concerning mineral deposits set forth
herein may not be comparable with information made public by
companies that report in accordance with U.S. standards.
TABLE 1
2013 Summer Shea Creek Drill Results
Results are reported with a grade of greater than
0.1% eU3O8 and a grade-thickness product of
greater than 0.2
Hole |
Area |
Total
Depth of
Hole
(metres) |
Depth
to
Unconformity
(metres) |
From
(metres) |
To
(metres) |
Length
(metres) |
Avg.
Grade
Within
the
Intersection
(% eU3O8) |
Type† |
SHE-142 |
Kianna
East |
1056.0 |
726.5 |
885.3 |
888.7 |
3.4 |
0.20 |
B |
|
|
|
|
including
887.5 |
888.7 |
1.2 |
0.35 |
B |
|
|
|
|
907.9 |
910.8 |
2.9 |
0.34 |
B |
|
|
|
|
915.2 |
937.5 |
22.3 |
0.85 |
B |
|
|
|
|
including
915.2 |
924.0 |
8.8 |
1.14 |
B |
|
|
|
|
which includes 915.2 |
916.6 |
1.4 |
5.93 |
B |
|
|
|
|
including
930.6 |
937.5 |
6.9 |
1.30 |
B |
|
|
|
|
949.3 |
953.1 |
3.8 |
0.15 |
B |
SHE-142-1 |
Kianna East |
1083.0 |
727.4 |
939.4 |
941.0 |
1.6 |
0.23 |
B |
SHE-24-1 |
Anne South |
804.0 |
703.8 |
No significant
results |
SHE-24-2 |
Anne South |
906.0 |
711.1 |
No significant
results |
SHE-143 |
Anne South |
840.0 |
697.5 |
No significant
results |
† |
UC - Unconformity mineralization |
|
B - Basement mineralization |
|
|
Note: Uranium grades are calculated from gamma
probe logging. True widths of mineralized intervals have not yet
been determined.
SOURCE UEX Corporation