Trading Symbol: UEX-TSX
VANCOUVER,
Jan. 7, 2014 /CNW/ - Work has
commenced on the combined $2.0
million joint venture budget for the Western Athabasca
Projects which was previously announced on November 27, 2013, as well as on the recently
approved $0.65 million joint venture
budget for the Black Lake
Project.
Western Athabasca Projects
UEX Corporation ("UEX") is responsible for
funding $982,000 of the $2.0 million 2014 exploration program at its
Western Athabasca Projects. The budget will be directed solely
toward exploration of the Laurie, Mirror River and Erica Projects
(see Figure 1). Effective December 31, 2013 and upon finalization of 2013
exploration expenditures, the projects will be owned approximately
49.1% by UEX and 50.9% by the operator, AREVA. Mobilization onto
the Laurie Project area has commenced and drilling of approximately
2,000 metres is expected to begin by mid-January 2014. A ground geophysical
program on the Erica Project is expected to commence in
mid-March 2014. Drilling of
approximately 2,000 metres at the Mirror Project will commence upon
the completion of the exploration drilling at Laurie.
Black Lake Project
UEX and Uracan Resources Ltd. ("Uracan") have
planned a $650,000 diamond drilling
program of approximately 3,000 metres to test geophysical and
geochemical targets on the Black Lake Project ("the Project") which
will be funded 100% by Uracan. Drilling will commence in late
January with UEX acting as operator of the Project (see Figure
2).
In early 2013, Uracan signed an agreement with
UEX whereby Uracan acquired the option to earn from UEX a 60%
participating interest in the Black Lake Project in northern
Saskatchewan (see UEX news
releases dated January 24, 2013 and
February 13, 2013). UEX has an
89.97% interest in the Project with AREVA Resources Canada Inc.
("AREVA") holding the remaining 10.03% interest.
In order for Uracan to earn its 60%
participating interest in the Project, it must incur a total of
$10.0 million in exploration
expenditures over a 10 year period commencing in 2013. Uracan
must spend $2.0 million on
exploration expenditures by December 31,
2014 with a firm commitment to spend $1.5 million even if it decides not to proceed
with the earn-in or the Agreement is otherwise terminated.
Any shortfall in the $1.5 million
commitment will be payable to UEX. During the remainder of
the option period, minimum expenditures of $1.0 million per year are required. Uracan
will fund the UEX portion of all exploration work until the earn-in
option has been completed, after which further work will be funded
by the Joint Venture partners.
About the Laurie and Mirror River
Projects
The Laurie and Mirror River project areas lie
along the southern margin of the Athabasca Basin approximately 35 and 55
kilometres, respectively, east of the Fission Uranium Corp.
discovery at Patterson Lake South. A $1.4 million budget for 2014 will test several
electromagnetic conductors with approximately 4,000 metres of
drilling, particularly in areas where crosscutting structures are
postulated to be present or where strong, previously untested
conductors are apparent. These conductors have the potential to be
associated with unconformity-style uranium mineralization in
structural settings which are interpreted to be comparable to those
associated with known deposits in the region.
About the Erica Project
The Erica Project area lies directly west of
UEX's Shea Creek Project, which hosts the Kianna, Anne, Colette and
58B deposits. A $600,000 budget
for 2014 has been designed to carry out a ground geophysical Tensor
Magnetotelluric program of 50.4 line-kilometres. This ground
geophysical program is planned over a northwest-southeast
conductive trend outlined by a previous 2002 MEGATEM®
airborne geophysical survey in a setting which is similar to the
orientation and intensity of the Saskatoon Lake Conductor that is
associated with uranium mineralization on the Shea Creek
Project.
About the Black Lake Project
The Black Lake Project covers a total of 30,381
hectares within the prolific Athabasca Basin. Bleaching and
desilicification of the sandstone as well as strong local clay
alteration and dravite zones have been intersected on the property
consistent with those associated with uranium mineralization
elsewhere in the Athabasca
Basin. Prospective structures (reverse faulting on main
conductor, east-west cross structures) are also noted throughout
the property and are considered good potential hosts for uranium
mineralization.
Previous exploration drilling conducted by UEX
on the property has intersected significant uranium mineralization
in several areas. Highlights with grades greater than 0.5%
U3O8 and a grade thickness of greater than
0.9 include (as previously described in UEX press releases dated
October 12, 2004, August 14, 2006, February
27, 2007 and August 21, 2007,
respectively):
BL-018: 0.69%
U3O8 over 4.4 metres, including 1.96%
U3O8 over 0.5 metres;
BL-082: 0.50%
U3O8 over 3.3 metres, including 1.60%
U3O8 over 0.7 metres;
BL-110: 0.79%
U3O8 over 2.82 metres; and
BL-140: 0.67%
U3O8 over 3.0 metres, including 1.58%
U3O8 over 1.0 metre.
These mineralized intervals were encountered at
the unconformity between the overlying Proterozoic Athabasca
sandstones and underlying Archean/Aphebian basement rocks at
downhole depths between 274 metres and 315 metres.
UEX believes that the Project has the potential
to host high-grade unconformity-related uranium
mineralization. Extensive exploration potential continues to
exist throughout the Project, with numerous additional geophysical
and geochemical targets remaining to be drill tested.
Further information regarding UEX's projects,
including maps, is available on UEX's website at
www.uex-corporation.com.
To view Figure 1 (Western Athabasca Projects -
Location of Erica, Laurie and Mirror River Projects) and Figure 2
(Black Lake Project - Location of Black
Lake and other UEX Projects) please access this news release
on UEX's website at www.uex-corporation.com.
Qualified Person and Geochemical
Analyses
Technical information in this news release has
been reviewed and approved by R. Sierd
Eriks, P.Geo., UEX's Vice-President of Exploration, who is a
Qualified Person as defined by National Instrument 43-101 ("N.I.
43-101") standards.
All samples were analyzed geochemically at the
Saskatchewan Research Council Geoanalytical Laboratories in
Saskatoon, SK by ICP, with
additional uranium analyses by fluorimetry.
About UEX
UEX (TSX:UEX, OTC:UEXCF.PK, UXO.F) 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 currently 49.1%-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
$8.7 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
(2) |
2,067,900 |
1.484 |
67,663,000 |
33,222,533 |
Hidden Bay
(3) |
10,372,500 |
0.160 |
36,623,000 |
36,623,000 |
TOTAL INDICATED |
12,440,400 |
0.380 |
104,286,000 |
69,845,533 |
UEX Corporation - Inferred Mineral Resources
(1) (2) (3)
Project |
Tonnes |
Grade
U3O8 (%) |
Total
U3O8 (lbs) |
UEX's share
U3O8 (lbs) |
Shea Creek
(2) |
1,272,200 |
1.005 |
28,192,000 |
13,842,272 |
Hidden Bay
(3) |
1,109,200 |
0.111 |
2,715,000 |
2,715,000 |
TOTAL INFERRED |
2,381,400 |
0.589 |
30,907,000 |
16,557,272 |
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, and are documented 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. |
(3) |
The Hidden Bay mineral resources were estimated at a cut-off of
0.05% U3O8, and are documented 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 news 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 pounds"
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.
SOURCE UEX Corporation