UEX Announces Shea Creek Drilling Budget of $6 Million for 2012

Trading Symbol: UEX-TSX

VANCOUVER, Nov. 30, 2011 /CNW/ - UEX Corporation ("UEX") is pleased to announce an approved 2012 exploration budget for the Shea Creek Project ("Shea Creek") of $6 million, for which UEX will be responsible for its 49% share, or $2.94 million.

Shea Creek Project

Shea Creek hosts the Kianna, Anne, Colette and 58B deposits, and is the most advanced of the ten 49%-owned Western Athabasca uranium projects joint-ventured with project operator, AREVA Resources Canada Inc. The Shea Creek deposits form part of a world-class uranium system in which mineralization has been defined over a strike length exceeding three kilometres along the Saskatoon Lake graphitic conductor in the northern part of the project. Most areas of mineralization continue to be open and have high potential for both expansion and discovery of new zones (see UEX's news releases of September 28, 2011 and October 31, 2011).

Effective December 31, 2009, UEX reported a combined National Instrument 43-101 ("N.I. 43-101") compliant mineral resource estimate for the Kianna, Anne and Colette deposits of 63.6 million pounds U3O8 in the Indicated Mineral Resource category and an additional 24.5 million pounds U3O8 in the Inferred Mineral Resource category at a cut-off of 0.3% U3O8 (see UEX news release dated May 26, 2010). Results from the 2010 and 2011 drilling, which include the discovery of the 58B Deposit and the expansion of the Kianna and Colette deposits, are not included in this resource estimate.

2012 Shea Creek Exploration
The 2012 exploration program is planned to commence in April 2012 utilizing two drills. Exploration will comprise at least 25 drill holes which will test areas of open mineralization and untested portions of the Shea Creek corridor along the Saskatoon Lake graphitic conductor, to which the deposits are spatially related.

The following areas will be targeted (see Figure 1):

  • North Colette: Several drill holes are planned to test the open extensions of thick intercepts of unconformity mineralization encountered in the 2011 program, which included intervals of 1.28% eU3O8 over 26.0 metres in drill hole SHE-66-2 and 1.22% eU3O8 over 27.9 metres in drill hole SHE-66-3. Mineralization in these drill holes is open to the east and north. Drilling will test the extent of this zone and test for higher grade areas of mineralization within it, as well as evaluate the potential for underlying fault-associated basement mineralization, such as is seen at the Kianna Deposit.

  • Kianna Deposit: Continued testing of basement mineralization discovered in 2011 which lies north of the main Kianna basement zone is planned. Drilling in 2011 has identified a new zone which extends from the north side of the Kianna main basement zone and may join with a second steeply dipping mineralized structure to the north. This new zone, which lies outside of the Kianna resource estimate, has returned broad intercepts of mineralization including 1.28% eU3O8 over 25.1 metres in drill hole SHE-130-4 and 0.81% eU3O8 over 32.0 metres in drill hole SHE-130-12, for which true widths have not yet been determined. The 2012 drilling will target these areas, as well as explore the continuity of higher grade portions of unconformity and basement mineralization to the south.

  • 58B Deposit: The 58B Deposit lies between Kianna and Colette, and to date sufficient drilling has not been completed to estimate a resource. Drilling in 2012 will further test basement mineralization where multiple high-grade veins have been intersected, including 6.53% U3O8 over 1.6 metres in drill hole SHE-133-5. Drilling will also test the extent and continuity of overlying unconformity mineralization.

  • Area between the 58B and Kianna deposits: The partial definition of the 58B Deposit in 2010 highlighted the significant exploration potential of the Shea Creek mineralization trend along the Saskatoon Lake Conductor. The 700-metre strike length between the Kianna and 58B deposits remains sparsely tested. The possibility exists for the discovery of unconformity mineralization in this area and to potentially connect the Kianna and 58B deposits. Drilling in 2012 is planned for the area immediately south of the 58B Deposit.

To view Figure 1 showing the 2012 Shea Creek Drill Targets, please access this news release on UEX's website at www.uex-corporation.com.  Further information regarding UEX's projects, including maps and cross sections, is available on UEX's website www.uex-corporation.com.

This news release has been reviewed and approved by R. Sierd Eriks, P.Geo., UEX's Vice-President of Exploration, and Erwin Koning, P.Geo., AREVA's District Geologist, West Athabasca Region, who are each Qualified Persons as defined by National Instrument 43-101.

About UEX

UEX is a Canadian uranium exploration and development company actively involved in 18 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 ten joint-ventured with AREVA and one under option from JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 18 projects, totaling 328,151 hectares (810,879 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 18% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne, Colette and 58B deposits at its 49%-owned Shea Creek Project, a joint venture with AREVA in the western Athabasca Basin, and the Horseshoe, Raven and West Bear deposits located at its 100%-owned Hidden Bay Project in the eastern Athabasca Basin.

UEX's two major projects have N.I. 43-101 compliant mineral resources as follows:

UEX Corporation - Indicated Mineral Resources (1) (2) (3) (4) (5)
Project   Tonnes   Grade
U3O8 (%)
  Total
U3O8 (lbs)
  UEX's share
U3O8 (lbs)
Shea Creek   1,872,600   1.540   63,572,000   31,150,280
Hidden Bay   10,293,600   0.155   35,044,000   35,044,000
TOTAL INDICATED           98,616,000   66,194,280

UEX Corporation - Inferred Mineral Resources (1) (2) (3) (4) (5)
Project   Tonnes   Grade
U3O8 (%)
  Total
U3O8 (lbs)
  UEX's share
U3O8 (lbs)
Shea Creek   1,068,900   1.041   24,525,000   12,017,250
Hidden Bay   1,109,200   0.111   2,715,000   2,715,000
TOTAL INFERRED           27,240,000   14,732,250

Notes:

  1. The mineral resource estimates comply with the requirements of N.I. 43-101 and classifications comply with 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. Please refer to the technical report on the Kianna, Anne and Colette deposits dated effective May 26, 2010, available online under UEX's profile at www.sedar.com.
  5. Please refer to the technical report on the Horseshoe and Raven deposits dated effective July 15, 2009, available online under UEX's profile at www.sedar.com.

A summary of UEX's mineral reserves are as follows:

UEX Corporation - Total Probable Mineral Reserves (1) (2) (3)
Deposit   Tonnes   Grade
U3O8 (%)
  Total
U3O8 (lbs)
  UEX's share
U3O8 (lbs)
West Bear   72,374   0.94   1,492,261   1,492,261

Notes:

  1. The mineral reserve estimates comply with the requirements of N.I. 43-101 and classifications comply with CIM definition standards.
  2. The West Bear mineral reserves were based on an estimated processing cut-off grade of 0.18% U3O8.
  3. Please refer to the technical report on the West Bear Deposit dated effective February 24, 2010, available online under UEX's profile at www.sedar.com.

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, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", 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. 

 

 

SOURCE UEX Corporation

For further information:

Graham C. Thody
President & CEO
(604) 669-2349

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UEX Corporation

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