UEX Commences Winter 2012 Hidden Bay Drilling Program

Trading Symbol: UEX-TSX

VANCOUVER, Feb. 16, 2012 /CNW/ - UEX Corporation ("UEX") is pleased to announce that its winter 2012 diamond drilling program has commenced on its 100%-owned Hidden Bay Project in the eastern Athabasca Basin of northern Saskatchewan, Canada. Drilling totaling approximately 3,000 metres will focus on targets in the vicinity of the Horseshoe and Raven deposits.

Given the successful results from drilling the Horseshoe and Raven deposits over the last several years, this drilling program will continue to test additional geological and geophysical targets in the area. These outlying exploration targets include areas with resistivity and gravity anomalies similar to those at the Horseshoe and Raven deposits, suggesting the possibility of new zones of clay alteration which may be associated with uranium mineralization. This drill program will also test structural targets where projections of known faults (such as the Dragon Lake Fault) may extend across potentially favourable lithologies that form preferential hosts to uranium mineralization in other parts of the district.

About the Horseshoe and Raven Deposits
Mineralization at the Horseshoe and Raven deposits comprises shallow dipping zones of hematization with disseminated and veinlet pitchblende-boltwoodite-uranophane that are hosted by folded arkosic quartzite gneiss. The two deposits are located approximately 4 kilometres south of Cameco's Rabbit Lake milling operation, and 22 kilometres southeast of AREVA's McClean Lake milling operation. As previously announced in July 2009, the Horseshoe and Raven deposits collectively contain, at a cutoff grade of 0.05% U3O8, National Instrument 43-101 ("N.I. 43-101") compliant resources of:

  • 35.04 million pounds of U3O8 grading 0.155% U3O8 in the Indicated category; and
  • 2.72 million pounds of U3O8 grading 0.111% U3O8 in the Inferred category.

These resource estimates are supported by a technical report by K. Palmer, P.Geo. of Golder Associates Ltd. ("Golder"), with an effective date of July 15, 2009 filed on SEDAR (www.sedar.com) on September 8, 2009.

To view additional information and maps of the deposits, visit UEX's website at www.uex-corporation.com.

Qualified Persons
Technical information in this news release has been reviewed by R. Sierd Eriks, P.Geo., UEX's Vice-President of Exploration, who is Qualified Person as defined by N.I. 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 308,320 hectares (761,875 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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