UEX Continues to Expand Shea Creek's 58B Area, Encountering Significant
Unconformity and Basement Mineralization

Trading Symbol: UEX-TSX

VANCOUVER, June 14 /CNW/ - UEX Corporation ("UEX") is pleased to announce that AREVA Resources Canada Inc. ("AREVA") has reported to UEX results from an additional seven drill holes from its continued exploration in the 58B Area ("58B") of the Shea Creek Project ("Shea Creek"). Shea Creek hosts the Kianna, Anne, and Colette Deposits and is one of ten 49%-owned Western Athabasca Uranium Projects joint-ventured with AREVA, the operator.

The 58B Area represents a new mineralized zone which lies between the Kianna and Colette Deposits (see Figure 1). The results reported in this release, along with previous results reported on March 17, 2010 and historical holes have outlined continuous unconformity mineralization over a northwesterly strike length of 200 metres and is at least 80 metres in lateral width. These results have expanded the overall footprint of mineralization suggesting the potential for a new deposit.

UEX recently reported combined National Instrument 43-101 ("N.I. 43-101") compliant resources for the Shea Creek deposits of 63.6 million pounds U(3)O(8) in the Indicated category and 24.5 million pounds U(3)O(8) in the Inferred category at a cut-off of 0.3% U(3)O(8) (see UEX news release dated May 26, 2010).

The mineralization in the 58B Area has not been included in the N.I. 43-101 compliant resource estimate and will increase the overall Shea Creek resource.

Drilling Results - 58B Area

Current results reported are from new directional cuts from pilot holes SHE-133 and SHE-104 drilled to test both the unconformity ("UC") and basement ("B") mineralization (see Figure 2 for drill hole locations). Complete results from the winter 2010 program are reported in Table 1. Uranium grades reported here have been calculated from gamma probe logging. True widths of mineralized intervals have not yet been determined.

Highlights of recent drill results include:

    
    -   SHE-133-5: (UC) 3.00% eU(3)O(8) over 2.9 metres, and
                   (B)  6.53% eU(3)O(8) over 1.6 metres;
    -   SHE-133-6: (UC) 1.48% eU(3)O(8) over 0.8 metres, and
                   (B)  6.17% eU(3)O(8) over 1.6 metres;
    -   SHE-133-7: (UC) 2.13% eU(3)O(8) over 10.6 metres;
    -   SHE-133-8: (UC) 2.57% eU(3)O(8) over 1.5 metres;
    -   SHE-133-9: (UC) 1.90% eU(3)O(8) over 1.1 metres;
    -   SHE-104-5: (B)  1.18% eU(3)O(8) over 0.9 metres; and
    -   SHE-104-6: (UC) 2.10% eU(3)O(8) over 1.2 metres.
    

A significant aspect of the current and previously reported basement intercepts in the 58B Area is that many occur in a set of east-northeast-trending, steeply dipping pitchblende veins which drilling has intersected to a depth of at least 100 metres below the Athabasca unconformity. This mineralization style and orientation at 58B are comparable to the Kianna Deposit basement mineralization, which forms a large part of the overall Shea Creek resource, and which itself is still open.

Previously reported drilling at 58B during 2009 and 2010 includes the following unconformity and basement-hosted mineralization:

    
    -   SHE-133-2: (B)  1.34% eU(3)O(8) over 3.2 metres;
    -   SHE-133-3: (UC) 1.81% eU(3)O(8) over 7.6 metres, including
                        2.65% eU(3)O(8) over 4.8 metres, and
                   (B)  4.80% eU(3)O(8) over 0.9 metres; and
    -   SHE-133-4: (UC) 6.55% eU(3)O(8) over 2.4 metres.
    

The 2010 winter program was designed to follow up results from the initial discovery hole SHE-58B drilled in 1997, which intersected unconformity mineralization grading 0.44% eU(3)O(8) over 8.1 metres and underlying basement mineralization grading 2.21% U(3)O(8) over 2.6 metres.

The Shea Creek deposits are typically stacked, with basement mineralization often occurring directly beneath significant zones of mineralization at the unconformity and locally developed zones of perched mineralization which may occur in the overlying sandstone above the unconformity. In addition to the results reported above, drill hole SHE-133-8 also intersected a low-grade interval of perched mineralization grading 0.20% eU(3)O(8) over 4.5 metres in chloritic breccia 11 to 16 metres above the unconformity, suggesting potential for this mineralization style at 58B, and which at Kianna is host to very high-grade mineralization.

Exploration Potential

The presence of all three styles of mineralization (basement, unconformity and perched) in the 58B Area is encouraging, and is typical of the Kianna, Anne and Colette Deposits. These three deposits and the 58B Area lie along the same structural trend, which is underlain by the over 30-kilometre long graphitic Saskatoon Lake Conductor.

58B occurs within the sparsely drilled 800-metre strike length of this trend situated between the Kianna and Colette Deposits which includes a 400-metre interval having only one reconnaissance drill hole.

Consequently, there is room for identification of additional deposits and a high potential for interconnectivity of mineralization such as exists along the greater than one-kilometre strike length comprising the Kianna and Anne Deposits.

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 and Erwin Koning, P.Geo., AREVA's District Geologist, West Athabasca Region, who are Qualified Persons as defined by National Instrument 43-101.

Equivalent probe results were obtained using a STD-27 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.

About the Shea Creek Deposits

The Kianna, Anne and Colette Deposits within Shea Creek are distributed along a strike length of over three kilometres of the north-northwest trending Saskatoon Lake graphitic conductor. The Saskatoon Lake conductor is coincident with a southwest-dipping, reverse fault that displaces the flat-lying unconformity with the overlying Athabasca Group sandstone by several tens of metres. Depth to unconformity typically ranges from 700 to 740 metres. As a result of the sandstone thickness, drilling is normally completed by drilling a master pilot drill hole from which several wedge holes are drilled to enable close-spaced drilling.

Known deposits and mineralized areas along the Saskatoon Lake conductor at Shea Creek occur often in areas where east-northeast trending discordant faults offset the north-northwest trending conductive graphitic unit. Three styles and settings of mineralization are present, all of which form components of the current resource estimate:

    
    -   Perched, sandstone-hosted mineralization found in discrete zones tens
        of metres above the unconformity;
    -   Unconformity-type mineralization found in close proximity to the
        unconformity; and
    -   Basement-hosted mineralization found in zones up to 200 metres below
        the unconformity.
    

Although each style of mineralization is comparable to individual uranium deposits in the Athabasca Basin, the common vertical stacking of these three styles is unique to the deposits at Shea Creek. The resources reported here include components of all three of these mineralization styles. Mineralization is mineralogically simple comprising dominantly pitchblende as the primary host to uranium, typical of other significant deposits in the Athabasca Basin, and lacking significant quantities of deleterious elements such as As, Ni, and Co found in some uranium deposits.

About UEX

UEX is a Canadian uranium exploration and development company actively involved in 19 uranium projects, including seven that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, ten joint-ventured with AREVA and one under option from JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 19 projects, totaling 338,972 hectares (837,618 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 22% of the global primary uranium production. UEX is currently developing several uranium deposits in the Athabasca Basin which include the Kianna, Anne and Colette Deposits at its 49%-owned Shea Creek Uranium 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.

About AREVA Resources Canada Inc.

AREVA, a uranium exploration, mining and milling company, is a subsidiary of AREVA group, the global nuclear industry leader with an expanding presence in the renewable energies field, and 50,000 employees worldwide to help supply safer, cleaner and more economical energy to the greatest number of people. AREVA group, through its Canadian subsidiary, has significant interests in several uranium deposits in the Athabasca Basin, including the McClean Lake, Midwest and Shea Creek deposits operated by AREVA, as well as the McArthur River, Cigar Lake and Millennium deposits operated by Cameco Corporation. AREVA also holds a majority interest in the Kiggavik deposits in Nunavut.

Forward-Looking Statements

This news release contains "forward-looking statements" that are based on UEX's current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding UEX's resource estimates, outlook for our future operations, plans and timing for the commencement or advancement of exploration activities on our properties, 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 statements. Such forward-looking statements are based on certain factors and assumptions and are 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 statements. 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, 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 securities commission on SEDAR. Many of these factors are beyond the control of UEX. Consequently, all forward-looking statements made in this news release are 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 statements. 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.

    
                                   TABLE 1
               Winter 2010 Shea Creek (58B Area) Drill Results

    -------------------------------------------------------------------------
    Hole       Total     Depth to      From      To     Length    Avg.  Type
               Depth   Unconformity  (metres) (metres) (metres)  Grade   (+)
              of Hole    (metres)                                Within
              (metres)                                            the
                                                                 Inter-
                                                                section
                                                             (% eU(3)O(8))
    -------------------------------------------------------------------------
    SHE-104-5    909.0    721.5       721.2    721.9     0.7      0.28    UC
                                      726.2    726.9     0.7      0.31     B
                                      853.9    854.8     0.9      1.18     B
    -------------------------------------------------------------------------
    SHE-104-6    861.0    723.6       717.2    718.4     1.2      2.10    UC
                                      720.0    720.5     0.5      0.66    UC
    -------------------------------------------------------------------------
    SHE-133-3*  903.0    725.3       718.2    725.8     7.6      1.81    UC
                           including  721.0    725.8     4.8      2.65    UC
                                      744.6    745.7     1.1      1.02     B
                                      749.3    750.1     0.8      0.54     B
                                      757.6    758.5     0.9      4.80     B
    -------------------------------------------------------------------------
    SHE-133-4*  975.0    716.5       714.2    716.6     2.4      6.55    UC
                                      742.0    743.6     1.6      1.08     B
                                      755.7    756.3     0.6      1.12     B
                                      760.8    761.5     0.7      0.63     B
                                      784.1    785.4     1.3      1.21     B
    -------------------------------------------------------------------------
    SHE-133-5    954.0    719.0       717.0    719.9     2.9      3.00    UC
                                      849.1    850.7     1.6      6.53     B
    -------------------------------------------------------------------------
    SHE-133-6    930.0    712.4       713.6    714.4     0.8      1.48    UC
                                      786.3    787.9     1.6      6.17     B
    -------------------------------------------------------------------------
    SHE-133-7                         705.6    716.2    10.6      2.13    UC
                                      779.5    779.8     0.3      0.14     B
    -------------------------------------------------------------------------
    SHE-133-8    888.0    721.0       705.4    709.9     4.5      0.20     P
                                      719.7    721.2     1.5      2.57    UC
    -------------------------------------------------------------------------
    SHE-133-9    870.0    717.2       718.1    719.2     1.1      1.90    UC
    -------------------------------------------------------------------------

    * Previously reported hole - (see UEX news release dated March 17,
        2010)

    (+) UC - Unconformity mineralization
        B - Basement mineralization
        P - Perched mineralization

    Note: Uranium grades are calculated from gamma probe logging. True
    widths of mineralized intervals have not yet been determined.
    

SOURCE UEX Corporation

For further information: For further information: Graham C. Thody, President & CEO, (604) 669-2349

Organization Profile

UEX Corporation

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890