Trading Symbol: UEX-TSX
VANCOUVER, Jan. 17 /CNW/ - UEX Corporation ("UEX") is pleased to announce
that a 40,000 metre winter exploration and infill drilling program, budgeted
at $8.0 million, is under way on its 100% owned Hidden Bay Uranium Project
("Hidden Bay") in the eastern Athabasca Basin area of northern Saskatchewan.
Hidden Bay includes the Raven Deposit ("Raven"), the Horseshoe Deposit
("Horseshoe"), and the West Bear Deposit. Six diamond drill rigs are on site
with three operating at Horseshoe, two at Raven, and one to begin shortly at
the Shamus and Telephone target areas. All drilling is being performed by
Britton Bros. Diamond Drilling Ltd. of Smithers, B.C.
The 2008 winter drilling program will consist of approximately 32,000
metres of infill, stepout and exploration drilling in and around the Raven and
Horseshoe Deposits. An additional 8,000 metres of exploration drilling is
planned at the Shamus and Telephone target areas. The current complement of
six drills and the rate of drilling will allow expansion of the program if
favorable results require follow-up.
The first 45 holes from the 2007 Hidden Bay summer/fall drilling program
at Horseshoe have been released (see UEX News Releases of October 29, 2007 and
January 2, 2008). UEX also completed 5,973 metres of drilling at the Wolf and
Tent-Seal target areas. Results from these areas, an additional 44 holes from
Horseshoe and 33 holes from Raven will be released in the near future.
2008 Winter Drilling Program at Horseshoe
Approximately 20,000 metres of drilling is planned in and around the
Horseshoe Deposit using three drill rigs.
One drill will carry out a 5,500 metre, 25 hole drill program to test the
southern parts of the Horseshoe Deposit. This area contains a shallow
northwest dipping mineralized zone that is contiguous with the A zone of
Horseshoe. The zone is open in many areas to the west, and requires further
infill drilling to test continuity of several significant historical
intercepts so that it can be included in future Horseshoe resource
calculations. It was not possible to test this area during the 2007
summer/fall drilling program due to the local swampy conditions. Cold winter
temperatures over the last few weeks have created excellent surface access
Two additional drills will carry out an extensive 14,500 metre, 44 hole
drill program to test the northeastern extensions of the deposit, as well as a
series of targets which include resistivity and gravity anomalies, areas of
alteration, and prospective faulting in the surrounding area.
While much of the core portions of the Horseshoe deposit have now been
drilled to sufficient spacing to enable an indicated resource confidence
level, northeastern parts of the deposit are have only been tested by widely
spaced (generally 60-100 metre spacing) historical drill holes, and several
historical intercepts in that area obtained by Gulf Minerals Canada ("Gulf")
in the 1970's suggest that additional mineralized pods may be present. These
include intercepts grading 1.06% U(3)O(8) over 2.74 metres in hole HS-61A,
0.78% U(3)O(8) over 2.74 metres in hole HS-49, and 0.74% U(3)O(8) over 1.22
metres in hole HS-59 which lie on the margins of the same large clay
alteration zone which is associated with the central Horseshoe deposit.
Approximately 20 holes will test the extent of mineralization here.
An additional 24 holes will test targets within a kilometre radius to the
north, east, south, and west of the Horseshoe Deposit. These targets include
coincident gravity-resistivity anomalies that previous drilling suggests
contain similar large areas of clay alteration comparable to that associated
with the Raven and Horseshoe mineralization, and structural targets including
altered hematite breccias along the Dragon Lake Fault.
The Dragon Lake Fault is known to be associated with uranium
mineralization where it intersects the Rabbit Lake Fault a few kilometres to
the north adjacent to the past producing Rabbit Lake Deposit.
2008 Winter Drilling Program at Raven
Approximately 13,200 metres of drilling is planned in and around the
Raven Deposit using two drill rigs.
One drill will carry out an 8,000 metre, 31 hole drill program of infill
and stepout drilling at the Raven Deposit. A second drill will carry out a
5,200 metre, 16 hole drill program to explore for extensions of the deposit
down dip to the south.
Drilling at Raven is outlining several stacked, generally stratabound
pods which occur in the core of the Raven syncline between depths of 50 and
350 metres below surface. These pods collectively have a linear,
east-northeast trend over a strike length of more than 500 metres. The
cumulative results from the 2007 summer/fall drilling program yet to be
released, and the 2008 drilling program should provide enough information to
calculate a National Instrument 43-101 ("N.I. 43-101") compliant resource
estimate at the Raven Deposit later in 2008.
2008 Winter Drilling Program at the Shamus and Telephone Areas
One drill will carry out an 8,000 metre drill program at the Shamus and
Initial drilling at Shamus will focus on further exploring a large area
of alteration in pegmatite within the hangingwall of the Telephone Lake Fault,
where previous drilling has intersected multiple mineralized faults in widely
spaced holes that have returned grades ranging from 0.1% to 0.46% U(3)O(8)
over intervals of several metres, including 0.39% U(3)O(8) over 2.2 metres in
hole SHA-20. This target area, in pegmatite associated with fault strands in
the hangingwall to a major graphitic fault, is similar to the geological
setting and style of the Eagle Point deposit.
Additional holes will test the Telephone Lake Fault itself, including
follow-up to previous intercepts in the Telephone grid, where several areas of
mineralization are open at depth along the fault.
The Shamus and Telephone grids lie along the southern extensions of the
northeast-trending Telephone Lake fault system, a significant fault which to
the north is spatially associated with the Sue Deposits on AREVA Resources
Canada Inc.'s ("AREVA") adjacent McClean Lake property.
About the Raven and Horseshoe Deposits
Horseshoe and the adjacent Raven Deposit are located less than 5
kilometres south of Cameco Corporation's Rabbit Lake operations, and 12
kilometres southeast of AREVA's McClean Lake operations. Both deposits are
hosted by competent basement rocks that could be amenable to both open-pit and
conventional underground ramp access mining methods, pending a positive
feasibility study. Using widely spaced drill holes, in 1980 Gulf estimated a
total resource at Raven and Horseshoe of 6.7 million tonnes at an average
grade of 0.16% U(3)O(8), representing approximately 22.82 million contained
pounds of U(3)O(8) (13.2 million pounds grading 0.17% U(3)O(8) at Horseshoe,
and 9.62 million pounds grading 0.14% U(3)O(8) at Raven). These historical
resource estimates were not calculated using current Canadian Institute of
Mining, Metallurgy and Petroleum standards. As a result, they are not
compliant with N.I. 43-101, and should not be relied upon.
The technical information in this news release regarding Raven and
Horseshoe has been compiled by David Rhys, P. Geo., a Qualified Person as
defined by N.I. 43-101.
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 Resources Canada Inc. ("AREVA")
that is operated by UEX, ten joint-ventured with AREVA and one under option
from Japan-Canada Uranium Company, Limited, which are operated by AREVA. The
19 projects, totaling 386,650 hectares (955,400 acres), are located in the
eastern, western and northern perimeters of the Athabasca Basin, the world's
richest uranium belt, which accounts for approximately 25% of the global
primary uranium production. UEX is currently developing several uranium
deposits in the Athabasca Basin which include the Anne and Kianna Deposits at
its Shea Creek Uranium Project, a joint venture with AREVA in the western
Athabasca Basin, and the West Bear, Raven and Horseshoe deposits located at
its 100% owned Hidden Bay Project in the eastern Athabasca Basin. UEX's
exploration and development budgets for 2007 totaled approximately
$30.0 million and are estimated at $40 million for 2008.
ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Stephen H. Sorensen
President & C.E.O.
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 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 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. 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. UEX disclaims any intention or obligation to update or revise
forward-looking information, whether as a result of new information, future
events or otherwise.
For further information:
For further information: UEX CORPORATION, Suite 1007 - 808 Nelson
Street, Vancouver, B.C., Canada, V6Z 2H2, PH: (604) 669-2349, FAX (604)
669-1240, Website: www.uex-corporation.com, email: email@example.com