Trading Symbol: UEX-TSX
VANCOUVER, April 10 /CNW/ - UEX Corporation ("UEX") is pleased to
announce that it has been informed of, and fully supports AREVA Resources
Canada Inc.'s ("AREVA") decision to launch the regulatory process regarding
the sinking of an exploration shaft and development of an exploration drift at
its Shea Creek Uranium Project ("Shea Creek") located in the western Athabasca
Basin area of northern Saskatchewan. The proposed shaft has been strategically
located between the Anne and Kianna Deposits to provide underground access to
both deposits and the highly-prospective corridor between them (see UEX's
website at www.uex-corporation.com for a map depicting shaft location).
The proposed shaft will have a vertical depth from surface of
approximately 950 metres and an estimated capital cost of $100 million (CDN).
Preliminary site characterization and base line testing will commence this
summer with the potential for the Project Description to be filed in the last
quarter of 2007. Filing of the Project Description would commence the
environmental assessment process during which applications will be made in
order to obtain the necessary permits to construct the exploration shaft.
"The decision to go underground at Shea Creek is the most significant
event in UEX's short, five-year history," said Stephen Sorensen, President and
CEO of UEX. "In my opinion, Shea Creek could eventually become one of the
largest producing uranium projects in the world, elevating UEX to the ranks of
a major uranium producer," said Sorensen.
A schedule for the integration of development work into the ongoing
exploration program has been established by AREVA. Presently, there are two
drill rigs carrying out exploration drilling at the Kianna Deposit and a third
rig is drilling exploration holes approximately 20 kilometres south of Shea
Creek along the Shea Creek corridor. By mid-April, the third rig will move
north to the Kianna Deposit area, and a fourth drill rig will arrive on site.
Exploration and development programs will be integrated using four drills
according to the following schedule:
April to June 2007
- Two diamond drills will be used for continued exploration of the
mineralized zones at the Kianna Deposit until mid-June 2007;
- Two diamond drills will be used to drill five pilot holes for
exploration purposes beginning in mid-April in the area between the
Anne and Kianna Deposits, which is a highly-prospective corridor
about 600 metres long. These five pilot holes should be completed by
mid-June 2007. Each pilot hole will be logged to acquire geotechnical
data, and Packer testing will be carried out before the drill rigs
are moved. The pilot holes may be used for directional exploration
drilling at a later date.
July and August 2007
Two drills will be utilized for drilling 3 to 5 larger-diameter HQ-size
hydrogeological holes to a depth of approximately 800 metres (to be confirmed)
in the area chosen for the shaft. Three engineering holes should be completed
by the end of July, and if five holes are drilled, the completion date is
expected be the third week of August. The purpose of the hydrogeological holes
will be to estimate the ground water flow into the shaft and the underground
workings, at a scoping study level, for the Project Description.
September to November 2007
In mid-September 2007 two drills will resume exploration drilling in the
area of the Kianna and Anne Deposits.
UEX estimates that it will earn an additional 12.25% interest in the
Western Athabasca Projects, which includes Shea Creek, by the end of the 3rd
Quarter 2007, increasing its interest from 24.5% to 36.75%. UEX anticipates
that it will earn its full 49% interest by mid-2008.
About the Kianna Deposit
At the Kianna Deposit, high-grade uranium mineralization has been
intersected in multiple zones at depths from 662 metres to 922 metres, a
vertical distance of approximately 250 metres - located in sandstone high
above the unconformity, at the unconformity, and below the unconformity in
basement rocks, with unconformity depths ranging from approximately 710 to
760 metres. To date, the mineralization at the Kianna Deposit has been traced
over a strike length of 200 metres and a width of 150 metres, and remains open
in all directions.
The AREVA-UEX drilling programs of 2004, 2005 and 2006 have outlined
three distinct styles of high-grade uranium mineralization:
- Perched, sandstone-hosted mineralization found in discrete zones tens
of metres above the unconformity (previously announced 2005 hole
SHE-114-5, 27.4% U(3)O(8) over 8.8 metres, including 58.3% U(3)O(8)
over 3.5 metres);
- Unconformity-type mineralization, in close proximity to the
unconformity (previously announced 2006 hole SHE-115-3, grading
12.57% U(3)O(8) over 11.9 metres, including 27.35% U(3)O(8) over
- Basement-hosted mineralization, found in zones up to 200 metres below
the unconformity (previously announced 2005 hole SHE-114-11, grading
5.40% U(3)O(8) over 37.7 metres, including 25.46% U(3)O(8) over
About the Anne Deposit
The Anne Deposit is geologically comparable to the Kianna Deposit with
both unconformity and basement mineralization. To date, the mineralization at
the Anne Deposit has been traced over a strike length of 250 metres and a
width of 100 metres and remains open in all directions. A systematic drilling
program has outlined the current deposit, but with the recent focus on the
Kianna Deposit, no work has been carried out on the Anne Deposit since the
fall of 2004.
Previous drilling programs have outlined two distinct styles of high
- Unconformity-type mineralization, in close proximity to the
unconformity (previous hole SHE-99-2, grading 9.17% U(3)O(8) over
15.7 metres, including 36.37% U(3)O(8) over 2.5 metres);
- Basement hosted mineralization, found in zones up to 35 meters below
the unconformity: (previous hole SHE-96-3, grading 1.39% U(3)O(8)
over 47.3 meters).
Uranium grades are calculated from gamma probe logging. True widths of
mineralized intervals have not yet been determined. The technical information
in this news release was compiled and reviewed by Erwin Koning, P. Geo.,
AREVA's District Geologist, West Athabasca Region, a qualified person as
defined by National Instrument 43-101.
About AREVA Resources Canada Inc.
AREVA, a uranium exploration and mining company, is a subsidiary of AREVA
Group, a worldwide expert in the energy field with a strong industrial
presence in over 40 countries. AREVA Group, through its Canadian subsidiary,
has significant interests in several uranium deposits in the Athabasca Basin,
including the producing McClean Lake Deposits operated by AREVA, the producing
McArthur River Deposit operated by Cameco Corporation ("Cameco"), the
Millenium Deposit, and the Cigar Lake Deposit.
UEX is a Canadian uranium exploration company formed under an agreement
between Pioneer Metals Corporation and Cameco Corporation. Cameco Corporation,
the world's largest supplier of uranium, is UEX's largest shareholder. UEX
began trading on the Toronto Stock Exchange in July 2002 and is actively
involved in the exploration and development of 19 uranium projects, including
seven that are 100% owned and operated by UEX, one joint venture with AREVA
that is operated by UEX, ten under option from AREVA and one under option from
Japan-Canada Uranium Company, Limited, which are operated by AREVA. The 19
projects, totaling approximately 385,452 hectares (952,452 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's exploration budget for 2007 is
approximately $25.0 million and the Company has a cash position of
approximately $73.0 million.
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: firstname.lastname@example.org