Trading Symbol: UEX-TSX
VANCOUVER, Sept. 8, 2014 /CNW/ - UEX Corporation (the "Company") has completed the first phase of its review of its Hidden Bay Project historical drill core and database. The review program has identified several high-quality basement uranium targets that were not previously known to UEX or previous operators of Hidden Bay. UEX intends to drill these priority basement targets during the upcoming winter exploration program on the Hidden Bay property. This 10,000-metre drilling program will have an estimated budget of $2.5 million.
- Twelve target areas have been identified from UEX's database of 379 km of electromagnetic conductors, historical drilling and exploration data as being prospective to host basement-hosted uranium deposits.
- Two target areas with significant Millennium-like indicative clay alteration in the basement at depths of less than 75 m from surface were identified by UEX's explorationists during the recent in-the-field review of historic Hidden Bay drill core. The basement deposit potential of these alteration zones was not tested by previous exploration operators.
- One of the significant clay alteration zones has anomalous uranium mineralization over several metres both within the alteration zone and in adjacent drill holes.
- Excellent basement-hosted uranium potential was visually confirmed in five of the six target areas selected during the first phase of drill core review. The core from the remaining additional six targets identified during our database review will be analyzed in the upcoming year.
Roger Lemaitre, President and CEO of UEX Corporation stated, "While we expected to find high-quality basement targets at Hidden Bay, we were surprised by the speed and ease with which we are able to confirm the validity of these targets from our core library and drill-hole database. With the discovery of Millennium-like clay alteration in the shallow basement environment in two locations, one of which has associated anomalous uranium mineralization, the team and I are very excited about our upcoming drill programs. Having seen this Millennium-type clay alteration during my tenure with Cameco Corporation, I am keenly aware of the potential that such alteration represents."
The Basement-Hosted Core and Database Review Program
As a result of the recent industry successes in identifying new basement-hosted uranium deposits in the Athabasca Basin, the UEX team undertook an all-encompassing project review with the intention of finding the critical geological, geophysical and geochemical indicators associated with basement-hosted uranium deposits. With over 379 km of electromagnetic conductors defined on the property to date, a drill hole database of 1,800 holes of which less than 25% extended more than 25 m below the unconformity, the historic unwavering focus of previous exploration operators in the search for classic unconformity deposits and sandstone depths of 0 to 175 m, the Hidden Bay Project represents some of the most prospective shallow basement-hosted uranium terrain in the Athabasca Basin.
Our systematic database review, which has been conducted over the last few months, successfully identified twelve areas of high potential for basement-hosted deposits. The UEX exploration team undertook a field review of the historic core to corroborate the historic observations documented in our database. To date, drill core from six of the twelve target areas have been reviewed in the field.
The exploration team has confirmed that in five of the six areas reviewed to date excellent potential exists for the discovery of basement-hosted uranium deposits. Highlighting the review was the discovery of substantial massive hydrothermal clay alteration in basement rocks within and adjacent to graphitic fault zones in the Dwyer Lake and Wolf Lake areas. The clay alteration zones in both targets areas are several metres thick and are of a style of alteration resembling that of the basement alteration system associated with the Millennium and Roughrider uranium deposits.
At both Dwyer Lake and Wolf Lake, the Athabasca sandstone is approximately 40 to 60 m thick and the alteration systems were found in the 50 to 100 m depth range. Previous operators did not follow up on this prospective basement alteration with additional holes in either the down-dip or along-strike directions.
In the Wolf Lake area, continuous clay alteration was observed over a core length of 100 m into basement rocks. Several nearby holes contain anomalous uranium mineralization, which included intersections of 0.135% U3O8 over 0.5 m, 0.12% U3O8 over 3.5 m and 0.068% U3O8 over 2.5 m all at shallow depths of less than 70 m from surface.
The UEX team is now focusing on the process of acquiring the necessary permits and planning the logistics needed to execute a winter exploration program to begin testing the targets identified during the first phase of the core review program.
About the Hidden Bay Project
UEX's Hidden Bay Project is located in the eastern Athabasca Basin and is proximate to several of the region's major uranium deposits and mines. The property lies adjacent to two operating uranium mills, is divided by a provincial highway and is located minutes from daily all-weather commercial air service at a nearby regional air terminal. The Hidden Bay Project has been explored for uranium by UEX and preceding companies for over four decades, with this exploration leading to the discovery of three deposits documented in National Instrument 43-101 ("N.I. 43-101") reports which are referenced below.
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 by Roger Lemaitre, P.Eng., P.Geo., UEX's President and CEO who are both Qualified Persons as defined by N.I. 43‑101 standards.
UEX (TSX:UEX, OTC:UEXCF.PK, UXO.F) is a Canadian uranium exploration and development company actively involved in fifteen uranium projects, including five that are 100% owned and operated by UEX, one joint venture with AREVA that is operated by UEX, as well as eight joint-ventured with AREVA and one joint venture with AREVA and JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The fifteen projects, totaling 255,690 hectares (631,823 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which in 2013 accounted for approximately 15% of the global primary uranium production. UEX is currently advancing several uranium deposits in the Athabasca Basin which include the Kianna, Anne, Colette and 58B deposits at its currently 49.1%-owned Shea Creek Project, and the Horseshoe, Raven and West Bear deposits located at its 100%-owned Hidden Bay Project. UEX currently has a cash position of approximately $6.7 million.
UEX's two major projects have mineral resource estimates as follows:
UEX Corporation - Indicated Mineral Resources (1) (2) (3)
| UEX's share
|Shea Creek (2)||2,067,900||1.484||67,663,000||33,222,533|
|Hidden Bay (3)||10,372,500||0.160||36,623,000||36,623,000|
UEX Corporation - Inferred Mineral Resources (1) (2) (3)
| UEX's share
|Shea Creek (2)||1,272,200||1.005||28,192,000||13,842,272|
|Hidden Bay (3)||1,109,200||0.111||2,715,000||2,715,000|
|(1)||The mineral resource estimates follow the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects and classifications follow CIM definition standards.|
|(2)||The Shea Creek mineral resources were estimated at a cut-off of 0.30% U3O8, and are documented in the Shea Creek Technical Report with an effective date of May 31, 2013 which was filed on SEDAR at www.sedar.com on May 31, 2013.|
|(3)||The Hidden Bay mineral resources were estimated at a cut-off of 0.05% U3O8, and are documented in the Hidden Bay Technical Report with an effective date of February 15, 2011 which was filed on SEDAR at www.sedar.com on February 23, 2011.|
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, intentions and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", "will", "may", 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.
Cautionary Note to United States Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource estimates included in this press release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC's disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources", "indicated mineral resources" or "inferred mineral resources" or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves" by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules, estimated "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that all or any part of an "inferred mineral resource" exists or is economically or legally mineable. Disclosure of "contained pounds" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in-place tonnage and grade without reference to unit measures. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with U.S. standards.
SOURCE: UEX Corporation
For further information:
Roger Lemaitre, President & CEO, (604) 669-2349