Trading Symbol: UEX-TSX
VANCOUVER, Jan. 7, 2014 /CNW/ - Work has commenced on the combined $2.0 million joint venture budget for the Western Athabasca Projects which was previously announced on November 27, 2013, as well as on the recently approved $0.65 million joint venture budget for the Black Lake Project.
Western Athabasca Projects
UEX Corporation ("UEX") is responsible for funding $982,000 of the $2.0 million 2014 exploration program at its Western Athabasca Projects. The budget will be directed solely toward exploration of the Laurie, Mirror River and Erica Projects (see Figure 1). Effective December 31, 2013 and upon finalization of 2013 exploration expenditures, the projects will be owned approximately 49.1% by UEX and 50.9% by the operator, AREVA. Mobilization onto the Laurie Project area has commenced and drilling of approximately 2,000 metres is expected to begin by mid-January 2014. A ground geophysical program on the Erica Project is expected to commence in mid-March 2014. Drilling of approximately 2,000 metres at the Mirror Project will commence upon the completion of the exploration drilling at Laurie.
Black Lake Project
UEX and Uracan Resources Ltd. ("Uracan") have planned a $650,000 diamond drilling program of approximately 3,000 metres to test geophysical and geochemical targets on the Black Lake Project ("the Project") which will be funded 100% by Uracan. Drilling will commence in late January with UEX acting as operator of the Project (see Figure 2).
In early 2013, Uracan signed an agreement with UEX whereby Uracan acquired the option to earn from UEX a 60% participating interest in the Black Lake Project in northern Saskatchewan (see UEX news releases dated January 24, 2013 and February 13, 2013). UEX has an 89.97% interest in the Project with AREVA Resources Canada Inc. ("AREVA") holding the remaining 10.03% interest.
In order for Uracan to earn its 60% participating interest in the Project, it must incur a total of $10.0 million in exploration expenditures over a 10 year period commencing in 2013. Uracan must spend $2.0 million on exploration expenditures by December 31, 2014 with a firm commitment to spend $1.5 million even if it decides not to proceed with the earn-in or the Agreement is otherwise terminated. Any shortfall in the $1.5 million commitment will be payable to UEX. During the remainder of the option period, minimum expenditures of $1.0 million per year are required. Uracan will fund the UEX portion of all exploration work until the earn-in option has been completed, after which further work will be funded by the Joint Venture partners.
About the Laurie and Mirror River Projects
The Laurie and Mirror River project areas lie along the southern margin of the Athabasca Basin approximately 35 and 55 kilometres, respectively, east of the Fission Uranium Corp. discovery at Patterson Lake South. A $1.4 million budget for 2014 will test several electromagnetic conductors with approximately 4,000 metres of drilling, particularly in areas where crosscutting structures are postulated to be present or where strong, previously untested conductors are apparent. These conductors have the potential to be associated with unconformity-style uranium mineralization in structural settings which are interpreted to be comparable to those associated with known deposits in the region.
About the Erica Project
The Erica Project area lies directly west of UEX's Shea Creek Project, which hosts the Kianna, Anne, Colette and 58B deposits. A $600,000 budget for 2014 has been designed to carry out a ground geophysical Tensor Magnetotelluric program of 50.4 line-kilometres. This ground geophysical program is planned over a northwest-southeast conductive trend outlined by a previous 2002 MEGATEM® airborne geophysical survey in a setting which is similar to the orientation and intensity of the Saskatoon Lake Conductor that is associated with uranium mineralization on the Shea Creek Project.
About the Black Lake Project
The Black Lake Project covers a total of 30,381 hectares within the prolific Athabasca Basin. Bleaching and desilicification of the sandstone as well as strong local clay alteration and dravite zones have been intersected on the property consistent with those associated with uranium mineralization elsewhere in the Athabasca Basin. Prospective structures (reverse faulting on main conductor, east-west cross structures) are also noted throughout the property and are considered good potential hosts for uranium mineralization.
Previous exploration drilling conducted by UEX on the property has intersected significant uranium mineralization in several areas. Highlights with grades greater than 0.5% U3O8 and a grade thickness of greater than 0.9 include (as previously described in UEX press releases dated October 12, 2004, August 14, 2006, February 27, 2007 and August 21, 2007, respectively):
BL-018: 0.69% U3O8 over 4.4 metres, including 1.96% U3O8 over 0.5 metres;
BL-082: 0.50% U3O8 over 3.3 metres, including 1.60% U3O8 over 0.7 metres;
BL-110: 0.79% U3O8 over 2.82 metres; and
BL-140: 0.67% U3O8 over 3.0 metres, including 1.58% U3O8 over 1.0 metre.
These mineralized intervals were encountered at the unconformity between the overlying Proterozoic Athabasca sandstones and underlying Archean/Aphebian basement rocks at downhole depths between 274 metres and 315 metres.
UEX believes that the Project has the potential to host high-grade unconformity-related uranium mineralization. Extensive exploration potential continues to exist throughout the Project, with numerous additional geophysical and geochemical targets remaining to be drill tested.
Further information regarding UEX's projects, including maps, is available on UEX's website at www.uex-corporation.com.
To view Figure 1 (Western Athabasca Projects - Location of Erica, Laurie and Mirror River Projects) and Figure 2 (Black Lake Project - Location of Black Lake and other UEX Projects) please access this news release on UEX's website at www.uex-corporation.com.
Qualified Person and Geochemical Analyses
Technical information in this news release has been reviewed and approved by R. Sierd Eriks, P.Geo., UEX's Vice-President of Exploration, who is a Qualified Person as defined by National Instrument 43-101 ("N.I. 43-101") standards.
All samples were analyzed geochemically at the Saskatchewan Research Council Geoanalytical Laboratories in Saskatoon, SK by ICP, with additional uranium analyses by fluorimetry.
UEX (TSX:UEX, OTC:UEXCF.PK, UXO.F) is a Canadian uranium exploration and development company actively involved in 16 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 eight joint-ventured with AREVA and one joint venture with AREVA and JCU (Canada) Exploration Company, Limited, which are operated by AREVA. The 16 projects, totaling 264,363 hectares (653,255 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts 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 $8.7 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:
Graham C. Thody