Trading Symbol: UEX-TSX
VANCOUVER, Jan. 27 /CNW/ - UEX Corporation ("UEX") is pleased to
announce that its winter 2011 diamond drilling program has commenced on
its 100%-owned Hidden Bay Project in the eastern Athabasca Basin of
northern Saskatchewan, Canada. Two drills operated by Lantech Drilling
Services Inc. are currently being utilized on the Project. Drilling
totaling approximately 12,000 metres with a budget of $2.0 million will
focus on targets in the vicinity of the Horseshoe and Raven deposits as
well as in the Shamus Lake area.
Given the successful results from drilling the Horseshoe and Raven
deposits over the last several years, UEX intends to carry out an
aggressive drilling program to test additional geological and
geophysical targets in the area. These outlying exploration targets
include areas with resistivity and gravity anomalies similar to those
at the Horseshoe and Raven deposits, suggesting the possibility of new
zones of clay alteration which may be associated with uranium
mineralization. This drill program will also test structural targets
where projections of known faults may extend across potentially
favourable lithologies that are host to uranium mineralization.
In addition to the drilling program in the Horseshoe and Raven deposit
areas, further exploration drilling is planned for the Shamus Lake area
("Shamus") in the northwestern part of the Hidden Bay property. This
area, which lies just south of and along strike from UEX's Telephone
Lake area and the Sue Deposits on the adjacent McClean Lake mine
property operated by AREVA Resources Canada Inc. ("AREVA"), has the
potential for the discovery of Sue C or Eagle Point style
mineralization along the Telephone Lake Fault.
Drilling at Shamus will target areas identified by recent geophysical
data which are down dip from several previously intersected areas of
uranium mineralization encountered near the Athabasca unconformity and
in underlying basement rocks.
About the Horseshoe and Raven Deposits
Mineralization at the Horseshoe and Raven deposits comprises shallow
dipping zones of hematization with disseminated and veinlet
pitchblende-boltwoodite-uranophane that are hosted by folded arkosic
quartzite gneiss. The two deposits are located less than 5 kilometres
south of Cameco's Rabbit Lake milling operation, and 22 kilometres
southeast of AREVA's McClean Lake milling operation. As previously
announced in July 2009, the Horseshoe and Raven deposits collectively
contain, at a cutoff grade of 0.05% U3O8, National Instrument 43-101 ("N.I. 43-101") compliant resources of:
35.04 million pounds of U3O8 grading 0.155% U3O8 in the Indicated category; and
2.72 million pounds of U3O8 grading 0.111% U3O8 in the Inferred category.
These resource estimates are supported by a technical report by K.
Palmer, P.Geo. of Golder Associates Ltd. ("Golder"), with an effective
date of July 15, 2009 filed on SEDAR (www.sedar.com) on September 8, 2009.
With a high proportion of the Horseshoe and Raven resource base in the
Indicated category, UEX has engaged SRK Consulting (Canada) Inc.
("SRK") of Vancouver, BC to perform a scoping-level evaluation of the
potential economic viability of mining the deposits. The SRK scoping
report is expected to be completed in the first quarter of 2011.
To view additional information and maps of the deposits, visit UEX's
website at www.uex-corporation.com. This website also contains the recent presentation on the Horseshoe
and Raven deposits made by David Rhys at the Saskatchewan Geological
Survey Open House in November 2010.
Technical information in this news release has been reviewed by R. Sierd
Eriks, P.Geo., UEX's Vice-President of Exploration and David Rhys,
P.Geo., UEX Advisory Board member, both of whom who are Qualified
Persons as defined by N.I. 43-101.
UEX is a Canadian uranium exploration and development company actively
involved in 18 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 ten joint-ventured with AREVA and one under option from JCU
(Canada) Exploration Company, Limited, which are operated by AREVA. The
18 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, Colette and 58B deposits at its 49%-owned Shea Creek
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. With a cash position
of approximately $16.8 million at December 31, 2010, UEX is
well-financed to carry out its 2011 exploration and development
programs budgeted at approximately $9.6 million.
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 resource estimates, outlook for our
future operations, plans and timing for exploration activities, 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 information. Such forward-looking
information is 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 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, 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.
SOURCE UEX Corporation
For further information:
Graham C. Thody
President & CEO