Trading Symbol: UEX-TSX
VANCOUVER, May 1, 2012 /CNW/ - UEX Corporation ("UEX") is pleased to announce final drilling results from the summer-fall 2011 drilling program at the Horseshoe and Raven deposits, which are located within UEX's 100%-owned Hidden Bay Project in the eastern Athabasca Basin of northern Saskatchewan, Canada. The program consisted mainly of definition and step-out drilling in the Raven Deposit ("Raven") and several infill drill holes at the Horseshoe Deposit ("Horseshoe"). The drilling program comprised 63 drill holes totaling 16,457 metres which were designed primarily to test the continuity and potential for expansion of higher grade portions of the Raven Deposit, and also served to provide geotechnical information for application to the ongoing economic analysis of the deposits. Results have validated the continuity of mineralization in the deposits, and expanded portions of the higher grade parts of the Raven Deposit.
Raven Drilling Results
Fifty-seven holes totaling 14,750 metres were drilled at Raven to:
|1)||test for additional continuity of higher grade areas of mineralization (>0.1% U3O8) that could provide higher grade underground mining targets; and|
|2)||drill step-out holes to test continuity of mineralization into new areas, principally in eastern parts of the Raven Deposit.|
Significant results are as follows, and additional composites are listed in Table 1:
|RU-243||0.274% U3O8 over 17.5 metres (section 5780E);|
|RU-246||0.445% U3O8 over 20.5 metres (section 5725E);|
|RU-248||0.414% U3O8 over 17.6 metres (section 5755E);|
|RU-252||1.492% U3O8 over 3.0 metres (section 5665E);|
|RU-254||0.119% U3O8 over 18.5 metres and|
|0.125% U3O8 over 21.0 meters (section 5476E);|
|RU-256||0.340% U3O8 over 5.2 metres (section 5445E);|
|RU-260||0.230% U3O8 over 11.0 metres (section 5025E);|
|RU-262||0.128% U3O8 over 15.0 metres (section 5423E);|
|RU-276||0.226% U3O8 over 13.5 metres (section 5290E);|
|RU-279||0.206% U3O8 over 24.0 metres (section 5335E); and|
|RU-281||1.538% U3O8 over 1.5 metres (section 5347E).|
True thickness of these intercepts has not yet been determined. Drill holes RU-243 and RU-248 will allow for the extension of the Raven Deposit for at least 30 metres eastward from its previously modeled outline. These results are higher grade than previous drilling intercepts in this area.
The results of this program are being incorporated into the Raven wireframe model, with the objective of providing additional information that will form part of a future preliminary feasibility study for the Horseshoe and Raven deposits.
In addition to drill holes which intersected the Raven Deposit, further drill holes were completed to the east of and surrounding the deposit to explore for new mineralized areas within or close to potential future mining infrastructure. No significant uranium mineralization was intersected in these drill holes. These drill holes did, however, provide geotechnical information related to open pit and underground mining design, including possible ramp access for underground development.
Horseshoe Drilling Results
Six drill holes totaling 1,707 metres were completed at, or adjacent to, Horseshoe to provide further information about the continuity and extent of mineralization within and adjacent to the Horseshoe Deposit, and to supply additional geotechnical data in the deposit area. Significant drilling intercepts are listed in Table 1 and include the following:
|HU-368||0.177% U3O8 over 12.0 metres (section 4307N);|
|HU-370||0.098% U3O8 over 32.0 metres (section 4561N); and|
|HU-371||0.495% U3O8 over 11.0 metres|
|including 3.295% U3O8 over 1.0 metre (section 4695N).|
These results confirm continuity of mineralization in the Horseshoe A and B zones and, based on known morphology of these zones, are at or close to true thickness. Additional step-out holes in the Horseshoe area did not intercept any significant mineralization but, since they were drilled outside of the known resources, these have no impact on the current resource model.
Hidden Bay Development
UEX is committed to advancing the Hidden Bay Project and, in this regard, has engaged SRK Consulting (Canada) Inc. to conduct engineering studies on the Horseshoe, Raven and West Bear deposits. These studies will further examine the economic viability of mining the Horseshoe and Raven deposits as a combined open pit and underground ramp access operation and assess a variety of processing options as well as the suitability of the Raven pit as a tailings management facility. This work follows on the previously released Preliminary Assessment which was completed in February 2011 (see UEX news release of February 23, 2011) and will form components of a future preliminary feasibility study. UEX has also commenced preliminary discussions with the owners of the nearby McClean Lake and Rabbit Lake mills regarding the processing of ore from the Horseshoe, Raven and West Bear deposits.
A $2.0-million budget has been proposed for development at the Hidden Bay Project in 2012 which will include the following:
- Geochemical, geotechnical and metallurgical studies;
- Pit hydrogeology and hydrology studies;
- Mine engineering and infrastructure analysis;
- Waste management and environmental studies;
- Continued evaluation of the suitability of the proposed Raven open pit as a tailings management facility; and
- Resource review and economic analysis.
About the Horseshoe and Raven Deposits
The Horseshoe and Raven deposits are located in the central portion of UEX's 100%-owned Hidden Bay Project which also contains the West Bear Deposit. 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 approximately 4 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 cut-off grade of 0.05% U3O8, mineral resource estimates 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 mineral resource estimates are supported by a technical report on the Hidden Bay property with an effective date of February 15, 2011, filed on SEDAR at www.sedar.com on February 23, 2011. Note that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
Further information regarding UEX's projects, including maps and cross sections, is available on UEX's website www.uex-corporation.com.
Technical information in this news release has been reviewed and approved by R. Sierd Eriks, P.Geo., UEX's Vice-President of Exploration, and David Rhys, P.Geo., UEX Advisory Board member, who are each Qualified Persons as defined by National Instrument 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 308,320 hectares (761,875 acres), are located in the eastern, western and northern perimeters of the Athabasca Basin, the world's richest uranium belt, which accounts for approximately 17% of the global primary uranium production.
UEX's two major projects have mineral resource estimates as follows:
UEX Corporation - Indicated Mineral Resources (1) (2) (3)
| UEX's share
|Shea Creek (4)||1,872,600||1.540||63,572,000||31,150,280|
|Hidden Bay (5)||10,372,500||0.160||36,623,000||36,623,000|
UEX Corporation - Inferred Mineral Resources (1) (2) (3)
| UEX's share
|Shea Creek (4)||1,068,900||1.041||24,525,000||12,017,250|
|Hidden Bay (5)||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.|
|(3)||The Hidden Bay mineral resources were estimated at a cut-off of 0.05% U3O8.|
|(4)||The Shea Creek mineral resource estimates are included in the Shea Creek Technical Report with an effective date of May 26, 2010 which was filed on SEDAR at www.sedar.com on July 9, 2010.|
|(5)||The Hidden Bay mineral resource estimates are included 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.|
UEX is currently advancing several uranium deposits at its two major projects 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.
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, 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 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.
Summer-Fall 2011 Raven (RU-) and Horseshoe (HU-) Drilling Program
Intersections from Drill Holes HU-368 to HU-371 and RU-227 to RU-282
Only intervals with composite grades greater than 0.05% U3O8 and a grade-thickness product greater than 0.1 are listed below. All analyses were performed by Saskatchewan Research Council by ICP. No intervals greater than 0.05% U3O8 and a grade thickness product higher than 0.1 were intersected in holes RU-227, 229-233, 235, 236, 238, 241, 242, 244, 245, 247, 249, 253, 257-259, 263-267, 269-271 and 278.
| Avg. Grade
|RU-234||Raven Step out||170.00||171.50||1.50||0.081|
| Avg. Grade
For further information:
Graham C. Thody
President & CEO