Trading Symbol: UEX-TSX
VANCOUVER, Nov. 27, 2013 /CNW/ - UEX Corporation ("UEX") is pleased to announce a $2.0 million 2014 exploration budget for its Western Athabasca Projects, for which UEX will be responsible for $982,000. 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 Resources Canada Inc. ("AREVA"). Exploration is expected to commence in January 2014. UEX's forecasted cash position at December 31, 2013 is approximately $8.7 million and it is well-financed to carry out its share of these 2014 exploration programs.
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 recent Fission Uranium Corp./Alpha Minerals Inc. 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.
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.
Shea Creek Project
Exploration plans for the Shea Creek Project in 2014 under the additional earn-in option (see UEX's News Release dated April 10, 2013) have not yet been determined and will be dependent upon capital market conditions in the first quarter of 2014.
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) please access this news release on UEX's website at www.uex-corporation.com.
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, David Rhys, P.Geo., UEX Advisory Board member and Erwin Koning, P.Geo., AREVA's Technical Advisor, Exploration, who are each Qualified Persons as defined by National Instrument 43-101.
UEX 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%-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 $9.4 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||33,154,870|
|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||13,814,080|
|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
President & CEO